Indonesia’s Supreme Court has ruled that an environmental permit granted to the Dairi Prima Mineral zinc and lead mine in North Sumatra should be revoked. This is a major win for local community representatives who have been fighting to stop the mine for many years. Inclusive Development International has been working with these communities since 2019, alongside Indonesian partners including BAKUMSU, a community advocacy NGO that is providing legal aid and that announced the court decision in a press release last week.

Independent international experts have deemed the Dairi Prima Mineral mine a disaster waiting to happen. Plans for an on-site waste storage facility, or tailings dam, are of particular concern to local communities. Given seismic activity in the area and other environmental conditions, mining experts say the dam is almost certain to fail, which could unleash more than 1 million tons of mud and toxic waste on nearby villages. 

After the Ministry of Environment and Forestry granted a permit to Dairi Prima Mineral in 2022, community representatives filed a lawsuit against the company and the Ministry. An Administrative Court in Jakarta ruled in their favor last year, concluding that the company had not adequately consulted local people, and that the mine was located in a disaster-prone area and violated the Right to a Good and Healthy Environment. The Administrative Court ordered that the environmental approval be cancelled. The Ministry and the company appealed that decision, getting it overturned at the High Court level, but community representatives filed an appeal to the Supreme Court, which on August 12 ruled that the original Administrative Court decision should stand.  

Dairi Prima Mineral has pledged to apply for a judicial review of the ruling and said it will continue construction of the mine despite the decision, but backing from the Supreme Court underscores the strength of the communities’ case against the developer.  

“The ruling is a very positive sign for mining-affected communities across Indonesia,” says Inclusive Development International’s senior legal and policy director Natalie Bugalski. “If the Indonesian government is serious about positioning itself as a global hub for responsible mining and production, it should not allow perilous mines like this one, which pose risks that are simply too grave and can’t be managed, to proceed. To do so would demonstrate a total lack of commitment to protecting against the human rights impacts of mining operations.” 

Dr. Bugalski adds: “As the world shifts toward renewable energy and electric vehicles, it is imperative that the minerals and metals needed to fuel this transition are sourced in a way that respects the rights of people living on resource-rich land. We must rapidly transition to renewable energy sources and we need access to the transition minerals to do so—but in some cases, mining operations are simply too reckless to proceed. The Dairi Prima Mineral in North Sumatra mine is one such case.”  

Other experts have also pointed to this case as a litmus test for whether the Indonesian government is willing and able to hold mining companies accountable for their environmental and human rights impacts. Dr. Steven Emerman, a mining environmental consultant with 40 years’ experience, who has reviewed the plans for the Dairi Prima Mineral mine, has called this case a “canary in the coal mine,” saying that if the mine is allowed to proceed, “any manufacturing company seeking minerals for the clean energy transition will have to leave Indonesia…If the Supreme Court’s decision is not implemented, it will show the world that Indonesia has no will to ensure environmental and human rights protections associated with mining.”

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As the joint civil society recommendations note, the world urgently needs to transition away from fossil fuels and to renewable energy sources, but the transition must be pursued in a way that advances justice, equity, and human rights. The joint civil society recommendations are meant to help guide the UN Secretary-General’s Panel toward a transformative approach to increasing transition mineral supply while contributing to a more just global energy system.

Key principles outlined in our recommendations include the importance of ensuring human rights and environmental protections in the mineral supply chain and pursuing equitable reductions in energy and mineral demand.

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In the letter, we propose policies and processes that the World Bank can adopt to avoid or minimize impacts in the future, as well as best practice approaches. 

We recommend that the WBG should:

1. Recognize the need to minimize mineral demand through the full mineral and technology life cycles.
   Technological choices should look to minimize mineral consumption, choose the least impactful mineral sources, and maximize equipment lifespans. Technologies should be manufactured for easy recycling, with investment in environmentally safe recycling facilities. Energy planning must prioritize efficiency and demand management, and penalize wasteful energy use and excessive technology expansion. We recommend that the WBG adopt a coherent approach to minimizing mineral demand across all sector policies.
2. Put national green industrial strategy and just transition at the center of investments, rather than investing in export driven expansionism.
   Mineral-rich countries should be supported to integrate their mineral sectors into a national green industrial strategy, including a just transition plan that is fair and inclusive to everyone concerned, creating decent work opportunities and leaving no one behind. Countries should be supported to develop their own refining and processing industries and renewable technology capabilities, in a way that protects and enhances workers rights and environmental and social protections. In this way countries can capture the most value from the mineral value-chain as possible, and maintain control of resources locally. This approach would require the majority of the support for transition minerals to be delivered through the public arm of the WBG, and not the IFC or MIGA.
3. In consultation with civil society and Indigenous Peoples the WBG should commit to enhanced due diligence in mining practices.
   Following the lead of financial institutions in Europe, we call on the World Bank to ensure it enforces enhanced due diligence practices for all direct investments and those through financial intermediaries, which are applicable along the full mineral supply chain. This should include enhanced environmental and social due diligence, and best practice accountability for human rights, including requiring Free, Prior, and Informed Consent (FPIC) of Indigenous Peoples, with its in principle application for other land-based communities.
4. The World Bank and IFC’s accountability, safeguarding and remedy systems need to be robustly applied to all mining of transition minerals, including through financial intermediaries.
   Given the extractive and damaging nature of mineral mining, it will be essential to always categorize transition mineral projects (mining, processing and technical assistance) as category A high risk projects. The forthcoming IFC Performance Standards Review presents an opportunity to re-enforce the commitment of the IFC to meet best practice, including in transition mineral operations. PS1 which requires community consultation, PS5 relating to land and resettlement, PS6 on forests and biodiversity, and PS7 on protecting the rights of Indigenous Peoples will be critical to ensure the protection of people and planet in mineral mining and processing projects. Past experience of mining operations has shown that other performance standards, such as on water and air pollution, and health impacts will also require particular attention at all mining operations.

Signatory organizations:

1. Recourse
2. London Mining Network
3. Fundación Ambiente y Recursos Naturales (FARN)
4. Center for International Environmental Law (CIEL)
5. AbibiNsroma Foundation
6. Bank Climate Advocates (BCA)
7. Oil Change International (OCI)
8. MenaFem Movement for Economic,Development and Ecological Justice
9. Centre for Research on Multinational Corporations (SOMO)
10. Malach Consulting
11. MiningWatch Canada
12. African Coalition on Green Growth
13. Emmaus International
14. Southern Africa Climate Change Coalition
15. Centre for Climatology and  Applied Research
16. Zimbabwe Climate Change Coalition
17. Society for Threatened Peoples Switzerland
18. Publish What You Pay (PWYP)
19. Pacific Asia Resource Center (PARC)
20. Trend Asia
21. Earthworks
22. Global Justice Now
23. re•generation
24. Inclusive Development International (IDI)
25. Green Environmental Hearts Movement
26. 11.11.11
27. Fossil Free South Africa
28. Stamp Out Poverty
29. CliMates France
30. Indus Consortium for Humanitarian, Enviormental and Development Initiative
31. Friends of the Earth US
32. SIRGE Coalition
33. Climate Generation
34. Scottish Catholic International Aid Fund (SCIAF)
35. African Climate Reality Project
36. CATAPA
37. Instituto Clima de Eleição
38. Jubilee Australia Research Centre
39. Wetlands International Europe
40. Batani Foundation

The post Open letter to President Ajay Banga of the World Bank Group calling for extreme caution and due diligence for transition mineral mining appeared first on Inclusive Development International.

“ASI claims to be promoting responsible sourcing but certifying the CBG mine at this moment in time does the opposite—it’s greenwashing. It sends a signal to the market, including electric vehicle manufacturers, that CBG has made amends for decades of land grabbing. While CBG has taken steps to improve and we hope this progress continues, it has not yet addressed the vast majority of harm it has caused,” said Mohamed Lamine Diaby, Executive Director of ADREMGUI.

“If CBG fully remediates the harm it has caused and ensures that local communities benefit from the mining that’s happening on their land, then we would be the first to applaud them and recommend certification,” said Natalie Bugalski, legal and policy director at Inclusive Development International. “But when ASI gives its stamp of approval prematurely to companies that have not yet met their environmental and human rights responsibilities, it risks disincentivizing continued improvement and undermining affected communities trying to secure remedies for harms they continue to suffer.”

Since it began operations in 1973, CBG—a joint venture between the Guinean government and international mining giants Alcoa, Rio Tinto, and Dadco—has mined large areas of land in the area surrounding the town of Sangaredi, located in Guinea’s Boké region. For years, it has displaced and denied the land rights of local communities, destroyed their agricultural lands and freshwater sources, and damaged critical biodiversity and wildlife, including endangered chimpanzees, creating immense frustration among the local population.

Inclusive Development International, CECIDE and ADREMGUI have for many years worked closely with mining-affected communities in Guinea and elsewhere and currently are serving as advisors to 13 communities engaged in a dispute resolution process with CBG, seeking remedies for human rights abuses committed by the company. The organizations have also provided guidance and support to community representatives in their communications with ASI. As outlined in their response to the certification decision, the organizations have observed serious shortcomings in the initiative’s approach, including its failure to meaningfully inform and engage affected communities as part of the audit process. Neither ASI nor its auditors took proactive steps to ensure that affected communities were informed about ASI and its standards and were prepared to take part in the audit. This was despite numerous requests—from Inclusive Development International and from affected community representatives directly—for more information and for these communities to be given an opportunity to provide input on their own terms.  

In their response to the certification, the organizations outline implications of the decision and recommendations for aluminum industry actors and regulators, including: 

• ASI should update its standards and process to ensure all audits and certification decisions reflect the concerns of affected communities and realities on the ground. 
• Until and unless ASI improves its standards and processes, car companies and other aluminum buyers cannot rely on ASI to effectively evaluate human rights-related risks in their supply chains. 
• All companies with supply chain links to the CBG mine should verify any ASI audit findings with other sources, including civil society organizations, and engage directly with communities and other stakeholders as part of their due diligence. 
• Policymakers should ensure that emerging mandatory business and human rights regulations, such as those being developed in the European Union, do not treat ASI certification as a proxy for aluminum supply chain due diligence.  

“A truly just transition can only be realized if the rights of mining-affected communities are respected,” said Aboubacar Diallo, Executive Director of CECIDE. “Policymakers interested in an effective strategy to curb climate change without wreaking havoc on some of the world’s most vulnerable communities must develop better solutions that compel mining companies to treat these communities with the respect they’re owed.” 

Additional Resources

• Joint statement responding to Aluminum Stewardship Initiative’s Certification of Compagnie des Bauxites de Guinée: English; French
• Inclusive Development International’s letter to ASI regarding community engagement in the CBG audit: https://www.staging.inclusivedevelopment.net/wp-content/uploads/2023/07/Letter-to-ASI_IDI_18April2023.pdf 
• Inclusive Development International’s comments on ASI’s recent standards revision process: https://www.staging.inclusivedevelopment.net/wp-content/uploads/2022/06/ASICoverLetter02042022Final.pdf 

Centre du Commerce International pour le Développement (CECIDE) is a Guinean non-governmental organization founded in 2000 whose mission is to promote and defend the social, economic and cultural rights of communities, and their involvement in the design and implementation of public policies for development. 

Association pour le développement rural et l’entraide mutuelle en Guinée (ADREMGUI), is a Guinean non-governmental organization founded in 2006 that works for an institutional, economic and inclusive development at the grassroots level. Learn more at: https://adremgui.org/ 

Inclusive Development International is a U.S.-based non-profit organization that works to advance social, economic, and environmental justice by supporting communities around the world to defend their human rights and environment in the face of harmful corporate activities. Through our “Follow the Money” research, casework and policy advocacy, we hold corporations and development finance institutions accountable and promote a more just and ecologically sustainable development model. Learn more at: https://www.staging.inclusivedevelopment.net 

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The defendants, including the Indonesian Ministry of Environment and Forestry and the mining operator PT. Dairi Prima Mineral (DPM), a subsidiary of the state-owned China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (NFC), have appealed the decision, so it is not yet final and binding. But the fact is that the court has acknowledged that the company’s latest construction plans—including plans for infrastructure critical to processing ore at the site—violate government regulations regarding public consultation and environmental safety. 

Inclusive Development International has worked with Indonesian partners BAKUMSU, the Mining Advocacy Network (JATAM), and Yayasan Diakonia Pelangi Kasih (YDPK) for several years supporting local community representatives who oppose the DPM project, which poses potentially catastrophic safety and environmental risks. Among other things, a proposed tailings dam that would store toxic waste from mining activities at the site is “almost certain” to fail, according to a civil engineer and mine safety expert who assessed the project plans. 

International experts provided testimony to the court that the mine does not meet international safety standards or comply with Indonesian regulations. They have also stated that it would be illegal for NFC or its subsidiaries to build a mine like this within China itself because of the risk it would pose to human life. Ultimately, the court ruled that DPM failed to consider credible safety and environmental concerns and the Ministry of Environment and Forestry failed to follow their mandate when, under these conditions and in the face of opposition by local communities, they provided environmental approval for the mine.  

The implications of the decision extend well beyond this individual case. If the verdict is ultimately upheld, it suggests that mining companies operating in Indonesia—increasingly a center of mining for critical minerals needed to power a global green energy transition—will be held to higher standards.

More information on the safety and environmental risks, as well as local communities’ opposition to the mine can be found here: https://www.staging.inclusivedevelopment.net/cases/indonesia-dairi-prima-mineral-zinc-mine/

The court verdict can be found online here: https://sipp.ptun-jakarta.go.id/index.php/detil_perkara (enter case number 59/G/LH/2023/PTUN.JKT)

A press release from BAKUMSU, which is serving as legal representation to the communities in this case, is available here: https://drive.google.com/file/d/1vle14rFP1CXNv-K7XCxesIbbSzRKWZmE/view 

BAKUMSU’s release includes the following quotes from representatives from the community and NGOs, as well as international experts who provided testimony to the court in this case:

• Ms. Rainim Purba, community representative from Dairi said: “I and others in the community are glad the court in Jakarta agrees the mining company and the Ministry of Environment and Forestry were doing a great injustice to us, and the environment. The mine is obviously going to result in a disaster. The Ministry had provided approval regardless of this. Now the court must make sure the government withdraws the approval”.
  

• BAKUMSU director, Mr. Tongam Panggabean, said “we have had world class engineering and environmental experts testifying since 2019 that the proposed mine would be a safety and environmental hazard. The expert reports have been provided to the Ministry of Environment and Forestry. Yet the Ministry approved the mine. Communities protested and did petitions. Still the Ministry approved the mine. It was outrageous. Now it is good to see the Administrative Court rights this wrong.” He added: “This is a big win for the community”.

• In a 2021 presentation, which was shared with the Ministry of Environment and Forestry, an international expert on mine hydrology, Dr Steven Emerman of Malach Consulting concluded: “I am often asked what is the worst mining project that I have ever reviewed. …. I can say with confidence that I have never reviewed a proposed mining project that shows such callous disregard for human life as the proposed DPM mine.”  (See https://www.youtube.com/watch?v=wVmK9u_aiDA&t=15s)

• Richard Meehan, an international expert on dam construction in earthquake prone areas, reported in 2020, 2021 and 2022 that the whole valley where a tailings storage facility was proposed to be constructed was filled with unstable volcanic ash. The area is also in one of the highest earthquake risk zones in the world – and also experiences serious storms and floods. He predicted that there would likely be a dam failure, possibly a catastrophic failure, where well over a million tons of toxic tailings would charge down the valley over villages. (See https://www.youtube.com/watch?v=DMMPCZtOUlc)

• Ms. Saudur Sitorus, a community representative from Dairi, said: “We have been doing very productive agriculture in the area for decades. We have been contributing to the provincial and national economy.  We want the government to support us, not allow the destruction of our lands and streams. We want no mining in our area. Never. We want to continue our agriculture.” 

• Mr. Mangatur Lumbantoruan, another community representative from Dairi, said: “I thank the court for finding the Environmental Approval was invalid. That is correct. Now we don’t want the Ministry or the company to appeal that decision. We want no further consideration of mining in our valley”.  
  
• Mr. Melky Nahar, National Coordinator of community mining network, JATAM, said: “There was also the issue of complying with Indonesian laws and regulations. The Ministry of Environment and Forestry approved a mine tailings dam without obtaining recommendation or review from the Public Works Ministry as required by PUPR Minister Regulation number 27/PRT/M/2015”.  
  He added “There is a requirement to consider the impacts of a possible tailings dam failure. DPM repeatedly failed to consider such impacts and failed to design their dam to an acceptable and legal standard”. 
  And: “The technical experts advised the court that the whole area was geologically unstable, with no site suitable for any tailings dam. The Ministry should therefore just cease considering any mining proposal for that area. The current court decision should not be appealed and DPM should not be allowed to start”. 

• Mr. Panggabean from BAKUMSU believes the case is a pivotal one for Indonesian: “A country that has an Environment Ministry that approves dangerous mines is not what anyone in the country needs”, he said. “With the court confirming that proper process had not been followed, and that the DPM mine poses a demonstrable risk, it is a precedent that should be followed in the future. The Ministry should accept and not appeal this court decision.” 
  Mr. Panggabean also added: “The world is shifting over to net-zero carbon emissions. Renewable     electricity and batteries will replace fossil fuel use. In this situation, the Indonesian government wants the country to be a hub for mining of critical minerals and production of rechargeable batteries. However, Indonesia can only claim it is a responsible mining state by excluding irresponsible mining projects.” 

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Accountability Counsel and Inclusive Development International have developed a guide to help explain the Mechanism’s procedures for individuals and communities harmed by corporate behavior. This mechanism is new, currently in the pilot phase, and has yet to manage any cases. Based on the mechanism’s written procedures, we offer this guide for people trying to understand what to expect from the mechanism, styled as commonly asked questions and answers. We will update this guide as and when more information becomes available.

Download the full guide in English, Spanish, French, and Bahasa.

Disclaimer: This guide is based on Accountability Counsel and Inclusive Development International’s independent interpretation of the Mediation and Consultation Mechanism Procedures. In case of any doubts, please refer to the original Procedures Document. All citations below refer to the Procedures Document.

The post A Guide to a New Grievance Mechanism for the Mining Industry, with Emphasis on Chinese Corporations appeared first on Inclusive Development International.

The mechanism, called the Complaint and Consultation Mechanism for the Mining Industry and Mineral Value Chain, will provide a forum for affected communities to raise concerns about Chinese and other mining companies’ compliance with international environmental, social and human rights standards. This is especially important as the world transitions to more renewable forms of energy that are fueling increased demand for critical mineral inputs such as cobalt, nickel, aluminum, and lithium. 

According to the draft procedures governing the mechanism, companies associated with the mining sector that have responsibilities under “recognized codes for responsible business conduct” will fall within its scope. These codes include CCCMC’s Guidelines for Social Responsibility in Outbound Mining Investments, the Chinese Due Diligence Guidelines for the Mineral Supply Chain, and the United Nations Guiding Principles on Business and Human Rights, among others. We expect that this mechanism will be most relevant to the members of RCI and CCCMC. RCI members include Chinese mining companies, refineries, and other companies along the critical minerals value chains, and international end users such as automotive manufacturers and major tech companies (Huayou Cobalt and Jiana Energy—Chinese suppliers of cobalt products and battery materials—as well as BMW and Dell were on the board of the Responsible Cobalt Initiative when it was first established). Many Chinese mining companies are CCCMC members. 

As part of the public consultation process, Accountability Counsel and Inclusive Development International submitted recommendations for improvements to the draft procedures to ensure the new mechanism is an effective avenue for justice for communities harmed by mining activities and related value chains. We know from our work with many such communities how harmful the environmental and social impacts of mining can be and the importance of an effective accountability mechanism to address these impacts. 

For example, we have worked with a community in a remote part of Guinea that was evicted at gunpoint to make way for a mine owned by AngloGold Ashanti, one of the world’s largest gold mining companies. The community filed a complaint to the accountability mechanism for projects supported by the International Finance Corporation (IFC) and, through the resulting mediation, secured agreements on access to water, schooling, compensation and livelihood improvement, including a commitment from the company to implement recommendations from an independent assessment of the mine’s impacts on resettled households. We have also worked with communities in Mongolia, where Rio Tinto’s Oyu Tolgoi Mine, one of the world’s largest gold and copper mines in the world, depleted water resources and disrupted local herders’ pasture lands, causing displacement and loss of livelihoods. Local herders there also filed complaints to IFC’s mechanism, and the resulting mediations culminated in commitments from the mining company and local government to, among other things, address water and pasture issues and compensate those who had been displaced. These are just two of many examples where accountability mechanisms have enabled mining-affected communities to secure some form of redress. But this is only possible if the mechanisms are well designed to be accessible, fair, and effective.

The new accountability mechanism proposed by the RCI and CCCMC contains several provisions consistent with the effectiveness criteria in the United Nations Guiding Principles on Business and Human Rights, such as the right to representation, the commitment to rights-based agreements, and the prohibition of coercion and retaliation. However, there are key aspects that need to be strengthened to ensure the mechanism is effective and can gain trust from all stakeholders.

Our key recommendations:

• As an industry-led mechanism, it should be structured in a manner that ensures its independence from the companies that could be parties in a complaint in order to gain the trust of all parties and effectively resolve disputes. We recommend that the mechanism disclose the makeup of the committee that manages the complaint process, establish the process for becoming a member of that committee, and prevent the perception of a revolving door between the committee and member companies.
• The mechanism needs to be adequately funded so that community complainants do not bear any costs of participation. For the mechanism to be effective in resolving disputes and be seen as impartial, it must be accessible to all of its stakeholders, including affected communities, who are almost always poor and often face logistical and other barriers to using accountability mechanisms.
• The mechanism should build in concrete measures to address reprisals against community complainants. Our experience with other accountability mechanisms shows that despite zero tolerance policies on reprisals, communities still regularly face threats and retaliation when they file complaints. Without adequate protection against reprisals, the mechanism cannot be truly accessible to communities.  
• The mechanism should ensure that the fact-finding tools and qualified mediators are available for all cases, if the parties believe they will be useful to dispute resolution. Establishing the facts prior to or early on in a dialogue process can save time and resources debating the facts and form the basis of a more constructive discussion toward resolution.
• There should be further clarification as to which corporate actors are obliged to answer to the mechanism so that communities can better assess whether the mechanism is a relevant avenue to prevent harms and seek redress. 

Our full set of recommendations for the new mining sector mechanism can be found here.

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“Bank Dunia telah mengonfirmasikan bahwa tambang Dairi merupakan bencana yang tinggal menunggu waktu untuk terjadi,” kata Tongam Panggabean, Direktur BAKUMSU, sebuah perkumpulan bantuan hukum di Sumatera Utara yang bertindak sebagai kuasa  hukum bagi masyarakat setempat yang menentang pembangunan tambang tersebut. “Jika pemerintah Indonesia memberi lampu hijau kepada proyek ini sekarang, jelas mereka bersedia mengorbankan keselamatan masyarakat ini untuk  kepentingan bisnis/perusahaan  besar.”

Penyelidikan dilakukan setelah masyarakat setempat  yang menentang proyek tersebut mengadukan kepada pengawas internal Bank Dunia, Compliance Advisory Ombudsman (CAO). Pengaduan itu diajukan setelah penyelidikan oleh Inclusive Development International mengungkapkan adanya hubungan keuangan antara International Finance Corporation (IFC), anggota Grup Bank Dunia, dan pengembang tambang, Dairi Prima Mineral, melalui perantara keuangan. Pengaduan tersebut memaparkan bahwa menurut kebijakan IFC sendiri, pengembang tambang diwajibkan untuk mematuhi standar Bank Dunia untuk perlindungan sosial dan lingkungan

Setelah pengaduan diajukan, pemilik tambang memutuskan hubungan keuangannya dengan perantara IFC, Postal Savings Bank of China, untuk menghindari penyelidikan lebih lanjut. Meskipun demikian, CAO melaporkan beberapa temuan yang memberatkan dalam laporan penilaian kepatuhannya:

• Pakar keamanan bendungan independen CAO menemukan bahwa, “mengingat kombinasi risiko seismik yang tinggi, curah hujan yang tinggi, ketinggian akhir bendungan yang diusulkan, dan lokasi hilir desa, rusaknya bendungan tailing di lokasi [Dairi Prima Mineral] akan dianggap kejadian ‘ekstrem’ menurut Pedoman [Komite Nasional Australia untuk Bendungan Besar] Pedoman untuk Bendungan Tailing,” pedoman yang oleh Dairi Prima Mineral sendiri diklaim diterapkan.
• Risiko dan kemungkinan dampak dari runtuhnya bendungan akan dirasakan oleh beberapa ribu orang yang tinggal dan bertani di hilir di tambang yang diusulkan
• Potensi drainase asam dari bendungan tailing yang direncanakan tersebut juga menimbulkan risiko kontaminasi terhadap sumber air permukaan dan air tanah yang memasok masyarakat setempat
• Perusahaan telah menyadari risiko-risiko ini—termasuk dalam Adendum ANDAL tahun 2021—tetapi tidak pernah menanganinya secara memadai. Laporan tersebut mencatat bahwa Adendum, yang mewakili informasi terbaru dan komprehensif tentang tambang dan desain bendungan tailing, tidak memiliki detail penting tentang pengelolaan dan penyimpanan tailing, “dengan tidak menyediakan detail setelah delapan tahun pertama dari proyeksi umur tambang 30 tahun”
• Dairi Prima Mineral tidak mengakui penduduk masyarakat sekitar sebagai Masyarakat Adat sesuai dengan kebijakan upaya perlindungan IFC, menunjukkan bahwa kebutuhan akan Persetujuan Berdasarkan Informasi Awal tanpa Paksaan “mungkin telah diabaikan”.

Temuan ini sangat selaras dengan penilaian sebelumnya yang dilakukan oleh dua ahli dunia. Richard Meehan, seorang ahli terkenal dunia bidang bendungan di daerah dengan aktivitas seismik, menyarankan bahwa bendungan tailing apa pun di lokasi yang diusulkan Dairi Prima Mineral hampir pasti akan runtuh karena fondasi yang tidak stabil . Steve Emerman, seorang ahli lingkungan penambangan timah-seng, memperingatkan bahwa runtuhnya tambang semacam itu berpotensi menyebabkan kematian besar-besaran di masyarakat sekitar dan kerusakan lingkungan jangka panjang..

Orang-orang yang tinggal di dekat tambang marah. “Kami tidak pernah menyetujui tambang yang sangat berisiko ini. Kami tidak pernah diberi kesempatan untuk membuat keputusan soal proyek ini,” kata Ibu Rainim Purba dari Desa Pandiangan. “Proyek ini berpotensi membunuh kami dan kami telah memperjelas bahwa kami tidak ingin tambang berbahaya ini dan limbah berbahayanya disimpan di halaman belakang kami”

Bencana tailing lainnya telah menewaskan ratusan orang dan menghancurkan ratusan kilometer sungai

Peran Pemerintah Indonesia

Perubahan proyek, termasuk lokasi baru untuk fasilitas penyimpanan tailing, memerlukan persetujuan lingkungan dari pemerintah Indonesia untuk melanjutkan dan agar tambang beroperasi secara legal. Namun Kementerian Lingkungan Hidup dan Kehutanan belum menerima permintaan revisi AMDAL Dairi Prima Mineral . Analisis risiko perusahaan sebelumnya dipertanyakan selama sidang di hadapan Komisi Penilai AMDAL Pusat pada Mei 2021, di mana kementerian meminta Dairi Prima Mineral untuk mengajukan revisi Adendum yang menjawab pertanyaan terkait keamanan bendungan tailing yang diusulkan.

Menurut pendapat dari satu ahli ke ahli lain, tambang yang diusulkan ini terlalu berbahaya untuk dibangun dalam bentuk apa pun. Jelas persetujuan lingkungan seharusnya tidak  diterbitkan,” kata Natalie Bugalski, Direktur Hukum dan Kebijakan di Inclusive Development International. “Temuan CAO seharusnya menjadi lonceng kematian bagi tambang Mineral Dairi Prima”

Peran Investor Tiongkok

Sebagai pemilik mayoritas Dairi Prima Mineral, perusahaan negara Tiongkok, Foreign Engineering and Construction (NFC) terlibat jauh dalam manajemen dan operasi DPM. Ia juga merupakan kontraktor teknik, pengadaan dan konstruksi tambang. Dalam laporannya, CAO menyimpulkan bahwa NFC memiliki kontrol aktif terhadap DPM dan secara khusus bertanggung jawab atas pembangunan tambang

Meski perusahaan belum menyerahkan revisi Adendum Analisis Mengenai Dampak Lingkungan untuk mengatasi masalah yang belum terselesaikan, sebagaimana diminta oleh pemerintah Indonesia, NFC mengklaim telah mendapatkan pinjaman untuk tambang dan telah melanjutkan proyek tersebut. Meskipun belum mendapat persetujuan, Dairi Prima Mineral telah mendapatkan tanah untuk fasilitas penyimpanan tailing dan telah mulai bekerja yang oleh para ahli setempat, termasuk BAKUMSU, jaringan pertambangan nasional (JATAM), dan Pusat Hukum Lingkungan Indonesia (ICEL), diyakini melanggar  menurut hukum di Indonesia

Proyek ini juga berjalan meskipun faktanya fasilitas yang direncanakan jelas-jelas gagal memenuhi kebijakan keselamatan domestik Tiongkok yang secara tegas melarang bendungan tailing baru berada dalam jarak 1 kilometer di hulu pemukiman

“Publikasi laporan ahli independen ini harus menjadi peringatan bagi pemerintah Indonesia, pengembang proyek dan pemberi pinjaman, yang sekarang tidak dapat lagi mengklaim tidak tahu mengenai hebatnya risiko yang didatangkan (proyek) ke kehidupan manusia,” tambah Bugalski. “Setiap pengembangan dan pembiayaan lebih lanjut yang diberikan untuk proyek tersebut akan menjadi Tindakan yang  sangat tidak bertanggung jawab dan membuat pengembang dan pemberi pinjaman terpapar risiko dalam hal keuangan, reputasi, dan hukum yang sangat besar”

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A World Bank investigation has concluded that a zinc and lead mine being developed in North Sumatra, Indonesia by Dairi Prima Mineral, a subsidiary of China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC), poses “extreme” risks to nearby communities. Of particular concern is a planned tailings dam meant to store the toxic byproducts of mining activities, which experts say is almost certain to fail. The investigation report notes that such a failure “could result in significant and potentially irreversible impacts on the lives and livelihoods of several thousand villagers located downstream.”

“The World Bank has confirmed that the Dairi mine is a disaster waiting to happen,” said Mr. Tongam Panggabean, Director of BAKUMSU, a legal group in North Sumatra that is acting as legal representative for local communities that oppose construction of the mine. “If the Indonesian government greenlights this project now, it’s clear they are willing to sacrifice these communities’ safety to big business.”

The investigation was undertaken after local communities opposed to the project filed a complaint with a World Bank internal watchdog, the Compliance Advisor Ombudsman. The complaint was filed after an investigation by Inclusive Development International revealed financial ties between the International Finance Corporation (IFC), a World Bank Group member, and the mine developer, Dairi Prima Mineral, through financial intermediaries. The complaint argued that according to IFC’s own policy, the mine’s developers should be required to comply with World Bank standards for social and environmental protection.

After the complaint was submitted, the mine’s owner ended its financial relationship with IFC’s intermediary, Postal Savings Bank of China, which avoided a fuller investigation. Nonetheless, the Ombudsman reports multiple damning findings in its compliance appraisal report:

• CAO’s independent dam safety expert found that, “given the combination of high seismic risk, high rainfall, the ultimate height of the proposed dam, and the downstream location of villages, a tailings dam failure at the [Dairi Prima Mineral] site would be considered ‘extreme’ under the [Australian National Committee on Large Dams] Guidelines on Tailings Dams,” guidelines that Dairi Prima Mineral itself claims to implement.
• The risk and possible impacts from dam collapse would be felt by several thousand people living and farming downstream from the proposed mine.
• Potential acidic drainage from the planned tailings dam also poses contamination risks to surface and groundwater sources that serve local communities.
• The company has recognized these risks—including in a 2021 Addendum to its Environmental Impact Assessment—but has never adequately addressed them. The report notes that the Addendum, which represents the most updated and comprehensive information about the mine and tailings dam design, lacks critical detail about tailings management and storage, “with no details available beyond the first eight years of the projected 30-year mine life.”
• Dairi Prima Mineral has failed to recognize residents of nearby communities as Indigenous Peoples as per IFC safeguard policies, suggesting the need for Free, Prior and Informed Consent “may have been overlooked.”

These findings align strongly with prior assessments conducted by two global experts. Richard Meehan, a world-renowned expert on dams in areas with seismic activity has suggested that any tailings dam in the location Dairi Prima Mineral has proposed is almost certain to collapse because of unstable foundations, regardless of design. Steve Emerman, an expert on lead-zinc mine environmental issues warns that such a collapse would likely lead to widespread deaths in surrounding communities and long-term environmental destruction.

People living near the mine are infuriated. “We have never agreed to this enormously risky mine. We have never been given an opportunity to decide about this project,” said Ms Rainim Purba of Pandiangan Village. “It has the potential to kill us, and we have made it abundantly clear that we do not want this dangerous mine and its hazardous waste stored in our backyard.”

Other tailings disasters have killed hundreds of people and destroyed hundreds of kilometers of rivers.

Role of the Indonesian Government

Changes to the project, including a new location for the tailings storage facility, require environmental approval from the Indonesian government to proceed and for the mine to legally operate. But the Ministry of Environment and Forestry has not yet received requested revisions to Dairi Prima Mineral’s Environmental Impact Assessment. The company’s prior risk analysis was called into question during hearings before a Central Environmental Impact Assessment commission in May 2021, at which point the ministry asked the company to submit a revised Addendum.

“According to one expert opinion after another this proposed mine is far too dangerous to be developed in any form.  Clearly environmental approval should not be forthcoming,” said Natalie Bugalski, Legal and Policy Director at Inclusive Development International. “The CAO’s findings should be the death knell for the Dairi Prima Mineral mine.”

Role of Chinese Investors

As the majority owner of Dairi Prima Mineral, the state-owned China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC) has been deeply involved in the company’s management and operation. It is also the mine’s engineering, procurement and construction contractor. In its report, the CAO concludes that NFC has effective control of Dairi Prima Mineral and is specifically responsible for the mine’s construction.

While the company has not yet submitted the revised Environmental Impact Assessment Addendum to address outstanding risk issues, as requested by the Indonesian government, NFC claims that it has secured loans for the mine and has pressed ahead with the project. Despite lacking approval, Dairi Prima Mineral has acquired land for the tailings storage facility and has begun work that local experts, including BAKUMSU, the national mining network (JATAM), and the Indonesian Center for Environmental Law, believe to be unlawful under Indonesian law. The project is proceeding also despite the fact that the planned facility clearly fails to meet China’s domestic safety policy that strictly prohibits any new tailing dams within 1 kilometer upstream of settlements.

“The publication of this independent expert report should be a wake-up call to the Indonesian government, the project developers and lenders, none of whom can now claim ignorance regarding the severity of the risk to human life,” added Bugalski. “Any further development and finance granted for the project would be deeply irresponsible and leave the developers and lenders exposed to significant financial, reputational and legal risk.”    

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