CYANIDE SPILL

Banks face new ESG hurdle after Liberian mining pollution complaint

By David Whitehouse

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Posted on August 10, 2021 11:14

kinjor © A “resettlement town” at New Kinjor for people displaced by the New Liberty gold mine in Liberia. Photo supplied by IDI.
A “resettlement town” at New Kinjor for people displaced by the New Liberty gold mine in Liberia. Photo supplied by IDI.

An NGO-backed complaint over pollution from gold mining in Liberia may lead to Western development finance institutions (DFIs) holding partner commercial banks responsible for the environmental, social and governance (ESG) impacts of their loans.

Canadian gold miner Avesoro may be drawn into a formal mediation process with victims of pollution from Liberia’s largest commercial gold mine as a result of a complaint filed against three European DFIs by US-based NGO Inclusive Development International (IDI). The DFIs have now accepted the complaint for review by their independent complaints mechanisms.

In March 2016, the New Liberty gold mine in north-west Liberia spilled cyanide and arsenic into a river that people rely on for fishing and drinking water. The World Bank’s International Finance Corporation withdrew its investment after the accident. IDI says more than 10,000 people were affected by the spill.

South Africa’s FirstRand Bank is the lead planner of the loans for the mine and provided the majority of the financing.

In February, IDI and partner organisations helped community leaders in five affected Liberian towns to file

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