The Koidu Kimberlite Project - Is Koidu Holdings Ltd. above the law?

The Koidu Kimberlite Project - Is Koidu Holdings Ltd. above the law?

Press Statement - Network Movement for Justice and Development (NMJD)

11th February 2004

For quite some time now the civil society coalition working on extractive industry’s transparency, accountability and social responsibility has been raising serious concerns, expressing strong views and making public comments with regards the conduct of the Koidu Kimberlite Project in Kono. Some well-meaning citizens including other civil society groups, journalists, parliamentarians, community people and even the Peace Diamond Alliance have raised similar concerns.

On Tuesday 3rd February, 2004 Peace Diamond Alliance (PDA) convened a meeting of its executive attended by the Deputy Minister of Mines, Deputy Director of Mines, The SDO-Kono, Parliamentarians, chiefs and the personnel of Koidu Holdings Limited (KHL) in order to resolved the issues and concerns so raised. Inspite of the public outcry and effort of PDA, nothing has been done to address the problems. Instead, His Excellency The President went to Kono a few days after the PDA organized meeting praising KHL as “a job well done” and urged the people of Kono to cooperate with Koidu Holdings Limited. This was followed by a television show displaying the more than 10,000 carats of diamonds already gotten by KHL in he midst of cries, pains and sufferings of the local people. Not withstanding this the Campaign for Just Mining and civil society of this country will not be deterred as they have the right to perform their constitutional duties, namely, to “make positive and useful contributions to the advancement, Progress and well-being of the community” section 3(f) 1991 constitution.

In addition to the above, we also find unacceptable the following activities by Koidu holdings Limited:-

• That the Environmental Impact Assessment document was only released in Sierra Leone late January 2004 while as it was sent to the World Bank Group-MIGA in October 2003. Why could not this document have been released here in Sierra Leone at the same time it was released to World Bank? Who is the key stakeholder in this mining project-the World Bank or Sierra Leone?

• That the EIA document has not been made available in Public Places as required by law. As at today February 11, 2004 almost three weeks since it was said to have been released none can be found at places such as the Government Bookshop, the Sierra Leone Library Board, Department of Geology University of Sierra Leone and other government Departments and Ministries. The EIA Document as observed is only confined to the office of KHL’s Consultants i.e. CEMMATS.

• That instead of giving six weeks as required by World Bank Public Disclosure Policy for Corporate entities in order to study the EIA document for public input only three weeks were given (deadline February 2004) even though the documents are still unavailable.

• That the participation of the local inhabitants, about 4,536 (284 households) of whom are directly affected by the activities of the mining, in the preparation of the document was ignored and plans to consult them are nowhere to be heard of.

• That no known plans have been put in place to satisfactorily resettle/relocate the almost 5,000 people directly affected before recommencing the blasting after their first sales.

We therefore urge the government of Sierra Leone, the Koidu Holdings Limited and all those responsible to make sure that the following is put in place.

1. That, the EIA document be made available to the affected communities in Kono and be distributed to all Public Places like Libraries, Bookshops, Colleges, Government Departments and Ministries etc.
2. That, the time allotted for the reading of the document by the people should be extended from three weeks to six weeks for a better understanding of the document and informed input.
3. That the local community people be allowed to organize themselves, set up their own structures and involve them in all phases of he project including planning and implementation as well as monitoring for compliance.
4. That, the blasting be suspended henceforth until satisfactory resettlement/relocation is completed.
5. That, those households should be resettled as efficiently and successfully as possible with minimum disruption to their existing livelihoods, and in a manner that does not lead to impoverishment. And as a result the people should be;
   . Informed about their options and rights pertaining to resettlement.
   . Consulted on, offered choices among, and provided technically and economically
   . possible resettlement alternatives; and
   . Provided prompt and effective compensation at full replacement cost for losses of assets attributed directly to the Project.
6. Public Consultations should be conducted with all stakeholders including the affected communities, government, civil society etc.
   

Sierra Leone stands to lose and Kono will again be further devastated if measures are not taken to properly regulate and hold the Koidu Holdings Limited to respect international standards of corporate social responsibility, accountability and transparent public disclosure policies.

For further information contact: NMJD, 8 King Harman Road, Freetown:

TeL: 229937/223378