Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A group of residents close to African Barrick Gold’s (LON: ABG) North Mara mine in Tanzania have filed a lawsuit against the miner in London, claiming the company is responsible for deaths and injuries of local villagers.
According to London-based law firm, Leigh Day, its clients claim African Barrick Gold and North Mara Gold Mine Limited were accomplices in the killing of at least six local villagers by police at North Mara, one of Tanzania’s largest gold mines.
Another twelve villagers, including one man who was left paraplegic, said Leigh Day in an e-mail release, are suing the companies in the hope of receiving compensation.
The claimants allege African Barrick failed to curb the use of excessive force at its North Mara mine on a regular basis over the last three years.
In an e-mailed statement the company said it was “deeply saddened” by any injury or loss of life at its operations or those of its subsidiaries.It added that while ABG is committed to addressing legitimate grievances in an open and transparent way, it will not compensate illegitimate claims or lawsuits.
Photo of Tanzanian villagers courtesy of Leigh Day
