Barrick Gold (TSX: ABX; NYSE: GOLD) is contesting allegations of human rights abuses in Tanzania in an Ontario court, asserting that these claims should be addressed in Tanzania, where local police and a subsidiary of the Toronto-based mining company are named as defendants.
The spokesperson for Barrick described the plaintiffs’ actions as a case of forum-shopping, indicating that they are intentionally seeking to implicate Barrick in an Ontario case rather than pursuing the matter in Tanzania, which they argue is the appropriate venue for these claims.
As the second-largest gold miner by market value, Barrick faces a civil trial seeking unspecified damages on behalf of 32 Tanzanians living near the North Mara mine in East Africa. The plaintiffs are supported by Toronto law firm Waddell Phillips, Vancouver’s CFM Lawyers, and anti-mining organizations, including MiningWatch Canada. North Mara, acquired by Barrick in 2019, produced approximately 63,000 ounces of gold in the second quarter of this year.
The allegations against Barrick include severe human rights violations. The plaintiffs claim that Barrick’s security strategy effectively turns the Tanzanian police assigned to the mine into a heavily armed security force for the operation. This strategy is said to have led to extensive human rights abuses, including extreme violence perpetrated by the Mine Police, resulting in deaths, shootings, beatings, and torture of local villagers.
Barrick has previously settled two cases brought by local residents near the mine in the United Kingdom since 2013, with the most recent confidential settlement involving 14 villagers occurring in March. The current case began in late 2022 with 21 plaintiffs, and 11 more joined in February of this year.
The Ontario Superior Court in Toronto is currently considering Barrick’s arguments for permanently staying or dismissing the case. The company’s legal team emphasizes that Tanzania, like Canada, has a legal system based on UK law and that many witnesses speak Swahili or other local languages instead of English.
Barrick asserts that it faces serious allegations of complicity in human rights violations and should be allowed to defend itself in Tanzania. The spokesperson noted that all relevant events occurred in Tanzania, and claims questioning the competence of the Tanzanian courts to fairly adjudicate the matter lack merit.
However, Barrick’s legal team may face challenges based on precedents from lawsuits against Hudbay Minerals (TSX: HBM; NYSE: HBM). In 2013, the Ontario court permitted cases brought by indigenous Guatemalans to proceed, seeking damages for alleged human rights abuses, including a killing. These cases were eventually settled this month for undisclosed terms.
Barrick holds an 84% stake in North Mara Gold Mine Ltd., with the Tanzanian government owning the remaining 16%. The subsidiary’s agreements with the Tanzanian police are governed by local laws.
In light of calls for greater accountability for overseas operations, watchdog organizations such as the Canadian Network on Corporate Accountability and the Justice and Corporate Accountability Project are advocating for stricter due diligence legislation to prevent violence and address the actions of Canadian companies operating abroad.
The ongoing lawsuit is seen as a critical step in addressing the claims of the Kuria people. Advocacy groups hope the case will advance the law governing access to judicial remedies for communities affected by Canadian mining operations overseas.
Recently, Barrick reported that the Tanzanian Commission on Human Rights and Good Governance found no evidence of forced evictions around the mine and confirmed that fair compensation had been provided for land. Barrick is focused on developing strong relationships with local partners while making significant contributions to the region and to Tanzania as a whole.
