Africa, the world’s second largest continent, has tremendous potential within its mining sector due to the scale of its mineral endowment. African countries already account for a significant portion of the world’s mineral output, with significant portions of the world’s reserves of gold, copper, cobalt, diamonds, manganese and platinum-group metals (PGM) amongst others. Compared to other major mining jurisdictions however, infrastructure challenges remain and hinder the exploration and development activities which mean that the continent remains relatively underexplored and there is significant potential for major discoveries to drive future growth.
Key to the success of the mining industry in Africa is ensuring that the development of mineral wealth translates into benefits for the host countries and host communities. At Acacia, we are acutely aware of the importance of developing our assets in a responsible manner to aid in the development of our host countries and communities.
We are currently largest foreign direct investor in Tanzania having invested over US$2.5 billion into the country over the past 15 years and we made a direct economic contribution of over US$889 million to the Tanzanian economy in 2015, which represents around 2% of total Tanzanian gross domestic product (GDP). Our investment has predominantly been into our mines and the regions that host us and have included infrastructure projects to improve road networks, access to electricity and access to clean water.
A key part of our investment strategy is to ensure that we provide training and development opportunities for people within our host countries. From a standing start 15 years ago, over 95% of our workforce in Tanzania is now made up of Tanzanian’s and on average those employees earn US$16,400 per annum which is more than 10 times the average wage in Tanzania. For each of our employee’s a further 11 jobs are created across the Tanzanian economy means that we are directly and indirectly responsible for the livelihoods of over 45,000 people.