Barrick fights to dismiss Tanzanian abuse allegations from Canadian court

Barrick Gold (TSX: ABX; NYSE: GOLD) is arguing in an Ontario court that allegations of human rights abuses in Tanzania should be decided in that country instead, with local police and a subsidiary of the Toronto-based major as defendants.

“The plaintiffs are engaging in a classic case of forum-shopping: deliberately seeking to implicate Barrick in a case in Ontario,” Michael Landau, of New York law firm Gladstone Place Partners that’s representing Barrick, said in an email Tuesday to The Northern Miner. “The right forum to consider the claims of the plaintiffs is Tanzania.”

Barrick, the second-biggest gold miner by market value, could face a civil trial seeking unspecified damages for 32 Tanzanians living near North Mara in the East African country. They’re backed by Toronto law firm Waddell Phillips, Vancouver’s CFM Lawyers and anti-mining groups such as the Ottawa-based MiningWatch Canada. North Mara, which Barrick took over in 2019, produced about 63,000 oz. in this year’s second quarter.

Killings alleged

“Barrick’s security strategy for the North Mara mine effectively converts the Tanzanian police assigned to operate in and around the mine into a private and heavily armed security force for the mine,” the plaintiffs said in their November 2023 statement of claim.

“This security strategy ‘has led directly to extensive human rights abuses’ and ‘acts of extreme violence committed by the Mine Police’ resulting in deaths, shootings, beatings and torture of local villagers,” MiningWatch said in a release on Tuesday citing the statement of claim. 

Barrick has settled two previous cases brought by locals near the mine to court in the United Kingdom since 2013. The most recent settlement, which had confidential terms for 14 villagers, was in March. The current case started in late 2022 with 21 plaintiffs before 11 more joined in February this year.

Tanzanian court

The Ontario Superior Court in Toronto is hearing Barrick’s arguments this week to permanently stay or dismiss the case. Part of the miner’s stance is that Tanzania, like Canada, has a legal system based on U.K law. The case also has witnesses who speak Swahili or other local languages but not English.

Barrick faces serious allegations of complicity in human rights violations and should be able to defend itself locally, Landau said.

“Everything related to this case took place in Tanzania,” the lawyer said. “Plaintiffs’ attempts to dismiss the independence, sophistication or ability of the Tanzanian courts to adjudicate fairly and properly over the matters at issue are without merit.”

However, Barrick’s legal team could encounter some precedents from lawsuits against Hudbay Minerals (TSX: HBM; NYSE: HBM). The same Ontario court in 2013 allowed cases brought by indigenous Guatemalans to proceed. They sought damages from the Canadian mining company for alleged human rights abuses including a killing. One of the cases predated Hudbay’s takeover of the Fenix nickel mine in 2008. The were all finally settled this month for undisclosed terms.

Barrick holds 84% of North Mara Gold Mine Ltd. and the Tanzanian government owns the remaining 16%. The subsidiary’s agreements with the Tanzania police are governed by the country’s laws, Landau said.

Overseas accountability

Company watchdogs, including the Canadian Network on Corporate Accountability and the Justice and Corporate Accountability Project, want Canada to pass tougher due diligence legislation that might prevent violence and target actions abroad by Canadian operations.

“This lawsuit is a critical step toward properly adjudicating the claims of the Kuria people, Professor Sara Ghebremusse of the Justice and Corporate Accountability Project, said in a MiningWatch release. “We hope this case will significantly advance the law governing access to judicial remedy for communities affected by Canadian mining operations abroad.” 

Last week, Barrick reported the Tanzanian Commission on Human Rights and Good Governance had found no evidence of forced evictions around the mine and that fair compensation was paid for land.

“We trust that this independent investigation by the [commission], and their findings into the allegations irresponsibly reported publicly, brings this matter to a close,” Barrick CEO Mark Bristow said in an Oct. 7 release.

“Barrick is focused, as it has been since taking over operations of North Mara Gold mine, on developing strong relationships with our local partners while making significant contributions to the region and Tanzania as a whole.”