OUR OPERATIONS IN AFRICA

Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 57% or 1.4Moz to total annual group production in 2021, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).

At the end of 2021, our African operations accounted for 65% of the group’s total Ore Reserve and 45% of its total Mineral Resource.

Operational Excellence initiatives aimed at unlocking value and offsetting current cost and production challenges in the short term remain key while the Full Asset Potential Review will be instrumental in realising latent value from these assets in the medium to long term. Growth and expansion projects are underway at Siguiri, Iduapriem and Geita while Phase 3 of the Obuasi Redevelopment Project continues.

The Africa operations employed an average of 17,260 people, of whom 10,781 were contractors, in 2021.

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Performance summary

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• Production for the year was 1.4Moz (2020: 1.6Moz), achieved at a total cash cost of $904/oz (2020: $757/oz), as the region executes the reinvestment programme and various growth projects
• Higher all-in sustaining cost of $1,161/oz (2020: $935/oz), because of lower production
• Capital expenditure for the region was $506m (2020: $397m)
• Safety performance deteriorated with one occupational fatality and an all injury frequency rate of 0.61 per million hours worked versus 0.55 in 2020
• Community investment of $10.5m (2020: $12.9m)
• All Africa operations certified in terms of International Cyanide Management Code, ISO 45001 (health and safety) and ISO 14001, with the exception of Obuasi where work for its recertification in terms of the Cyanide Code and ISO 14001 is currently in progress

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Solid performances at Geita, Siguiri and Kibali supported production and helped to offset stalled production at Obuasi where underground operations were suspended following a fatal incident in May 2021.

The increase in the regional all-in sustaining cost was a result of higher underground mining costs at Geita, because of the step up in ore and waste volumes and higher stay-in business capital spend for waste stripping at Teberebie Cut 2 at Iduapriem. Also, higher royalty costs were seen across the operations due to the increase in the gold price received.

Capital expenditure was largely spent on underground Ore Reserve development projects, which continued at Geita, and pre-stripping at Iduapriem (Teberebie Cut 2) to provide access to orebodies identified for future gold extraction. The balance of sustaining capital investment was used for capitalised exploration and stay-in business projects to improve asset integrity and realise business improvements across the operations, to ensure safe and sustainable growth and production.

At Geita, substantial progress was made opening up the Nyamulilima open pit, commencing production and remaining on track to achieve full planned operation by the end of 2022. Another notable achievement was the development of the Geita Hill underground mine for which a maiden Ore Reserve has been declared and where steady state operations are also expected by the end of 2022.

Kibali’s metallurgical plant performed well overall. The increased tonnages processed during 2021 were driven by the greater volumes of open-pit tonnes mined compared to 2020 and yielded 812,152oz. Kibali’s Mineral Reserve net of depletion is expected to increase for the third successive year in 2022, maintaining its plus 10-year life as a Tier One asset.

The grind and recovery optimisation continued at Siguiri’s combination plant during the year, and treatment of carbonaceous material started. The Block 2 project yielded its first ore once the haul road was completed between the remote deposit and the plant at Block 1.

The implementation of an initial three-year re-investment plan to revise and extend Iduapriem’s mine life is underway. This plan involves accelerated waste stripping from the Block 7 and 8 pit, initially from Teberebie Cut 2. Longer term options are to strip waste from cuts 5 and 6. The re-investment plan includes increasing TSF capacity to match the revised mine plan.