‘Victims of Liberian gold mine disaster see ground-breaking complaint against development banks accepted’ 9 August 2021

In a precedent-setting case, more than 10,000 people harmed by the New Liberty Gold Mine in Liberia have had a complaint accepted against the German and French national development banks – DEG and Proparco – for their involvement in the project. Community leaders say the mining company has taken their homes and farms, polluted their water, and broken promises to provide jobs, schools and other facilities. DEG and Proparco indirectly backed the Liberian mine through investments in FirstRand, a South African commercial bank. The Independent Complaints Mechanism of the development banks will now seek to bring the mine’s owner, Avesoro Resources, into a formal mediation process with the complainants, who are supported by Inclusive Development International, Oxfam Novib, SOMO and Liberian NGOs.

… “We have been neglected by the mining company,” explained a community leader, whose identity is being kept anonymous due to fear of reprisals. “We were taken from our land without any good reward, and our land and water polluted while the company refused to fully address the problems. Our livelihoods – farming and artisanal mining – have been disrupted by the company, and we are suffering from food insecurity and unattended health problems. We hope that the complaint process will help restore our livelihoods and hold the company to its promises.” Liberia, which is rebuilding following years of civil war, has sought to attract foreign investment. But gold mining projects have been controversial. In March 2016, the New Liberty Gold Mine in Grand Cape Mount County spilled cyanide and arsenic into a river that people rely on for fish and drinking water. The International Finance Corporation, part of the World Bank, pulled its investment in the project after the accident.

… “This case shows once again how big brand companies and development institutions alike are failing to perform human rights due diligence on their investment and supply chains,” said David Pred, Executive Director of Inclusive Development International. “We are calling on FirstRand, the European development banks and the retail and technology companies that source gold from New Liberty to ensure that Avesoro engages in good faith mediations with the communities to resolve their long-standing grievances.” The complaint is the first to be admitted by the Independent Complaints Mechanism involving a so-called financial intermediary. Development banks, including DEG and Proparco, are increasingly outsourcing their money to financial intermediaries such as commercial banks, which then invest it onward, often with little oversight, harming communities around the world.