The Cost of Gold at Barrick Gold Corporation Admin February 11, 2025

The Cost of Gold at Barrick Gold Corporation

unveiling-the-shadows_-the-cost-of-gold-at-barrick-corporation

After Mali’s regime impounded gold worth $245 million, there has been divided opinions on whether Mali is digging its economic grave or emancipating itself from the shackles of poverty. One comment on LinkedIn suggested that I was wrong, when I enforced the fact that Barrick Gold Corporation is a wanton company that prioritises profits and cares less about human rights, on this I drew the example of North Mara, in Tanzania where community members have suffered a great deal in the hands of Barrick Gold Corporation.

Now, Barrick Gold Corporation, one of the largest gold mining companies worldwide, has faced immense scrutiny and criticism for its operational practices, particularly in regions like Africa and Latin America. Allegations of social, economic, and environmental injustices have raised serious questions about the company’s commitment to corporate responsibility and human rights. This article seeks to unravel these complexities and highlight the urgent need for accountability in Barrick’s operations.

At the forefront of the allegations against Barrick Gold is the issue of violence against local populations. Reports from the Porgera mine in Papua New Guinea reveal harrowing accounts of systematic violence, including sexual assaults perpetrated by mine security personnel. Local women have reported being victims of sexual violence, while men have faced brutal beatings and killings. The company’s establishment of a Remedial Framework to address these complaints has been criticized as inadequate, offering limited reparations and requiring victims to sign waivers that hinder further legal action.

Such practices not only violate basic human rights but also create an environment of fear and intimidation among local communities. The lack of accountability for security forces acting under Barrick’s auspices suggests a troubling disregard for the safety and dignity of those living near mining operations.

Beyond social injustices, Barrick Gold’s operations have led to significant economic challenges for local communities. The expansion of mining activities often results in the displacement of residents who receive little to no compensation for lost land and livelihoods. In many instances, communities are forced to scavenge for gold in hazardous conditions due to the loss of agricultural land.

In Tanzania, despite the gold mining sector’s contributions to the national economy, local communities report that profits do not benefit them. Instead, the wealth generated from mining is primarily directed to shareholders, with minimal investment in local infrastructure or services (Al Jazeera, 2020). This inequitable distribution of wealth perpetuates cycles of poverty and underdevelopment, raising questions about the ethical implications of Barrick’s operations.

Environmental degradation is another critical concern associated with Barrick Gold’s mining activities. The company has been accused of polluting local water sources, leading to severe health issues for surrounding communities. Reports indicate that waste dumping into rivers has contaminated drinking water, affecting the health and livelihoods of those who depend on these resources.

Moreover, Barrick’s encroachment on traditional lands has devastated indigenous communities, burying homes and agricultural areas under waste dumps. Such actions not only disrupt the lives of those who have lived in these areas for generations but also violate cultural and spiritual connections to the land.

In response to these injustices, local communities have mobilized to demand accountability from Barrick Gold. Social movements have emerged, advocating for better practices that respect the rights and needs of local populations (Al Jazeera, 2020). These grassroots efforts underscore the resilience of affected communities and their determination to hold the company accountable for its actions.

Despite these efforts, Barrick has continued to face legal challenges. In Tanzania, villagers have launched lawsuits alleging the company’s complicity in police abuses at the North Mara gold mine, claiming that Barrick effectively controlled the police, leading to violent responses against residents (Al Jazeera, 2020). Such legal actions highlight the ongoing struggle for justice and the need for corporate accountability.

Barrick’s troubles extend beyond social and economic injustices into the realm of legal disputes. In Mali, the company faces heightened tensions with the government over revenue sharing and tax obligations. Recent developments include the seizure of three tons of gold by Mali’s military government amid disputes regarding owed revenue (AP News, 2025). This situation not only reflects the complexities of Barrick’s operations in resource-rich but economically challenged regions but also underscores the ongoing struggles for equitable resource management.

Additionally, allegations of money laundering against Barrick’s CEO further complicate the company’s standing in Mali (AP News, 2025). Such legal controversies paint a troubling picture of Barrick’s operations and raise questions about the integrity of its corporate governance.

Accusations of social, economic, and environmental injustices associated with Barrick Gold Corporation’s operations cannot be overlooked. The company’s practices have led to significant harm to local communities, raising serious concerns about corporate responsibility and human rights. As Barrick navigates ongoing legal challenges and community resistance, it must confront the reality of its impact on affected populations.

The need for a paradigm shift in corporate practices is clear. Barrick Gold must prioritize accountability, transparency, and ethical engagement with local communities. Only through genuine dialogue and reparative actions can the company begin to restore trust and address the legacy of harm it has inflicted. The cost of gold should not come at the expense of human dignity and environmental sustainability.

[Further reading]

  • AP News. (2025). Mali seizes 3 tons of gold from Canadian company Barrick amid dispute over share of revenue.
  • Al Jazeera. (2020). Tanzanians sue Canada’s Barrick Gold over alleged abuses at mine.
  • EarthRights International. (n.d.). Barrick Gold: A legacy of violence and environmental destruction.
2 Comments
  • Reply
    February 12, 2025, 7:10 pm

    Powerful write-up that resonates in many ways with the experiences of most Zambian communities in North Western province. And in no small part because we do have some of the largest mines including Kansanshi, Kalumbila and Barrick Lumwana mines. Reports of displacements, environmental degradation and social economic injustices are rife. Most local communities are too economically vulnerable to put up reasonable defense to many of these challenges and therefore continue enduring the hard times. There’s still need for deeper community investments that respond equally to the socioeconomic and environmental disruptions caused by the extractives sector. What’s critical to ensure a win-win situation for all stakeholders government, mining firms and the communities. This would require according each stakeholder the due respect as an equal and engaging in a manner of give and take, ensuring tradeoffs are not results of compromise but consensus.

    • Reply
      February 12, 2025, 7:44 pm

      This is why I write. To generate insights but also to give others a platform for others to add their experiences.

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