27th October 2008

Barrick Gold Brings Artisanal Miners into the Fold – by Nancy J. White

Tanzania’s Artisanal Miners Often Work in Unsafe Conditions
Tanzania’s Artisanal Miners Often Work in Unsafe Conditions
This article was first published in “Beyond Borders”, a BARRICK GOLD quarterly report on responsible mining, edited by Nancy J. White, the company’s communications director for responsible mining. “Beyond Borders” contains several other items highlighting Barrick’s initiatives around the world. It will be posted soon at www.barrick.com.

At age 13, Alfaxad Chacha started digging. He never stopped. Seven days a week, 14 hours a day, he sifted through the red mud and rock of the Tanzanian landscape under an equatorial sun. With a little luck and a lot of backbreaking labour, Alfaxad and his friends eked out a meagre living on the miniscule bits of gold they uncovered.

It was difficult work, using dangerous explosives and toxic chemicals. But for 1.5 million Tanzanians, this primitive form of artisanal mining is a daily reality.

Today, Chacha is 50 years old. He lives in the village of Kerende in Tanzania’s Mara region. A life of digging for gold under the ground has hardened him.

“I am an artisanal gold miner. I have been all my life and so were my parents before me, but I’m not too proud of what I do,” Chacha says. “My work is barely able to support me, my family and my community. It is very hard work for very little money. This is not the life I dreamt of, but it is all I have.”

Like many others, Chacha spends his days digging, crushing and grinding ore, to unlock the small particles of gold it contains. He sells his product for a fraction of its true value to gold dealers who pass through the village. It’s part of an underground gold industry in Tanzania – one with no government regulation or oversight of any kind.

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27th October 2008

Arming Private Security in the Philippines – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Halloween is fast approaching, and I am filled with scary thoughts. I can imagine little ghosts and goblins shrieking for treats. I can imagine costumed superheroes playing gruesome tricks. But the truly frightening thing that I came across this week is the decision made by the Philippine government to allow mining companies to arm their private security forces.

According to reports from GMANews.TV, mining companies in the Philippines will be allowed to established civilian auxiliary armed groups (CAGs) as an adjunct to the local military. CAG members will carry only low-calibre guns, but that is little consolation to anyone who has ever been on the receiving end of a bullet.

Philippine Defence Secretary Gilberto C. Teodoro reportedly said that miners will be allowed to have a many armed men “as necessary depending on the threat level and the terrain” as along as each company signs an agreement with the Armed Forces.

I find this proposal frightening for several reasons.

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27th October 2008

Historically, the Value of Gold Always Rises During a Financial Crisis – Gregory Reynolds

When in the midst of a perfect hurricane that is threatening the world’s financial structure, it helps to remember an old adage – To know where you are going, look back to where you have been.

The era that should be examined is the Great Depression which began in 1929 with many similar events to what happened in the past few months. It didn’t officially end until 1939 when the world plunged into the Second World War but the reality is that the worst ended in 1934.

The slow climb to normality took six years but it could be seen and measured.

The single most important step taken by the United States, then as now a world power, was the decision on Jan. 31, 1934 to raise the price of gold from US$20.67 an ounce to $35 an ounce.

As president of the United States, Franklin Delano Roosevelt surveyed the wreckage of the U.S. banking system and decided drastic action was required. On March 6, 1933 he closed all the banks for a three day holiday.

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