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11 Jul 2017

Office of the Extractive Sector Corporate Social Responsibility (CSR) Counsellor (Canada)

Honduras: Report on environmental & social issues related to Canadian mining firms - by Canada's Extractive Sector CSR Counsellor

“Honduras Country Trip Overview”, Jul 17

….The Corporate Social Responsibility Counsellor…visited Honduras from July 26 to August 7, 2016… Fifteen years ago, there were over ten Canadian exploration and mining companies operating in Honduras. Today, there are only three operating companies [Aura Minerals, Glen Eagle Resources and Ascendant Resources (formerly Morumbi Resources)]…During the Counsellor’s trip, two project sites were visited, the operating San Andres mine and the now closed San Martin mine…Canadian companies interested in investing in Honduras need to accept that the timeframe for the startup of exploration or mine development projects may be much longer than what they might expect…This relates…to ongoing administrative and regulatory weaknesses, to the high degrees of mistrust between actors, and the  absence of robust community consultation practices…The potential for harms and risks, for threats and opportunities exist for all actors; but local communities are the most vulnerable.  This means that companies must take extra care in ensuring that their up-front communications with communities are open and honest…opening the door to community involvement in decision-making from the start and to the possibility that a project may not be able to proceed if community consent cannot be won…[Also refers to Lundin Mining & Goldcorp]