Barrick Gold's Twiga Partnership: A Blueprint for Sustainable Mining and Long-Term Value

The mining industry has long been a double-edged sword for resource-rich nations: it delivers economic windfalls but often at the cost of environmental degradation, social unrest, and unsustainable practices. Tanzania, endowed with gold reserves, has historically struggled to balance these trade-offs. Yet today, the Twiga Minerals joint venture between Barrick Gold (NYSE: GOLD) and the Tanzanian government offers a compelling counterexample. Five years after its launch, Twiga's blend of operational rigor, community investment, and environmental stewardship has positioned it as a replicable model for sustainable resource development. For investors, this partnership underscores Barrick's strategic foresight—and presents a rare opportunity to align profit-seeking with ESG-aligned outcomes.

The Twiga Model: Delivering on Economic, Social, and Environmental Fronts

Barrick's Twiga partnership, formed in 2019 to resolve a tax dispute with Tanzania, has evolved into a showcase of shared-value mining. Its success hinges on three pillars:

1. Economic Multipliers:
   Since taking control, Barrick has injected $4.79 billion into Tanzania's economy, including $558 million in the first half of 2025 alone. Over 90% of procurement flows to local suppliers, predominantly small businesses, while a workforce that is 96% Tanzanian—with nearly half from mine-hosting communities—ensures direct economic uplift.

1. Community-Centric Development:
   Twiga's most striking achievements lie in its social investments. The Future Forward education initiative, a $30 million collaboration with the Tanzanian government, is expanding school infrastructure to accommodate 45,000 additional students. Meanwhile, the Barrick Academy—training over 2,800 mining professionals by year-end—is building a skilled local workforce. These programs address systemic barriers to progress while fostering goodwill critical to operational continuity.

2. Operational Efficiency and Sustainability:
   At its mines, Twiga combines cost discipline with environmental innovation:

3. North Mara: A $50 million battery energy storage system cut power costs and reduced grid reliance.
4. Bulyanhulu: Upgrades to ventilation and dewatering systems extended the mine's life by years.
5. Exploration: Drilling at sites like Gokona (North Mara) and Siga (greenfield) is boosting reserve potential, ensuring long-term production.

The closure of Buzwagi mine further highlights Twiga's sustainability ethos. Instead of abandoning the site, Barrick is transforming it into a Special Economic Zone, preserving infrastructure and attracting investors to sustain local economies post-mining.

Why This Matters for Investors

The Twiga model challenges the notion that ESG goals conflict with profitability. Barrick's approach generates tangible financial returns while mitigating risks:

• Reduced Regulatory Risk: By embedding local communities as stakeholders, Twiga has softened opposition. The recent dismissal of a lawsuit over North Mara-related allegations—a victory for Barrick—reflects this stability.
• Operational Resilience: Investments in infrastructure and exploration have kept production on track despite gold's price volatility.
• Brand Equity: As ESG criteria dominate institutional investing, Barrick's reputation as a sustainability leader attracts capital.

Risks and Considerations

Twiga is not without challenges. Geopolitical risks persist, particularly as Tanzania's government seeks greater resource control. Meanwhile, gold's price remains hostage to macroeconomic trends. Yet Twiga's track record—balancing profit with stakeholder needs—suggests it can navigate these headwinds better than peers.

The Investment Thesis

For investors prioritizing ESG-aligned opportunities with proven financial returns, Twiga offers a compelling case:

• Dividend Stability: Barrick's dividend yield (~1.5%) is modest but reliable, supported by Twiga's steady cash flows.
• ESG-Linked Instruments: Watch for potential green bonds or sustainability-linked loans tied to Twiga's projects, which could attract ESG-focused capital.
• Long-Term Value: As Twiga's model garners global attention, Barrick could license its framework to other regions, unlocking new revenue streams.

Conclusion: A Paradigm Shift in Resource Extraction

The Twiga partnership is more than a corporate success story—it's a template for sustainable mining. By aligning economic growth, community well-being, and operational excellence, Barrick has created a model that could redefine how resource extraction benefits host nations. For investors, this is a reminder that ESG is not a cost center but a competitive advantage. In a world hungry for both commodities and conscious capitalism, Twiga's blend of pragmatism and principle may well define the future of mining—and the portfolios that back it.

Investment Recommendation: Investors with a long-term horizon and ESG mandates should consider adding Barrick Gold to their portfolios. Monitor the company's ESG reporting and Twiga's expansion plans for further upside.