Share

Justicia y ReparaciĆ³n & Yamana Gold Inc.
Lead NCPCanada
Supporting NCP(s)Chile
DescriptionSpecific instance alleging a non-observance of the OECD Guidelines.
Theme(s)Human rights, Environment
Date24 Feb 2022
Host country(ies)Chile
SourceIndividuals
Industry sectorMining and quarrying
StatusNot accepted
Summary

Read the Final Statement published by the NCP 25 October 2022: English

Read the Follow Up Statement published by the NCP 24 October 2023: English


On 24 February 2022, 42 members purportedly from the El Asiento, Talami and Villa Alhué communities in Chile represented by law firm Justicia y Reparación (the Notifier), submitted a specific instance alleging that Canadian mining company Yamana Gold and its subsidiary in Chile, Minera Florida had not observed the Human Rights (Chapter IV) and Environment (Chapter VI) provisions of the Guidelines. Specifically, issues concerned the infringement of an existing environmental permit for the “Mirador” waste rock storage facility (WRSF) at the Pedro Valencia mine owned by Minera Florida. The Notifier claimed that water and air quality standards were not respected and that an overflow of the WRSF had negatively impacted the environment, which in turn affected the human rights of community members.

The Canadian NCP coordinated with the Chilean NCP agreeing that the Canadian NCP would lead the specific instance, with the support of the Chilean NCP, if required.

On 19 July 2022, the Canadian NCP completed its initial assessment, noting that the issues related to Chapter VI were material and substantiated, but the issues relating to Chapter IV lacked substantiation. The NCP considered that making an offer of good offices would be premature given a lack of previous dialogue and trust between the parties. The NCP therefore made the decision not to accept the case for further examination.

On 25 October 2022, the Canadian NCP published a final statement noting that it had declined to offer its good offices but issued recommendations and committed to following-up with the Notifier. The Canadian NCP recommended that the parties pursue a dialogue under the grievance mechanism put in place by the company. The parties accepted the NCP’s recommendation to initiate a dialogue between Minera Florida and individuals represented by Justicia y Reparación, with the NCP as an observer. A representative of Canada’s NCP acted as a neutral observer at three dialogue sessions between the Notifier and the enterprise, held under the auspices of the local subsidiary’s grievance mechanism. The NCP did not observe an agreement reached between the parties and was not contacted to observe further dialogue.

The NCP attempted to follow up with the Notifier in April 2023, but did not receive a response. Yamana Gold and its Chilean subsidiary were acquired by another Canadian enterprise (Pan-American Silver) in March 2023. Canada’s NCP had a call with Pan-American Silver in May 2023 to discuss the specific instance and the enterprise’s response to the issues raised. In the follow up discussion, the company said it was aware of the specific instance and the issues that had been raised. The company said that it remained open to further engagement with the Notifier, though noted that substantiation of the alleged adverse health impacts related to the overflow would be an important basis for productive discussion.

In relation to the issues raised, the company noted that Minera Florida was in the midst of renewing environmental permits for the mine operation, and that it was undertaking community consultations and due diligence as part of that process, including with respect to the risks of adverse environmental impacts.

The NCP encouraged the enterprise to remain engaged with local communities through meaningful stakeholder engagement, and to communicate proactively with them about due diligence processes and implementation. The NCP now considers the follow-up process concluded.


#nationallaw #remedy #duediligence #ESCR #pollutionandwastemanagement #degradation #coordination #localsubsidiary #follow-up