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Publish What You Pay Australia (on behalf of 245 Myanmar CSOs) & Myanmar Metals Limited
Lead NCPAustralia
Supporting NCP(s)
DescriptionSpecific instance alleging a non-observance of the OECD Guidelines.
Theme(s)General policies, Disclosure, Human rights
Date14 Sep 2021
Host country(ies)Myanmar
SourceNGO
Industry sectorMining and quarrying
StatusConcluded
Summary

Read the Initial Assessment published by the NCP 29 August 2022: English

Read the Final Statement published by the NCP 2 August 2023: English | Burmese


On 14 September 2021, Publish What You Pay Australia, an NGO, on behalf of 245 Myanmar civil society organisations, submitted a specific instance to the AusNCP alleging the Myanmar Metals Limited had not observed the General Policies (Chapter II), Disclosure (Chapter III), and Human Rights (Chapter IV) provisions of the Guidelines. Specifically, issues related to alleged irresponsible disengagement by Myanmar Metals Limited in relation to the proposed divestment of its majority interests in a joint venture to redevelop the Bawdwin mine in northern Shan State, Myanmar.

The submitters alleged that the company had failed to observe the Guidelines in three ways: a lack of risk-based human rights due diligence, failure to prevent or mitigate human rights impacts, transparency in its decision to disengage from the Bawdwin Joint Venture (BJV).

The AusNCP met with both parties and the submitter noted that Myanmar Alliance for Transparency and Accountability, a network of 244 civil society organisations from all of Myanmar’s 14 states and regions, and the Bawdwin Labour Union would join Publish What You Pay Australia as co-notifying organisations.

On 29 August 2022, the AusNCP published an initial assessment accepting the case for further examination. The NCP made an offer of good offices to the involved parties, noting the process would involve consideration of what constitutes appropriate human rights due diligence and disclosure in a conflict-affected area in order to achieve responsible disengagement consistent with the Guidelines. The company declined to participate in the good offices and the Independent Examiner proceeded to further examination of the specific instance in accordance with the AusNCP rules of procedure.

On 2 August 2023, the NCP published a final statement concluding the specific instance without agreement between the parties. The AusNCP determined that, while not all aspects of the specific instance were upheld, the enterprise had not undertaken human rights due diligence or engaged meaningfully with stakeholders in relation to its decision to divest from the BJV, which was contrary to the Guidelines. The enterprise’s disclosures in respect of activities, structure, ownership and governance, as well as its risk management and relationships, also did not meet the expectations set out in the Guidelines.

The Independent Examiner issued recommendations for the company to:

  • Develop and implement a human rights policy consistent with the Guidelines and the United Nations Guiding Principles on Business and Human Rights (UNGPs);
  • Consult with civil society organisations on alleged human rights impacts that may have arisen since its divestment;
  • Use any remaining leverage with former partners to encourage them to undertake human rights due diligence and address and remediate any adverse impacts that may have occurred; and allow a copy of finalised contracts between Myanmar-based entities to be shared with the submitters.

The Independent examiner also recommended the AusNCP work with relevant Australian Government agencies to ensure the Government’s expectations of Australian companies operating overseas are adequately reflected in materials and activities to assist those companies. Materials and activities should provide guidance on enterprises having human rights policies and conducting human rights due diligence, particularly in the context of high-risk and conflict areas.

The NCP will follow up on the implementation of the recommendations in August 2024.


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