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4 Sep 2020


Indonesia: Organization in North Sumatra sent letters to Chinese banks and firms to express community concerns over mining project

We are writing as legal representatives of residents of Batak Toba communities in the Dairi Regency of North Sumatra, Indonesia. BAKUMSU is a legal service for communities in North Sumatra. The people we represent are concerned about the establishment of a mine by a company, Dairi Prima Minerals (DPM), which we understand is owned 51% by China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (NFC) and 49% by Bumi Resources Minerals (Indonesia).

In late 2019, two communities in Dairi filed a formal complaint with the Compliance Advisor/Ombudsman (CAO) of the International Finance Corporation (IFC) regarding their wellfounded fear of environmental and social harms likely to ensue from the mine’s development. They filed the complaint based on research showing that the IFC is linked to the project through its investment in Postal Savings Bank of China, which in turn has a financial relationship with China Nonferrous Metal Mining Group Co Ltd. In late March 2020, CAO found the complaint to be eligible and will soon commence its assessment process.

… We write to alert you to this complaint, and to request your assistance in addressing community concerns…