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Group of neighbors of Villa Estadio & Minera Candelaria (Lundin Mining and Sumitomo)
Lead NCPChile
Supporting NCP(s)Canada
DescriptionSpecific instance alleging a non-observance of the OECD Guidelines.
Theme(s)General policies, Human rights, Environment
Date12 Jun 2019
Host country(ies)Chile
SourceIndividuals
Industry sectorMining and quarrying
StatusConcluded
Summary

Read the Final Statement published by the NCP 18 August 2022: English

On 12 June 2019, a group of neighbors of Villa Estadio, in the district of Tierra Amarilla Communie in Chile, submitted a specific instance to the Chilean NCP alleging that Minera Candelaria, a mining company located in Tierra Amarilla and 80% owned by the Canadian based metal mining company Lundin Mining and Sumitomo, had not observed the General Policies (Chapter II), Human Rights (Chapter IV), and Environment (Chapter VI) provisions of the Guidelines. Specifically, the submitters alleged that the company’s operations would involve permanent blasting carried out near their homes, permanent pollution due to the works carried out and truck road traffic, and a steady growth of waste produced during operations.

On 23 October 2020, the NCP completed its initial assessment deciding that the issues raised merited further examination. The NCP proceeded to offer its good offices to the involved parties. The company declined the offer, stating that it was already in compliance with all the environmental and sectoral authorisations relating to the submitters’ allegations. However, the company did put forward a plan to improve direct and transparent communication with the local community, for example, by holding monthly meetings and round tables with residents and community leaders.
On 18 August 2022, the NCP issued a final statement concluding the process without agreement between the parties. The NCP issued recommendations to both parties to maintain open dialogue in good faith and encouraged the submitters to engage in the community relationship program proposed by the company. The NCP recommended the company:

  • Strengthen the implementation of risk-based due diligence
  • Make the greatest effort possible to avoid negative impacts from its operations
  • Exert its influence on its business partners to also apply RBC principles
  • Improve transparent communication with the local community and create conditions for material engagement with stakeholders

The NCP followed up with the parties 12 months after issuing the final statement. The NCP determined that the recommendations had been followed and moved to formally close the procedure.