Colombia: Intl. Finance Corporation's complaints mechanism finds it did not meet required social & environmental standards in Eco Oro Minerals project

Author: AIDA Americas, Published on: 2 September 2016

“Ombudsman finds the IFC failed to comply with its investment standards in Colombia”, 2 September 2016

The office of the Compliance Advisor Ombudsman (CAO) has issued its final report on the complaint brought against the International Finance Corporation's (IFC) investment in Eco Oro Minerals' Angostura mine in the high-altitude wetlands - known as páramos - of Santurbán, Colombia…The report also states that the IFC failed to assess the impacts of the entire mining project, and instead only concentrated on the impacts of the exploration stage, despite the fact that it justifies its investment on the basis of the supposed benefits that the eventual mine would bring…In its conclusion, the Ombudsman points out that "one of the stated purposes of the IFC's investment was to develop the studies necessary to determine whether the project could comply with IFC's [performance standards]. "However, the company did not complete the required studies, including an Environmental and Social Impact Assessment, a biodiversity baseline study, and critical habitat assessments. Despite repeated lack of compliance by the client, the CAO found that the "IFC has not pursued a remedy, but has made subsequent investments in the company." … The [IFC] response is silent regarding its client's intent to file an investment dispute under the Canada-Colombia Free Trade Agreement...Response by the [IFC]…

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Related companies: Eco Oro Minerals (formerly Greystar Resources)