The African Barrick Gold a unit of Canadian biggest miner Barrick Gold Corporation will fall short of its 2011 gold production target in Tanzania due to the escalating electricity power outages in the east Africa’s second largest economy.

ABG had hoped to produce between 700,000 troy ounces to 760,000 troy ounces of gold in 2011 following the commencement of gold shipment at Bwezwagi Gold mine. It had lost between 35,000 ounces to 40,000 ounces of gold as a result of its reliance on grid power. It now completed its diesel generated back up power installations at the Buzwagi mine, providing full back up power in the event of disruptions to grid electricity supply.

The company said that overall during 2011 we estimate that the impact to ABG production from power related issues will amount to 35,000 ounces to 40,000 ounces of gold as a result of plant down time and additional maintenance shutdowns due to excessive wear on critical mechanical components. The majority of this impact has been at Buzwagi including the loss of production from the SAG mill motor failure there during Q2.

The escalation of these power related issues during Q4, with up to 5 or 6 daily outages at Buzwagi has meant that the expected quarterly production run rate at the mine will not be achieved and as a result we are likely to fall just short of 700,000 ounces of gold production in 2011.

ABG operates four gold pits in Tanzania, at other mines, Tulawaka draws its power entirely from diesel generators, North Mara has full diesel back up although some refurbishment work on its generators is underway and Bulyanhulu has around 85% back up coverage which will move to 100% by the end of Q2 2012.

(Filed by Matsiko Mike SteelGuru Uganda correspondent)