Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) has settled the
majority of the North Mara legacy land claims and has paid the
first tranche of the $300 million settlement it agreed with the
Tanzanian government to resolve the disputes it inherited from
Acacia Mining.
President and chief executive Mark Bristow said
these were landmark events that demonstrated the strength of the
partnership the company forged earlier this year through the
formation of the jointly owned Twiga Minerals Corporation, which
oversees the management of Barrick’s operations in the country.
In terms of its framework agreement with the
government, the shipping of some 1,600 containers of concentrate
stockpiled from Bulyanhulu and Buzwagi resumed in April and the
first $100 million received from the sale has gone to the
government. Barrick said all material issues had been dealt with or
were being finalized. This initial payment will be followed by five
annual payments of $40 million each.
At the same time, some 90% of the outstanding
land claims at North Mara have been settled with payment scheduled
to start today. Contrary to the past, where these claims were
handled by the mine, the compensation process is being overseen by
a committee representing Twiga, the government, the local
authorities and the affected communities. This will ensure that the
process is transparent and that issues are dealt with fairly and
promptly.
Willem Jacobs, Barrick’s chief operating officer
for Africa and the Middle East, said the basis of the settlement,
which also provides for future claims, was produced during several
weeks of close and constructive engagement between Twiga, the
Ministry of Mines, the Ministry of Land, the local authorities and
the community.
A commercial bank has been appointed to provide
financial training to the compensated landowners.
Operationally, since taking over North Mara,
Barrick has focused on improving the mine’s water management with
special emphasis on its tailings storage facility. Jacobs said
Barrick’s intervention had put an end to 15 years of poor water
management on site and has ensured that going forward its
environmental risks are properly contained in line with the group’s
best practice standards.
Summing up these developments, Bristow said the
rapid progress made in resolving the most pressing legacy issues in
Tanzania was a tribute to the hard work of Jacobs and his team as
well as to the wholehearted support and engagement of the
government and other stakeholders.
“This is a striking example of what a true
partnership can achieve in building a sustainable business capable
of creating long-term value for all stakeholders,” he said.
Barrick Enquiries
Investor and media relationsKathy
du Plessis+44 20 7557 7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
InformationCertain information contained or incorporated
by reference in this press release, including any information as to
Barrick’s strategy, projects, plans, or future financial or
operating performance, constitutes “forward-looking statements”.
All statements, other than statements of historical fact, are
forward-looking statements. The words “prepare”, “will”, “ensure”,
“can”, “achieve”, “would”, “should”, “expect” and similar
expressions identify forward-looking statements. In particular,
this press release contains forward-looking statements including,
without limitation, with respect to the partnership between Barrick
and the Tanzanian government and the agreement to resolve all
outstanding disputes between Acacia and the Tanzanian government;
the expected timing for shipments of stockpiled concentrate and
payment of the $300 million settlement amount to the Tanzanian
government; long-term value creation for the stakeholders of
Barrick’s Tanzanian operations; the resolution of outstanding
historical land claims at North Mara and Barrick’s strategies with
respect to engaging with local communities; addressing
environmental issues at North Mara and improving North Mara’s water
management including at its tailings storage facility; and creating
sustainable economic opportunities for all stakeholders of
Barrick’s Tanzanian operations.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements, and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: the Company’s ability to
successfully re-integrate Acacia’s operations; timing of receipt
of, or failure to comply with, necessary permits and approvals;
non-renewal of key licenses by governmental authorities; changes in
national and local government legislation, taxation, controls or
regulations and/or changes in the administration of laws, policies
and practices, expropriation or nationalization of property and
political or economic developments in Tanzania and other
jurisdictions in which the Company or its affiliates do or may
carry on business in the future; lack of certainty with respect to
foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; litigation and legal and
administrative proceedings; risks associated with new diseases,
epidemics and pandemics, including the effects and potential
effects of the global COVID-19 pandemic; fluctuations in
the spot and forward price of gold, copper, or certain other
commodities (such as silver, diesel fuel, natural gas, and
electricity); the speculative nature of mineral exploration and
development; changes in mineral production performance,
exploitation, and exploration successes; diminishing quantities or
grades of reserves; damage to the Company’s reputation due to the
actual or perceived occurrence of any number of events, including
negative publicity with respect to the Company’s handling of
environmental or human rights matters or dealings with community
groups, whether true or not; risk of loss due to acts of war,
terrorism, sabotage and civil disturbances; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; employee
relations including loss of key employees; increased costs, delays,
suspensions and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; the impact of global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future cash flows;
fluctuations in the currency markets; increased costs and physical
risks, including extreme weather events and resource shortages,
related to climate change; and availability and increased costs
associated with mining inputs and labor. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion, copper cathode or
gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these
risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40- F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick Gold Corporation disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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