Addressing our legacy issues
When Barrick and Randgold merged at the start of 2019, one of our priorities was to deal with a range of legacy issues which required additional attention, research and energy. Since then, the new management team and operational staff have worked tirelessly to ensure these legacy issues are satisfactorily resolved through review with fresh eyes and a new management approach.
Most issues have now been resolved. However, some have continued to negatively impact our reputation and social license to operate. The list below details some of the issues raised and the steps we have taken to resolve them. It also aims to provide the facts.
Some issues raised by the ESG ratings community include:
- At the Porgera joint venture, concerns have been raised regarding the discharge of tailings in the Porgera river and lack of access to safe drinking water for local communities, as well as alleged human rights abuses by public and private security and insufficient remedy under the previous remedy framework.
- At North Mara, allegations of use of excessive force and human rights violations by public and private security forces.
- At Pascua-Lama, allegations of environmental harm.
- At Veladero, allegations that repeated cyanide spills have negatively impacted community water and glaciers.
Barrick’s position on riverine tailings at Porgera
We use riverine tailings disposal methods at the Porgera Joint Venture (PJV). That means rather than depositing tailings in a TSF, the tailings and erodible rock are released into the nearby Porgera River. This is not our preferred method of tailings management. However, the area is prone to heavy rain and earthquakes, which means a traditional tailings impoundment would be at very high risk of collapse. Based on the risk profile, a riverine tailings system is currently the best tailings disposal solution for PJV as it poses the lowest risk to human health, local communities and the environment.
Macroinvertebrate and water quality assessment undertaken in preparation for the mine restart - Porgera, Papua New Guinea.
Naturally high sediment loads
As the Porgera River has a naturally high sediment load, it has never been a source of drinking water for local communities. But regardless of local water quality, we take care to ensure we are managing and minimizing the risks associated with riverine disposal.
That means that prior to discharge, tailings undergo a twostage treatment process to comply with stringent discharge criteria. This includes a series of chemical processes to destroy cyanide and 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 backfill for the underground workings. This has helped to reduce the amount of tailings material entering the river by approximately 13% since 2011.
Extensive and on-going monitoring
Further to this, PJV’s environmental permit requires extensive river monitoring and strict compliance with discharge and monitoring requirements. To do this, we work closely with an independent body, the Commonwealth Scientific and Industrial Research Organization (CSIRO) which is Australia’s national science agency, to monitor impacts on the river.
With CSIRO we also undertake extensive monitoring downstream of the mine. The monitoring program involves engagement and participation with the communities as well as local, provincial, and national governments. The results of the monitoring are made public in PJV’s Annual Environmental Report, which is independently reviewed by the CSIRO.
Results show that 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.
Studies undertaken during care and maintenance
PJV has been in temporary care and maintenance since April 2020 as we negotiate the terms for the reopening of the Porgera mine with the PNG government. That does not mean we have stopped our monitoring work – rather, we have taken the opportunity to undertake further studies and to fully comprehend PJV’s environmental impacts.
PJV is currently undertaking a comprehensive study of river system health to fully understand how the physical, chemical and biological conditions of the system have responded during care and maintenance. This study is scheduled for completion by the fourth quarter of 2022.
Preliminary results indicate that since the operation was placed on care and maintenance, water and sediment quality has rapidly returned to pre-mine conditions.
Providing supplementary drinking water for the local communities
The Porgera Valley is remote and there is no government or municipal water supply for local communities. Naturally high sediment loads in the local river system mean that river water is not a significant source of drinking water for local communities.
Instead, rainwater is the main community water source. Since 2011, we have worked to harness high rainfalls to provide a reliable supplementary water source as part of our commitment to the local communities. We do this by building water tanks fed by water collected from local roof tops at centralized and easily accessible sites across the valley. The tanks have taps and we have trained locals on tank maintenance and hygiene at the collection and distribution points. Since 2011, a total of 151 water tanks have been installed to improve access to drinking water for local communities.
Reduction and elimination roadmaps going forward
As noted above, we would not ideally use riverine tailings at Porgera. As we work to restart the mine following approximately two years in care and maintenance, we are developing a tailings roadmap for the operation with a goal to further reduce or eliminate the amount of tailings deposited in the river with a view to ultimately stopping all deposition.
Alleged complicity with human rights violations at the PJV
Law and order is a persistent challenge in the Enga Province of PNG where the Porgera mine is located. Tribal conflict regularly occurs in Enga and can quickly turn violent. Since its establishment, the Porgera mine has had to manage large influxes of illegal miners attempting to access the mine. This poses significant safety and security concerns, and there have been allegations of human rights violations linked to local police and private security forces, including between 2008 and 2011, allegations of sexual abuse, use of excessive force and forced evictions.
Investigations and terminations
We take any and all allegations of human rights violations very seriously. When credible allegations of sexual assault by mine employees came to light in 2010, we conducted extensive inquiries and commissioned an independent investigation.
The process resulted in termination of employment for several employees who were implicated in, or were found to have knowledge of, sexual assaults. We also handed all relevant information over to the police and asked for a full criminal investigation.
Porgera remedy framework
Beyond our own investigation and co-operating with the police, we 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, and was one of the first processes developed under the United Nation’s Protect, Respect and Remedy Framework for Business and Human Rights.
The framework was open for more than two years and 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. While open, more than 90% of women who filed eligible claims resolved them under the framework. The framework concluded in 2015 and 120 cases were resolved.
Fifteen additional cases were remedied outside the framework. Since the conclusion of the Porgera Remedy Framework, no further credible allegations have been received. However, any accusation received is treated seriously and thoroughly investigated with the appropriate authorities.
Going forward
Further to the above, we plan to use the planned restart of PJV as a chance to start afresh on this issue. Our commitments in this regard include installing a new management team at the mine. We will work to re-establish the community grievance mechanism in alignment with IFC and UNGP requirements. In addition, we will also continue to help individual victims raise their concerns. As part of our human rights program, independent human rights assessments will be undertaken, as well as regular training for public and private security forces on the VPs.
Allegations of violent conflict, sexual assaults and human rights violations at the North Mara mine
North Mara is in a remote part of Tanzania close to the Kenyan border. There has been significant in-migration to the area and the 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.
Resolving allegations
In early 2020, a group of 10 claimants launched legal proceedings against North Mara Gold Mine Limited citing use of excessive force by Tanzanian police during the time the mine was operated by the former Acacia Mining plc (Acacia). Whilst following legal advice we believe that a private company, such as North Mara Gold Mine Limited, cannot be held accountable for the actions of a national police force, we take these legacy claims seriously and are committed to resolving them in an open and transparent manner. As part of our commitment to resolving these claims and rebuilding community trust, we have chosen not to challenge the jurisdiction of the English courts to hear these claims. This means they will be heard in the English court system rather than in the Tanzanian courts.
Restoring community relations
We have worked diligently to restore and rebuild the relationship with the local community. A key focal point of this work has been to ensure the local community meaningfully benefits from our presence. To do this, we have:
- Established a CDC;
- Engaged with the local community to explain our plans for the mine and our commitment to the community;
- Worked to understand and detail the promises made by the previous owners and fulfill them;
- Reviewed 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;
- Replaced the international security provider with a local company. This means that the security team is part of the community and knows and understands their needs and concerns. It also provides further economic benefit to the community through the creation of jobs;
- We also no longer store ammunition on site; and
- Conducted training on the VPs, and undertaken a human rights impact assessment in January 2021.
As a result, the relationship between the mine and the community has improved.
We have also resolved several historic grievances, with the number of new grievances received each month steadily declining. As discussed above, we are currently party to ongoing litigation at the High Court of England and Wales regarding certain legacy incidents. We expect those proceedings to be heard by the courts in 2023.
Third Party Progress
In early 2022, at the request of one of our refiners, PAMP, third party observers undertook a follow up visit to North Mara. While the formal feedback report is still pending, the following observations were made:
- Visible changes in the community with new houses and businesses;
- Better relations with the community, with North Mara workers able to move freely;
- Management is now addressing root causes of tension including land, and water management;
- Establishment of accountability and clarity on roles and responsibilities including of other stakeholders;
- I nvestment in resources, including water management, TSF and brine plant;
- Reduction in use of force; and
- Government involvement in resettlement and social investment decision-making.
Current focus
We are aware of allegations of force and personal injury against the Tanzania police in villages near to the North Mara gold mine which have taken place since we took operational control. As highlighted above, although we believe that North Mara Gold Mine Limited, as a private company, cannot be accountable for the actions of a national police force, we strive to use our position of influence to prevent and mitigate human rights risks near our operations. To that end, we have encouraged the affected parties and their representative NGO to come forward with evidence so that the allegations can be appropriately investigated. To date, no evidence has been provided.
Pascua-Lama
The Pascua-Lama project is in the Andes mountains and straddles the border between Chile and Argentina. Due to 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 closure of existing surface facilities.
Court ruling
In 2020, following a legal process, Chile’s Antofagasta Environmental Court upheld the closure order and sanctions imposed by Chile’s environmental regulator (the SMA) in 2018. We respect the court’s decision to uphold the injunction and we will not appeal the Environmental Court’s decision. As a result, the Chilean side of the project is being transitioned to closure. While the ruling found we were in breach of some conditions, it was also noted there was no irreparable environmental damage. As part of closure planning, we have completed a comprehensive review of the existing social and environmental obligations to ensure relevant commitments are addressed with local authorities and the community.
In October 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’s Chilean subsidiary that holds the Chilean portion of the Pascua-Lama project. The Chilean Supreme Court has accepted the appeal and the parties have presented their arguments on the merits. The decision of the Chilean Supreme Court is pending.
Historic operational incidents at Veladero
MAS, the joint venture company that operates the Veladero mine, remains subject to various regulatory proceedings related to historic operational incidents at Veladero’s Valley Leach Facility (VLF) occurring in March 2017, September 2016 and September 2015.
The only incident that resulted in an out-of-containment release of cyanide-bearing process solution at Veladero occurred in September 2015, when solution was released on a road next to the VLF. Although the September 2015 incident resulted in the release of cyanide-bearing process solution into a nearby waterway, environmental monitoring conducted by MAS and an independent third party has demonstrated that the incident posed no risk to human health at downstream communities. The last in-containment incident occurred in 2017, when a pipe ruptured within the VLF. Each of these incidents were reported to the authorities. Veladero has an extensive ground and surface water monitoring network on site, as well as immediately downstream and 100km further downstream. All data is regularly submitted to environmental, mining and water authorities. Veladero has also undertaken joint sampling with the municipal authorities and there are no elevated parameters, including cyanide, in any of our compliance points. Veladero does not operate in any demarcated area identified within the glacier inventory, and the incidents described above occurred downstream of any glaciers.
Improving access to water
Water in the High Andes has naturally high metal concentrations and therefore, potability fluctuates. To improve access to potable water, and as part of our commitment to our local communities, water infrastructure has been one of the key community development focuses at Veladero since 2019, and we have installed 11 water treatment plants across the El Jachal district. Some ratings agencies have misinterpreted that the construction of these water treatment plants were to treat mine impacted water which is not the case.