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
EDC, 1980 Annual Report.
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Underground mining trucks and equipment
Jarvis Clark Company Ltd.
$145,000
EDC, 1980 Annual Report.
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Underground mining trucks and equipment
Jarvis Clark Company Ltd.
$137,000
EDC, 1980 Annual Report.
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Underground mining trucks and equipment
Jarvis Clark Company Ltd.
$3.282 million
EDC, 1980 Annual Report.
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
Jarvis B. Webb Company of Canada
$1.605 million
EDC, 1980 Annual Report.
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 2 -
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
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
John T. Hepburn Ltd.
$5.212 million
EDC, 1980 Annual Report.
1980
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
Teledyne Canada Mining Products
$116,000
EDC, 1980 Annual Report.
1981
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
Jarvis Clark Company Ltd.
$273,000
EDC, 1981 Statistical Review.
1981
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
Teledyne Canada Mining Products
$78,000
EDC, 1981 Statistical Review.
1981
Mexico
Industrial Minera Mexico S.A.
Financing
Mining equipment
M.G. Wills & Sons Manufacturing Ltd.
$176,000
EDC, 1981 Statistical Review.
1981
Mexico
Industrial Minera Mexico S.A.
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.
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 3 -
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
1981
Indonesia
Government of The Republic of Indonesia
Financing
Coal mining equipment
Various exporters
$145.449 million
EDC, 1981 Statistical Review.
1981
Peru
Empresa MineraEspecial Titaya S.A.
Financing
Copper mining
SurveyerNenniger & Chenevert Inc.
$254.883 million
EDC, 1981 Statistical Review.
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 4 -
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
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
EDC, 1982 Statistical Review.
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.
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 5 -
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
1982
Peru
Compania Minerales Santander Inc.
Mining vehicle
Jarvis Clark Co. Ltd.
$102,000
EDC, 1982 Statistical Review.
1982
Peru
Empresa Minera del Peru
Financing
Mining equipment and services
Wright Engineers Limited
$49.152 million
EDC, 1982 Statistical Review.
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
Empresa Minera del Peru
Financing
Locomotives and related spare parts
General Motors Market Development of Canada Ltd.
US$1,695,800
EDC NEWS, July 1982.
1982
Peru
Empresa Minera del 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
EDC, 1983 Statistical Review.
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 6 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 7 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 8 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 9 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 10 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 11 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 12 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 13 -
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
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.
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 14 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 15 -
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 16 -
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
1999
Tanzania
Political risk insurance
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
Political risk insurance
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 17 -
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
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
Political risk insurance
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
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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
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/
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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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 20 -
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
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
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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
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
Agnico-Eagle Mines Limited
$ 50-100 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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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
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).
Lundin Mining Corporation
$25-50 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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
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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
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 clean- up 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
Agnico-Eagle Mines Limited
Financing
General corporate purposes
Agnico-Eagle Mines Limited
$50-100 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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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
24/06/2010
Dominican Republic
The Bank of Nova Scotia
Political risk insurance
PRI of Debt cover in support of an open pit gold mine and associated processing facilities
Barrick Gold Corporation, Goldcorp Inc.
$ 250-500 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
24/06/2010
Chile
Corporacion Nacional del Cobre de Chile - Codelco-Chile
Financing
Support for future procurement of various Canadian goods and services
Various Canadian Exporters-Extractive-Mining
$ 250-500 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
30/08/2010
Various Countries
Taseko Mines Limited
Financing
Sale of mining activities
Taseko Mines Limited
$ 5-15 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
01/09/2010
Canada
Lundin Mining Corporation
Financing
General corporate purposes (incl. operations in Sweden, Portugal, Spain and Ireland, as well as exploration activities)
$ 25-50 million
Lundin Mining Corporation
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
22/09/2010
Chile
Minera El Tesoro
Financing
Sale of various Canadian goods and services
Various Canadian Exporters-Extractive-Mining
$ 25-50 million
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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
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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
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
EDC website, Individual Transaction Information. https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
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.
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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
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
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
Probe International – Mining Projects Supported by Export Development Canada 1978-2010 (Last Updated: January 27, 2011) - 27 -
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
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
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
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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.
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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
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