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Urgent Call for Conditionalities on New IFC and EBRD Loan to Oyu Tolgoi Mine

Published

1 year ago

on

By Accountability Counsel and partners

Joint Statement

December 9, 2024

We, the undersigned civil society organizations (CSOs) and representatives of herders from Mongolia, strongly condemn the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD) in providing a $100 million loan each, to Oyu Tolgoi (OT). This decision blatantly disregards years of unresolved grievances, environmental harm, and the failure of OT to comply with IFC and EBRD’s safeguard standards, as well as widespread rejection from local herders, CSOs, and even the Mongolian government.

Unresolved Harms and Non-Compliance

OT has failed to address critical issues, including its commitments under the 2017 Herders Complaint Resolution Agreements and IFC and EBRD’s social and environmental safeguards. Longstanding issues include:

  1. Failures in completing Resolution Agreements: Herders continue to struggle to sustain their livelihoods and protect the environment, as the agreements resulting from CAO complaints remain incomplete. The Tripartite Council (TPC), tasked with implementing the 2017 Agreements, has failed to ensure meaningful involvement of herders in safeguarding their rights and livelihoods.
  2. Tailings Storage Facility (TSF) Seepage: Despite implementing a Remedial Action Plan (RAP) as required by lenders to address the seepage from tailings cell 1 (TC1), OT has neither adequately mitigated the seepage nor transparently disclosed its full extent. Recent data reveals worsening water quality, with Total Dissolved Solids (TDS) levels rising dramatically downstream.
  3. Pasture and Water Scarcity: The mine’s expansion plans threaten vital grazing lands and water resources. Springs that once supported herders’ livelihoods have dried up, forcing herders to compete for limited resources. Moreover, the Dugat-Khaliv river, a key water source for herders, has been diverted around TC2 in a diversion channel without capacity to convey flood-level flows during rainy periods, leading to significant water loss for downstream herders.
  4. Environmental Failures: OT consistently fails to meet the design goal of 64% tailings solid content, resulting in inevitable seepage from the additional pressure exerted by excess water in the tailings cell. This and other design inefficiencies directly lead to massive water wastage estimated at up to $1.46 million per year.
  5. Inadequate Community Engagement: Herders were not meaningfully consulted about the RAP or OT’s expansion plans, violating IFC and EBRD principles of transparency and participation.

Water Mismanagement and Wastage

OT’s operations exacerbate water scarcity through inefficient tailings management. Water wasted due to tailings solids being below design criteria results in significant financial and environmental costs:

  • From 2013-2017, OT achieved 56% solids (8% below design standard), wasting $1.46 million worth of water annually. From 2018-2024, OT achieved nearly 60% solids (4% below design standard) on average, meaning OT wastes $730,000 annually on replacement water. OT has approximately wasted $12.41 million since 2017 from losing 248.2 million liters of water.
  • Oyu Tolgoi (OT) must attain the highest percentage of solid content as specified by its design criteria, 64%, to effectively prevent water scarcity in the South Gobi Desert and ensure improved water access for herders. While lenders argue that the 60-64% range meets the standard, 2012 ESIA states that “Final concentrate will be thickened to 65% solids” which proves otherwise. The TSF operating consistently below 60% results in excessive water waste, posing severe risks to the fragile desert ecosystem and the livelihoods of herders who rely on limited freshwater resources. Achieving the 64% target is not merely an option but a critical necessity to minimize environmental harm, optimize resource use, and uphold OT’s responsibility to local communities.
  • This inefficiency compounds the structural weakness of tailings dams, necessitating costly redesigns and increasing the risk of catastrophic failure. Concerns Over Project Categorization and Political Risks We are deeply concerned that IFC and EBRD categorized OT’s expansion as a Category B project, despite its significant and irreversible impacts on herders and the environment. This misclassification downplays the scale of the risks, undermining proper oversight. Additionally, the Mongolian government is in a disagreement on additional financing that will add more debt, and the Mongolian Parliament Resolution #103 requires an independent audit of underground mine cost overrun which has not been disclosed. Approving new financing in such a contentious political and social environment poses significant risks to the project’s viability.

Recommendations and Conditionalities

IFC and EBRD must impose strict conditionalities on OT before any disbursements begin and ensure the conditionalities are placed in the lending agreement, including:

  1. Fulfillment of Past Commitments:
    • Include the 2017 Herders Complaint Resolution Agreements (HCRAs) in lenders’ compliance requirements and fully implement them.
    • Amend the RAP to include routine medical assessments for herders and their animals impacted by the contaminated water from the TSF seepage, and update Stakeholder Engagement Plan to involve the wider herder community impacted by the seepage.
    • Disclose all the important data from the attachments and annexes of the RAP.
  2. Water and Tailings Management Improvements:
    • Achieve the 64% as the highest solid content target for tailings as per the original ESIA.
    • Disclose the full extent of TSF seepage impacts, including chemical contamination and health risks.
  3. Protection of Herders’ Livelihoods:
    • Permanently halt land acquisitions that displace herders and prioritize using existing lease areas for future tailings cells.
    • Construct a permanent Dugat-Khaliv diversion channel based on maximum flood probabilities.
  4. Transparency and Meaningful Engagement:
    • Disclose all environmental and social impact assessments (ESIA) for expansion plans, implementation of the ESAP from the initial OT project loan, and OT Green Investment Plan.
    • Take actions to strengthen TPC functions through assessing TPC Charter and the implementation of the HCRAs
    • Ensure meaningful consultation with affected communities on all project aspects. This includes consultations on the expansion plans, environmental and social assessment related documents and strengthening of the Tripartite Council with valid herder representation as the body responsible to address herders’ concerns around the OT project.

The approval of new financing to OT without addressing these critical issues perpetuates harm to herders and the environment while eroding public trust in IFC’s and EBRD’s commitment to sustainable development. We call on IFC and EBRD to uphold their safeguards and suspend agreement signing and financing until OT achieves full compliance and fulfills its obligations to herders and the environment.

(Link to full statement in English and Mongolian)

Contact Information:
Sukhgerel Dugersuren, Oyu Tolgoi Watch, 976-99185828, otwatch@gmail.com
Battsengel Lkhamdoorov, Gobi Soil, 976-88705595, tsengel_5595@yahoo.com
Julio Castor Achmadi, Accountability Counsel, julio@accountabilitycounsel.org
Nina Lesikhina, Bankwatch Network, ninalesikhina@bankwatch.org

Signatories:
Gobi Soil, Mongolia
Oyu Tolgoi Watch, Mongolia
Center for Human Rights and Development, Mongolia
AFE, Mongolia
APPDO, Mongolia
CA NGO, Mongolia
GFS, Mongolia
MFSW, Mongolia
RwB Mongolia
SR NGO, Mongolia
SWA, Mongolia
SWB NGO, Mongolia
Accountability Counsel
CEE Bankwatch Network, Regional
Bank Climate Advocates, USA
Bank Information Center, USA
Both ENDS, the Netherlands
Center for Community Mobilization and Support, Armenia
Centre for Research and Advocacy, Manipur, India
Earth Thrive, UK/Serbia
Friends with Environment in Development (FED), Uganda
GAIA, Regional
Gender Action, USA
Green Advocates
Initiative for Right View (IRV), Bangladesh
International Accountability Project
INWOLAG
Kazakhstan International bureau for human rights, Kazakhstan
London Mining Network
LSD, Senegal
NGO Forum on ADB, Regional
Peace Point Development Foundation-PDF, Nigeria
Recourse
Samata & mm&P, India
Sinergia Animal, Brazil
Urgewald, Germany
Witness Radio, Uganda.

Source: Accountability Counsel.

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NGO WORK

UN Experts Put Tanzanian Government on Notice – “Ensure Transparency and Respect for Indigenous Peoples’ Rights in Ngorongoro”

Published

2 weeks ago

on

April 23, 2026

By

April 17, 2026 press release from the offices of eight UN Special Rapporteurs1 calls for the Tanzanian government to immediately publish the findings of two presidential commissions amid growing concerns over its eviction plans.
The communication echoes the Oakland Institute’s warning that these sham Presidential Commissions are being used to rubber-stamp eviction plans without the consent of the Indigenous community.
The strongly-worded communication from the UN Special Rapporteurs states that “these reports are of profound public interest and must be made available to the public without delay…Decisions affecting tens of thousands of Indigenous Peoples cannot be taken behind closed doors.” The experts furthermore urge “the Government to halt any actions that could lead to forced displacement, and engage in meaningful dialogue with affected communities,” while issuing a clear reminder that “Indigenous Peoples have a right to remain on their traditional lands if they so choose…Conservation efforts must not come at the expense of human rights.”
Impacted Maasai communities welcome this intervention from the UN Special Rapporteurs and reaffirm their commitment to defend their rights to remain on their ancestral lands.
To learn more about the struggle against Fortress Conservation, watch the interview: The Dark Side of “Conservation”
On Fox 5 DC Weekend Live, Julie Donaldson interviews Andy Currier, Oakland Institute’s Policy Analyst. Watch the discussion on fortress conservation and the human cost of climate solutions that displace Indigenous communities who best protect our biodiversity.
Watch the video

Source: oaklandinstitute.org

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NGO WORK

Two dead as Siaya protests against gold mining firm turn tragic

Published

4 weeks ago

on

April 7, 2026

By

Ikolomani residents protesting against eviction plan to pave space for British mining company Shanta Gold on November 12, 2025. Two people died in similar protests in Gem, Siaya County.  Isaac Wale | Nation Media Group

Two people were shot dead on Monday in Gem–Ramula, Siaya County, after villagers staged a protest over an alleged eviction they linked to Shanta Gold Kenya Limited.

Area police boss Charles Wafula confirmed the incident, stating that the victims were among a group alleged to have attacked a police post after the officers moved in to disperse the demonstrators.

According to Mr Wafula, the demonstrators, angered by what they described as an illegal resettlement by the company, stormed the station during the protest, prompting officers to intervene.

“The individuals had organised a demonstration but they did not notify the police. Our officers moved in to contain the situation, but the group began attacking both officers and Ramula Police Post, damaging several items, including vehicles,” Mr Wafula said.

However, a local rights organisation has sharply contested the police account, portraying the killings as unlawful and unprovoked.

In a statement, the Community Initiative Action Group Kenya said the two victims identified as Henry Otieno and Jack Omenda were part of a peaceful protest against what they termed a forced eviction from their ancestral land.

“The community had gathered peacefully to demonstrate against Shanta Gold Limited’s attempt to relocate them without their consent,” said the lobby’s Executive Director Chris Owalla.

The group further alleged that police officers opened fire without warning following a confrontation with residents at Ramula Market.

“Witnesses state there was an exchange between the community and police after which officers opened fire, killing Henry and Jack on the spot,” Mr Owalla said.

The rights group also accused senior police officers including Mr Wafula and Charles Emodo of Directorate of Criminal Investigation, of disregarding a court order that had halted evictions and mining operations in the area.

According to Mr Owalla, the Environment and Land Court in Siaya had, on February 5, 2026, issued conservatory orders barring any involuntary resettlement of residents in Ramula and its environs, pending the hearing of a petition.

The organisation is now calling for investigations by the Independent Policing Oversight Authority and the the Director of Public Prosecutions, alongside an independent autopsy on the victims.

Fear of evictions

The unrest is rooted in long-standing tensions over planned gold mining operations by Shanta Gold in the region. The company is seeking to establish a large-scale extraction project – one that residents fear could uproot communities and erode livelihoods carefully built over generations.

Similar scenes of unrest were reported in November 2025 in Ikolomani, where locals protested against possible relocations linked to the same company.

Shanta Gold has previously signalled its intention to invest in a multi-billion-shilling project in western Kenya, targeting high-grade gold deposits expected to yield significant output over several years.

Source: nation.africa

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NGO WORK

Tanzania: Commissions call for mass eviction of Indigenous Maasai from world-famous tourist destinations.

Published

2 months ago

on

March 19, 2026

By

Two presidential commissions have recommended the mass eviction of Maasai people from some of East Africa’s most iconic conservation areas and tourist destinations.

The commissions were established by Tanzania’s President Samia Suluhu Hassan following previous evictions of Maasai pastoralists from parts of the world-famous Serengeti ecosystem, and large-scale protests in the Ngorongoro Conservation Area in 2024.

Now, despite a global outcry at the earlier evictions, the two Commissions have:

  • Backed the previous evictions and called for them to continue, including in the UNESCO World Heritage Sites of Ngorongoro and neighboring Lake Natron.
  • Described the long-standing Maasai presence in the area as an “environmental pressure” that needs to be reduced.
  • Threatened local NGOs that support the Maasai, accusing them of “spreading misinformation or propaganda” because they “conflict with government interests.”
  • Called for the “relocation” of all “non-conservation activities” [in other words, Maasai occupancy of the land] outside the conservation areas.
  • Called for existing recognition of the Maasai people’s right to live in the Ngorongoro area to be removed.

An anonymous Maasai spokesperson said today: “We are blamed for environmental degradation while the unchecked expansion of tourism is ignored. Forced relocation, disguised as policy, has deprived our people of basic rights and dignity. We reject any continuation of these measures and condemn the Commission’s failure to reflect the voices, realities, and rights of our people.”

Still from a video showing the Maasai protesting the violent evictions from their ancestral lands, 2022.

The authorities maintain that these are “voluntary relocations.” However, the Maasai have overwhelmingly rejected being moved.

The Ngorongoro Conservation Area is a UNESCO World Heritage Site. When it was established, the ancestral right of the Maasai to live there with their cattle was explicitly acknowledged. But UNESCO’s World Heritage Committee has backed the so-called “voluntary relocations”, and UNESCO endorses the “fortress conservation” model that underpins Tanzania’s approach.

Survival International Director Caroline Pearce said today, “These commissions were a sham, a gimmick designed to give Tanzania’s violent persecution of the Maasai a veneer of respectability. It was widely predicted that they’d back further evictions: the whole saga just confirms that colonial-style fortress conservation is alive and well in Tanzania today, and enthusiastically endorsed by UNESCO.

“These recommendations give the green light to more evictions, in Ngorongoro and beyond. And while the Maasai are robbed of their lands and livelihood, the government, tour operators and so-called conservationists will enrich themselves from a landscape emptied of its original owners.”

Source: survivalinternational.org

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