Civil society lodges complaint against Aussie miner Myanmar Metals for irresponsible disengagement

MEDIA RELEASE

NGO coalition, Publish What You Pay and 245 Myanmar groups have lodged a complaint against Australian miner Myanmar Metals at the Australian National Contact Point (AusNCP) under the OECD Guidelines for Multinational Enterprises.

The OECD Guidelines for Multinational Enterprises clearly set out principles and obligations for the business conduct of multinational businesses including their responsibility to respect human rights in all of their business operations. The complaint alleges that ASX listed, Myanmar Metals is irresponsibly disengaging from its Myanmar investment for the following reasons:

• Not conducting appropriate human rights due diligence in relation to the divestment and a failure to meaningfully engage with stakeholders.

• A failure to seek to prevent or mitigate adverse human rights impacts that may arise after the sale of its interest in the joint venture developing the mine.

• A lack of transparency in relation to its decision to disengage from the joint venture.

The complaint comes as Perth-based Myanmar Metals is set to sell its 51% stake in the highly lucrative Bawdwin mine to controversial Myanmar company Win Myint Mo. Modelling by OpenOil projected potential revenue of US $112 million by 2023 for Myanmar from the silver, lead and zinc mine once operational.

Shareholders including prominent Western Australian miner Mark Creasy will vote at a general meeting on 24 September on the sale. The proposed sale comes at a time when the military junta is struggling to generate revenue to fund its violent attacks across Myanmar and attempts to entrench its rule since the February 1 coup.

Myanmar civil society spokesperson, Ko Ye said:

“As women, men and children are suffering from COVID and trying to survive a deadly campaign of terror from the Myanmar military, Myanmar Metals is trying to irresponsibly dump its investment to associates of the Myanmar military, showing a total disregard for the human rights of the people of Myanmar.”

“Myanmar Metals should attempt to engage with local communities in the areas around the mine and also the National Unity Government, who is the legitimate governing authority of Myanmar.”

Australian Director of Publish What You Pay, Clancy Moore, said:

“The proposed sale will put money into the bank accounts of Australian investors like Mark Creasy and several of the company’s directors. It could also lead to millions of dollars of revenue lining the pockets of Myanmar's murderous generals once the mine becomes operational.”

“To ensure the highest standards of accountability, Myanmar Metals should disclose the details of proposed contracts, revenue flows and any production sharing agreements with the military prior to the sale.”

Business and Human Rights Expert, Associate Professor Htwe Htwe Thein said:

“Myanmar Metals should undertake high standards of human rights due diligence to make sure there is no adverse impact on human rights from their current operations or the sale of the mine.”

“The mine is in a conflict zone which raises the risks of increased fighting and violence against local communities if the mine is sold to a company considered to have links to the military.”

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Publish What You Pay’s research on Myanmar Metals and the Bawdwin mine is here.

The OECD Guidelines for Multinational Enterprises are the world’s most comprehensive, internationally recognized, government-backed standard on responsible business conduct. The Guidelines comprise government expectations of business across a range of issues such as human rights, labour rights, and the environment.

The OECD Guidelines contain a unique grievance mechanism to address complaints of corporate misconduct, the National Contact Point system. When disengaging from business relationships, the OECD Guidelines are clear that companies should “consider and address the potential adverse impacts of a decision to disengage” on the human rights of local stakeholders. The Australian National Contact Point is responsible for promoting the OECD Guidelines in Australia and supporting the resolution of complaints, consistent with Australia’s obligations as an OECD member. The AusNCP was established in 2000-01 and is supported by the Treasury.

A copy of Myanmar Metals shareholders can be found here and details of the proposed sale.

Win Myint Mo. is a subsidiary of National Infrastructure Holdings Company which was created by a restructure of Asia World Co. who owners Steven Law were known drug dealers sanctioned by the US state department for supporting the former military junta. Its current directors are former directors of Asia World Co.[1]

A list of the Myanmar civil society groups can be shared on request with media though they are remaining anonymous due to fears of violence and targeting by the Myanmar military.