Barrick Gold Corporation ( ,
) is the largest pure gold mining
company in the world, with its headquarters in Toronto
, Ontario
, Canada
; and four
regional business units (RBU's) located in Australia, Africa, North
America and South America. Barrick is currently undertaking mining
and exploration projects in Papua New Guinea
, the United States
, Canada, Dominican
Republic
, Australia, Peru
, Chile
, Russia
, South Africa, Pakistan
, Colombia
, Argentina
and Tanzania. For
2008, it produced 7.7 million ounces of
gold at
a cash cost of US $443/ounce. As of December 31, 2008 its proven
and probable gold mineral reserves stand at 138.5 million
ounces.
On January 20, 2006, Barrick acquired a majority share of
Placer Dome. The production of the combined
organisation moved Barrick to its current position as the largest
gold producer, ahead of
Newmont Mining
Corporation.
Environmental impact
Mining practices
Barrick Gold has been accused of a number of environmentally
unsound practices by environmental groups. The company has
countered accusations by activists, challenging the accuracy of
criticisms.
Criticisms include poisonous spills of
cyanide,
mercury
and other
heavy metals, leading to
environmental damage and the poisoning of human populations.
Critics
object to the use of gold
cyanidation in the mine at Lake Cowal
and other gold mines, and point to the release of
approximately seven tons of mercury during 2004-2005 at the Super Pit gold
mine
(a 50/50 joint venture with Newmont Mining Corporation) near the city of
Kalgoorlie-Boulder,
Western Australia.
Following accusations connected with the
Porgera Gold Mine, on January 30 2009 the
company was excluded from
The Government Pension
Fund of Norway, one of the world's largest
Sovereign Wealth Funds. The fund's
Council on Ethics in an investigation found "an unacceptable risk
of contribution to ongoing and future environmental damage" at the
Porgera mine:
The Council has investigated whether riverine tailings
disposal from the Porgera mine in Papua New Guinea generates severe
environmental damage, and finds it established that the mining
operation at Porgera entails considerable pollution.
[...] In the Council’s view heavy metals contamination
constitutes the biggest threat of severe and long-term
environmental damage.
The Council also considers it probable that the
discharge has a negative impact on the population’s life and
health, including both the residents of the actual mining area and
the tribal peoples who live along the river downstream of the
mine.
The fund sold all its stock in the company, worth ca. 245m US$, as
a result of these conclusions. A spokesman for the company disputed
the allegations, saying the company was “making steady progress in
improving its performance. The mine follows a government-approved
environmental management and monitoring program, and we continue to
operate in full compliance with legal and other
requirements."
The Lake Cowal Mine was the first mine in the world certified under
the International Cyanide Management Code. The code was developed
jointly by the mining industry and stakeholders with the United
Nations Environmental Program (UNEP) to certify management, health
and safety practices in the production through third party audits.
The mine site uses chromatography to “track and manage both the
cyanide employed to leach the gold from its ore and the reagents
subsequently added to destroy residual cyanide before discharge
into the tailings dam.”
Fifteen of the company’s mines have since been certified under the
code, while three Barrick operations do not use cyanide.
At the Porgera mine, Barrick has committed to pioneer a method
whereby
tailings products and erodible
waste can be encapsulated within the coarser waste rock stockpiles.
This method will ensure that the water quality of the local river
systems is not compromised, without the construction of a 'normal'
tailings dam, which in the rugged topography of the Porgera valley
would be prone to eventual failure. . However, recent research
shows that mercury can be released from gold-mine tailings
encapsulated within coarser waste rock stockpiles, into the surface
water through groundwater-surface water flow systems , and
eventually to the atmosphere by evasion .
Relations to local populations
In April and May 2008, indigenous leaders from four countries
opposing large-scale gold mining on their lands described the
adverse impacts of Barrick Gold Corporation. These leaders spoke of
Barrick Gold's tactics in "suppressing dissident voices, dividing
communities, and manipulating local and national politics". They
also related stories about "lack of free, prior and informed
consent for local people". Barrick is fighting a lawsuit by the
local government claiming compensation for the
Marcopper Mining Disaster, which
it inherited when taking over
Placer Dome,
Inc.
In
British
Columbia
the Tahltan Nation has expressed a contrary view,
thanking the company in an open letter for encouraging local
sustainable development while operating the Eskay Creek mine from
2001 to 2008.
Barrick Gold participates in a number of corporate social
responsibility programs, such as the
United Nations Global Compact. The company is a
signatory to the
Extractive Industries Transparency Initiative. It also
participates in
The Global Reporting Initiative,
Business for Social
Responsibility and The Global Business Coalition on HIV/Aids,
Tuberculosis and Malaria. On September 7, 2007, Barrick was added
to the Dow Jones Sustainability Index. The company is a member of
The International Leadership Council (ILC) of The Nature
Conservancy.
Renewable energy
In 2007,
Barrick Gold installed the world's highest-situated wind turbine at the Veladero mine in San Juan
Province 
at nearly 4,200m elevation.
The company has made a request to Chile’s environmental authority,
COREMA, to expand a proposed wind farm project in Chile’s Region IV
from ten wind turbines to eighteen wind turbines, that would
generate 36 megawatts of electricity into the national power grid.
In Nevada, Barrick operates a 1-megawatt solar panel farm. There
are also plans to build a 9-turbine wind farm at the
Golden Sunlight mine in Montana when
the operation closes.
Pascua Lama project
Pascua Lama
is a mining project at a large and complex
poly-metallic orebody in the high mountains south of Atacama on the
border between Chile and Argentina. Its main product will be
gold. In early 2006, the project was approved by the environmental
authority in the region of Chile where the mine will be
constructed. The 19-member regional environmental commission
(COREMA) voted unanimously to allow the project to proceed, with
conditions imposed to protect the ice fields and the water supply
to the Huasco Valley. A decision to move forward with the project
was deferred while sectoral permits were finalized for activity
like road construction and taxation agreements between Chile and
Argentina were negotiated by the two countries. In May, 2009 it was
announced the project would proceed to construction.
Barrick Gold acquired the deposit with its acquisition of Lac
Minerals in 1993 and has planned on investing US$1.5 billion in
this project, which had a planned lifetime of at least 20
years.
The original scope of the ore body lay partially under two small
glaciers which eventually feed into the rivers of the
Huasco Province. Environmental reviews took
place over more than two years and government authorities imposed
400 conditions on the company in order to mine. As a consequence,
more than one million ounces of gold at the site will not be mined.
However controversy is still rampant as to the real environmental
impact, as mine exploration has already been linked to a 56 to 70 %
depletion in the three glaciers nearest to the mine site.
Extensive water management infrastructure is incorporated into the
mine design to mitigate the effects of surface and sub-surface
water migration across the operation.
The historical record of these types of projects in Chile and the
companies' real-world ability to meet legal environmental
constraints makes the processing of residual-waste a point of
contention. The inability or unwillingness of local authorities to
stand up to spills and breaches of environmental requirements is
well known and another key point of disagreement with opponents to
the project.
The recent approval (as of 2000-2009, during the Lagos and Bachelet
presidecies ) of many controversial projects such as large mines,
dams for power generation, huge salmon farms, forestry, etc. in
spite of many legal and environmental concerns, again question the
ability or willingness of the Chilean Government to address local
communities concerns' when clashing with large corporations and
perceived economic benefits .
These issues have recently even been criticized by the OECD as
major impediments for Chile being able to join the 'elite club' of
developed countries.
Low levels of residual ore processing waste products, such as
sodium cyanide and sulphuric acid will be treated and neutralised
on site, then discharged into the local water systems, providing
the residual levels meet the legislative requirements of the
Chilean governing bodies. A strict regime of monitoring is included
in the operating license.
The mine’s opponents in Chile include the Diaguita Huascoaltinos
Indigenous group and Alto del Carmen councilperson Luís Faura
Cortes, who fear that the mine will damage the agriculture industry
in the Huasco Valley.
In a Chilean court case over title ownership between Barrick Gold
and a mining trustee named Rodolfo Villar, employee of the alleged
owner Jorge Lopehandia, there was a verdict passed down declaring
that Lopehandia was the rightful owner of the mining claims that
comprise the Pascua Llama project. Barrick Gold proceeded to sue
the Judge claiming that the Judge was biased, and therefor the
Judgement should be overturned. This case was elevated to the
Chilean supreme court level where it was declared that the Judge's
decision was the correct one.
NovaGold and Pioneer plays
On July 24, 2006, Barrick announced their intent to purchase
NovaGold Resources and Pioneer Metals. The unsolicited bid for
NovaGold Resources was at US $1.29 billion or US $14.50 per share,
and the solicited bid for Pioneer Metals was at US $53 million or
US $.88 per share. NovaGold management quickly characterized
Barrick's bid for their company as undervalued. Pioneer management
however quickly endorsed Barrick's bid for their company.
Previously on June 19, 2006, NovaGold made an unsolicited bid for
Pioneer Metals at US $31 million. NovaGold and Pioneer are
currently in litigation over the Grace project in British Columbia,
Canada. That project is adjacent to NovaGold's Galore Creek project
and 75 kilometers away from Barrick's Eskay Creek mine. NovaGold
and Barrick also cross paths at the Donlin Creek project in Alaska
where NovaGold is 70% owner and Barrick is 30% owner, however
Barrick has the right to earn in a 70% share as a result of their
takeover of Placer Dome in January 2006.
On August
14, 2006, NovaGold filed a lawsuit in British
Columbia, Canada
alleging that Barrick misused confidential
information to make its bid for Pioneer metals. [78869] As part of the suit, NovaGold is asking
that any shares tendered to Barrick under the Pioneer bid be held
in a trust for NovaGold. On August 25, 2006, NovaGold filed a
second lawsuit against Barrick
[78870] - this time in the District of Alaska
court alleging that Barrick violated U.S. security laws by
misrepresenting its position by repeatedly stating it is on-track
to earn a 70% interest in the Donlin Creek mine. The suit seeks a
temporary suspension of Barrick's hostile bid for NovaGold.
On December 16, 2006, after extending the bid for NovaGold 6 times,
increasing the offer once, and lowering the threshold for takeup of
tendered shares from 75% to 50%, and then to no minimum, Barrick
finally let the bid expire
[78871]. The net result for Barrick was a
takeup of 12.7% of the outstanding NovaGold shares. Barrick's Chief
Executive Greg Wilkins indicated that the company would look
elsewhere for acquisition opportunities. More recently, the company
is reported to be eyeing
Aurelian
Resources [78872] in Ecuador.
In November 2007, NovaGold and Teck Cominco announced the
suspension of Galore Creek project and Nova Gold share plummeted.
During the summer and Autumn of 2008, Nova Gold tried to put their
Rock Creek project in Alaska into production. After less than two
months of operation, production was shut down for obscure reasons.
On January 2, 2009, Nova Gold announced a 60 million dollar private
placement for a 30% control in the company, valuing the company at
approximately 200 millions dollars, or 1/8 of the price offered by
Barrick two years earlier.
See also
References
- CorpWatch : Barrick Gold Mine Transforms Pacific
Island
- Jantzi Research - Alerts
- Business & Human Rights, “The Facts & CorpWatch” -
Author: Barrick Gold Dated: 11 May 2007,
http://www.business-humanrights.org/Links/Repository/136222/link_page_view
- Norwegian Ministry of Finance (2009-010-30) Mining Company
Excluded from the Government Pension Fund – Global doe to
contribution to serious environmental damage (in English)
http://www.regjeringen.no/en/dep/fin/press-center/Press-releases/2009/mining-company-excluded-from-the-governm.html?id=543107
- International Cyanide Institute, Press Release: 'First
Operation Certified Under International Cyanide Management Code’,
Washington, D.C., April 17, 2006
http://www.cyanidecode.org/media_pr6.php
- International Cyanide Management Code for the Gold Mining
Industry web site, [1]
- Tim Thwaites, “Single Analysis solution tracks cyanide”,Commonwealth
Scientific and Industrial Research Organisation’s Process magazine,
Jan 2009
- http://www.cyanidecode.org/signatory_barrickgold.php
-
http://linkinghub.elsevier.com/retrieve/pii/S0883292706002095
- Maprani
et.al.,(2005),http://pubs.acs.org/doi/abs/10.1021/es048962j
- "Global resistance to mining", Chain Reaction, Issue
#103, September 2008, p. 16.
- “Breaking New Ground: Mining, Minerals and Sustainable
Development”, Linda Starke (Editor), Earthscan Publications Ltd.
(February 2003), P. 347 & 348 and Sedar website, Placer Dome
Inc., “Placer Dome Speaks to Philippine Lawsuit”, news release,
October 6, 2005 http://www.sedar.com/ (at 6 Mar 2009)
- [2] Stepping Stone Fall 2008 p.2
- United Nations Global Compact web site
http://www.unglobalcompact.org/ParticipantsAndStakeholders/search_participant.html?detail=Barrick+Gold+Corporation
- http://eitransparency.org/supporters/companies
- http://www.bsr.org/membership/member-list.cfm
- Global Business Coalition on HIV/AIDS, Malaria and Tuberculosis
Member Profiles
http://www.gbcimpact.org/itcs_type/9/507/member_profiles
- CSRwire
-
http://www.nature.org/joinanddonate/corporatepartnerships/leadership/
- Reuters, Industrial Info News Alert, ‘Barrick Awaiting Approval
for Expansion of Punta Colorada Wind Project’ 25 June 2008
http://www.reuters.com/article/pressRelease/idUS120359+25-Jun-2008+MW20080625
(Mar 4, 2009) and Reuters, Industrial Info News Alert, ‘Preliminary
Earthwork Begins for Phase I of Punta Colorada Windfarm in Chile’,
19 Aug 2008
http://www.reuters.com/article/pressRelease/idUS103425+19-Aug-2008+MW20080819
(Mar 4, 2009)
- John Seelmeyer, Northern Nevada Business Weekly, ‘Barrick Gold
nearly done with major solar facility’, 14 Jan, 2008
http://www.nnbw.biz/ArticleRead.aspx?storyID=10316 1/14/2008
- Nick Gevock, The Montana Standard, "Wind Farm Planned for
Golden Sunlight Mine Land," The Montana Standard, 9 Sep 2008,
http://www.istockanalyst.com/article/viewiStockNews/articleid/2596197
(@ 6 Mar 2009)
- Wanda Prassmsma, The Santiago Times, “Chile Gives Pascua Lama
Conditional Green Light” February 16, 2006.
http://www.santiagotimes.cl/santiagotimes/index2.php?option=com_content&do_pdf=1&id=8603
and Andy Hoffman, The Globe & Mail, “Argentina approves Barrick
Gold Mine”, 6 December, 2006
http://www.theglobeandmail.com/servlet/Page/document/v5/content/subscribe?user_URL=http://www.theglobeandmail.com%2Fservlet%2Fstory%2FLAC.20061206.BARRICK06%2FTPStory%2F%3Fquery%3DBarrick%2BAndy%2BHoffman&ord=87623261&brand=theglobeandmail&force_login=true
- Pav Jordan, Reuters, “Barren Chile Andes hide world class gold
play” March 2, 2007,
http://www.reuters.com/article/companyNewsAndPR/idUSN0234972120070302
- Pav Jordan, Reuters, “Chile, Argentina nearing Pascua Lama tax
deal”, January 29, 2009
http://uk.reuters.com/article/tnBasicIndustries-SP/idUKN2931258920090129?sp=true
-
http://www.marketresearch.com/product/display.asp?productid=2299819&g=1
- Andy Hoffman, The Globe & Mail, “Argentina approves Barrick
Gold Mine”, 6 December, 2006
http://www.theglobeandmail.com/servlet/Page/document/v5/content/subscribe?user_URL=http://www.theglobeandmail.com%2Fservlet%2Fstory%2FLAC.20061206.BARRICK06%2FTPStory%2F%3Fquery%3DBarrick%2BAndy%2BHoffman&ord=87623261&brand=theglobeandmail&force_login=true
- Reuters, “Barrick hopes to start work on Pascua Lama in
September” Thu Mar 1, 2007,
http://www.reuters.com/article/companyNewsAndPR/idUSN0132813220070301
- Paul Harris, ‘Where is ice worth 1.3 million ounces of gold?
Ask Barrick”, American Metal Market, 30 Mar 2007
- Ricardo Lagos, http://en.wikipedia.org/wiki/Ricardo_Lagos and
Michelle Bachelet,
http://en.wikipedia.org/wiki/Michelle_Bachelet
- Environmental Issues in Southern Chile,
http://www.allsouthernchile.com/southern-chile-environmental-issues.html
- Chile, Environmental Problems May Impede Entry to OECD,
http://goliath.ecnext.com/coms2/gi_0199-7489056/CHILE-ENVIRONMENTAL-PROBLEMS-MAY-IMPEDE.html
-
http://cl.invertia.com/noticias/noticia.aspx?idNoticia=200812090959_INV_77678850&idtel=
- http://www.chanarcillo.cl/articulos_ver.php?id=8401
- NovaGold Website
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