|
|
| |
Tanzania- Bulyanhulu Gold Mine
Project |
Bulyanhulu Gold Mine is a mine and mill complex established by Kahama Mining Corp. Ltd. (KHMC), and named for the Bulyanhulu River. MIGA and the company believed the investment would contribute to the development of Tanzania’s infrastructure and benefit surrounding communities surrounding through improved access to potable water drawn from the water pipeline being constructed by the project sponsors, the availability of electrical power to local households, and the development of roads. |
|
|
MIGA Interest |
In 2001, Barrick Gold Corp. of Canada received a $56.3 million MIGA guarantee for its investment in an underground gold, silver, and copper mine in Tanzania. The insurance covered the investment against the risks of transfer restriction, expropriation, war and civil disturbance.
In September 1998, the IFC had been approached by Sutton Resources (which had owned the property prior to 1999) for possible funding. IFC explored the possibility but ended its involvement in the project in June 1999 when Sutton Resources was purchased by Barrick Gold. MIGA however continued its involvement.
|
|
|
Environmental and Social Context |
In 1994, the Government of Tanzania (GOT) granted a prospecting license to KHMC, a subsidiary of Sutton Resources. In July 1995, GOT decreed that all small-scale miners should leave the area, but did not take action to ensure the land was vacated. The GOT’s decree was challenged in court by the Small Scale Miner’s Committee (SSMC). On July 30, 1996, the GOT issued a final decree that the concession area be vacated by “illegal miners.” The decree was challenged by the SSMC and an injunction issued a day later. This was overturned on August 2, 1996 and the vacating process went ahead and was enforced throughout the month. At this time, during land-clearing activities, small scale miners at Buylanhulu Gold Mine in Tanzania joined with a nongovernmental organization in the area to protest land-clearing activities that they alleged resulted in the deaths of 52 miners.
|
| |
|
| Request to CAO |
The Lawyers Environmental Action Team (LEAT) filed a complaint on behalf of the Small Scale Miners Committee of Kakola, Tanzania, suggesting that the mine’s operations were not in compliance with World Bank Group standards. The complaint claimed that:
- There were issues over the manner of consultation regarding eviction and land clearance, resettlement, and compensation of small scale miners in July 1996;
- The transfer of the concession to Barrick Gold upon its acquisition of Sutton Resources and the subsequent resettlement of people in 1998;
- MIGA failed to carry out a thorough and competent due diligence investigation, and properly address issues over consultation; and
- Human rights abuses had occurred, such as the deaths of 52 miners during eviction from the mine holding.
|
|
|
CAO Action |
The CAO visited the site in March 2001. It found that the available evidence did not indicated that the mine was responsible for the miners’ deaths. The CAO also found that claims were exaggerated about the number of people forcibly relocated by the mine at the time of land clearance. On environmental issues, the mine’s activities were found to be in line with best practice in the mining industry. The CAO did suggest that there was opportunity for the mine, the communities, the NGOs in the area, and the government to strengthen their partnership, which might lead to greater investment in the people of the area.
|
|
|
Current Status |
Reaction from the NGOs was negative to the CAO Assessment Report. The complaint was closed January 19, 2005. |
Received |
Appraisal |
Assessment |
Closed |
5 days |
15 days |
30-90 days |
Complaint Closed |
Acknowledged January 14, 2002
|
Accepted January 28, 2002
|
Assessment Report Released October 21, 2002 |
January 19, 2005 |
This page last updated: 6/21/2006
|
| |
|
