EcoLur
Kapan-based “For Securing Ecological Security and Developing Democracy” NGO is concerned that Dundee Precious Mетаls Kapan Company (earlier Deno Gold Mining Company) may get a loan from EBRD for Shahumyan gold-polymetallic mining.
“For Securing Ecological Security and Developing Democracy” NGO releases the project “Hidden Money And Open Mine” with the support of Global Greengrants Fund. The project aims to increase the transparency of the relations between Dundee Precious Metals Kapan CO CJSC and the European Bank for Reconstruction and Development (EBRD). In the frames of this project our NGO has prepared a number of questions to EBRD.
In 2012 the website of the EBRD displayed information on allotting a loan to на Deno Gold Mining Company (http://www.ebrd.com/pages/about/policies/pip.shtml). It says that the loan may also cover Armenia where the company carries out operation in Kapan by developing Shahumyan gold-polymetallic mine in closed manner. It also says that the loan is designed “setting higher standards in terms of transparency and environmental, social and health and safety (ESH&S) practices as well as the openness of the operation. There are certain starting conditions for Armenia to be allotted the loan: Environmental and Social Action Plan shall be adopted and implemented Dundee’s Deno Gold operations in Armenia will adopt and implement Environmental and Social Action Plan agreed with the Bank to bring Deno Gold in compliance with the Bank’s Performance Requirements.
Deno Gold will adhere to “publish what you pay” principles further contributing to a greater transparency in the mining sector in the country.)
We would like to ask to clarify the following:
1) EBRD representatives regularly visit Kapan and have meetings with Deno Gold Mining Company administration. At the same time, the company administration denies applying to EBRD for a loan. The question is whether EBRD is running negotiations with Deno Gold Mining Company or its owners Dundee Precious Metals to allot a loan for the operations in Armenia? We sought to find the answer to this question with the bank representatives having arrived in Kapan and sent them a letter with a request for a meeting. Unfortunately, our letter remained unanswered.
2) Taking into consideration the fact that Deno Gold Mining Company stated many times it intends to proceed to Shahumyan open mining, the following question arises: whether Shahumyan open mining is included in the negotiation process for loan allocation?
3) Since 17 June 2013 Deno Gold Mining Company changed its name to Dundee Precious Metals Kapan. Whether it means that the company can get a loan from EBRD directly as a bank customer, as Dundee Precious Metals in Canada is. Whether it means mitigation of conditions for the Armenian branch?
4) EBRD has already allotted a loan to Deno Gold Mining Company for the rehabilitation of Geghanush tailing dump. The tailing dump was put into use in 2008. The question is whether EBRD conducted the monitoring of this project, if yes, what are the findings of the monitoring?
For our part we would like to mention that the principles of social liability were not adhered to in the project implementation process, as the opinion of Geghanush villagers was neglected who had collected 134 signatures against this project. The tailing dump was construction with violations and deviations from the project, as the opinion no. 13-0016 dated on 21.03.2013 of the National Bureau of Expertise says, which has been submitted to the Court of General Jurisdiction of Syunik Region.
We hope that in accordance with the adopted principles of social and environmental liability, EBRD will pay attention to our letter and its responses will increase the level of openness of Dundee Precious Metals Kapan operations in Armenia."
June 24, 2013 at 16:49