African Barrick Gold plc (the Company or ABG ) North Mara Update

Transcription

1 African Barrick Gold plc (the Company or ABG ) LONDON, (September 30 th, 2011) North Mara Update ABG, together with its majority shareholder, Barrick Gold Corporation ( Barrick ), have undertaken a series of initiatives to ensure respect for human rights, strengthen security and improve relations with local communities near the North Mara mine. The following provides an update on the status of these actions, which reflect company commitments made in a 30 th May, 2011 statement. Background On 16 th May, 2011, a group of up to 1,500 intruders stormed the ore stockpile at the North Mara mine. Given the large number of aggressive intruders and the escalating threat of violence, ABG contacted the Tanzanian police for assistance. Following a confrontation between police and armed intruders, authorities reported that five intruders were killed and a number of police officers were injured. The Government of Tanzania formed a committee to investigate the 16 th May incident at North Mara and related law and order challenges. This committee includes representatives from the police, the Ministry of Home Affairs and other elected officials. The committee has been carrying out investigations in the North Mara area since June and is expected to report back to government once its work is complete. ABG officials have been cooperating fully with this investigation. Unrelated to the events of 16 th May, ABG learned of disturbing allegations of sexual assaults by police and mine security around the North Mara mine. After conducting preliminary inquiries, ABG launched a full investigation and urged Tanzanian police to do the same. To date, ABG investigators have conducted more than 200 interviews and have provided relevant information to police. Police investigations remain ongoing. Both ABG and Barrick are unwavering in our commitment to respect human rights at all of our operations. We have a zero-tolerance approach to human rights violations and are committed to making a positive difference in the communities where we operate. We seek to contribute to sustainable economic development in ways that are both good for business and good for communities. The North Mara mine has unique challenges, many of which predate Barrick s, and subsequently ABG s, ownership of the operation. However, neither company will shy away from these challenges and are tackling them head on.

2 Nine actions to reduce conflict and support human rights at North Mara ABG has partnered with an internationally-recognised NGO, Search for Common Ground, to facilitate conflict resolution, help re-build trust and improve collaboration between the North Mara mine and the local community. Active in 27 countries, Search for Common Ground uses a multi-faceted approach, working with local partners to find culturally appropriate ways to deal with conflicts constructively, to understand differences and act on commonalities. Representatives from Search for Common Ground are undertaking the following activities around North Mara: Providing training on the Voluntary Principles on Security and Human Rights to Tanzanian police Developing a conflict reduction, resolution and negotiation training programme for community members, including leaders, traditional authorities (elders), youth and women. Creating culturally-appropriate educational materials to inform community members about the Voluntary Principles on Security and Human Rights, U.N. guidelines on the use of force by law enforcement officials, sexual harassment, community policing and universal human rights. These materials will be delivered using live performances and comic books. Designing an external grievance mechanism to deal with community concerns. This will be used for historical grievances as well as present and future concerns. Facilitating negotiation processes between the company and the communities on a range of issues of concern, such as resettlement. Designing alternative sources of economic development to help reduce poverty in the area and, as result, reduce the number of intruders in the mine. Evaluating an appropriate remedy programme for victims of sexual assault, aligned with international human rights norms. Developing a proposal for specific initiatives to help address violence against women in the Mara region. Organising sporting events with mixed teams comprised of community representatives, police, mine employees and district government officials. These activities will be paired with conflict resolution sessions that focus on building collaborative community spirit. Eight actions to improve security for the benefit of all In addition to the community-based programmes described above, the North Mara mine has advanced numerous initiatives to improve and enhance security arrangements, strengthening the mine s alignment with international human rights standards. The mine has taken action in the following areas:

3 Completed a review of the mine s security perimeter to identify improvements. Construction is now underway on a new 14-kilometer security wall to prevent illegal miners from accessing hazardous areas. Construction is expected to be completed in early GPS tracking functionality has been added to security radios, allowing for better oversight and coordination of security personnel at the mine. Additional CCTV cameras have been installed in sensitive areas at the mine. New camera equipment has also been ordered to support the upgraded security wall. Hired additional female security officers for strategic deployment on the mine site where potential for sexual harassment exists. Newly recruited female officers are now undergoing training. Mandatory human rights training for ABG security has been upgraded to encompass sexual assault issues. All ABG security personnel have participated in updated training. Upgraded procedures for escalation of human rights allegations have been developed and are now being implemented. New materials and information to improve understanding of the inherent dangers associated with illegal mining and intrusions on the mine site have been distributed in nearby communities. This builds on previous public education campaigns. ABG and the Tanzanian Ministry of Home Affairs have completed a review of existing security arrangements with police in the North Mara area. The review recommended that ABG continue to operate under an existing memorandum of understanding with police while security upgrades are underway. Once new perimeter fencing and other enhanced security features are complete, both parties will review progress with the intention of shifting resources to community policing activities and capacity building for local law enforcement. ABG triples investment in Community Along with improvements to security and law and order, ABG has significantly increased its investment in community programmes at North Mara and at its other operations. Since May, ABG has created the Maendeleo Fund, the largest corporate community development fund in Tanzania with an annual commitment of $10 million. Maendeleo Fund investments will focus on community development, health, education, environment, water projects, skills and training programmes, and will include support to non-governmental organisations with demonstrated capacity to deliver on community development initiatives. The Fund will also finance various philanthropic initiatives, sponsorships and partnerships. ABG is investing $2 million to construct a 60-kilometre water pipeline that will service the Bulyanhulu mine and nearby communities. In addition to supporting

4 mine operations, the pipeline will supply fresh water to an estimated 150,000 people in a region where access to clean water is in short supply. Strengthening human rights compliance ABG is partnering with Barrick in implementing a new corporate human rights policy based on international best practices and is now implementing an updated human rights compliance programme. Progress is underway in numerous areas, including: New human rights, labour and indigenous peoples policies. New procedures for reporting and investigating human rights allegations. Human rights training for employees, suppliers and other stakeholders. New procedures related to employee hiring and due diligence requirements for certain employees and third party suppliers. Human rights assessments to be conducted by third-party experts at all operations and projects, encompassing leading human rights indicators, including sexual violence. ENQUIRIES For further information contact: African Barrick Gold plc Andrew Wray, Head of Corp. Devt. & IR +44 (0) Finsbury Charles Chichester +44 (0) About African Barrick Gold ABG is Tanzania's largest gold producer and one of the five largest gold producers in Africa. We have four producing mines, all located in north west Tanzania (Bulyanhulu, Buzwagi, North Mara and Tulawaka), and several exploration projects at various stages of development. With a high-quality asset base, solid growth opportunities and a clear strategy, we have the objective of increasing our existing production to one million ounces per year by We aim to achieve this by: driving operating efficiencies to optimise production from our existing asset base; growing through near mine expansion and development of advanced-stage projects; and organic greenfield growth and acquisitions in Africa.

5 Maintaining our license to operate through acting responsibly in relation to our people, the environment and the communities in which we operate is central to achieving our objectives. ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction. This announcement includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG's ability to successfully integrate future acquisitions, ABG's ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to timely and successfully process its mineral reserves, risk of trespass, theft and vandalism, changes in its business strategy as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Although ABG's management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward looking statements in this announcement. Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this announcement that may occur due to any change in ABG's expectations or to reflect events or circumstances after

6 the date of this announcement. Nothing in this announcement should be construed as a profit forecast or estimate.