Tensions Mount at Barrick Gold Subsidiary in Tanzania
The North Mara gold mine in Tanzania, operated by a subsidiary of Barrick Gold Corporation (NYSE: GOLD), has become a flashpoint for violence and controversy. Recent court disclosures and affidavits reveal the extent of ongoing tensions between local villagers and the mining operation, shedding light on allegations of abuse, economic losses, and the challenges of corporate accountability in conflict zones.
North Mara, located in Tanzania’s Mara region, has been embroiled in conflict for over a decade. Villagers, driven by poverty and desperation, frequently trespass onto the mine to scavenge for gold-bearing rocks. Barrick describes these incursions as “illegal and dangerous,” often involving groups armed with machetes, spears, and other makeshift weapons.
“The mine is targeted regularly by trespassers… They are frequently armed and often storm the mine together in groups,” said Apolinary Lyambiko, General Manager of the North Mara mine, in an affidavit submitted to the Ontario Superior Court.
The mine has seen routine violence, requiring significant police presence in surrounding villages. These conflicts have resulted in scores of deaths, including allegations of police shootings. Despite measures to reduce incidents since 2019, the tensions remain high.
One of the most contentious aspects of the North Mara operation is Barrick’s financial and logistical support for local police. Affidavits and court documents reveal that the company’s subsidiary pays daily fees to over 150 Tanzanian police officers and provides them with vehicles, fuel, food, and equipment. This relationship is governed by formal agreements, including one made public before a recent Ontario court case.
Barrick’s Chief Operating Officer for Africa and the Middle East, Sebastiaan Bock, testified that the company pays 100,000 Tanzanian shillings (about $58) per officer daily, in addition to building infrastructure such as barracks and canteens for the police. The police are responsible for security outside the mine perimeter but can be called into the site when necessary, he explained.
This arrangement has drawn criticism, with villagers accusing the police of excessive force, including killings, injuries, and torture. Plaintiffs in a dismissed Ontario Superior Court case claimed that Barrick’s funding of the police made the company complicit in these abuses. Barrick has denied directing or controlling police actions.
The incursions have reportedly cost Barrick millions of dollars in lost ore, stolen fuel, and damaged equipment. Trespassers have even detonated explosives in active mining areas to access gold-bearing rock, escalating the dangers faced by workers and intruders alike.
The Ontario Superior Court case, brought by Tanzanian villagers, was dismissed in late November 2024. Justice Edward Morgan ruled that the case should be heard in Tanzania, but lawyers for the plaintiffs are considering an appeal. This case is the latest in a series of legal battles over North Mara. Two earlier cases in the UK, involving similar allegations, were settled out of court in 2015 and 2024, with no admission of liability from Barrick or its subsidiaries.
“This mine site, because of the intruders, is effectively an armed encampment,” said Kent Thomson, a lawyer representing Barrick, during an Ontario court hearing. The mine is fortified with a 14-foot wall topped with barbed wire, yet breaches remain frequent and costly.
The situation at North Mara raises questions about the role of multinational corporations in conflict-prone regions. While Barrick argues that its support for police is necessary to protect its operations, critics contend that such arrangements blur the line between corporate security and state responsibility.
Information for this story was found via The Globe And Mail and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
