Australian miner failed to comply with human rights standards in divestment from Myanmar
In response to the civil society complaint against Australian miner Mallee Resource (formerly Myanmar Metals), the Australian National Contact Point has found the company failed its human rights obligations under the OECD Guidelines for Multi-National Enterprises.
The complaint lodged by coalition Publish What You Pay Australia and Myanmar groups including the Myanmar Alliance for Transparency and Accountability (MATA) and the Bawdwin Labour Union outlined Mallee Resources’ irresponsible disengagement around its sale of the highly lucrative Bawdwin mine in Shan State, Myanmar.
The AusNCP’s final statement confirmed the Australian company did not have a human rights policy in place, failed to take steps to “prevent or mitigate against human rights impacts” from the sale, did not disclosure material information about the governance and links with Myanmar figures and the ongoing conflict and violence around the mine site.
The statement also pointed to the Australian government’s need to do more to support Australian companies overseas to ensure that they understand human rights and governance risks and standards such as the OECD Guidelines. After agreeing to sell its stake in the mine to Myanmar company Win Myint Myo linked to cronies Asia World Co., Mallee Resources has recently taken over the license to mine Nickel at the Avebury Nickel mine in Tasmania.
Clancy Moore, CEO of Transparency International Australia who helped draft the original complaint made the following comment:
"The final statement shows the company failed in its human rights obligations in divesting from Myanmar and puts the remaining Australian linked mining companies, investors and shareholders still in Myanmar on notice.”
“Any Australian doing business in Myanmar risks enabling the corrupt and murderous junta. To cut the flow of money to the junta, the Australian government should follow the EU, UK and US and widen its sanctions against the junta, its businesses and cronies. This must include state-owned enterprises like Mining Enterprise 1 and Mining Enterprise 2.”
Myanmar Alliance for Transparency and Accountability made the following comment:
“We are pleased with the result of the Bawdwin mine complaint filed against Mallee Resources. We believe the outcome of the complaint will inspire good practice and human rights due diligence among corporations operating in Myanmar at this crucial time. International mining firms must be accountable for their operations and follow international standards on implementing transparency and human rights principle" said the Myanmar Alliance for Transparency and Accountability.
Mia Pepper, National Director of Publish What You Pay Australiamade the following comment:
“There are ongoing conflicts in many of the countries where Australian companies operate and where new projects are being developed. Companies need guidance and communities deserve transparency and accountability. It’s irresponsible and dangerous to cut and run when things get tough, leaving communities stranded.”
