James Sinclair has a long history of gold-exploration activity in Tanzania, having entered the country in 1989 by becoming chairman of Vancouver-based Sutton Resources.
Sutton was created in part by a group of ex-Placer Dome personnel who still believed in the potential in one of Placer’s cast-offs in Tanzania: the Bulyanhulu gold project, now one of
However, in the mid-1990s, Sinclair and his wife Barbara squared off in a nasty, lawsuit-littered battle against the rest of Sutton’s management over the company’s direction. Among many issues, the Sinclairs wanted to bring in a major partner at Bulyanhulu, while the management group, led by Michael Kenyon (now president and CEO of Canico Resource), wanted to pursue a go-it-alone approach. Both sides owned about 17% of Sutton.
The pressure on Sinclair was intense during that period and he suffered a stroke that left him blind in one eye. He eventually lost the battle for control of the Sutton board and resigned in 1995, to be replaced as chairman by Roman Shklanka.
In 1999, Sutton was bought out at C$13.25 per share by Barrick in return for C$525 million in Barrick shares — a bold move for the major at the time, since it was its first big project outside of the Americas.
Bulyanhulu is now the largest underground mine in Tanzania, and is expected to produce 362,000 oz. of gold this year at a cash cost of US$191 per oz.
Though Sinclair was no longer part of Sutton management during the takeover, his family was still one of its largest shareholders, and the Sinclairs wound up with a profit of US$114 million in the form of more than 600,000 Barrick shares, which were sold off by 2001. (A highly vocal gold bull during that period, Sinclair had no need for shares in a leading hedged gold producer that was losing its share-price leadership among its peers.)
One of Sinclair’s daughters, Marlene, followed him to Tanzania in the early days and has since become a permanent resident. (“Her mother would like to kill me,” quipped Sinclair at Tan Range’s annual meeting.)
Today, Marlene is an advisor to Tan Range but is more involved, through the Sinclair Family Trust, in building and running a major orphanage and hospice along the Burundi border. The trust has also built commercial-grade maize mills, launched food programs for street children, and resuscitated a school for the blind, all with the assistance of James Sinclair’s long-time partner in Tanzania, Joseph Kahama in Dar es Salaam.
“We’ve done this very low-profile and not with stockholders’ money,” said Sinclair. “We have a history of doing this in Tanzania, and in fact, the hospital that Barrick is so proud of was initiated by the Sinclair Family Trust. But they were kind enough to build it and even kinder to assume all the expenses once it was built, retaining one of the finest doctors in Africa. Barrick’s done some really nice work.
“Tanzania has provided an opportunity of unprecedented dimension… (and) to those who have experienced the kindness of its citizens and the hospitality of the villages, Tanzania stands out, not only on the African continent, but also in the world,” stated Sinclair. “It is my obligation to return to Tanzania not only what is contractually required but more.”
Tan Range President Marek Kreczmer told delegates at the Prospectors and Developers Association of Canada convention that “in a country where poverty is endemic, gold mines such as Bulyanhulu, Geita and several smaller operations form an engine of economic growth and a catalyst for change, both good and bad.
“Dealing with these challenges (of poverty and underdevelopment) provides an opportunity for explorers like Tan Range to do things differently and even positively, and hopefully generate a positive impact on the country and its people that is both meaningful and lasting.
“Meeting basic and immediate needs is fundamental for rural populations. Otherwise, the capacity of these communities to participate in non-traditional activities is limited, and this is especially true for women.”
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