The Canadian mining giant Barrick Gold’s African subsidiary, Acacia Mining, is embroiled in a major political conflict in Tanzania. With growing evidence of its failure to pay royalties and tax, Acacia has been condemned by President Magufuli, had its exports restricted and slapped with a massive tax bill. Barrick enjoys considerable government backing.
Will the Canadian government continue to support Barrick Gold’s exploitation of mineral resources in Tanzania no matter what abuses the company commits?
Would the Trudeau government stop backing the Toronto-based firm if it bilked the impoverished nation out of $10 billion? Or, what if one thousand people were raped and seriously injured by Barrick security? Would Ottawa withdraw its support if one hundred Tanzanians were killed at its mines?
Barrick’s African subsidiary, Acacia Mining, is embroiled in a major political conflict in the east African nation. With growing evidence of its failure to pay royalties and tax, Acacia has been condemned by President John Magufuli, had its exports restricted and slapped with a massive tax bill.
In May a government panel concluded that Acacia significantly underreported the percentage of gold and copper in mineral sand concentrates it exported. The next month a government commission concluded that foreign mining firms’ failure to declare revenues had cost Tanzania $100 billion. According to the research, from 1998 to March 2017 the Tanzanian government lost between 68.6 trillion and 108.5 trillion shillings in revenue from mineral concentrates.
The controversy over Barrick’s exports led President Magufuli to fire the minister of mining and the board of the Minerals Audit Agency. Tanzania’s parliament has also voted to review mining contracts and to block companies from pursuing the country in international trade tribunals.
While the political battle over royalty payments grows, human rights violations continue unabated at Barrick’s North Mara mine. A recent MiningWatch fact-finding mission discovered that,
“new cases have come to light of serious un-remedied harm related to encounters between victims and mine security and police who guard the mine under a Memorandum of Understanding (MOU) between the companies involved and the Tanzanian Police Force. New cases documented in June 2017 include: loss of limbs, loss of eyesight, broken bones, internal injuries, children hit by flying blast rocks, and by teargas grenades thrown by mine security as they chase so-called intruders into the nearby villages. As in past years, villagers reported severe debilitating beatings, commonly with gun butts and wooden batons. Some are seriously wounded by teargas ‘bombs,’ or by so-called rubber bullets. Others are shot, including from behind. As in past years there were a number of deaths.”
At least 22 people have been killed and 69 injured near or at the North Mara mine since 2014. Most of the victims were impoverished villagers who scratch rocks for tiny bits of gold and who often mined these territories prior to Barrick’s arrival. An early 2016 government report found security and police paid by Barrick had killed 65 people and injured 270 at North Mara since 2006. Tanzanian human rights groups estimate as many 300 mine related deaths and the Financial Times reports that not a single police officer or security guard working for the company has been killed on duty.
Amidst the violence at North Mara and an escalating battle over unpaid tax, Canada's High Commissioner set up a meeting between Barrick Executive Chairman John Thornton and President Magufuli. After accompanying Barrick’s head to the encounter in Dar es Salaam, Ian Myles told the press,
“Canada is very proud that it expects all its companies to respect the highest standards, fairness and respect for laws and corporate social responsibility. We know that Barrick is very much committed to those values.”
Appointed by Trudeau last year, Myles – whose “passion for international development began” when he was 17, according to a University of Toronto profile – took a page out of Stephen Harper’s playbook. During a 2007 trip to Chile the former prime minister responded to protests against various ecological and human rights abuses at the firm’s Pascua Lama project by saying: "Barrick follows Canadian standards of corporate social responsibility."
A Tanzania business ethics columnist was not happy with the High Commissioner’s intervention. In response, Samantha Cole wrote:
“It is so insulting that these Canadians and British still think they can trick us with their fancy nonsense ‘spin’ politics and dishonesty. What values is Barrick committed to? Have our nation not witnessed with our own eyes killings? rape? arson and burning our homes? destruction to our environment? poison in our water? corruption? fraud? hundreds of legal cases with local Tanzanian companies who are abused, bullied and suffer? and the list goes on. What ‘values’ is Ambassador Myles boasting about? How dishonest and unethical to stand there and lie about values? He should rather say NOTHING because every country where Barrick operates has a long, long list of illegal activities and crimes.”
Disregarding its election promise, the Trudeau government is openly throwing this country’s diplomatic weight behind Canada’s most controversial mining company in the country where it has committed its worst abuses. When asked about Canada’s massive international mining industry during the election the party responded:
“The Liberal Party of Canada shares Canadians' concerns about the actions of some Canadian mining companies operating overseas and has long been fighting for transparency, accountability and sustainability in the mining sector.”
The Liberals’ statement included explicit support for An Act Respecting Corporate Accountability for Mining, Oil and Gas Corporations in Developing Countries, which would have withheld some diplomatic and financial support from companies found responsible for significant abuses abroad. Similarly, the Liberals released a letter about the mining sector during the 2015 election that noted, “a Liberal government will set up an independent ombudsman office to advice Canadian companies, consider complaints made against them and investigate those complaints where it is deemed warranted.”
Nearly two years into their mandate the Trudeau regime has yet to follow through on any of their promises to rein in Canada’s controversial international mining sector. In fact, the Liberals have largely continued Harper’s aggressive support for mining companies.
If they are prepared to openly back Barrick in Tanzania one wonders what exactly a firm would have to do to lose Trudeau’s support?
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