Addressing our legacy issues
When Barrick and Randgold merged at the start of 2019, the new management team was aware that there were a range of legacy issues which needed additional attention. Since this merger, the management team and operational level staff have worked to ensure these issues are satisfactorily resolved, or whether, after viewing with fresh eyes, alternate solutions can be found. While the majority of issues have been resolved, some have continued to negatively impact our reputation and licence to operate.
Some of these legacy issues and the steps taken to resolve them are:
Riverine tailings at Porgera in Papua New Guinea
Barrick utilizes a riverine tailings disposal method at the Porgera Joint Venture (PJV). Riverine tailings disposal means that rather than depositing tailings on a tailings storage facility (TSF), Barrick releases the tailings and erodible rock into the nearby Porgera River. This is not ordinarily our preferred method of tailings and waste rock management. However, in the PJV context where the risk of catastrophic failure of a tailings impoundment or dam are unacceptably high due to geological and climatic factors, riverine placement has proved on balance to be the lowest risk option. We also take care to ensure we are managing and minimizing the risk.
For example, prior to discharge, tailings undergo a two-stage treatment process to comply with stringent discharge criteria. This includes a series of chemical processes that destroy cyanide and a multi-step neutralization process to raise the pH level of the water. We have also built a tailings paste plant so that some of the tailings material can be used to produce cemented fill to backfill the underground workings. This has helped to reduce the amount of tailings material entering the river by approximately 13% since 2011.
Further to this, the PJV’s environmental permit requires extensive river monitoring and strict compliance with discharge requirements. It works closely with the Commonwealth Scientific and Industrial Research Organization (CSIRO), Australia’s national science agency, to monitor impacts on the river. In additional to the regulatory monitoring, PJV requested the CSIRO develop an extensive monitoring program downstream to the mine. Monitoring is undertaken in the upland river, lowland river and Lake Murray ecosystems. The monitoring program is participatory in nature and involves engagement and participation with the communities as well as local, provincial and national governments. The results of the monitoring are made public in the Annual Environmental Report which is independently reviewed by the CSIRO. Results show that the PJV complies with the environmental permits issued by the Papua New Guinea (PNG) government and that overall, the condition of the environment is consistent with predictions made prior to operations commencing in 1990.
Alleged complicity with human rights violations at the PJV
Law and order is a persistent challenge for the Porgera region in the Enga Province of PNG. Tribal conflict regularly occurs in Enga and can often turn violent. In addition, the Porgera mine regularly manages large influxes of illegal miners attempting to access the mine. Since the PJV commenced operations, there have been allegations of human rights violations linked to local police and private security forces. This includes, between 2008 and 2011, allegations of sexual abuse, use of excessive force and forced evictions.
Porgera Remedy Framework
When credible allegations of sexual assault by mine employees came to light in 2010, Barrick conducted extensive inquiries and commissioned an independent investigation. A number of employees who were implicated in, or had knowledge of sexual assaults, had their positions terminated and the company handed over all relevant information to the police, urging a full criminal investigation.
Barrick also worked with stakeholders to develop the Porgera Remedy Framework, a comprehensive program to compensate victims of sexual violence. The framework was launched in 2012 following 18 months of extensive consultation and research with leading national and international experts in human rights. It was independently administered by highly qualified Papua New Guineans, including Dame Carol Kidu, a former parliamentarian and cabinet minister in PNG, and Ume Wainetti, the National Director of the PNG Family and Sexual Violence Action Committee.
The Porgera Remedy Framework was open for two years, and during that time more than 90% of women who filed eligible claims resolved them under the framework. The framework concluded in 2015 and 120 cases were resolved.
15 additional cases were remedied outside the framework. Since the conclusion of the Porgera Remedy Framework, no further credible allegations have been received. Any accusation received is treated seriously and thoroughly investigated with the appropriate authorities.
Other steps taken include:
We have a memorandum of understanding in place with the national police, and provide support by way of training, particularly on human rights issues. We only ask the police to come to our site or engage with us on criminal matters.
With many of the legacy human rights issues effectively managed, Barrick is looking to the future in an effort to build a strong and lasting partnership with the landowners of the Porgera Valley and Enga Province. The partnership has and will continue to provide improved socio-economic outcomes for the people of Enga and PNG more broadly.
Updates since 2019
The PJV was placed on temporary care and maintenance in April 2020 and Barrick continues to facilitate community development programs during this time. This includes providing funding and ongoing support for the local Paiam hospital.
Since the merger with Randgold, Barrick has also focused on resolving outstanding community grievances. During 2019, approximately 660 grievances were closed. Unfortunately, as a result of the temporary cessation of mining operations, no grievance resolution is currently progressing, pending recommencement of mining operations.
The challenges of mining in Porgera are clearly significant and complex. However, we remain optimistic about the real contribution and opportunities that mining can bring, and indeed has already brought to the Porgera Valley. By developing partnerships of depth and trust with the community and government, we can help reduce poverty, generate sustainable economic development, and improve access to human rights and the rule of law.
Tanzania: Alleged failure to prevent water pollution at the North Mara mine
In the first half of 2019, allegations were made against the former Acacia Mining plc of water pollution and poor waste management at the North Mara TSF, including seepage from the facility. As a result, the Tanzanian National Environment Management Council (NEMC) ordered the closure of the TSF in July 2019.
When Barrick acquired the remaining minority interest in Acacia and assumed operational control of the Tanzanian assets, the North Mara TSF was not operating. We also found that it was holding significantly more water than design capacity. Barrick is committed to the highest standards of tailings management and improving the TSF at North Mara became an urgent priority. Throughout 2019 and 2020, the Barrick team, with assistance from independent specialist consultants, worked hard to address the Tanzanian government’s concerns regarding seepage and to reduce the volume of water stored on the TSF.
This included detailed groundwater research to understand the extent and impact of any seepage, structural analysis of the TSF, and a hydro-census of local community boreholes. Results from the hydro-census showed the community borehole water was clean and without mine impacts, and also met Tanzanian water standards. Since 2019, we have also significantly reduced the volume of water on the TSF and the increased freeboard is now within design capacity.
Allegations of violent conflict, sexual assaults and human rights violations at the North Mara mine
Law and order has also been an on-going challenge at the North Mara mine. North Mara is located in a remote part of Tanzania close to the Kenyan border. There has been significant in-migration to the area and law enforcement capacity is limited. Civil unrest due to poverty has also been a problem in the area, and this has been recognized by the Tanzanian authorities.
Since the mid-1990s, there have been allegations of human rights violations at North Mara linked to local police and private security forces. This includes allegations of sexual abuse and the use of excessive force.
Progress since 2019
Since we assumed operational control of the North Mara mine, we have worked to restore and rebuild the relationship with the local community. A key focus has been to ensure the local community meaningfully benefits from our presence. One of our first actions was to establish a CDC, and to engage with the local community to explain our plans for the mine and our commitment to the community. We also worked to understand and detail the promises made by the previous owners and have worked to fulfill them.
Other actions include reviewing the relationship with the local police to establish clear boundaries. Police now only enter the mine site when requested by senior management to engage on criminal matters. During 2020, we replaced the international security provider with a local company. Using a local security firm means that the security team is part of the community, and knows and understand their needs and concerns. It also provides further economic benefit to the community through the creation of jobs. We also no longer keep ammunition stored on site.
Independent reviews and assessments
The MMTC-PAMP refinery processes gold from North Mara and in light of the above allegations, appointed Synergy to undertake an independent human rights review at the mine. In January 2021, independent human rights consultants Avanzar visited North Mara to provide training to the mine’s security forces and local police on human rights and the Voluntary Principles on Security and Human Rights. They also conducted a human rights impact assessment. The Synergy report concluded that the assessment team did not identify any areas of unacceptable risk management and that MMTC-PAMP should continue trading with North Mara Gold Mine.
While there remains much work to do, we are encouraged by the progress. The number of intrusions to the mine site have decreased. We have also resolved a number of historic grievances, with the number of new grievances received each month steadily declining. The CDC is working effectively and the Kemanyaki poultry project (the first project supported by the CDC) is providing alternate economic opportunities for local youth. The Synergy report concluded that the assessment team did not identify any areas of unacceptable risk management and that MMTC-PAMP continues trading with North Mara Gold Mine.
Pascua-Lama Project
The Pascua-Lama project is a mining project located in the Andes mountains, and straddles the border between Chile and Argentina. Due to the environmental concerns raised, the Chilean environmental authority (SMA) suspended site works on the Chilean side of the project in 2013, and ultimately issued an order in 2018 imposing sanctions and ordering the closure of existing surface facilities on the Chilean side of the project in addition to certain monitoring activities.
In 2020 following a legal process, Chile’s Antofagasta Environmental Court upheld the closure order and sanctions imposed by the SMA in 2018. Barrick confirmed that it will not appeal the Environmental Court’s decision, and the Chilean side of the Pascua-Lama project (Pascua) will now be transitioned to closure in accordance with that ruling.
On October 6, 2020, a group of local farmers challenged the Environmental Court’s decision. The challenge, which was brought before the Chilean Supreme Court, claims that the fines imposed by the SMA were inadequate and seeks to require the SMA to issue additional and more severe sanctions against Barrick. The Chilean Supreme Court has not yet decided whether to accept this appeal.
The immediate next step is to start closing Pascua as permitted, in compliance with the Environmental Court ruling and Chilean legislation. While the ruling found we were in breach of some conditions, it also noted there was no irreparable damage. As part of closure planning, Barrick has completed a comprehensive review of the existing social and environmental obligations to ensure relevant commitments are addressed with local authorities and the community.
Pascua remains an important project for Barrick and work is under way to re-evaluate its potential. This involves a comprehensive internal review of its technical, economic and social aspects, as well as different approaches to permitting and development, should the ongoing studies deliver a project that meets Barrick’s investment filters. Central to any future options at Pascua is a commitment to open and effective engagement with all stakeholders and to proactively address historical challenges related to the project.