Living next door to Munky
When you live in a small country community it is important to get to know your neighbour, as that is what building a good community is about. A stop for a quick exchange of pleasantries and see how it goes. Over time you find out if you wish to socialise on a regular bases or not. Let me tell you about my latest next-door neighbours.
Barrick Gold is the corporation, which currently controls the Cowal Gold Project and my next-door neighbour. The company acquired the lease of the property following the acquisition of Homestake Mine. Barrick operations throughout four continents: North and South America, Africa and Australia, at which 5.7million ounces of gold was extracted. The company trades on the London, New York, Toronto and Paris stock exchange and has approximately 87 million ounces of gold in reserves, therefore sitting in the ground waiting to be extracted. Within Australia Barrick operates 4 mine sites in Western Australia. These sites include Lawler, Darlot, Plutonic and Kalgoorlie. The Kalgoorlie super pit operates under the Kalgoorlie Consolidate Gold Company. From these sites, Barrick obtained 925000 ounces of gold in 2002
Mr. Armstrong Minister for Lachlan claims my new neighbors have an “unblemished environmental record world-wide” as reported in the West Wyalong Advocate on November 28th 2003. I believe one reason behind this impeccable environmental record could be explained by the following legislative changes.
Attached to the appropriation Bill 2002, as a miscellaneous provision Barricks Homestake mine located at Black Hill, was given total legal liability that it might have done to the environment. Environmental groups and some members of congress have expressed concern about the precedent that it would set if the government took-over the liability. But I know that our State government has already given my neighbor a concession.
On 30th of October 2002, the Natural Resources Minister Craig Knowles initiated a bill, singling out the Lake Cowal Project, which enables all future developments, held up by any legislation to be able to apply of a three (3) year extension on the life of an EIS. Some of the readers may say well good, but think about all the things that have changed over this time period. Prior to these changes, developments had to be fully operational within 5 years of the EIS being approved. Barrick Gold had until mid-March 2004 to achieve this goal. Under the Bill, the State Planning Minister, currently Craig Knowles will have the power to extend approval times for major projects. This is the first legislative concession that the NSW government has provided Barrick.
Adrian Picol, Member for Murrumbidgee was reported to have made the following comment in the West Wyalong Advocate Nov 4th 2003,”he conceded the bill was designed to ‘more or less’ throw a lifeline to the Lake Cowal project.”
The other reason and mostly the most correct reason for Mr. Armstrong comments could be that his head is stunk in the sand. In 1998 Barricks mines in Elko and Eureka counties, Nevada released 398 million pounds or 177,000 tonnes of emissions into the environment. Whilst in 2002 Nevada for the third year running was in the top 4 states in the US for toxic emissions. Barricks Goldstrike mine 25 miles, 40km, NW of Carlin was the largest single toxic polluter in the state, releasing 326.5 million pounds or 145760 tonnes of emissions into the environment. Much of the ecological damage that occurs near a mine-site is due to unavoidable natural reactions of the earth during the mining process. So I ask whom do you believe when emissions are concerned; the American Environmental Protection Authority or Mr Armstrong?
So who, where and are the main players behind Barrick Gold? Peter Munk Founder of Barrick gold first come to light during the 1960's when he was a central figure in an insider trading scandal which involved him dumping his stock in a stereo-factory, he controlled just before it went bell-up, he was never charged.
Munk then joined up with Adnan Khashoggi in a company involving hotel development, before Adnan put up the cash to buy Barrick in 1983. Adnan Khashoggi was the arms dealer in the Iran-Contra affair, who G.Bush Snr pardoned as one of the last acts in office. In 1996 Khashoggi meet with members of the Bin Laden family who are business partners with the Bush family through a corporation known as the Carlyle group.
Another big player for Barrick is George Bush Snr. Barrick was one of the many contributors to G.W.Bush Snr’s presidential race in 1996, $US100,000 in what you could call a you scratch my back and we’ll scratch yours arrangement. Prior to leaving the White House Mr. Bush put a special procedure through to enable Barrick to use the 1872 Mining Act. This Act is usually associated to small claims however this time it was used to obtain the rights to one of the biggest gold deposits in the world, $10 billion ounces in reserves for just $10,000. Under this legislation gold mining companies can patent claims for $US5 an acre of public lands, pay no royalties on the value of the gold removed and have no federal obligation to clean up any mess.
Bruce Babbitt, Bill Clintons interior secretary called the claim, "the biggest gold heist since the days of Butch Cassidy.
Barrick claimed it had no contact with the president at the time the rule was changed. Despite this claim G.Bush in 1995 was hired to join the International Advisory Board as a Senior Advise despite vowing never to lobby or join a corporate board after leaving office. In 1996 Bush helped convince Suharto, Indonesian leader to give Barrick a gold-mining concession within the country, however this failed. Where Bush was helpful as a member of the Board was with Barricks acquisition of the Bulyahulu mine in Tanzania.
The most of the following information can be found on Greg Palast website. He is a reporter from the Observer and Guardian in the UK. Barrick has sued The Observer and the Guardian newspapers in London for the articles written by Greg Palast, why? Palast has a US website, now since the web is accessible in any country, Barrick was able to use the British libel laws to sue the papers despite the fact it was a US site. The effects of this case has made the Internet an electronic highway of repression plus potentially annulling the US Bill of Rights and Declaration of Independence. I will say let you decide but I say “Welcome to GLOBISATION”.
Tanzania has been known for its small prospectors, known as jewelry miners. These mining would dig 50m pits to obtain gold flakes to sell to jewelry makers. Sutton, a gold company was trying to purchase this mine and Barrick was in the process of buying Sutton. Sutton was having problems due to the miners on the property, approximately 30,000.
Sutton went to the Tanzanian court and said, "please get those miners out of there-we've been given a government concession and the World Bank told the government to give us the concession as this nation needs to pay off its interest payments to the World Bank. (The US Treasury holds 51% of World Bank stock). The court said, "No, these people have permits'.
At midnight the next night bulldozers rolled across the property, smashing down all the miners houses, covering all the pits and chased the miners completely out of the area. One problem, there was still 50 miners down there pits.
What and where is the connection between Barrick and Sutton, considering it was in 1999 that Barrick acquired Sutton? Barricks, then president and CEO told shareholders that prior to their acquisition of
Sutton, we followed the progress at Buly (Bulyahulu) for 5 years, remaining in close contact with the senior management team.
These allegations have never been proven false however the human rights lawyer Tunga Lissan has a police videotape, signed and sworn affidavits from survivors and witnesses regarding the allegations.
In 2002 356,000 ounces of gold were extracted while production for 2003 was said to increase to 415,000 ounces. The mine itself, according to Barrick is said to contain 11,653,000 ounces of reserves. To construct this mine Barrick received the biggest loan guaranteed project in World Bank history. The World Bank however has a rule that says they cannot give money fir any project in which people have been forcibly removed from the property. Tunga Lissan petitioned Mr Jim Wolfensohn of the World Bank, not to give the loan, but they still did.
In January 2003 Barrick announced that is would be appealing a Peruian tax assessment for $41US million despite only paying approximately 3% of sales in tax in 2002 and 1.8% in 2001.
Despite the above mentioned issues World Vision teamed up with Barrick in October in 2003, because both organisations shared emphasis on the well being if children, community self-determination and sustainable social and economic development.
World Vision's partnership with Barrick was due to the corporation's positive and ethical business practices.
Barrick in the Congo
Barrick has been given exploration and exploitation rights to a huge tract of land, 82,000 sq. kms, in the
Orientala province. It is also has been reported in the 'Le Monde Diplomatique', Barrick has been accused of funding military operations in exchange for lucrative contracts.
I don’t trust my neighbours would you?