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Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 1 -

Mining Projects Supported by Export Development Can ada (EDC) 1978 – 2010 (Last Updated: January 27, 2011) Ø - Information that EDC was asked to provide, but refused. Year

Country of transaction

Principal Counterpart (Borrower/ Investor/ Financier)

EDC Product (Guarantee/ Financing /Insurance)

Project Description

Principal Exporter/Investor/ Recipient

Amount Corporate

Amount Canada Account

Points of interest and known problems

Sources Cited

1978

Brazil

Caraiba Metais S.A., Industria e Comercio

Financing

Copper ore mining shaft – equipment and services

Patrick Harrison & Company Ltd.

US$3.1 million

EDC, 1978 Annual Report.

1980

Mexico

Industrial Minera Mexico S.A.

Financing

Mining equipment

Chemetics International Ltd.

$663,000


1980

Mexico


Financing

Underground mining trucks and equipment

Jarvis Clark Company Ltd.

$145,000


1980

Mexico


Financing



$137,000


1980

Mexico


Financing



$3.282 million


1980

Mexico


Financing

Mining equipment

Jarvis B. Webb Company of Canada

$1.605 million



Year




Project Description


Amount Corporate



Sources Cited

1980

Mexico


Financing

Mining equipment

John T. Hepburn Ltd.

$5.212 million


1980

Mexico


Financing

Mining equipment

Teledyne Canada Mining Products

$116,000


1981

Mexico


Financing

Mining equipment


$273,000

EDC, 1981 Statistical Review.

1981

Mexico


Financing

Mining equipment

Teledyne Canada Mining Products

$78,000


1981

Mexico


Financing

Mining equipment

M.G. Wills & Sons Manufacturing Ltd.

$176,000


1981

Mexico


Line of credit

Mining equipment and services

Various exporters

US$10,386,283

EDC NEWS, January/ February 1981.

1981

Mexico

Industrial Mineral Mexico and Associated Companies

Financing

7 underground mining trucks

Jarvis Clark Co.

US$2.7 million

EDC NEWS, January/ February 1981.


Year




Project Description


Amount Corporate



Sources Cited

1981

Indonesia

Government of The Republic of Indonesia

Financing

Coal mining equipment

Various exporters

$145.449 million


1981

Peru

Empresa MineraEspecial Titaya S.A.

Financing

Copper mining

SurveyerNenniger & Chenevert Inc.

$254.883 million


1982

Philippines

Ø

Loan

Marcopper Copper Mines

Placer Dome Inc. (Placer Dome was acquired by Barrick Gold Corp. in 2006)

US$1.36 million

Toxic waste has contaminated the water supply; mine waste dumped into Calancan Bay damaged corals and drove away fish relied on by fishermen for food supply. Massive tailings spill in 1996. [1]

[1] Review of the Export Development Act, Presentation to the Standing Committee on Foreign Affairs and International Trade, November 16, 1999, by Joan Kuyek, National Co-ordinator, Mining Watch Canada. [Online]. Available: http://www.miningwatch.ca/en/review-export-development-act-presentation-standing-committee-foreign-affairs-and-international-trad; Probe International files. This mine was discussed during The Foreign Affairs and International Development Committee meeting on October 8, 2009 to discuss and hear testimony on Bill C-300, An Act Respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries and during the 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009


Year




Project Description


Amount Corporate



Sources Cited

1982

Philippines

Financing

Services for development of Dizon copper mining project

Interimco Trading Co.

$42.5 million

New York Times, July 11, 1982.

1982

Colombia

Carbones de Colombia

Financing

Open-pit coalmine

Northern Construction Company Ltd.

$196.608 million


1982

Papua New Guinea

Ok Tedi Mining Ltd

Financial

a) Ok Tedi Mine – construction, mining and town site facilities, export credits

b) Mining and town site facilities

a) BHP and Inmet Corporation b) Various exporters

a) $7.5 million and $88 million b) $108,134

Landslide destroyed dam retaining mine’s toxic tailings, destroyed fish stocks, polluted land and caused severe damage to the health of the waterway. [1, 2]

a) [1] Reckless Lending: How Canada’s Export Development Corporation Puts People and the Environment at Risk, March 2000, by the NGO Working Group on the EDC, part of the Halifax Initiative: http://www.miningwatch.ca/sites/miningwatch.ca/files/Reckless_Lending.pdf [2] Probe International files. http://www.probeinternational.org/export-credit/submission-export-development-act-review EDC NEWS, March 1982. b) EDC, 1982 Statistical Review.

1982

Peru

a) Cia. Minera Alianza S.A. b) Corporation Financiera de Desarrollo

Financing

Mining equipment and spare parts

Jarvis Clark Co. Ltd.

a) US $601,263 b) $739,000

a) EDC NEWS, July 1982. b) EDC, 1982 Statistical Review.


Year




Project Description


Amount Corporate



Sources Cited

1982

Peru

Compania Minerales Santander Inc.

Mining vehicle

Jarvis Clark Co. Ltd.

$102,000


1982

Peru

Empresa Minera del Peru

Financing

Mining equipment and services

Wright Engineers Limited

$49.152 million


1982

Peru

Cia. Minera Alianza S.A.

Financing

Goods and services for Cerro Verde II mining project

Various exporters

US$40 million

EDC NEWS, July 1982.

1982

Peru


Financing

Locomotives and related spare parts

General Motors Market Development of Canada Ltd.

US$1,695,800

EDC NEWS, July 1982.

1982

Peru


Financing

8 locomotive bogies, one marine diesel engine, spare parts

Bombardier Inc.

US $4,974,795

EDC NEWS, March 1982. EDC NEWS, June 1982.

1982/83

Peru

Compania Minerales Santander Inc.

Financing

Mining vehicle

Jarvis Clark Company Limited

US $83,300

Forfeiting of six promissory notes.

EDC NEWS, December1982/January 1983.

1983

Mexico

Nacional Financiera S.A.

Financing

Cananea Copper Mine and processing plants – grinding mills & related equipment, spares & services

Dominion Engineering Works Ltd.

$12.880 million



Year




Project Description


Amount Corporate



Sources Cited

1987/88

Papua New Guinea

Insurance Policy

Foreign investment

Misima Mine Project

Placer Dome Inc

$158 million

Tailings from the mine are dumped into the ocean. The PNG Government has criticized the environmental management at the mine and noted that, “soft wastes pollute the sea for nine kilometers along the coast.” Fish and drinking water have also been affected.

“Insurance for Misima,” Mining Journal, London, February 26, 1988. “La Coipa’s EDC investment insurance,” Trade Finance & Banker International, September, 1990. http://probeinternational.org/library/wp-content/uploads/2010/11/La-Coipas-EDC-investment-insurance.pdf MAC: Mines and Communities, Part Three: Conclusions, 01/05/2001. http://www.minesandcommunities.org/article.php?a=6426 “Mining in the South Pacific – On the other side of the forests.” http://www.hydra.org.au/mpi/docs/niart.html – no longer available online. South Pacific Regional Environment Programme, The effects of mining on the environment of high islands: A case study on gold mining on Misima Island, Papua New Guinea: http://www.sprep.org/Factsheets/pdfs/Archive/The%20effects%20of%20mining%20on%20the%20Environment%20of%20high%20islands%20a%20case%20study%20of%20gold%20mining%20on%20Misima%20Island%20Papua%20New%20Guinea%205-Reduced.pdf


Year




Project Description


Amount Corporate



Sources Cited

1988/89

India

Coal India

Financing

a) Rajmahal Open Cast Coal Mine - expansion and supply of goods and services b) Rajmahal Coal Mine

a) Canadian Commercial Corporation b) EDC

a) $46.480 million b) $175 million [1]

a) The Canadian Commercial Corporation (CCC) is an export sales agency, wholly owned by the Government of Canada. CCC helps Canadian exporters win sales, on improved terms, in government and private-sector markets around the world. As described on its Web site, “Using its governmental status to sign export sales contracts on behalf of Canadian exporters, the Corporation puts the power of Canada behind an export sale, guaranteeing its full and satisfactory completion.” CCC's customized export sales and contracting services help exporters, particularly small and medium-sized companies, access opportunities and win business on better terms. CCC…specializes in sales to foreign governments and international organizations… CCC's involvement improves [the company’s] standing with [its] customer…. CCC gives…customers the comfort of the Canadian Government's guarantee….”

a) Report on the Accounts Administered for the Government of Canada by the Export Development Corporation Covering Fiscal Years 1988-89 and 1989-90, by External Affairs and International Trade Canada Canadian Commercial Corporation’s Web site. [Online]. Available: http://www.ccc.ca/eng/home.cfm b) [1] Environmental Defence “A Brief Overview of Export Credit Agencies in the Asia-Pacific Region.” http://www.eca-watch.org/problems/asia_pacific/documents/NADIEnvDef_WSFregionsummary_Jan04.pdf


Year




Project Description


Amount Corporate



Sources Cited

1989

India

Coal India Ltd.

Financing

Rajmahal Open Cast Coal Mine – equipment and services to increase output

Canadian Commercial Corporation with Met-Chem Canada Inc. and EDC

$166 million

Ibid.

EDC, “Indian Coal Project to use Canadian Expertise,” (News Release), January 16, 1989. In India, the CCC signed a five-year contract with Coal India Limited, that country’s major coal producer, to upgrade the Rajmahal Open Cast Coal Mine located in the Province of Bihar. The $166 million sale, financed by the Export Development Corporation, was expected to generate 5000 person-years of employment in Canada. See Canadian Commercial Corporation Annual Report 1988-89. http://probeinternational.org/library/wp-content/uploads/2010/11/CCC-Annual-Report-1988-89-.pdf [1] John Partridge, " A patchwork infrastructure offers large-scale opportunities", The Globe and Mail, Report on Business, September 19, 1989. http://probeinternational.org/library/wp-content/uploads/2010/11/A-patchwork-infrastructure-offers-large-scale-opportunities.pdf Met-Chem http://www.met-chem.com/data/en/Coal_Raj1%208558.pdf


Year




Project Description


Amount Corporate



Sources Cited

1990

Chile

Ø

Political risk insurance

La Coipa Gold and Silver Mining Project in Copiapo Province

Placer Dome Inc.

$158 million

35% of insurance policy supported by MIGA of World Bank.

“World Bank agency to backstop EDC for Placer project insurance,” by Jennifer Lewington, The Globe and Mail, Toronto, June 6, 1990. Extractive Industries and Sustainable Development, An Evaluation of World Bank Group Experience, The World Bank, 2005, Page 167. http://lnweb90.worldbank.org/OED/oeddoclib.nsf/DocUNIDViewForJavaSearch/06E2E63C8AECD44B85256D7A0075AE4F/$file/Extractive_Industries_Evaluation_MIGA.pdf

1990

Mexico

Minerales Metalicos del Norte S.A.

Financing

Purchase of six mining vehicles

Eimco Jarvis Clark Ltd

US $578,000 [1]

Purchase of six scoop trams (load-haul-dump mining vehicles), which the buyer will use at its lead, zinc and silver mining operations in the state of Durango. The loan takes form of an allocation under the US$10 million line of credit established between EDC and Banca Serfin, S.N.C. [1]

[1] EDC, “Sale of mining vehicles to Mexico supported by EDC”, (News Release), March 8, 1990. http://probeinternational.org/library/wp-content/uploads/2010/11/Sale-of-mining-vehicles-to-Mexico-supported-by-EDC.pdf

1990

Mexico

Industrial Minera Mexico, S.A.

Loan

Purchase of drilling rigs

Atlas Copco Canada Inc.

$1.5 million [1]

The loan takes form of an allocation under the US$10 million line of credit established between EDC and Banca Serfin, S.N.C. [1]

[1] EDC, News Release, "Sale of Drilling Rigs to Mexican Mining Company Backed With an EDC $1.5 Million Loan", March 8, 1990, NR-9022.. http://probeinternational.org/library/wp-content/uploads/2010/11/Sale-of-drilling-rigs-to-Mexican-mining-company-backed-with-an-EDC-1.5-million-loan.pdf


Year




Project Description


Amount Corporate



Sources Cited

1990

Colombia

Loan

Sales to coal mining sector by three Canadian companies: coal handling system, stacker reclaimer, conveyor belting, optical scales and dynamic brake resistors

Carbones de Colombia S.A. of Bogota (CARBOCOL)

US $715,852 [1]

[1] EDC News Release, March 7, 1990, NR 90-21, " Sales to Coal Mining Sector of Colombia Supported by EDC Loans to the Buyer." http://probeinternational.org/library/wp-content/uploads/2010/11/Sales-to-coal-mining-sector-of-Colombia.pdf

1990

Colombia

Carbones de Colombia S.A. (CARBOCOL)

Loan

Spare parts for a coal mines at the El Cerrejon Norte site in northerneastern Colombia

Boliden Allis

US$61,699 [1]

[1] EDC, News Release, "EDC Supports Sales by Boliden-Allis to Colombia", July 13, 1990 http://probeinternational.org/library/wp-content/uploads/2010/11/EDC-supports-sales-by-Boliden-Allis-to-Colombia.pdf

1990

Algeria

Enterprise Nationale du Fer et du Phospahate

Loan

Purchase of 13 rear dump trucks

VME Equipment of Canada Ltd.

$4.91 million [1]

[1] EDC, News Release, "Guelph Manufacturer Repeats Sale in Algeria While EDC Lends Up To $4.91 Million to the Buyer", April 24, 1990, NR 90-32. http://probeinternational.org/library/wp-content/uploads/2010/11/Guelph-manufacturer-repeats-sale-in-Algeria.pdf


Year




Project Description


Amount Corporate



Sources Cited

1990

Yugoslavia

Yugoslavia RTB-Bor

Loan

Purchase of two grinding mills to the Majdanpek copper mine

Howden Group Canada

US$3.2 million [1]

[1] EDC, News Release, "$3.2 million (US) EDC Loan For Yugoslavia to Support Heavy Equipment Sale", May 28, 1990. http://probeinternational.org/library/wp-content/uploads/2010/11/3.2-million-EDC-Loan-for-Yugoslavia-to-support-heavy-equipment-sale.pdf

1991

Algeria

Loan

Mining equipment -two trackless diesel mining scoops with spare parts

Algeria Enterprise Nationale de Development Minier (Equipment provided by Eimco Jarvis Clark Company Ltd -based in ON) [1]

US $370,114 [1]

[1] EDC News Release, February 20, 1991, NR 91-18, "Mining Equipment to Algeria Financed by EDC." http://probeinternational.org/library/wp-content/uploads/2010/11/Mining-equipment-to-Algeria-financed-by-EDC.pdf

1991

Mexico

Financing support

Underground drilling rig for the use in mining operations in Mexico

Genco, S.A. de C.V. of Mexico [1]

$255,842 - a line of credit from EDC with Banca Serfin, S.N. C. of Mexico [1]

[1] EDC News Release December 3, 1991, NR 91-101, "Canadian Firm Ships to Mexico with EDC Financing." http://probeinternational.org/library/wp-content/uploads/2010/11/Canadian-firm-ships-to-Mexico-with-EDC-financing.pdf


Year




Project Description


Amount Corporate



Sources Cited

1992

Guyana

Cambior Inc.

Political risk insurance [1]

Omai Gold Mine

Cambior Inc. and Golden Star Resources Ltd. (CCP holds 5.536 million shares in Cambior Inc. and 3.725 million shares in Golden Star Resources Ltd as of 2006) [2]

$163 million [4] with MIGA reinsuring 34% of EDC policies

The now infamous, massive tailings dam failure at the Omai mine occurred in August 1995. Millions of cubic metres of heavy metal laden mine waste spilled into the Essequibo River, the country’s main waterway. Large fish kills were reported and the government declared the area a disaster zone. Amerindian indigenous people living along the banks of the Essequibo claimed major fish losses, contamination of freshwater supplies and adverse health effects, as a result of the spill. A class action lawsuit on behalf of affected Guyanese was thrown out by a Quebec court, which denied the Guyanese plaintiffs standing.[3]

[1] Adams, Patricia. Probe International Submission to the Export Development Act Review. http://journal.probeinternational.org/1998/12/21/submission-export-development-act-review-part-1/ [2] CPP Investment Board Canadian Equity Holdings as of March 31, 2006. http://www.cppib.ca/files/PDF/Canadian_Equity_Holdings.pdf [3] Moody, Roger. The Risks We Run. Mining, Communities and Political Risk Insurance. International Books. 2005. [4] “EDC Investment Insurance Turns Project into Gold,” EDC Today, Spring 1992. http://probeinternational.org/library/wp-content/uploads/2010/11/EDC-Investment-Insurance-Turns-Project-Into-Gold.pdf Probe International files, including documents obtained through Canada’s Access to Information Act. This mine was discussed during The 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009 and during meeting 43 of the Standing Committee on Foreign Affairs and International Development, Tuesday, December 1, 2009


Year




Project Description


Amount Corporate



Sources Cited

1995

Papua New Guinea

Ø

Guarantee

Lihir Gold Mine Project

Union Bank of Switzerland

$29.6 million [1,2]

Colossal gold mining project. Located on an island near a pristine coral reef. The gold is locked in a geothermally active volcano. The waste rock and tailings, some 400 million tonnes, will be dumped directly into the ocean. The US OPIC has refused to support the project because they said it violates international conventions prohibiting waste disposal at sea. [1, 2, 3]

[1] a) Patricia Adams, Patronage Canada http://probeinternational.org/library/wp-content/uploads/2010/11/Patronage-Canada.pdf b) Patricia Adams, Patronage Canada, op. cit.: http://journal.probeinternational.org/2008/05/12/submission-export-development-act-review/ [2] Mining Watch Canada, “Review of the Export Development Act - Presentation to the Standing Committee on Foreign Affairs and International Trade”, Nov. 16, 1999 http://www.miningwatch.ca/en/review-export-development-act-presentation-standing-committee-foreign-affairs-and-international-trad [3] MAC: Mines and Communities, Part Three: Conclusions, 01/05/2001 http://www.minesandcommunities.org/article.php?a=6426 Tainted gold from the South Pacific: a case study about a MIGA project and Switzerland, by Peter Brosshard, Bern Declaration, Berne, 1995. Translation by Aid Watch.


Year




Project Description


Amount Corporate



Sources Cited

1995

Kyrgyzstan

Kumptor Gold Company

Political Risk Insurance (PRI)

Kumtor Gold Mine

Cameco

US$50 million

Cyanide spill into Barskoon River poisoned drinking water and led to health problems. [1, 2]

[1] “Canadian Gold Mine Spills Deadly Cyanide,” Probe Alert, Toronto, October 1, 1998. [Online]. Available: http://journal.probeinternational.org/1998/10/01/probe-alert-canadian-gold-mine-spills-deadly-cyanide/ [2] a) Patronage Canada, Patricia Adams http://probeinternational.org/library/wp-content/uploads/2010/11/Patronage-Canada.pdf b) Submission to the Export Development Act Review, December 21, 1998, by Patricia Adams, Executive Director, Probe International. http://journal.probeinternational.org/1998/12/21/submission-export-development-act-review-part-1/ Kyrgyz mine collapse spurs calls for review. http://journal.probeinternational.org/2008/08/15/kyrgyz-mine-collapse-spurs-calls-review/ This mine was discussed during the 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009


Year




Project Description


Amount Corporate



Sources Cited

1996

Indonesia

P.T. International Nickel Indonesia

Line of credit

Soroaka Mine Expansion (second hydro dam on the Larona River)

SNC-Lavalin International Inc., Klohn Crippen Consultants Ltd

US$200 million

Large mining projects threaten fragile environment.

“The Politics of Greed,” by Sarah Cox, The Georgia Straight, Vancouver, February 27 – March 6, 1997. http://probeinternational.org/library/wp-content/uploads/2010/11/The-politics-of-greed.pdf

1996

Chile

Doña Ines de Collahuasi

Loan

Collahuasi copper mine

CIBC Canada

US $150 million [1]

[1] “Collahuasi Works Out Financing”, Business News America, May 20, 1996. http://www.bnamericas.com/news/mining/Collahuasi_Works_Out_Financing

1998

Mexico

Grupo Minero Mexico

Line of credit

Goods and services in the mining sector

Various exporters

US$75 Million [1]

[1] EDC, “New EDC credit facility to finance Canadian exports to Mexico’s mining sector,” (News Release), August 11, 1998. http://probeinternational.org/library/wp-content/uploads/2010/11/New-EDC-credit-facility-to-finance-Canadian-exports-to-Mexicos-mining-sector.pdf


Year




Project Description


Amount Corporate



Sources Cited

1999

Tanzania


Bulyanhulu mine

Barrick Gold Corporation

U.S. $117 million [1, 2]

[1] Ricardo Acuña, Barrick’s Gold: Canadian Mine Threatens a Chilean Watershed, Canadian Dimension, November/December 2006 Issue. http://protestbarrick.net/article.php?id=364 [2] Buried Alive? The Bulyanhulu accusations April 23, 2001, Mines and Communities web site, Report from Council of Canadians, Sept 27, 2001. http://www.minesandcommunities.org/article.php?a=430 This mine was discussed during the 39th meeting of the Standing Committee on Foreign Affairs and International Development, on Tuesday, November 17, 2009 and during the 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009

1999

Colombia

Ø


Cerro Matoso Mining Project

Billiton Metals Canada Inc.

$240 million [1]

[1] EDC, Project Finance Magazine, August 1, 2000. http://probeinternational.org/library/wp-content/uploads/2010/11/Project-Finance-Magazine-Aug-2000.pdf


Year




Project Description


Amount Corporate



Sources Cited

Ø

Russian Federation

Ø

Financing

Dukat Silver Mine Rehabilitation

Pan-American Silver Corp., various other exporters

Cdn$25 -$50 million

Reckless Lending: How Canada’s Export Development Corporation Puts People and the Environment at Risk, March 2000, by the NGO Working Group on the EDC, part of the Halifax Initiative. “Project Profiles,” by EDC, June 6, 2001. [Online]. Available: http://www.edc-see.ca/corpinfo/CSR/Disclosure/profiles_e.htm

2000

Tanzania

Ø


Bulyanhulu Gold Mine

Barrick Gold Corporation Ltd.

$173 million

Insurance was part of a package that was co-insured by MIGA, worth an additional $172 million in guarantees to Barrick ($56.3 million) and Société General S.A. ($115.7 million). The amount in guarantees given by MIGA was the largest amount issued until 2000 by the agency for a single mining contract in Sub-Saharan Africa. Project risks contaminating water with hazardous mine tailings containing heavy metals and cyanide. Alleged killings associated with earlier evictions. [1]

[1] NGO Working Group on the EDC for Reckless Lending II, May 2001. http://www.asadismi.ws/Reckless_Lending_VII.pdf

This mine was discussed during the 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009 and during the 39th meeting of the Standing Committee on Foreign Affairs and International Development, on Tuesday, November 17, 2009


Year




Project Description


Amount Corporate



Sources Cited

2004

Argentina

Financing and Political Risk Insurance

Veladero gold mine

Barrick Gold Corporation Ltd.

$75 million in project finance and $125 million in political risk insurance for the Veladero mine [1]

[1] Mining: EDC's Approach, Perspectives on making corporate social responsibility work in Argentina's mining sector, Remarks by Gilles Ross, September 29, 2005 http://www.edc.ca/english/docs/speeches/2005/mediaroom_7912.htm This mine was discussed during 1) The 39th meeting of the Standing Committee on Foreign Affairs and International Development, on Tuesday, November 17, 2009; 2) The 40th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, November 19, 2009 3) The 41 meeting of the Standing Committee on Foreign Affairs and International Development, Tuesday, November 24, 2009 4) The 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009

2/12/2005

Russia

Multilateral Investment Guarantee Agency

Political Risk Insurance

Kupol gold-silver mine

Kinross Gold Corp. (formerly Berna Gold Corp.) (Canada)

$100-250 million

Kinross owns 75% of this mine; the remainder is owned by the local Chukotka Government [1]

[1] "Kupol Gold and Silver Mine, Russia." http://www.mining-technology.com/projects/kupalgoldandsilver/


Year




Project Description


Amount Corporate



Sources Cited

23/12/2005

Russia

Chukotka Mining and Geological Company

Financing

Kupol gold-silver mine

Kinross Gold Corp. (formerly Berna Gold Corp. until February 2007) (Canada)

$50-100 million

Kinross owns 75% of this mine; the remainder is owned by the local Chukotka Government [1]

[1] "Kupol Gold and Silver Mine, Russia." http://www.mining-technology.com/projects/kupalgoldandsilver/

2006

Republic of Zambia

Financing

Lumwana Copper Project and Equinox Minerals - Equipment Financing Facility for the purchase of the mining fleet (The project involves the development and construction of a greenfield copper mine and processing facility) [1]

Equinox Minerals Limited

US $145 million + unknown amount of political risk insurance for Fortis Bank’s share of the finance facility [1]

[1] EDC, Corporate Social Responsibility (CSR) Report. http://www.edc.ca/english/docs/csr_lumwana_e.pdf


Year




Project Description


Amount Corporate



Sources Cited

08/08/2007

Peru

Cia. Miniera Antamina SA.

a, b) Financing--support of Foreign Direct Investment c) Political insurance

Antamina Zinc and Copper Mine

Teck Cominco Limited (Canada)

a) $15-25 million [1] b) $135 million [1, 2] c) $335 million [b2, b3]

When constructing this mine, eight mountain peaks have been leveled. Construction has forced thousands of residents from their lands, with inadequate compensation and resettlement process. Huge pollution risks [4, 6]

a) [1] EDC, Individual Transaction Information. http://www.edc.ca/english/disclosure_14849.htm b) [1] Asad Ismi, Protesting Barrick: EXPORTING DESTRUCTION: Report Says EDC is Putting People and the Environment at Risk. http://www.protestbarrick.net/article.php?id=98 [2] OECD Global Forum on International Investment, Conference on Foreign Direct Investment and the Environment. Lessons to be Learned from the Mining Sector, 2002. http://www.oecd.org/dataoecd/46/18/1819773.pdf [3] Reckless Lending: How Canada’s Export Development Corporation Puts People and the Environment at Risk, March 2000, by the NGO Working Group on the EDC, part of the Halifax Initiative. http://www.asadismi.ws/Reckless_Lending_VII.pdf [4] Protesting Barrick: Exporting Destruction. http://www.protestbarrick.net/article.php?id=98 [5] Teck's sustainability reports: http://www.teck.com/Generic.aspx?PAGE=Operations+Pages%2fCopper+Pages%2fAntamina+Pages%2fSustainability&portalName=tc [6] NGO Working Group on the EDC for Reckless Lending II, May 2001. http://www.asadismi.ws/Reckless_Lending_VII.pdf


Year




Project Description


Amount Corporate



Sources Cited

22/08/2007

Madagascar

Dynatec Madagascar Société Anonyme, Ambatovy Minerals Société Anonyme

Financing--support of Foreign Direct Investment

Ambatovy Nickel Project (nickel/cobalt mine)

Sherritt International Corporation, SNC-Lavalin Inc. (Canada)

$250-500 million

Sherritt owns 40 % of mine. It raised its cost estimate from 3.4 billion USD to 4.5 billion USD in February 2009. "Mr Ian Delaney chairman & acting CEO of Sherritt said that 'We do not have the capacity to finance our share so we are looking at alternative financing in a way that won't stress our balance sheet.'" [1]

[1] Sherritt raises estimate for Ambatovy nickel project. http://steelguru.com/news/stainless_steel_news/ODQzODI%3D/Sherritt_raises_estimate_for_Ambatovy_nickel_project.html EDC web site, Signed Category A Projects Prior to November 1, 2010. http://www.edc.ca/english/popups/9241.htm

28/09/2007

Chile

Corporacion Nacional del Cobre deChile

Financing--loan

Esperanza Copper Mine--support for future procurement of various Canadian goods and services

Various Canadian exporters--extractive/mining (Canada)

U.S $50 million [1]

EDC has a history of financing environmentally damaging mines, which have faced much public opposition in Chile, such as the Pascua Lama on the Argentine border. [2]

[1] " EDC loans USD 50 million to Chile’s Codelco." http://www.edc.ca/english/docs/news/2007/mediaroom_13762.htm [2] Canadian mine threatens Chilean watershed. http://www.protestbarrick.net/article.php?id=364

15/05/09

Chile

Esperanza Copper Mine Project: copper mine and associated facilities

Antofagasta PLC (Chile)

$100-250 million

EDC web site, Signed Category A Projects Prior to November 1, 2010. http://www.edc.ca/english/popups/9241.htm

15/06/2009

Canada

Agnico-Eagle Mines Limited

Financing

Sale of mining activities


$ 50-100 million

EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx


Year




Project Description


Amount Corporate



Sources Cited

06/07/2009

Various Countries

Lundin Mining Corporation

Financing

General corporate purposes (incl. operations in Sweden, Portugal, Spain and Ireland, as well as exploration activities).


$25-50 million


25/09/2009

Chile

Corporacion Nacional del Cobre de Chile

Financing

Support for future procurement of various Canadian goods and services

Various Canadian Exporters-Extractive-Mining

$ 100-250 million


24/11/2009

Chile

Corporacion Nacional del Cobre de Chile

Financing--loan

Esperanza Copper Mine--support for future procurement of various Canadian goods and services

Various Canadian exporters-- extractive/mining (Canada)

$200 million

Due to desert conditions and extremely scarce drinking water supply in the region, Codelco will use seawater for its operations. [1]

[1] "Koch membrane systems provides seawater RO for Chilean mine." http://www.iwapublishing.com/template.cfm?name=w21prodnews200410b; EIA(in Spanish) http://www.proyectomineroesperanza.cl/popup_eia.html

11/12/2009

Various Countries

HSBC Bank Canada (Wenco International Mining Systems Ltd.)

Guarantee

Sale of various Canadian goods and services

Wenco International Mining Systems Ltd.

< $1 million


2/04/2010

Chile

Minera Los Pelambres Ltd

Financing--loan

Promote the purchase of Canadian goods and services

$65 million U.S. [1]

[1] “EDC provides USD 65 million loan to Chile’s Minera Los Pelambres.” http://www.edc.ca/english/docs/news/2010/mediaroom_18185.htm


Year




Project Description


Amount Corporate



Sources Cited

26/04/2010

Dominican Republic

Pueblo Viejo Dominicana Corporation

Financing

Pueblo Viejo Mine-- construction and operation of an open pit gold mine and associated processing facilities

Barrick Gold Corporation and Goldcorp Inc. (Canada)

$250-500 million [5]

Hundreds of Dominicans participated in street demonstrations opposing this mine. The Catholic Church has called for greater transparency regarding the contracts with foreign companies. Renewed dangers of acid mine drainage, which in previous mining during the 1970s contaminated the Margajita River. In March, hundreds of mine workers were poisoned from toxic chemicals, according to a study by the national Academy of Sciences, which Barrick denies. [1] It is expected that 1000 families will be displaced, and the cleanup of historic contamination will cost the government an estimated $1 billion USD. [2, 3]

[1] Halifax Initiative, "EDC backs another controversial mine" 30 April 2010. http://halifaxinitiative.org/content/monthly-issue-update-april-30-2010; [2] Rights Action, "Investing in Conflict: Goldcorp in the Americas. "http://www.rightsaction.org/Reports/research.pdf; [3] AP "Canadian company says huge Dominican mine hinges on costly cleanup." Retrieved November 10, 2010 from http://www.minesandcommunities.org/article.php?a=329 [4] “Greener Mining: Environmental clean-up in the Dominican Republic reflects modern industry approach.” http://barrickbeyondborders.com/2010/04/greener-mining-environmental-clean-up-in-the-dominican-republic-reflects-modern-industry-approach/ [5] EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx

22/06/2010

Canada


Financing

General corporate purposes


$50-100 million



Year




Project Description


Amount Corporate



Sources Cited

24/06/2010

Dominican Republic

The Bank of Nova Scotia


PRI of Debt cover in support of an open pit gold mine and associated processing facilities

Barrick Gold Corporation, Goldcorp Inc.

$ 250-500 million


24/06/2010

Chile

Corporacion Nacional del Cobre de Chile - Codelco-Chile

Financing

Support for future procurement of various Canadian goods and services


$ 250-500 million


30/08/2010

Various Countries

Taseko Mines Limited

Financing

Sale of mining activities

Taseko Mines Limited

$ 5-15 million


01/09/2010

Canada


Financing

General corporate purposes (incl. operations in Sweden, Portugal, Spain and Ireland, as well as exploration activities)

$ 25-50 million



22/09/2010

Chile

Minera El Tesoro

Financing

Sale of various Canadian goods and services


$ 25-50 million


28/09/10

Mexico

Construction, development and operation of the Boleo Project, a copper, cobalt and zinc sulphate mine located in Baja California Sur, Mexico.

Baja Mining Corp (Canada)

$150 million [1]

[1] Baja Mining Corporation. http://www.bajamining.com/_resources/news/nr_Sep8_2010.pdf EDC web site, Signed Category A Projects Prior to November 1, 2010. http://www.edc.ca/english/popups/9241.htm


Year




Project Description


Amount Corporate



Sources Cited

28/09/10

Mexico

Minera Y Metalurgica Del Boleo S.A. de C.V.

Financing

Sale of construction services

SNC-Lavalin Group Inc. (El Boleo Project)

$ 100-250 million


Indonesia

Financing--loan

PT Inco Nickel Mine and Smelter

Inco Ltd.

Loans of $60 and $200 million [1]

For thirty years Inco enjoyed a relationship with the repressive and corrupt Suharto regime.[3] Members of the Karonsi’e Dongi and Sorowako indigenous communities lost their most productive agricultural land when the PT Inco mine was built, and they received paltry compensation in return.[4] Mining activity has degraded land and water resources,[5] and initial monitoring suggests that smelter emissions affect air quality in neighboring communities.[6] Despite apparent efforts by Inco to resolve community claims in recent years, protesting residents report being threatened and intimidated by the Indonesian military and police.[7]

From Halifax Initiative website. [1] NGO Working Group on the EDC. Seven Deadly Secrets: What the Export Development Canada does not want you to know. January 2003. [3] NGO Working Group on the EDC. Seven Deadly Secrets: What the Export Development Canada does not want you to know. January 2003. [4] Ballard, Chris. Human Rights and the Mining Sector in Indonesia: A Baseline Study. IIED and World Business Council for Sustainable Development. October 2001 [5] Ibid. [6] Glynn, Tracy. Community-Based Research on the Environmental and Human Health Impacts of a Laterite Nickel Mine and Smelter in Sorowako, Indonesia. A thesis submitted to the School of Graduate Studies in partial fulfillment of the requirements for the degree of Master of Science (Environmental Science). Memorial University of Newfoundland, St. John's, Newfoundland. January 2006. [7] KRAPASKAD (Karonsi'e Dongi Community Alliance). Ethnocide of the Sorowako Karonsi'e Dongi People. 2003.


Robinson, Kathryn. Stepchildren of Progress: The Political Economy of Development in an Indonesian Mining Town. State University of New York Press. 1986. This mine was discussed during the 34th meeting of the Standing Committee on Foreign Affairs and International Development, on Thursday, October 22, 2009.

Year




Project Description


Amount Corporate



Sources Cited

Suriname

Political risk insurance [1]

Gross Rosebel Gold Mine

Cambior Inc.

$100(+) million

The Aucaner (or N’djuka) Maroon community of Nieuw Koffiekamp is located in the heart of the Gross Rosebel mining concession. Relocated in the 1960s to make way for a hydroelectric dam, Nieuw Koffiekamp now faces a second relocation, which, according to a human rights expert, “would be tantamount to [its] cultural and social death.”[3] Maroon authorities were not consulted about the project, and groups within the community vociferously oppose relocation.[4] Suriname lacks legislation that requires mine proponents to undertake environmental impact assessments and is the only country in the Western Hemisphere

From Halifax Initiative website. http://halifaxinitiative.org/content/gross-rosebel-gold-mine#_ftn3 [1] Listed under EDC D2. Individual Transaction Reporting. November 21, 2003. D2 reporting is found at http://www.edc.ca/English/disclosure_9237.htm, although the entry for this project no longer appears. [3] MacKay, Fergus. 2002. “Mining in Suriname: Multinationals, the State and the Maroon Community of Nieuw Koffiekamp” in Human Rights and the Environment: Conflicts and Norms in a Globalizing World, edited by Lyuba Zarsky. The Nautilus Institute. [4] Ibid. [5] Kambel and MacKay. 1999. The Rights of Indigenous Peoples and Maroons in Suriname, IWGIA Document No. 96, Copenhagen. [6] See, for example, “Request for the Initiation of an Urgent Action and Follow Up Procedure


that does not recognize the rights of indigenous or tribal populations.[5] Critics argue that the country’s draft Mining Act discriminates against these populations and a UN human rights body has called on the Government of Suriname to rectify this problem.[6]

in relation to the Imminent Adoption of Racially Discriminatory Legislation by the Republic of Suriname,” submitted to the United Nations Committee on the Elimination of Racial Discrimination by The Association of Indigenous Village Leaders in Suriname, Stichting Sanomaro Esa, The Association of Saramaka Authorities and The Forest Peoples Programme, 6 January, 2004; The Committee on the Elimination of Racial Discrimination’s recommendations in its report “Follow-Up Procedure: Suriname,” Sixty-Sixth session, 21 February-11 March 2005, issued on 9 March 2005. http://www.ohchr.org/english/bodies/cerd/docs/CERD.C.66.SUR.Dec.3.pdf; Decision 1 (69) of the Sixty-Ninth Session. http://www.ohchr.org/english/bodies/cerd/docs/early_warning/cerd_c_dec_sur_3.doc

Year




Project Description


Amount Corporate



Sources Cited

4/10/2010

Canada

Financing

The loan is for Vale’s projects in Canada and to encourage the world’s second-largest miner to use more Canadian suppliers in its operations outside the country. [1]

Brasil’s Vale S.A.

USD $1 billion [2]

In response to a October, 2010 query from PI, Phil Taylor, EDC spokesman, explained in a series of emails that “Vale has committed to increasing its Canadian procurement within the financing documentation, so as a covenant within the contracts, it is a legal requirement.” But when

[1] The Globe and Mail “EDC to lend Vale up to $1-billion.” http://www.theglobeandmail.com/globe-investor/edc-to-lend-vale-up-to-1-billion/article1740925/ [2] EDC news, “EDC provides up to USD 1 billion to Vale to expand Canadian operations and grow Canadian procurement from international


asked by PI what level (percentage) of commitment Vale agreed to procure in Canada in the financing documentation, Mr Taylor said, “that would be proprietary to Vale.” When PI asked for a copy of the EDC-Vale contract, Mr. Taylor replied, “As you are aware, the financial information of our customers is commercially sensitive and is confidential.” He went on to clarify, “EDC does not buy business for Canadian companies, but rather gives them unique opportunities to win business with our customers though our matchmaking efforts. In this type of scenario, EDC does not dictate where and with whom our customers will hire Canadian supply/services, but rather the amount of Canadian procurement that EDC expects. The customer chooses the Canadian companies that best suit their needs and procurement requirements, EDC outlines the volumes expected.”

projects. http://www.edc.ca/english/docs/news/2010/mediaroom_20403.htm US$1B EDC loan to Vale condemned on all sides Vale signs long-term financing agreement with EDC EDC provides up to USD 1 billion to Vale to expand Canadian operations and grow Canadian procurement from international projects EDC to lend Vale up to $1-billion From email correspondence between Phil Taylor (EDC) and Patricia Adams (Executive Director, Probe International) in October 2010.


Year




Project Description


Amount Corporate



Sources Cited

09/11/2010

Serbia

Sour Rudarsko-Topionicarski Basen Bor (RTB-BOR)

Financing

RTB Smelter Modernization Project

SNC-Lavalin

$180 million

EDC website, Signed Category A projects after November 1, 2010 http://www.edc.ca/english/popups/20582.htm SNC-Lavalin expands Eastern Europe reach with $215M Serbian copper contract http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b5684690

30/11/2010

Saudi Arabia

Ma'aden Aluminium Company

Greenfield aluminium smelter capable of producing a total of 740,000 tpa of primary aluminium, along with an integrated casthouse and associated shared infrastructure.

EDC website, Signed Category A projects after November 1, 2010 http://www.edc.ca/english/popups/20582.htm

Documents

Mining Projects Supported by Export Development Canada ...probeinternational.org/library/wp-content/uploads/2011/01/EDC... · testimony on Bill C-300, An Act ... Wright Engineers