Guinea: CBG-01/ Sangaredi

Date Filed
26 Feb 2019
Status
Open
Phase
Dispute Resolution (DR)
Country
Guinea

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)

Complaint Overview

Complainant

Local community members

Concerns

Lack of compensation for impacts on land and livelihoods, resettlement concerns, pollution, lack of effective public consultation and grievance mechanism

Cross-Cutting Issues
Risk Management Resource Efficiency Community Health and Safety Land Resettlement Informal Settlers Biodiversity Air Land Water Women Loss of Livelihoods Private / Personal Property Damage Unfulfilled Commitments Project Benefits

Project Information

Region
Sub-Saharan Africa
Institution
IFC
Name & Number
CBG Expansion 34203
Company
Compagnie des Bauxites de Guinée SA (CBG)
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
A
Commitment

Loan up to US$200 million

Synopsis

Project Overview

IFC has an active project with Compagnie des Bauxites de Guinée (CBG) (“The Company”), to provide a senior debt facility of up to US$200 million to support the expansion of the Sangaredi bauxite mine, processing plant and associated infrastructure. The Company is 49% owned by the Government of Guinea and 51% owned by Halco Mining Inc., which is in turn owned by a consortium of aluminium producers: Alcoa (45%), Rio Tinto (45%) and Dadco (10%). 

In February 2019, local community members neighboring the expansion of the Sangaredi mine in Guinea (“the Complainants”) filed a complaint with the CAO supported by the Centre de Commerce International pour le Développement (CECIDE), Association pour le Développement Rural et l’Entraide Mutuelle de Guinée (ADREMGUI), and Inclusive Development International (IDI). The complaint raises concerns related to lack of compensation for loss of land and displacement, impacts on livelihoods, safety risks for the communities in relation to the Company’s operations, and air and water pollution. The complaint further raises concerns about lack of informed consultation, information disclosure and the effectiveness of the Company’s grievance mechanism. The complaint is available under “view document” below. More information on CBG’s reaction to the complaint is available on CBG’s website

CAO Action

CAO found the complaint eligible for assessment in March 2019, and conducted a field visit to Guinea to discuss options for addressing the complaint with the relevant parties in April 2019. During the assessment process, the complainants and the IFC client expressed their desire to meet to discuss the issues raised in the complaint and agreed to commence a dispute resolution process. The assessment report is available at the below links in both English and French, as well as IFC’s formal response. Since August 2019, CAO has conducted various capacity building workshops with the parties to prepare them for the dialogue process and start the discussion regarding the ground rules for the process. The CAO co-mediation team travelled to Guinea in February 2020 to continue conversations with the parties. The COVID-19 pandemic prevented CAO and the parties from holding the first in-person joint meeting that was scheduled for April 2020. CAO continued to engage with the parties bilaterally, and eventually, the parties agreed on modalities to participate in online joint meetings. Between August and November 2020, CAO facilitated five online joint meetings that allowed the parties to discuss and finalize the Ground Rules Agreement in December 2020.  This agreement will guide their engagement in discussing and addressing the substantive social and environmental issues raised in the complaint. The text of the Ground Rules Agreement signed by the parties is available in the 'Case Documents' section below.

Status

A dispute resolution process is ongoing.

Status as of January 25, 2021

Case Documents

  • Dispute Resolution

    Complaint
    CAO Complaint - Guinea / CBG-01
    Feb 20, 2019
    English
    CAO Complaint - Guinea / CBG-01
    CAO Communique - Guinea
    May 01, 2019
    English
    CAO Communique - Guinea
    CAO Communique - Guinea
    May 01, 2019
    French
    CAO Communique - Guinea
    Assessment Report(s)
    CAO Assessment Report - Guinea
    Aug 01, 2019
    English
    CAO Assessment Report - Guinea
    CAO Assessment Report - Guinea
    Aug 01, 2019
    French
    CAO Assessment Report - Guinea
    IFC Response to CAO Assessment - Guinea
    Aug 16, 2019
    English
    IFC Response to CAO Assessment - Guinea
    Agreement(s)
    Guinea-CBG Ground Rules Agreement
    Dec 14, 2020
    French
    Guinea-CBG Ground Rules Agreement