November 22, 2009
UTNE READER

Poppy Strikes Gold

(Page 4 of 6)

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Mobutu Sese Seko, the late dictator of the Congo (Zaire), was one of the undisputed master criminals of the last century having looted hundreds of millions of dollars from his national treasury—and a golfing buddy of the senior Bush. That old link from the links probably did not hurt Barrick in successfully seeking an eighty-thousand-acre gold-mining concession from the Congolese cutthroat. Bush himself did not lobby the deal for Barrick. It wasn’t that the former president was squeamish about using the authority of his former posts to cut deals with a despot. Rather, at the time Bush was reportedly helping Adolf Lundin, Barrick’s sometime industry rival. Africa specialist Patrick Smith of London disclosed that Bush called Mobutu in 1996 to help cinch a deal for Lundin for a mine distant from Barrick’s.

Rebellion against Mobutu made the mine site unusable, though not for the company’s lack of trying. In testimony in hearings convened by the minority leader of the House Foreign Affairs Subcommittee on Human Rights, expert Wayne Madsen alleged that Barrick, to curry favor with both sides, indirectly funded both and thereby inadvertently helped continue the bloody conflict. The allegation, by respected journalist Wayne Madsen, has not been substantiated: The truth is lost somewhere in the jungle, where congressional investigators will never tread.

Though Barrick struck out in Indonesia and the Congo, the big payoff came from the other side of the continent. The company’s president bragged to shareholders that the prestige of the Mulroney-Bush advisory board was instrumental in obtaining one of the biggest goldfields in East Africa at Bulyanhulu, Tanzania. Barrick, according to its president, had hungered for that concession—holding an estimated $3 billion in bullion—since the mid-1990s, when it first developed its contacts with managers at Sutton Resources, another Canadian company, which held digging rights from the government. (See footnote 1.) Enriched by the Nevada venture, Barrick could, and eventually would, buy up Sutton. But in 1996, there was a problem with any takeover of Sutton: Tens of thousands of small-time prospectors, “jewelry miners,” so called because of their minuscule finds, already lived and worked on the land. These poor African diggers held legal claim stakes to their tiny mine shafts on the property. If they stayed, the concession was worthless.

In August 1996, Sutton’s bulldozers, backed by military police firing weapons, rolled across the goldfield, smashing down worker housing, crushing their mining equipment and filling in their pits. Several thousand miners and their families were chased off the property. But not all of them. About fifty miners were still in their mine shafts, buried alive.

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