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Dhaka Friday,  Mar 29, 2024

OECD rejected NGO Complaints

ESIA on Phulbari Coal by GCM OK!

EB Report

OECD rejected Complaint against GCM Resources- a London based resource exploration and development Company. Complaint of breaching the OECD Guidelines for multi-national Enterprise including human rights violation is found baseless and unsubstantiated.
The British National Contact Point (NCP) on OECD has released the final report on Thursday after more than two years examination. Receiving the positive result GCM expressed its happiness in London through a Press statement and said that the conclusions of the OECD examination, which are almost entirely in favour of the Company.
Michael Tang, Executive Chairman commented: “We are pleased that after a thorough assessment, the OECD’s findings are consistent with the Company’s position. In line with our engagement strategy, we continue to welcome constructive communication with all interested parties. “GCM looks forward to delivering benefits to all stakeholders of the Project and I would like to take this opportunity to thank the UK NCP team for their professionalism and impartial approach during the examination.”
International Accountability Project (IAP) and World Development Movement (WDM) submitted the seven point allegation against GCM on braching the OECD Guideline including human right violation. Three out of seven were rejected by the NCP immediately, and three were rejected after thorough investigation. The NCP found only one partial breach due to GCM’s reduced communication with local communities in the period from 2006 to 2012, being the period following completion of the Project’s Feasibility Study.
GCM said, the outcome reflects the GCM’s continued adherence and commitment to the highest international and national social and environmental standards as it continues to work to develop the Phulbari Coal Project. The OECD has commended GCM for its willingness to engage with the NCP and other international bodies.
GCM confirmed that since 2012, and together with the endorsement of the Bangladesh Government, the Company has broadened its community communication and engagement activities with the aim of ensuring the local community remains fully informed on the Project and that the Company’s social impact plans remain up-to-date. We are grateful for the support we continue to receive from the local communities.
GCM’s Chief Operating Officer and Chief Executive Officer of its Bangladesh Subsidiary Asia Energy Gary N. Lye said, “The OECD report is a timely reminder for the people and Government of Bangladesh of the high quality work done for the Phulbari Coal Project. Our plans place the highest priority on catering for the needs of the local communities and our teams are today still working in the Project area to ensure the people remain fully informed. The detailed studies supporting the Feasibility Study and Scheme of Development given to the Government have stood the test of international scrutiny. This Project is ready to start now and will provide Bangladesh with the most efficient and fastest way to access new and affordable large scale commercial energy and electricity.”
In its Final Statement, the NCP concluded that the Company had not breached the OECD Guidelines for Multinational Enterprises. The Complaints and the findings by NCP may be shown in the table below:

Alleged breach of Guidelines                     Findings
1    II.2 – to respect the internationally recognised human rights of those affected by their policies    Rejected after examination
2    IV.1 – to respect human rights, which means they should avoid infringing on the human rights of others and should address adverse human rights impacts with which they are involved    Rejected after examination
3    IV.2 – within the context of their own activities, avoid causing or contributing to adverse human rights impacts and address such impacts when they occur    Rejected upon initial assessment, unsubstantiated
4    IV.3 – Seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations, products or services by a business relationship, even if they do not contribute to those impacts    Rejected upon initial assessment, unsubstantiated
5    IV.5 – Carry out human rights due diligence as appropriate to their size, the nature and context of the operations, and the severity of the risks of adverse human rights impacts    Rejected after examination
6    II.7 – Develop and apply effective self-regulatory practices and management systems that foster a relationship of confidence and mutual trust between enterprises and the societies in which they operate    Partial breach in respect of the Company’s communication for the period 2006-2012.
7    III.2e – Ensure that timely and accurate information is disclosed, including material information on foreseeable risk factors    Rejected upon initial assessment, unsubstantiated

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