creating shared value - acacia mining/media/files/a/acacia... · creating shared value 2014 annual...

Creating Shared

Value

2014ANNUAL REPORT

Acacia Maendelo Fund - 2014 Report

Table of content

About Acacia Maendeleo Fund pg 2

Introduction from the Chief Executive Officer pg 5

Our Vision pg 6

Acacia Mandeleo Fund at a Glance pg 7

Where We Operate pg 9

Acacia Maendeleo Fund Community Investment Committee pg 10

Acacia Maendeleo Fund 2014 Spend pg 13

Inestments by Thematic Area

Health pg 15

Water & Sanitation pg 17

Education pg 19

Infrastructure pg 21

Livelihoods pg 23

Donations/Social Cohesion Activities pg 25

Acacia Maendeleo Fund Partners pg 27


About Acacia

02

Acacia is one of the largest

gold producers in Africa. We

have three operating mines

in Tanzania with

exploration projects in

Tanzania, Kenya, Mali and

Burkina Faso.

Our strategic approach

Our new approach to operating our assets has focused on three key pillars: our business, our people and our relationships; whilst continuing to invest in our future.

Our business

We have made significant technical changes to our business, to ensure that each of our mines is correctly engineered and set up to deliver free cash flow. At Bulyanhulu we have changed to a mechanised mining method and are working to ensure that the mine delivers in line with its geological endowment.

At North Mara we are moving forward with the development of an underground operation at one of the mine’s open pits which provides strong economic and social returns. At Buzwagi we have shortened the life of the mine so that we are mining only profitable ounces.

Our people

Our second pillar is our people, who are our core asset. We have significantly reduced the levels of management, restructured our corporate offices, commenced a new cultural transformation programme (Tufanikiwe Pamoja/Together we succeed) and introduced a behavioural safety programme (Tunajali/WeCare). We are focused on creating a high-performance culture where our people are held accountable, but are given the tools to succeed. As part of this process we have already uncovered real talent within the workforce as well as seeing talented people returning to Acacia.

Our relationships

We have focused on improving our relationships with the communities around our mines and with the Government. We have engaged more actively with the community, the media and our broader stakeholders. We have also worked hard to strengthen our relationships with local and national authorities to ensure that we receive the appropriate support for our business in order for us to continue to be a key economic development driver for our host countries.

Our future

The fourth element of our strategy is to invest in our future. We believe that exploration is a significant driver of value for the business over the long term and now is the time to invest, which is a contrarian view to many in the market. As a result, we are focused on building a significant land package across Africa in the most geologically prospective belts to provide our exploration group the best opportunity to discover our next mines, as well as other opportunities to drive shareholder value over the long term.

OurBusiness

OurRelationships

OurFuture

OurPeople


we measure our successes in theprosperity of our surrounding community


04Acacia Maendelo Fund - 2014 Report

Introduction from the Chief Executive Officer

Chief Executive Officer

I wish to welcome you to this year's edition of the Acacia Maendeleo Fund report. This is our first report since our name change to Acacia Mining. The Acacia tree is wide spread and well known across the African continent and is hardy and able to thrive in any environment. We believe our company shares similar attributes to the tree which is why we chose the name, underpinning our ambition to become one of Africa’s leading companies.

One of our three key strategic pillars is Our Relationships, which highlights the importance we place on creating sustainable shared value. By this we mean building capacities and enhancing resilience within our host communities and countries. To help achieve this, we established the Acacia Maendeleo Fund in 2011 and since that time have invested over $25 million into projects, making it the largest community development fund of its kind in the region.

This report chronicles the community investments made by the Acacia Maendeleo Fund over the past year and highlights some of the projects and programmes that have been the hallmark of our social engagement with communities in which we operate. Strong community relations are at the cornerstone of our operations and we recognise that the success of our company is linked to the success of our neighbours. We strive to form long term partnerships within our regions that help us maintain and strengthen our social license to operate.

We are particularly proud of the work we are doing around the North Mara mine, which won the 2014 Presidential Award for Corporate Social Responsibility and Empowerment in Tanzania. The majority of the projects focused on development of infrastructure, including schools, clean water and healthcare as well as the provision of alternative livelihoods.

Brad Gordon

One of the projects I am particularly pleased with the Kahama road project. We invested over $2 million to tarmac five kilometres of roads which has given a significant boost to the local economy. There are now improved traffic flows, enabling increased custom for the businesses in that area. The project has also reduced the loss from damage to products whilst they are transported providing a further benefit to all in the community – from the consumers to the suppliers.

At Acacia Mining, our belief in shared value creation focuses on identifying and expanding the pivotal connections that exist between societal and economic progress. We will continue to implement policies and operating practices that enhance the competitiveness of our company while simultaneously advancing the economic and social conditions in the communities in which we operate. We are proud of our achievements to date and will continue to strive to achieve our shared value goals.


Acacia's 2020 Strategic Vision

Unearthing Africa’s Potential

Our three strategic pillars underpin our approach to mining – Our Business, Our People and Our Relationships with the community in which we operate. All are linked together by bridges.

Our stakeholders are represented by the tree trunk, which is deeply rooted in Africa. The tree is made up of a miner, an elderly woman, a politician and a child, all of which are important stakeholders for Acacia

The Acacia trees spread across Africa represents our potential growth across the continent over the next 5 years

The Giraffe is Tanzania’s national animal and represents the location of Acacia’s operating mines

The belt around the globe represents our business continuity

The Acacia vision is cradled by the WeCare hand, our safety programme, safety of our employees remains paramount

The branches extend beyond the sky to signify our potentially limitless growth

The miner and lady represent diversity within Acacia – gender, ethnicity and culture.

The sunrise signifies a new dawn for Acacia


Acacia created the

Maendeleo Fund in 2011,

one of the largest

community development

funds of its kind, in order

to contribute to a wide

range of sustainable

development projects in

communities near

Acacia’s operations.

As part of our commitment to promoting sustainable development in Tanzania we established the Acacia Maendeleo Fund in 2011, and have now expanded it to all of the countries in which we operate. Acacia aims to commit US$10 million per year to the fund, making it the largest community development fund of its kind in the region.

We use the fund to support all of our community investment programmes and since being unveiled, the Maendeleo Fund has spent $27.4 million on over 150 projects.

Funding priority is given to investments that support community development and capacity building, access to health, education and water and environment projects within communities surrounding our operations.

At Acacia, we are committed to building enduring relationships with the communities in which we operate over the entire life-cycle of our mines to ensure that local communities have the opportunity to share in the benefits of our activities.

Accacia Maendeleo Fund at a Glance

Acacia Maendelo Fund - 2014 Report 07

Where we operate

Map of our operations - Tanzania, Kenya, Mali and Burkina Faso

Operating MinesExploration


North Mara

Bulyanhulu

Buzwagi

Acacia has established a

Community Investment Committee,

which is responsible for reviewing

applications received for support

and investment under the Acacia

Maendeleo Fund to ensure that all

applications are reviewed in a fair

and timely manner.

The Committee’s primary function is:

• Making decisions on project proposals;

• Overseeing implementation of various projects;

• Coordinating monitoring and evaluation, and providing reports on the fund’s operations.

The Acacia Maendeleo Fund Community Investment Committee

Chief Financial Officer

Andrew WrayVice-President Corporate Affairs

Deo MwanyikaOur fundamental goal is to deliver robust business performance that will in turn benefit our shareholders and help us to give back to the communities and host countries in which we operate through job creation, tax revenue, local procurement and community investments.”

“ We strive to understand and mitigate the social, environmental and economic impacts of our activities so that we can improve shared benefits and reduce adverse impacts to our communities and host governments. We are here for the long haul and are determined to leave behind a legacy of mutual prosperity for our shareholders, communities and host governments.”

“10Acacia Maendelo Fund - 2014 Report

General Counsel and Company Secretary

Katrina WhitePR & Communications Manager

Nector Pendaeli FoyaCommunity Relations and CSR Manager

Steve KisakyeWe are committed to conducting our business in a manner that accords the utmost respect for individuals, our employees, and the communities and environments in which we operate, while pursuing value for our shareholders. We are committed to maintaining the highest standards on corporate governance, accountability and responsible mining.”

“ We consult with communities, host governments and other stakeholders before making our community investments. We do not impose projects and programmes on communities but instead we engage with societies and governments and invest in areas that they themselves identify as priority. Stakeholder engagement underpins our approach to community relations.”

“ Our ability to operate sustainably depends on the social license from the communities and host governments where we operate. We therefore recognise the importance of continuing to build meaningful partnerships with our host communities.”

“Acacia Maendelo Fund - 2014 Report 11

Acacia Maendeleo Fund 2014 Spend

SUMMARY BY THEMATIC AREASUMMARY BY SITE

Site Amount

Buzwagi 2,272,763

Dar es Salaam 842,277

Bulyanhulu 592,496

North Mara 4,514,484

Acacia Discovery 247,133

Total 8,469,156

Health768,914

Education2,512,760

Infrastructure2,583,779Livelihood

support 725,979

Donations304,205

Other 316,536

Water &Sanitation

1,256,977


“I gave birth to my second child on the way to hospital as the facilities were far from our home. With newly built Health Centre being nearby my fellow women and I, now enjoy easy access to maternal services. We are very thankful to Acacia for building Mwendakuli-ma Health Centre in our area.”ZAINABU KAZI MANAMBA – MWENDAKULIMA RESIDENT


Lake Zone Economic Development Initiative (LAZHEDI)

Goal: To improve health in artisanal and small scales mining communities and foster economic development.

Location: Tarime district, Mara region

Issue Overview

Acacia has partnered with the United States Agency for International Development (USAID) and Africare Tanzania to implement the Lake Zone Health and Economic Development Initiative (LAZHEDI) in Tarime district, Mara region. The project has been implemented in collaboration with the Ministry of Health and Social Welfare.

The 3-year LAZHEDI project (October 2011 – September 2014) is aimed at improving health outcomes among targeted households in artisanal and small scale mining communities. It also works to facilitate the diversification of economic activities to improve average household monthly incomes.

Progress and Impact

The project has helped to increase the capacity of the district health system to deliver HIV/AIDS, tuberculosis, sexual and reproductive health services to artisanal and small scale mining communities.

LAZHEDI is expected to provide services in eight villages to reach a population of 42,880 community members with HIV prevention services including 3,000 people living with HIV and 2,250 pregnant women who attend reproductive and child health (RCH) clinics.

HEALTH

Investments by Thematic Area

NORTH MARA

1 Community health awareness and programme 365,686.67

REGIONAL AND NATIONAL

1 HIV/AIDS Programme with Benjamin William Mkapa HIV/AIDS foundation 239,115.43

2 Community health programme with Africare and USAID 164,112.00


Water Boreholes Project Around Bulyanhulu Mine

Goal: Ensuring that communities within our operating areas have access to ample, clean and safe water.

Location: Kahama district, Shinyanga region

Issue OverviewAcacia operates in areas where water scarcity and cleanliness is a major problem. Therefore water accessibility is a matter of critical concern to our host communities. We recognise that community members lack safe and clean drinking water and hence give priority to this important need.

Progress and ImpactA total of 9 water boreholes have so far been drilled in addition to water survey work. The boreholes benefit thousands of community members in villages around the Bulyanhulu Gold Mine. The new water boreholes have dramatically reduced the time spent and distance travelled by community members, mostly women, in search of water. This means that community members have more time to engage in productive activities instead of erstwhile walking for miles in search of the precious liquid. Furthermore, access of clean and safe drinking water has cut the prevalence of water-borne diseases throughout the targeted communities. This has a significant impact on reducing mortality of children under the age of five caused by water-borne diseases.

WATER & SANITATION


BULYANHULU

1 Drilling of 9 water boreholes plus water survey 155,413.26

2 KASHWASA Joint water project feasibility study 81,400.27

3 Repairs and maintenance of Bugarama Pumping station 38,845.28

NORTH MARA

1 Community pipe water supply project 512,963.60

2 Community water boreholes programme for 2014 217,399.76

DISCOVERY

1 Drilling of water boreholes 211,707.40

TULAWAKA

1 Construction of 3 agricultural water dams in Mavota and Mkunkwa villages 25,740.48

2 Installation of rain water harvesting systems in schools 13,507.29


“Previously I was struggling to get school fees for my children but through this project I am harvesting enough honey. My sales give me enough to pay school now. Our livelihood has improved for the best.”Rehema Juma – Bee keeper – Mwendakulima



Case Study: CanEducate

Goal: Ensure no child is denied access to education because they cannot afford school fees

Location: Mwanza, Shinyanga and Kagera regions

Progress and Impact

Buzwagi awards CanEducate heroes!In 2014 the number of students who were sponsored by CanEducate increased to 420 from 413 the previous year. Each community has a village committee responsible for identifying children who require financial assistance to attend school. Through the program students are provided with school fees, uniforms and stationary. CanEducate gives priority to sponsorships for students who have the greatest need, which includes orphans, children from single-parent households and girls, who are generally under-represented in the country's education system. Postcards from Bulyanhulu – TanzaniaThe seeds that were planted by CanEducate in 2010 at the schools in the communities neighbouring the Bulyanhulu mine have grown and are now in full bloom. There were 158 students when the program started in 2010 at Bulyanhulu and now the program assists 900 students.This past fall, nine students from various schools were awarded by CanEducate and the Bulyanhulu gold mine for their achievements after successfully completing their O- Level education and attaining Division One in their final national examination. CanEducate Board Member, Katrina White, said: “The CanEducate board has taken a decision to show recognition to these students as a way of acknowledging their good efforts. We are extremely happy and proud of their results; we hope that that their fellow students will also follow their laudable steps. We also thank teachers and guardians for supporting these students throughout their studies. Tufanikiwe Pamoja! Let us succeed together!”

BULYANHULU

1 Completion of 2 teachers houses at Bugarama 124,727.50

2 Construction of teachers house at Busoka Secondary School 132,098.86

3 Completion of school buildings in Busindi village 60,011.24

NORTH MARA

1 Nyamwaga Secondary School construction phase 2 642,794.61

2 Renovation of Nyamongo Primary school 600,053.76

3 Renovation of Kerende Primary school 421,548.49

4 Renovation of Bongenge Primary school 125,679.91

5 Scholarships and sponsorship 57,069.87

6 Renovation of Nyamongo Secondary School 10,245.06

BUZWAGI

1 Construction of Kinaga Secondary School Science lab 123,097.47

2 Construction of fence at Mwendakulima Secondary school dormitory 31,285.43


1 CanEducate program 127,037.66

TULAWAKA

1 Construction of 4 teachers houses and 4 labs in Kagera region 50,761.15

2 Supply of books to Nyantakara Secondary School 6,297.85

3 Construction of Mubaba Secondary School kitchen 51.72

EDUCATION


“Before the Kahama town centre road was tarmac I frequently found myself experiencing back pains due to riding my motorcycle (bodaboda – taxi motorcycle) on the rough road. But after construction I must say riding my motorcycle is a joy. We (fellow bodaboda drivers) are happy as we enjoy our work.”David Bahati Mrefu – Boda Boda driver - Kahama

“Once you get a Job, it’s the key to one’s development – I thank Acacia for the opportunity.”Bina Elikana - Security Guard – From Nyakagema Projects



Case Study: Kahama roads project

Goal: To increase mobility of people, goods and services and hence boost economic activities in the district.

Location: Kahama district, Shinyanga region

Issues OverviewKahama district is among the fastest-growing towns in Tanzania. The district's rapid growth has outpaced the development of infrastructure, hence the urgent need to build more roads and upgrade existing ones to unlock Kahama's potential.Acacia has assisted the district with the construction of a network of tarmac roads totaling to 5km.

Progress and ImpactThe construction of roads has increased mobility in the district and allowed Acacia's Buzwagi Gold Mine to foster stronger relationships with host communities and government.

INFRASTRUCTURE

“We have benefitted tremendously from this project, not only by earning and income but also from the knowledge we get through learning new things that will help us to run sustainable projects.”Daudi Mkaoma – Manager WAHIRITUI SACCOS

NORTH MARA

1 Renovation of police stations and FFU posts 589.57

2 Road maintanance in 6 villages 481,748.17

BUZWAGI

1 Kahama roads project 2,033,275.56

2 Community alternative road project 32,740.00

DISCOVERY

1 Repair of broken culvert near Bulyanhulu 35,426.54


“We started by crushing stones manually, which was tiresome and less profitable. Acacia has provided us with electric stone crushing machines, which have eased the work and increase our product outputs. This project is giving me a steady income and now I am sure to afford taking my three grandchildren to school.”LUCIA MAGABE - MEMBER- NYABICHUNE CORPORATION

“Since I joined the Nyakegema Corporative, my life has changed. The funds I receive from the work we do as a group has allowed me to buy cattle and continue to support my family. As the father and head of the family I feel proud of my current accomplishments and plan to accomplish more through the corporative” AUGUSTINE MALECHO – RESIDENT OF MATONGO VILLAGe



NORTH MARA

1 Support for local farming and business initiatives 628,412.88

2 Support for ASM programs 3,306.37

BUZWAGI

1 Training of youth on interlocking bricks technology 24,886.31

2 Support to bee keeping project - Phase 2 24,617.55


1 Sponsorship for entreprenuership seminars (Fursa) 24,289.39

2 Donation of start up capital to BECOS Cooperative Society 2,959.97

TULAWAKA

1 Community capacity building projects 15,446.23

2 Training on interlocking bricks and cassava farming 2,060.38

“We are realizing tangible progress from this dairy and fish farming project. At the end of the month, we calculate our spending against the income made from fish and milk sales and thereafter we share the profit made accordingly.”Florah Zacharia – Supervisor of Livestock Keeping Project, Nyakegema

LIVELIHOODS

Case Study: Support for local farming and business

Goal: Development of safe and sustainable livelihoods

Issue Overview

intrusions that lead to trespassers and illegal miners

society was established with a key focus to develop safe and sustainable livelihoods beyond illegal mining.

Progress and Impact Nyakegema has registered over 1,000 former illegal miners from the 7 villages around North Mara. In 2013, Acacia provided support to the group in regard to training on management and entrepreneurship, support for opening of a head office in Nyamongo and

community road cleaning and support for develop

products targeted at the local market and the mine’s

and fish farming projects in order for them to diversify


DONATIONS/SOCIAL COHESION ACTIVITIES

NORTH MARA

1 Donations 73,054.04

2 Sports and culture events 49,512.46

3 Support for governance projects 41,781.53

4 Street cleaning program 282,637.36

BUZWAGI

1 Donations 2,858.33


1 Support to the Mining Interstakeholders Forum for an engagement program at North Mara 33,899.00

2 Support to Mlele District Council to renovate Kibaoni Primary School 20,000.00

3 Sponsorship to Shinyanga Municipal Council to renovate Kambarage Health Centre 20,000.00

4 Donation to Ileje Environmental Conservation group for Desks in Kibaha district 10,000.00

5 Donation to Masanga orphanage to construct wall as parf of anti FGM efforts 10,000.00

6 Donation to Lesimu Group 8,443.58

7 Donation to Mara Basketball association for tournament 7,823.74

8 Sponsorship for Tanzania Public Health Association conference 5,781.58

9 Sponsorship for National Environmental day celebrations 2,424.24

10 Sponsorship for transport for Bulyanhulu Football club 3,048.93

11 Other donations 578.32



Financial donation to Masanga Orphanage

Issue Overview

Over the past year, Acacia maendeleo Fund has made philanthrophic donations over US$300,000 (more than 500 million Tanzanian shillings) to various causes across Tanzania.

These donations were made to various organisations, associations, schools and local government authorities as part of our Corporate Social Responsibility (CSR) initiatives. At Acacia, we believe in giving back to the communities we operate.

Acacia Maendeleo Fund Partners

Acacia would like to thank all its partners, who allow us to fulfill our CSR objectives and contribute to the economic development and sustainability of Tanzania. Acacia works with a range of stakeholders in the private, government and development and non-government sectors. 1. Tanzania Chamber of Minerals and Energy2. Africare Tanzania3. United States Agency for International Development (USAID)4. Bridge2Aid5. Benjamin W. Mkapa HIV/AIDS Foundation6. NHBRA Tanzania

If you are interested in applying for funding or more information on Acacia Maendeleo Fund please contact us at:

Tan House, 12th Floor, Plot 34/1 Ursino South, New Bagamoyo Road

or visit our website; www.acaciamining.com


creating shared value - acacia mining/media/files/a/acacia... · creating shared value 2014 annual...

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