Business & Human Rights : Extractive Industries Transparency Initiative (EITI)

Title: Tanzania: Need to Put Extractive Industry in Transparency

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Author: Tanzania Daily News
Dated: 12 Mar 2014

Tanzania is one the countries in Africa which is blessed with a number of natural resources and minerals of different kinds. To enable the country benefit from the minerals, there is need to have machinery that makes sure that every single cent that accrues from the minerals benefits all Tanzanians...Natural resources, such as oil, gas, metals and minerals, belong to a country's citizens. Extraction of these resources can lead to economic growth and social development. However, when poorly managed it has too often led to corruption and even conflict. More openness around how a country manages its natural resource wealth is necessary to ensure that these resources can benefit all citizens. Countries implement the EITI Standard to ensure full disclosure of taxes and other payments made by oil, gas and mining companies to governments. [refers to Williamson Diamond, Tanzanite One, Barrick Gold, Resolute & AngloGold Ashanti]

Title: Extractive industries under scrutiny [Africa]

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Author: Alawi Masare ,The Citizen (Tanzania)
Dated: 04 Mar 2014

Tanzania is hosting a regional training workshop on Extractive Industries Transparency Initiative (EITI) standard for Anglophone and Lusophone countries. The three-day workshop kicks off today in Dar es Salaam and is expected to bring in initiative stakeholders from nine countries...“We will discuss the way to encourage disclosing mining contracts and licences. Mining companies may also be required to report production as well as mining exports for more openness,” said Innocent Bash, Economist, Tanzania Extractive Industries Transparency Initiative (TEITI) secretariat. “We’ll also deliberate on challenges to natural resources management in Africa as well as hearing what stakeholders want from the EITI process. The aim is to ensure that our reconciliation reports promote strong public debates,” he said. Participating countries include Ethiopia, Ghana, Liberia, Mozambique, Nigeria, São Tomé and Principe, Sierra Leone, Zambia and the host, Tanzania.

Title: Sierra Leone govt to publish reviewed mining agreements

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Author: Diamond Intelligence
Dated: 25 Feb 2014

Sierra Leone's government plans to publish all reviewed mining and lease agreements...between the government and mining companies...According to the Chief of Staff in the Office of the President, Dr. Richard Konteh, the new strategy is to ensure transparency, accountability and credibility in the mining sector in order to serve as benchmarks to the Extractive Industries Transparency Initiative (EITI)...EITI...[seeks to] improve openness and accountable management of revenues from natural resources. For the past few years, EITI has reportedly criticized Sierra Leone for its lack of transparency in the collection of mining revenues.Dr. Konteh...said...that a lot of progress has been made...for Sierra Leone to become an EITI-compliant country, and that...government has been working closely with civil society to achieve its objective...[He] added that...government is working to put proper mechanisms in place to ensure that mining proceeds benefit the entire populace.

Title: Sierra Leone: Mining Boom Brings Rights Abuses

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Visit: Sierra Leone: Mining Boom Brings Rights Abuses

Author: Human Rights Watch
Dated: 19 Feb 2014

[Business & Human Rights Resource Centre invited African Minerals to respond. African Minerals response provided]“Whose Development?: Human Rights Abuses in Sierra Leone’s Mining Boom,” documents how the government...and...African Minerals...forcibly relocated hundreds of families...in Tonkolili District. As a result, residents lost their ability to cultivate crops and engage in income generating activities that once sustained them...The Sierra Leonean government, while promoting the company’s operations as essential to Sierra Leone’s economic development, permitted corporate actions that violated the rights of Tonkolili’s residents...[and]...did not take action in response to apparent African Minerals...violations of Sierra Leone labor laws concerning employment, termination, and benefits for its workers...

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Visit: [PDF] Whose Development?: Human Rights Abuses in Sierra Leone’s Mining Boom

Author: Human Rights Watch
Dated: February 2014

[Business & Human Rights Resource Centre invited African Minerals to respond. African Minerals response provided]This report focuses on the human rights impact of the mining activity of African Minerals...in Sierra Leone. It examines...how the Sierra Leonean government...permitted company actions that violated the rights of...residents. The report also details the government’s failure to provide adequate oversight of...consultations with local communities, relocation process, response to complaints, and operations. The government failed to adequately...inform residents of plans that directly affected their livelihoods, and did not investigate alleged abuses by the police...[L]abor rights of workers employed by African Minerals were violated by the company’s alleged failure to abide by Sierra Leone’s labor law...[refers to Addax Bioenergy (part of Addax & Oryx Group), BCM, China Civil Engineering Construction Corporation, Dawnus, Hawk Group, Koidu Holdings (part of Beny Steinmetz Group), Octea Diamond Group, Socfin Agricultural Company, TS and Company]

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Visit: [PDF] Emailed Statement from African Minerals in response to Human Rights Watch Report

Author: African Minerals Limited
Dated: 27 Feb 2014

As the largest contributor to Sierra Leone’s GDP and the country’s largest employer, we are committed to aligning our operations and strategies towards the ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption as set out in the UN Global Compact. We have maintained an active dialogue with...Human Rights Watch...for over 15 months and have repeatedly reiterated our commitment to being a positive force for economic and social change in Sierra Leone. While we respect the aims of HRW we do not agree with a number of their claims which we will be addressing at their symposium in Freetown...Nevertheless, we welcome constructive engagement with HRW and any other development organisations. The local communities that live in the surrounding area to our operations are extremely important to us, which is why last year, we invested US$3.63million in 22 local community projects. We have invested in excess of US$2 billion in the country to date and are very proud that our investment in people, training and teaching means that over 80 per cent of our workforce is made up of Sierra Leone nationals. Furthermore, we are pleased that our direct and indirect investment has contributed to Sierra Leone becoming the third fastest growing economy by GDP.

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Visit: In the wake of skewed Human Rights Watch report…Sierra Leone President Koroma backs African Minerals

Author: Christiane Koroma, Newstime Africa
Dated: 23 Feb 2014

President of the Republic of Sierra Leone, Ernest Bai Koroma has stated that the government is one hundred percent satisfied with the operations of the African Minerals...Sierra Leone’s largest private sector employer. The President made this statement...while commissioning a couple of community development projects undertaken...by AML. This policy statement from the President acknowledging the massive positive contribution of the AML in Sierra Leone came in the wake of the publication of a misleading and politically motivated Human Rights Watch report accusing the AML and Government of Sierra Leone of not working in the interest of the citizens of country...The President said the AML project is irreversible, adding that nobody would be allowed to distract and sabotage a project of this nature that is not only providing employment for thousands of Sierra Leoneans, but that is massively and directly contributing to the economic development of the country...The AML, he said, has also contributed immensely towards improving education in the country...

Title: EITI to report on industry red flags [Myanmar]

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Author: Kyaw Phone Kyaw, Myanmar Times
Dated: 17 Feb 2014

An energy watchdog group set up to scrutinise the exploitation of Myanmar’s natural resources has announced it will initially concentrate on the “most problematic and profitable” sectors – oil, natural gas and mines. The multi-stakeholder group, an association of representatives from the government, resource extraction companies and civil society, was formed…to compile reports under the Extractive Industries Transparency Initiative, which seeks to apply international standards to the exploitation of natural resources…The 23-member committee…features six members from the private sector, including representatives from Petronas, Total and MPRL, and nine from civil society, including members of the 88 Generation, Paung Ku, Seinyaungso, Shwe Gas Movement, Dawei Development Association and Eco-Dev.

Title: EITI Multi Stakeholders group to form mid-February

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Author: Kyaw Phone Kyaw, Myanmar Times
Dated: 11 Feb 2014

Energy companies, the government and civil society are to work together to apply international standards to the exploitation of the country’s rich natural resources. Representatives from each of the participating organisations are setting up the Multi-Stakeholders’ Group…with members expected to be confirmed on February 15…The group’s main role will be to publicise the income and tax payments of energy exploration firms operating in Myanmar, and report it under the Extractive Industries Transparency Initiative, which Myanmar has applied to join…

Title: [PDF] Mitigating human rights impacts

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Visit: [PDF] Mitigating human rights impacts

Author: Ethical Corporation
Dated: February 2014

[The briefing contains: Step-by-step best practice guide on how to create the right internal structure, policy and awareness to be able to deliver on HR performance; A case study on Cerrejon’s effort to improve its human rights practices in Colombia; an epitome of the challenges of operating a modern, multinational extractive business in a low-income, marginalised environment; Covers on all the main HR challenges of security, effective grievance mechanisms, supply chain, Free, Prior and Informed Consent and resettlement; A summary of the key risks and practical measures being employed to mitigate them]
[refers to Teck, Anglo American, Hess, Bechtel, Anglogold Ashanti, Rio Tinto, Chevron, MOL]

Title: EITI: Getting Burma rigged for extractive surge

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Author: Feliz Solomon, Democratic Voice of Burma
Dated: 04 Feb 2014

…While the EITI [Extractive Industries Transparency Initiative] could offer evidence towards political recommendations, civil society has argued that it has led to a dangerous and popular misconception…“Some seem to believe that the EITI alone is enough to make extractive projects in Burma ethical or beneficial,” said Catherine Martin, Climate Change Advisor for Burma Environmental Working Group, an alliance of ethnic and environmental rights advocates working in exile. “EITI only covers revenue transparency. It does not address the social and environmental costs of extractive projects, or the need for the free, prior, and informed consent of affected communities before such projects begin.”…

Title: Local communities must prosper from Africa's natural resources

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Author: Africa Progress Panel
Dated: 03 Feb 2014

With high-level policy makers and business people gathering in Cape Town for this year’s African Mining Indaba, the Africa Progress Panel...welcome[s] the effort...by some companies to become more transparent with...tax payments, to develop local capacity, jobs, and business, and to build critical infrastructure...open[ing]...up new economic opportunity...[W]e respect progress from...governments who have...ma[de]...their industries more transparent: publishing contracts and...comply[ing] with the Extractive Industries Transparency Initiative (EITI). But...[t]ax avoidance and evasion, unfair contracts, and secrecy around company ownership and revenue flows, remain major concerns...Corruption, political instability, and...failure to create...jobs and opportunities for [Africa’s]...rapidly growing youth population will affect us all. We urge...leaders to keep the future in mind, [and]...ensure a fairer deal for local communities...We all benefit from an Africa that is prosperous, stable, and fair.

Title: [PDF] Kosmos Energy : concernant l’exploration d’hydrocarbures au large du Sahara occidental

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Visit: [PDF] Kosmos Energy : concernant l’exploration d’hydrocarbures au large du Sahara occidental

Author: Kosmos Energy
Dated: février 2014

Le 19 décembre 2013, l’ONHYM et Kosmos Energy ont signé une Déclaration commune de principes...conformité aux normes internationales, notamment celles contenues dans la Charte des Nations Unies, et celles mentionnées dans l’Avis juridique des Nations Unies de 2002 sur le développement des ressources au Sahara occidental...Nous sommes convaincus que si l’exploration est couronnée de succès, l’exploitation responsable du Sahara occidental peut créer des avantages sociaux et économiques importants à long terme pour la population du territoire...La Déclaration commune de principes, signée entre Kosmos et l’ONHYM, indique que la population locale bénéficiera de la production d’hydrocarbures de façon efficiente, efficace et transparente si des gisements rentables sont découverts...Nous portons un grand intérêt à la situation des droits de l’homme au Sahara occidental et nous continuerons à évaluer soigneusement l’impact potentiel de nos activités dans ce domaine conformément à nos propres engagements d’entreprise en matière de droits de l’homme...Nous nous efforcerons de faire en sorte que nos activités dans la région soient menées en conformité avec les principales normes internationales, notamment les Principes directeurs des Nations Unies relatifs aux entreprises et aux droits de l’homme, et les Principes volontaires sur la sécurité et les droits de l’homme.

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Visit: Kosmos Energy: On Hydrocarbon Exploration Offshore Western Sahara

Author: Kosmos Energy
Dated: Feb 2014

[Business & Human Rights Resource Centre invited Kosmos Energy to respond to concerns about the impact of its exploration on the local population. Kosmos Energy referred us to this position statement.] Kosmos Energy holds a petroleum agreement over an area offshore Western Sahara...ONHYM and Kosmos Energy signed a Joint Declaration of Principles...in accordance with international standards, including those in the United Nations Charter, and those referred to in the 2002 United Nations Legal Opinion on resource development in Western Sahara...[W]e are committed to putting as much emphasis on the management of our societal impacts as we do on the management of our operational, technical and financial risks...[L]ocal populations will benefit efficiently, effectively and transparently from production of hydrocarbons, if commercially viable reserves were to be discovered...We are keenly interested in the human rights situation in Western Sahara and will continue to carefully evaluate the potential impact of our activities on it, consistent with our own corporate human rights commitments...We will strive to ensure that our operations in the region are conducted in accordance with key international standards, including the UN Guiding Principles on Business and Human Rights, and the Voluntary Principles on Security and Human Rights...

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Visit: US oil firm Kosmos Energy plans to start exploration drilling in occupied Western Sahara in October or November this year, writes Upstream Online today

Author: Western Sahara Resource Watch
Dated: 21 Feb 2014

[Business & Human Rights Resource Centre invited Kosmos Energy to respond. Kosmos referred us to their position statement - provided]. Kosmos regional director Ragnar Fredsted said the company will look to sink Gargaa-1 — the first probe off the non-self-governed territory of Western Sahara — in October or November...The United Nations have clearly stated that any further exploration or exploitation of oil in Western Sahara is in violation of international law. However, completely misreading the UN legal opinion on the matter, Fredsted claims that there is no problem, as he believes that the Moroccan government has the legal right to issue exploration licences but, in the event of any production, the people of Western Sahara must benefit. Western Sahara Resource Watch is deeply concerned over Kosmos' plans. "Kosmos Energy's support to Morocco in developing a future oil production in the occupied territory constitutes a serious blow to the UN peace efforts, directly disturbing the difficult peace talks. Kosmos' management should consider how their company contributes to the continued sufferings of the Saharawi people, and immediately halt its plans", stated Erik Hagen, chair of Western Sahara Resource Watch. The UN legal opinion says that any such activity should happen in accordance to the wishes and the interests of the people of Western Sahara, the Saharawi. Nor Kosmos, nor its partners Cairn Energy and the Moroccan state-owned ONHYM, have ever consulted the Saharawi people.

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Visit: [PDF] Declaration Conjointe de Principes de l'Office National des Hydrocarbures et des Mines (ONHYM) et Kosmos Energy

Author: Kosmos Energy et l'Office National des Hydrocarbures et des Mines (Maroc)
Dated: 19 décembre 2013

L'Office National des Hydrocarbures et des Mines (ONHYM) et Kosmos Energy déclarent, par la présente, que leur volonté commune de concourir à l'exploration et l'exploitation de ressources naturelles d'hydrocarbures...L'exploration et l'exploitation des ressources naturelles d'hydrocarbures se feront conformement aux principes enonces dans la Constitution du Royaume du Maroc et aux normes internationales, notamment celles découlant de la Charte des Nations Unies...L'exploration et l'exploitation des ressources naturelles d'hydrocarbures contribueront d'une manière transparente au développement des regions concemees...Kosmos Energy s'engage a veiller a la protection de l'environnement et au respect des exigences du developpement durable...