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Barrick pays out claims at North Mara

Mining
TSX:ABX
25 May 2020 15:57 (EDT)
Barrick Gold Corporation - President and CEO, Mark Bristow

Source: The Wall Street Journal

Barrick Gold Corp (TSX:ABX) has settled the majority of the disputed North Mara legacy land claims with locals and the Tanzanian Government.

Barrick settled 90 per cent of the outstanding land claims at North Mara and has completed the first tranche of a C$419 million payment to the Tanzanian Government.

North Mara has had a long and contentious relationship with the locals living in its shadow.

The mine, previously bought by former operator Acacia Mining in 2006, has been a constant source of conflict within Tanzania. Barrick now owns the majority of the mine.

The original owner, Afrika Mashariki Gold Mines, which started the mine in the 1990’s, has been accused of not paying compensation to the local communities for the land.

Barrick hopes to put these disputes to an end, through its newly formed committee.

The new committee features representatives from Twiga Minerals, a company set up by Barrick to handle its operations in Tanzania, along with representatives from the Tanzanian Government, local authorities and members of the affected communities.

Barrick has stated this new process will ensure that issues are dealt with fairly and promptly. The committee will be used to settle any future claims against Barrick at the site as well.

President and CEO of Barrick, Mark Bristow said the agreements demonstrated the strength of the partnership forged earlier this year, through Twiga Minerals.

“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 Gold Corp (ABX) is up 0.23 per cent and is trading at $26.32 per share at 11:44 pm EDT. 

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