Barrick Tanzania unit says shuts pit, cuts jobs

DAR ES SALAAM, March 9 (Reuters) - The Tanzanian arm of Canada's Barrick Gold Corp (ABX.TO) has shed 200 jobs and shut one pit at its North Mara Gold Mine due to unexpectedly high operating costs, the company said on Monday.

The mine has in the past faced disruptions from theft and vandalism, the firm said. Late last year, some 200 people invaded one of three pits in the mine and destroyed equipment worth $7 million, causing a temporary closure of the pit.

"The operation has experienced higher than expected operating costs and has been adversely impacted by frequent operational disruptions due to theft and vandalism of company property and equipment," Barrick Tanzania said in a statement.

"Consequently North Mara Gold Mine management closed one of the three mining pits and revised its labor requirements downwards by 19 percent, which translates to around 200 jobs."

North Mara is one of Barrick's smaller mines. It produced 43,000 ounces of gold in the third quarter and 155,000 in the first nine months of 2008.

The company added that it expects the mine to produce about 225,000 to 245,000 ounces of gold this year.

Barrick Tanzania said in all, 216 employees have accepted a voluntary severance package.

The company also operates the Bulyanhulu and Tulawaka mines in Tanzania and is building the Buzwagi mine. Barrick said in December cash costs in the quarter spiked over $1,000 an ounce, partly due to low production.

Barrick says a number of high-cost operations and projects around the world have been suspended, delayed or canceled due to challenging operating conditions, cost pressures and the slump in global economic activity. (Reporting by George Obulutsa, editing by Gerald E. McCormick)