Follow-up statement: East Africa Metals and United Tegaru Canada
This is a follow-up statement to a final statement published by Canada’s National Contact Point (the "NCP") for the OECD Guidelines for Multinational Enterprises ("the OECD Guidelines") on June 7, 2024.
Background
On September 10, 2022, Canada’s National Contact Point (NCP) received a request for review from United Tegaru Canada (the Notifier), a non-government organization based in Toronto. The request for review concerned observance of the OECD Guidelines for Multinational Enterprises (the “Guidelines”) by East Africa Metals Inc. (the Respondent), a company based in Vancouver and focused on mineral exploration and development projects in Ethiopia and Tanzania.
The Notifier’s request for review raised issues concerning paragraphs 1 and 2 of Chapter IV (Human Rights) of the Guidelines. Specifically, the Notifier claimed that by paying taxes/licence fees to the Government of Ethiopia, the Respondent was or had been contributing to adverse human rights impacts allegedly caused by government forces in the context of the Tigray conflict. The Notifier also questioned whether the Respondent had a policy commitment to human rights (Chapter IV, paragraph 4), and whether the Respondent was undertaking appropriate human rights due diligence (Chapter IV, paragraph 5). The Notifier did not claim that the Respondent itself had abused human rights in the context of its activities in Ethiopia.
Following receipt of the request for review, the Respondent amended its Code of Business Conduct and Ethics to include a section on human rights. The NCP concluded its Initial Assessment and offered good offices regarding issues raised around the Respondent’s approach to having a policy commitment to respect human rights and to human rights due diligence (Chapter IV, paragraphs 4 and 5). Both parties accepted the NCP’s offer of good offices and participated in a dialogue moderated by the NCP on February 29, 2024. The NCP published a Final Statement on June 7, 2024.
In its Final Statement, the NCP recommended that the Respondent communicate more about its human rights due diligence and wider responsible business conduct activities, as appropriate to the scope and nature of its operations. The NCP also recommended that the Respondent give ongoing consideration to how its policy commitment to human rights and expectations in that regard were communicated and fulfilled in the context of its business relationships. The NCP committed to follow-up with the parties about its recommendations six months from publication of the Final Statement.
Follow-up
The NCP takes note that on June 27, 2024, the Respondent issued a press release announcing that it had completed the negotiation of a “Relocation Action Plan (RAP)” to allow mine development activities to begin at the Mato Bula and Da Tambuk projects in Ethiopia. The press release noted that the purpose of the RAP was to “minimize any negative impact of displacement and ensure fair compensation for disruption to agricultural lands”. The release noted that “no persons were required to be relocated after the RAP review” but that a “negotiated settlement with the local community for compensation for access road construction has been completed and the first tranche of compensation paid, as required under Ethiopia’s Mining Proclamation.” The release went on to state that “by following a comprehensive and inclusive process, East Africa and Tibet Huayu continue to foster positive relationships with local communities and contribute to sustainable development.”
On January 28, 2025, the NCP secretariat invited the Respondent to have a follow-up call to learn about any developments relevant to the NCP’s recommendations and to inform the drafting of a Follow-up Statement. The secretariat also invited the Respondent to provide a written update in addition to or in lieu of a call. The Respondent acknowledged the invitation but did not schedule a call and did not provide a written update on developments relevant to the NCP’s recommendations.
On March 6, 2025, the NCP secretariat held a follow-up call with the Notifier. The Notifier did not raise issues specific to the Respondent’s operations but reiterated its concerns about the risk of enterprises in the region becoming involved with adverse impacts on human rights, and the need for enhanced due diligence and communication about due diligence efforts in the that context.
Conclusion
The NCP takes note of the Respondent’s June 27, 2024, press release regarding the negotiation of a Relocation Action Plan for the Mato Bula and Da Tambuk mine development projects. The NCP encourages the Respondent to continue conducting human rights due diligence in line with the OECD Guidelines, and to give ongoing consideration to the NCP’s earlier recommendations.
Both parties were provided an opportunity to review and comment on this Follow-up Statement prior to its publication. The NCP considers the follow-up process concluded.
