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

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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

The Great “Green” Heist: When Artificial Intelligence and Arms Dealers Seize the Minerals of the South

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By Franck Zongwe Lukama, Congolese journalist and researcher, leads the independent media KilaloPress in DRC.

We were sold a simple equation: to save the planet, we must dig. Dig faster, deeper, extracting from the earth the cobalt, lithium, or copper needed for solar panels and electric vehicles. Yet, this climate rescue rhetoric conceals a staggering statistical deception. Today, 70% of global demand for critical minerals does absolutely nothing to support the energy transition. These resources end up in aerospace, communication technologies, and, above all, weaponry. Sectors that, ironically, exacerbate the global ecological crisis. The green revolution has become the perfect smokescreen, the moral veneer for a very different kind of war.

Far from the promises of sustainable development touted by the World Bank, the current scramble is driven by a strict logic of geopolitical power. A damning report from the California-based Oakland Institute exposes this global scheme. The report reveals an unprecedented and formidable convergence of interests between the American military-industrial complex and the giants of Silicon Valley. With the Pentagon openly pivoting toward a combat strategy focused on artificial intelligence (AI), securing supply chains is no longer a matter of ecology, but a question of survival in the face of Chinese influence. The United States is not seeking to reduce carbon emissions; it is seeking to guarantee its technological and military supremacy.

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Artisanal Coltan - manganese - cobalt mining in Mudere mine under control of Nyatura militia, town of Rubaya, North Kivu region (Democratic Republic of Congo, Africa). Photo: Erberto Zani.

The real winners of this frantic race wear suits far removed from environmental activism. Trillions of dollars are flowing into new alliances that intertwine AI-driven mining companies, like KoBold Metals—backed by billionaires such as Bill Gates—and companies specializing in cutting-edge defense technologies, like Palantir and Anduril, not to mention the networks of influence close to the Trump family. For these players, the discourse of climate emergency acts as a powerful public relations tool. It justifies massive and accelerated extraction that would otherwise provoke international outrage.

Local communities and Indigenous populations find themselves on the frontlines, forced to resist an extraction machine that has the audacity to justify their suffering by claiming it is necessary to save the world.

And the price of this hypocrisy is being paid in full throughout the Global South. In the Rubaya hills, in the Kolwezi copper belt, as in the Indigenous territories of Latin America and Asia, the promise of “prosperity” translates into a terrifyingly familiar tragedy. Land grabbing, forced displacement, devastating groundwater pollution: the plundering of ecosystems and human lives is accelerating. Local communities and Indigenous populations find themselves on the frontlines, forced to resist an extraction machine that has the audacity to justify their suffering by claiming it is necessary to save the world. Today, opposing the destruction of one’s village by a multinational mining company risks being accused of hindering the fight against climate change. The rhetorical trap is devastatingly effective.

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Artisanal Coltan - manganese - cobalt mining in Mudere mine under control of Nyatura militia, town of Rubaya, North Kivu region (Democratic Republic of Congo, Africa). Photo: Erberto Zani.

The long-term consequences of this diversion are alarming. The exponential surge in demand generated by future AI data centers, mass surveillance, and global rearmament will mathematically deplete available reserves. Every ton of copper, nickel, or cobalt consumed by combat drones or algorithmic data processing servers is a ton diverted from the production of renewable energy infrastructure. We are not equipping the energy transition; we are cannibalizing it to militarize our future.

We are not equipping the energy transition; we are cannibalizing it to militarize our future.

If no strict regulations are put in place to curb this rampant mining frenzy, hundreds of new mines will spring up in the coming years, causing irreversible damage on an unprecedented scale. The question facing citizens today, from Kinshasa to Washington, is no longer whether we will have enough minerals to save our atmosphere. It is why we are willing to sacrifice millions of lives and destroy our lands to fuel next-generation algorithms and weapons. In ten years, when the Global South is nothing more than a vast crater serving a militarized hyper-technology, it will be too late to realize that the planet was never the priority.

Photos: Artisanal Coltan – manganese – cobalt mining in Mudere mine under control of Nyatura militia, town of Rubaya, North Kivu region (Democratic Republic of Congo, Africa). Erberto Zani – stock.adobe.com

Source: oaklandinstitute.org/

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NGO WORK

EU: IPI welcomes action against 14 states over Anti-SLAPP Directive delays

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EU states must introduce robust measures to protect journalists and media from vexatious litigation

The International Press Institute (IPI) today welcomes the infringement proceedings initiated by the European Commission against 14 EU Member States over their inaction or delays in transposing the Anti-SLAPP Directive.

The countries included are Austria, Bulgaria, Czech Republic, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Romania, Slovakia and Spain.

The EU infringement proceedings were initiated on 15 July, with letters of formal notice sent to these Member States for failing to notify about progress made in implementing the Directive. States now have two months to respond and update about measures taken or could eventually face legal action at the European Court of Justice.

The Anti-SLAPP Directive introduced EU-wide rules which protect journalists and civil society actors from manifestly unfounded or abusive civil proceedings with cross-border implications, including early dismissal tools and remedies for targets of SLAPPs. It was adopted in April 2024 and the transposition deadline was 7 May 2026.

Monitoring by IPI shows that while in some of the countries identified, such as Greece and Spain, steps have been taken to prepare for the transposition and bills are actively in development and reportedly close to being presented to or adopted by parliament.

In others such as Bulgaria and Portugal, initial work done to develop legislation has been delayed by institutional changes, changes in governments or political instability, though transposition work remains ongoing.

In other states, such as Italy and Hungary, little to no measurable progress has yet been made on transposition. However, with the new Tisza government in Hungary driving forward media freedom reforms, there is hope the new administration will introduce initial anti-SLAPP measures in the next legislative package identified for the autumn.

While Ireland has been actively working to tackle SLAPPs through legal reforms, and passed the Defamation Bill in 2024, further legislation is required to fully transpose the Anti-SLAPP Directive during its Presidency of the Council of the EU.

Although these 14 countries have been identified in the EU action, monitoring and analyses show that the overall picture for implementation of the Directive across the EU remains fragmented and uneven.

According to the European Anti-SLAPP Monitor, almost all EU Member States missed the May 2026 transposition deadline, with only a handful fully implementing on time.

IPI notes that even in those Member States where the Directive was implemented, such as Malta, these reforms only included minimum standards protecting against cross-border cases, and failed to include measures to safeguard against domestic SLAPPs.

In the wake of the EU’s opening of initial infringement action, IPI renews our call – made previously with Media Freedom Rapid Response (MFRR) partners – for Member States to demonstrate their commitment to media freedom by accelerating their legislative processes in protecting against SLAPPs. This includes the 14 countries identified by the EU Commission and those in which reforms have been presented but not yet adopted.

Crucially, legislative reforms should both fully reflect both the letter and the spirit of the Anti-SLAPP Directive and introduce the substantive and procedural safeguards set out in the EU and Council of Europe Recommendation on SLAPPs.

A model here should be Poland, where last month the President approved a law which covers both domestic and cross-border SLAPPs, ensuring implementation of both EU Directive and Council of Europe Recommendation.

Member States which continue to delay or fail to transpose the directive should face legal action from the Commission, which must use all tools at its disposal to help safeguard media freedom across the bloc.

IPI, which has advocated at the EU and national level for measures to protect journalists and media from SLAPPs, will continue to monitor implementation in collaboration with European partners, including through MFRR media freedom missions.

Source: ipi.media/

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NGO WORK

No Heritage Without its People: Why Ngorongoro Cannot be a World Heritage Site and an Eviction Zone

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The Tanzanian government, under the guise of “conservation,” restricts Maasai livelihoods and denies access to essential services forcing Indigenous residents away from their ancestral lands and turning their heritage into a playground for safari tourists.

As the 48th Session of the World Heritage Committee begins July 19, UNESCO continues to legitimize the continued forced displacement of the Maasai from Ngorongoro. If UNESCO cannot ensure that the World Heritage designation protects the rights of its Indigenous custodians, then the Committee must remove the Ngorongoro Conservation Area from the World Heritage List.

Increased international pressure is imperative to hold UNESCO accountable and protect the lives and rights of the Maasai!

Read our Open Letter to the World Heritage Committee.

Source: oaklandinstitute.org

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