A NEW STANDARD FOR MINING SERVICES

The management team at Kibali also announced at the end of 2021 that its long-held plans to build a cyanide destruction plant were now underway. The work, which will reduce cyanide concentration in Kibali’s dams and improve its plant recoveries, is expected to help Barrick and its partners in Kibali to achieve International Cyanide Management Institute (ICMI) accreditation when delivered a little over a year from now.

Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime took in the global financial crisis, which saw a steep downturn in mineral prices and overall economic output, and the Covid19 pandemic (more of which later). Indeed, when Barrick Gold acquired Kibali in 2009, the DRC’s GDP was US$18.6 billion. In 2021, the fi gure was $53.96 billion.

Socioeconomic Impact

Figures from the World Bank show that 2022 will mark the 20th successive year of positive economic growth for the DRC - a remarkable statistic, given that this period

These figures show, thankfully, Kibali is just part of a much bigger success story. But it is an important one. Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime. The mine invests in everything from exploration to road projects, staff development, equipment replacement, and of course, a series of environmental and social projects.

On the socioeconomic side, however, Kibali’s impact can particularly be seen in the DRC’s previously undeveloped northeast - now a genuine hub of economic activity. Here, Kibali has been highly active in partnering with and mentoring local entrepreneurs, enhancing local communities, and upgrading essential infrastructure. Hiring and training at all levels of the organization from local villages has also been hugely impactful: 94% of Kibali’s workforce, including its management, are Congolese nationals.

It is now also driving the employment of women in the traditionally maledominated mining industry through targeted recruitment campaigns and development programs designed to equip them for rewarding careers at all levels of the organisation.

The Covid-19 Response

The team behind Kibali was also not slow about responding to the threat of Covid-19 as the pandemic reached the DRC. As well as outlining a detailed support program for the country, Barrick announced a $1.5 million fi nancial commitment to counter the pandemic and its effects. The government recognized that Barrick was the first of any large company in the country to make a substantial financial commitment to countering Covid.

Barrick’s contribution was extremely valuable: As a company that already has extensive experience in dealing with ebola, it maintains a dedicated workforce of health workers and doctors to administer treatment, materials, and advice. The $1.5 million commitment was also above and beyond the investment in critical equipment, totaling about $1.4 million, already made by Barrick at an earlier stage of the pandemic.

Strategic Supply Chain Partners

With three of the world’s top 10 mines in its portfolio, Barrick is a name that easily attracts high-caliber supply chain partners. Examples of these include heavy equipment and machinery industry giant Caterpillar, which collaborated with Tractafric - a Moroccan company - to install 7.5 MW of battery energy storage at Kibali. Elsewhere, many of Barrick’s partners on the ground in Kibali are a who’s who of African mining and drilling companies. These include Amazon Drilling DRC, a drilling specialist and earthworks contractor, Redrilza Drilling Services, SGS Minerals RDC, a local branch of the international mining firm, a Zambian drilling company, Epoch Resources (Pty) Ltd, a

South African engineering consultant, and Inter Oriental Builders (IOB), a civil engineering company.

On the technology side, MineARC Systems is responsible for controlled technology and safety at the mine and its operations; American Mine Door developed the considerable mine doors at the plant, and ORICA, did some dedicated work on the mine’s infrastructure. Transport and logistics are provided by Tradecorp Logistics and Bolloré Transport & Logistics DRC. Finally, Barrick has developed a strong partnership with the local staff recruitment firm, MD Services SARL.

Environmental impact

Kibali is not only Africa's largest gold mine, but also a global leader in sustainability initiatives, biodiversity programmes, and clean energy, according to Barrick president and CEO Mark Bristow. Barrick also continues to invest in Africa's biodiversity by reintroducing 76 white rhinos to the Garamba National Park, a critical step in the long-term plan to protect this endangered species. This investment has also resulted in an increase in the park's giraffe population.

Local sustainability projects include the development of a world-class aquaponics farm and the establishment of a vocational and technical training centre to promote community capacity building. Following the government's approval, the implementation of the cahier des charges mechanism has begun. This will be in addition to the mine's current commitment to invest 0.3% of revenue in community projects identified through consultation with the mine's community development committees.

Kibali also continued to lead the group's clean energy drive, concentrating on power from three continuously upgraded hydropower stations and new backup battery technology.

Outlook

Barrick may have created a blueprint for other mining companies entering Africa to work from: International expertise, local upskilling, government cooperation, and world-class technology. With the progressive Congolese government on its side and a prosperous partnership in place with AngloGold Ashanti, it seems like the sky is the limit for what Barrick and the operations at Kibali can achieve.

Lucara Diamonds

Diamond History

In November 2015, Lesedi La Rona, the world’s second-largest gemquality diamond ever found, was mined at the Karowe Mine in Botswana. The mining team behind the discovery was Lucara Diamonds (formerly called Boteti Mining), a diamond exploration and mining company founded in 2009. In less than six years, the Canadian-registered firm had made a discovery that placed it firmly in the spotlight of industry analysts. Since then, the company has proven that it wasn’t a one-off event. Karowe Mine is the only mine to have ever recorded three +1,000 carat diamonds and consistently recovers high-value +10.8 ct diamonds. Even for a mine based in Botswana, a country ranked 2nd in the world for diamond production, Lucara’s performance stands out from the crowd. Business Excellence decided to visit and explore what makes it shine.

The Karowe Mine

Lucara Diamond Corp. is a mid-tier diamond producer which owns a 100% stake in the Karowe mine. Its name, Karowe, means “Precious Stone”, and it is one of Botswana’s six diamond mines. Under the leadership of President and CEO Eira Thomas, it currently generates revenues in excess of US$230 million (2021 revenue).

MARUNG DEVELOPMENT SERVICES (PTY) LTD

Marung Development Services (Pty) Ltd is a 100% citizen-owned company that offers a wide range of products and services of the highest quality in the mining industry value chain. The main objective of Marung Development Services is to provide drilling and blasting services, including drilling consumables management as well as mining consultancy services to its clients.

Amongst the services provided by our team of experts are the following;

• D rilling and blasting services and consultancy on efficiency improvements (optimization of drilling and blasting results)

• Mining consultancy services, including benchmarking audits and advice on Mineto-Mill.

• Mining value chain assessment and elimination of bottlenecks. Mining project management www.mds.co.bw

Marung Development Services have done Auditing and Benchmarking work for Debswana Diamond Mines, and are currently providing drilling and blasting services to Lucara’s Karowe Diamond Mine.

Visitors to Lucara’s Karowe mine are greeted with an expression that seems to encapsulate the company mission well: “Make diamond history.” Given the context of its performance over the past decade, the statement stands to reason: the Karowe mine has become renowned in the diamond industry for its production of very large and high-value white gem diamonds - the most well-known of which is Lesedi La Rona (formerly known as Karowe AK6) which was acquired by British jeweler Graff.

The Karowe mine is well-known for producing a multitude of acclaimed diamonds. Another of which is the Sewelô; a rough diamond weighing 1,758 carats. A collaboration between Lucara, diamond manufacturer HB Company, and Louis Vuitton will see the diamond cut and turned into jewelry.

The combination of a mine rich in rare diamonds, state-of-the-art technology, and leadership that is recognized as among the best in its industry have enabled Lucara Diamonds to benefit in the form of margins far above the standard. In 2022, the projected free cash flow yield is projected to be higher than 25% - high even given the industry’s upswing. Best of all, this is all done with an eye to sustainability (see below), ensuring that results in the short term always yield positive long-term socioeconomic effects for Botswana.

Expansion of Mine Operations

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life to 2040. Thanks to this, and the company’s ability to extract more efficiently than most of its competitors, it is expected that the expansion projects will contribute approximately $4 billion in additional revenues, using conservative diamond prices.

The Karowe mine underground expansion represents the continuation of Lucara’s impact. The company announced at the beginning of 2022 that it would invest $534 million to increase the mine size, extending its

The expansion of the Karowe Mine provides further evidence of its management’s commitment to excellence. 2021 was the first year that it deferred making a divided payment to shareholders, instead using the cash to ramp up its capital investment. Shareholders will be the winners of this move, as diamond prices climb higher.

The transition to main shaft sinking began in Q2 of 2022, and the expansion is currently running on time and within budget.

Women to the Front

Somewhat against the grain in the mining industry, Lucara is unapologetic about putting women at the front of its operations. One of its co-founders and current CEO, is Ms. Eira Thomas, a Canadian executive with more than a quarter of a decade of experience in mining. She is just one of many women making waves at the firm. Another significant figure steering the wheel at Lucara is its Managing Director, Ms. Naseem Lahri. Ms. Lahri is born and raised in Botswana, a trained chartered accountant, and a seasoned executive in the mining industry working with Morupule Colliery and Debswana. Her leadership at

Lucara and in the community earned her the title of “2022 Business Woman of the Year” at the All Africa Business Leaders Awards

They and others at Lucara Diamonds are cutting a path for other women who might otherwise have believed mining was a male-oriented profession. Here, the company’s numbers speak for themselves: 4 of the 6 board members are female, 2 of 3 executive officers are female, and 31% of the workforce (unfortunately, an industryleading figure) is female. The company is actively changing perceptions about gender in the mining industry.

Socioeconomic Impact

Lucara Diamonds has published a sustainability report for the past nine years. Every year, it invests significant sums into