Barrick Gold’s Tanzanian headache: Blood and Stone – by Geoffrey York (Globe and Mail – Report on Business Magazine – October, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Across the cavernous pits and the mountains of waste rock, the alarm wails eerily, warning that an explosion is imminent. Dozens of villagers gather silently at the edge of a pit, past the holes that have been torn in the fence, waiting for their chance.

Then comes the blast. As a plume of smoke curls into the sky, the scavengers scramble into the pit, eager to prise a living from the freshly smashed rock.

Suddenly the police appear, careering over the rocky road from another corner of the vast mine. The pickup truck full of armed men in green uniforms bounces across the wasteland like a scene from Mad Max. The truck hurtles toward the scavengers, but is halted by a boulder that they have pulled across its path. By the time the police can leap down and move the boulder, the scavengers have scattered into the nearby trees, where they wait for their next opportunity.

This is the daily ritual of conflict at the North Mara gold mine in Tanzania: Intrude and retreat, pursue and withdraw—punctuated by flare-ups that sometimes leave people dead.

For an eyewitness, it’s difficult to reconcile this cycle of violence with the avowed community-friendly policies of the mine’s parent company, Barrick Gold Corp. and the professed goal of its founder, Peter Munk, of making good corporate citizenship the “calling card that precedes us wherever we go.”

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Gold miners seek to close the gap with bullion – by Brenda Bouw (Globe and Mail – September 20, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

VANCOUVER— The world’s top gold miners are forging ahead with expansion plans and higher dividend payments, despite worries that bullion is bound for a correction after a spectacular runup beyond $1,900 (U.S.) an ounce earlier this month.

The companies are vowing to tackle the issue of share values that lag gold prices through aggressive growth plans, rising margins and sweetened dividends, despite the challenges of rising costs and increased competition for investors.

Executives believe that the price of gold will continue to rise and that equities will soon catch up and could even surpass physical gold in returns to investors.

“I do think the equities will respond,” Barrick Gold Corp.chief executive office Aaron Regent told investors at the Denver Gold Show in Colorado Springs, Colo., on Monday. “The equities have not reflected the strong fundamentals of the underlying businesses.”

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Respect for indigenous cultures: How Barrick is forging strong relationships with indigenous peoples in North America – (August 19, 2011)

This article came from Barrick Gold internal magazine Beyond Borders: Responsible Mining at Barrick Gold Corporation

Indigenous peoples often have historical and cultural ties to land endowed with important natural resources. To unlock the value of these resources for the benefit of everyone involved, responsible mining companies must understand and address a range of unique challenges and opportunities.

Barrick works constructively with indigenous peoples around the world. In North America, although Native peoples may have different cultural traditions, the challenges they face and their partnerships with Barrick often have striking similarities.

Alaska

The Donlin Gold project in Alaska is a large, undeveloped gold deposit, approximately 450 kilometers northwest of Anchorage. Barrick has a 50 per cent interest in the project; NovaGold owns the remaining 50 per cent stake.

There are nearly 70 distinct communities near the Donlin project site and along the route of a proposed natural gas pipeline that would supply power to the mine. These communities need to be addressed as individual cultural and indigenous entities.

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Placer Dome Incorporated History: 1910-2002 – by International Directory of Company Histories

For a large selection of corporate histories click: International Directory of Company Histories

Company History: (Please Note that Placer Dome was taken over by Barrick Gold in 2006)

Placer Dome Inc., the fifth largest gold mining company in the world, produces approximately 3.5 million ounces of gold annually. Based in Vancouver, British Columbia, the company also mines silver and copper and has interests in 18 mines, many outside of Canada, in countries including South Africa, Australia, the United States, and Papua New Guinea. A leader in mine exploration, Placer Dome spent about $60 million in 2003 on exploration.

The Creation of a New Company

Placer Dome Inc. was formed in 1987 by the amalgamation of three Canadian mining companies, creating the largest gold producer in North America with an annual output of more than 800,000 ounces of gold. Dome Mines Limited, the oldest of the three predecessors and one of Canada’s most venerable gold producers, was incorporated in 1910, following the discovery of the Dome Mine, a hard-rock mine in northern Ontario, which was still producing gold in 1997. The mine and the company got their name from the shape of the gold-studded rock structure a band of prospectors literally stumbled over in 1909.

Placer Development Limited was incorporated in British Columbia in 1926 and made its first earnings during the 1930s, dredging gold from the gravel of a river in Papua New Guinea, then under Australian mandate. “Placer,” which was Spanish for shoal, referred to water-borne deposits of sand or gravel containing particles of gold or silver. Mining that deposit was no easy task.

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Once upon a mine [Barrick CEO Aaron Regent profile] – by Paul McLaughlin (CAmagazine – August 2011)

CAmagazine is the leading accounting publication and preferred information source for Canadian chartered accountants and financial executives.

Paul McLaughlin is a Toronto-based freelance writer www.paulmclaughlin.ca

Two years and two risky deals later, Barrick’s CEO Aaron Regent has shown the mining community that he’s one leader not afraid of taking chances

When Aaron Regent, the president and CEO of Barrick Gold Corp., addressed the annual general meeting of the world’s largest gold producer in April, he had a lot of good news to bestow.

In a matter-of-fact tone, the 45-year-old CA, who had been appointed to the challenging role some 27 months earlier, began by telling the assembled shareholders at Toronto’s Metro Convention Centre that Barrick had “a strong year in 2010.” That was an understatement. The price of gold had surged to US$1,228 an ounce last year, up 25% from the year before and more than 200% since 2004.

In May it was nudging US$1,512 on the New York Stock Exchange and in June reached US$1,540 an ounce. Those numbers contributed significantly to Barrick, which has 25 operating mines and six projects on five continents, being able to report record adjusted first-quarter net earnings in 2011 of US$1.1 billion, up 32% from the prior year’s same period. Operating cash flow also jumped, by 27% from the previous first quarter, to US$1.44 billion.

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[Barrick Gold’s] Peter Munk: in conversation – by Kenneth Whyte – Maclean’s Magazine – July 27, 2011

Maclean’s is the largest circulation weekly news magazine in Canada, reporting on Canadian issues such as politics, pop culture, and current events.

On immigrant dreams, the importance of failure and why the future belongs to Canada

Peter Munk, the founder and chair of Barrick Gold, the world’s biggest gold miner, found a land of opportunity when he arrived in Canada as a teenager after he fled Nazi-occupied Hungary. But the 83-year-old businessman is convinced the country’s brightest days may still lie ahead. As the appetite for raw materials skyrockets in China, India and other developing countries, he argues that Canada has a rare, once-in-a-lifetime opportunity to establish itself as the world’s next big financial sector, rivalling the dominance of London and New York.

Q: Let’s talk first about your earliest impressions of Canada as an immigrant boy.

A: That day I arrived, it was a miserable, rainy day in early March ’48. It was like, terra incognita, like going to Mars. I know it sounds moronic.

Q: No. It doesn’t.

A: I arrived in Toronto, and I tried to talk to my Uncle Nick in Hungarian, I tried to talk to him in German. The last time I saw him was in 1938 when Grandfather sent him to Canada as a General Motors agent. He was my father’s young brother. When I arrived, Uncle Nick was a part-owner of the Ajax manufactory. He said, “We don’t speak here Hungarian. This is Canada, we speak English.” I took it in school and I never practised except for the five days in England when Dad shoved me on that boat in Liverpool.

Q: Was the idea that you’d come and do a year of high school and then go to university?

A: It was Grade 13, and number one, I never in my life could conceive, never heard, never read, about mixed-sex schools. In Hungary and Switzerland there were girls’ school, and if a guy went near a girls’ school he was in danger to be dismissed, okay?

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OMA member Barrick Gold makes multi-million dollar contribution to global health

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province. 

Ontario Mining Association member Barrick Gold and the Family of the late Greg Wilkins, former company president, have donated $5.5 million to advance global health.  Toronto General and Western Hospital Foundation will be using this gift to combat brain diseases and improve medical training for surgeons and nurses in developing countries.

Mr. Wilkins was President and Chief Executive Officer at Barrick from 2003 to 2008.  He started with the company in 1981 and helped transform it into the world’s largest gold producer.  Mr. Wilkins held an executive position with another corporation for several years in the late 1990s up until 2003.  He passed away in December 2009 at the age of 53 after losing his battle with cancer. 

The donation, which was first announced earlier this year, has several components.  They include the Greg Wilkins Chair in International Surgery, which will oversee research and training for doctors and nurses in developing countries.  Dr. Mark Bernstein, a neurosurgeon at Toronto Western Hospital, who performed brain surgery on Mr. Wilkins as part of his care team, was appointed to this position last week.  Dr. Bernstein has described Mr. Wilkins as “extremely courageous.”  Toronto Western Hospital is a world leader in the treatment of and research on diseases of the brain and spinal cord.

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NEWS RELEASE: Generous Barrick Gold Gift a Boon to Marathon and Northern Ontario

Lakehead University and the Northern Ontario School of Medicine (NOSM) are pleased to accept substantial gifts from Barrick Gold Corporation – Hemlo Mine. The value of the Barrick Gold gift is $150,000, but with matching funds from the Ontario Trust for Student Support (OTSS), the total value of the gift is raised to $235,000. This donation makes a significant contribution to learning and healthcare in Northern Ontario.

The gift will be used to establish an endowed Barrick Gold Graduate Scholarship valued at $100,000, with $50,000 coming from Barrick Gold and $50,000 from matching funds through OTSS. This Scholarship will be awarded to a Lakehead graduate student with financial need who is focused on mining issues with preference given to persons of Aboriginal heritage.

As well, a total of $100,000 will go to support the work of the Northern Ontario School of Medicine. This portion of the gift is made up of a number of components:

• Creation of a $10,000 Learner Suite in Marathon with exam rooms, office and study space, and a Learner/Resident suite;

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Barrick Gold and North Mara: the search for common ground – by Aaron Regent (Globe and Mail Website – June 22, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

Aaron Regent is the president and CEO of Barrick Gold Corp. For Corporate Social Responsibility initiatives at Barrick, go to Beyond Borders.

The relationship between developing countries and Canadian mining companies has been the subject of much discussion in recent weeks and understandably so. As president and CEO of Barrick Gold Corp., it troubles me that events surrounding our company are part of that discussion.

In mid-May, we learned that five people had been killed by Tanzanian police following the invasion of the North Mara mine by as many as 1,500 people. Shortly after, this newspaper reported on our findings that police and security officers may have committed sexual assaults in the area around the mine. Barrick’s revulsion at discovering this evidence is deep. I have seen myself, from the men and women working on the ground to the most senior levels of management, enormous disappointment at these situations and a determination to act.

Barrick will not shy away from the challenges at North Mara, nor diminish them by failing to respond. Where we do encounter safety or human-rights concerns, we will act. We will aggressively investigate allegations of abuse or violence, and we will actively support the investigations of authorities. We will address concerns related to security and the safety risks posed by trespassing.

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Barrick Gold Corporate History (1980-2000) – International Directory of Company Histories

For a large selection of corporate histories click: International Directory of Company Histories

Company History:

Barrick Gold Corporation is an anomaly in the gold exploration and mining industry; it has little debt and low-cost production, yet high yield and even higher sales. Though Barrick began as a less than spectacular petroleum and oil company in Canada founded by Peter Munk and David Gilmour, they turned to prospecting in 1983 and became the quintessential success story. While gold mining operations may spend decades searching for the motherlode, Barrick began by acquiring established mines and bringing them to new levels of productivity and profit.

On its Goldstrike Property on the Carlin Trend in Nevada, Barrick has established the Betze-Post and Meikle Mines: the former is the richest and most productive mine in the United States while the latter is the largest underground mine in North America. Ongoing exploration and drilling continue in the region, as well as on properties in Canada, South America, and Africa, with projections to reach more than five million ounces of gold production by 2003. Since Barrick’s mining and processing facilities are among the most technologically advanced in the world, this is all but a fait accompli.

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Our world needs more Peter Munks – by Margaret Wente (Globe and Mail – June 11, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. mwente@globeandmail.com

Some parts of the world are nastier than Canada. Peter Munk should know. He came from one.

Mr. Munk is the founder and chairman of Barrick Gold Corp., the world’s largest gold miner. From the day he landed in Toronto from war-torn Europe, he has loved this country with a passion. “I arrived in this place not speaking the language, not knowing a dog,” he says. He was 18 – an alien, a foreigner, a Jew in a funny-looking suit. In Europe, people were living in the ruins, like rats.

The young refugee presented himself at Lawrence Park Collegiate, where nobody had seen a foreigner before. He expected to be shunned. Instead, the principal took him to a sun-filled classroom, where, unbelievably, boys and girls studied together. At lunchtime, everybody streamed into the cafeteria, where a trestle table groaned with meat, bread and milk. “The amount of food in that place could have fed any city in Europe for a whole day,” he recalls. Kids began asking him home, where their parents invited him to raid the fridge.

For Mr. Munk, this generosity became a metaphor for Canada. “People here don’t ask about your origins,” he says, “only about your destiny.”

Today, the company that he founded is embroiled in controversy, and Mr. Munk himself has come under vicious attack. Billionaires and mining giants will never be exempt from criticism, nor should they be. But these attacks are so toxic, they demand a response.

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Tanzania weighs ‘super-profit’ tax on miners – by Brenda Bouw (Globe and Mail – June 9, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

Tanzania is eyeing a “super-profit tax” on miners to help pay for a development program in the East African country, the latest in a growing list of governments trying to grab more money from the resource sector amid rising commodity prices.

While the Tanzanian government hasn’t confirmed that it is weighing such a plan, reports say the new tax could be similar to one proposed last year in Australia.

“Considering the increasing trend in mineral prices, it is optimal to introduce a super-profit tax on the windfall earnings from the mineral sector,” state government documents viewed by Reuters.

Bloomberg reported the comments come from the country’s planning commission, which the Tanzanian government website describes as a think-tank under the President’s office that advises on economic issues.

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In an African mine, the lust for gold sparks a deadly clash – Geoffrey York (Globe and Mail – June 8, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

NORTH MARA, TANZANIA

The morning of May 16 began like many others. Carrying hammers and rucksacks, hundreds of Tanzanian villagers trudged to the mountain of waste rock at dawn expecting to make another illicit deal with the heavily armed police who protect it.

Two hours later, at least five villagers were dead and many others wounded – gunned down by police at the gold mine owned by a subsidiary of Barrick Gold Corporation of Toronto.
The shooting, the latest in a series of deadly incidents at the mine over the past several years, raises troubling questions about Barrick’s security agreement with a notoriously corrupt police force that routinely extracts bribes from the villagers who enter the North Mara mine to scavenge for traces of gold.

It also provokes questions about Barrick’s decision to keep operating in the anarchic conditions around its mining site, where violent confrontations are common, allegations of police abuses are frequent and deaths are inevitable.

During a five-day visit to the North Mara Mine and the surrounding villages, The Globe and Mail witnessed an atmosphere of conflict and intimidation. Interviews with injured survivors of the May 16 shootings and other witnesses suggest that most of the villagers were unarmed or carrying only stones when they were shot. The witnesses, along with the local police commander, have contradicted the company’s assertion that hundreds of people attacked the police with machetes, hammers and rocks.

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Canadian miners abroad learn wider responsibility – Globe and Mail Editorial (June 6, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

The Canadian mining industry is no longer just about extraction. The 1,800 companies operating around the globe must also live up to public expectations that they protect human rights and the environment in their overseas operations. Failure to do so invites public-relations disaster, as Barrick Gold Corp.’s recent experiences in Tanzania and Papua New Guinea show.

Last week, Barrick announced it was investigating allegations that its own private security guards, as well as Tanzanian police, had sexually assaulted 10 women over the past several years at their North Mara mine. This comes just two weeks after seven people were killed at the site, following an incursion of locals scavenging for gold-laced rocks. \

At another Barrick property, in Papua New Guinea, a Human Rights Watch report released this year said the mine’s private security force was implicated in a “pattern of violent abuses, including horrifying acts of gang rape.”

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Canada mines discontent among the poor of Africa – Linda McQuaig (Toronto Star – June 7, 2011)

The Toronto Star, which has the largest circulation in Canada, has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion. lmcquaig@sympatico.ca

While Canadians may think of ourselves as best known for owning the Olympic podium, among Africans we may actually be better known — and not particularly liked — for owning their natural resources.

Once beloved on the continent, Canada is no longer so fondly regarded in Africa.

The new, less enthusiastic view of Canada was vividly illustrated last month when more than 1,500 desperately poor Tanzanian villagers picked up machetes, rocks and hammers and stormed the mining compound of Canadian-owned African Barrick Gold.

The uprising — leading to the shooting deaths of seven of the villagers by police and security forces at the mine — is a startling reminder that theories widely held in the West about the benefits of foreign investment for the developing world are not always shared by people on the receiving end.

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