Scott Ludlam (WA, Australian Greens) Share this | Hansard source

asked the Minister representing the Minister for Trade, upon notice, on 13 December 2010:

Given that the Export Finance and Insurance Corporation (EFIC) has provided new loan support to West African mines and according to a media release on its website dated 30 August 2010, EFIC is providing a 4 year loan facility to the Australian business, African Underground Mining Services Pty Ltd (AUMS), for its contract underground mining operations in Ghana and Mali to the value of US$15 million:

(1) On what date did EFIC sign the loan contract and the contract become valid.

(2) Did EFIC apply its environment policy to benchmark the application against International Finance Corporation (IFC) Performance Standards and the Equator Principles before making the decision to approve this loan facility to AUMS.

(3) Does one of the four contract mining agreements that AUMS has entered into relate to Newmont Mining Corporation's Ahafo gold mine in Ghana, located in a farming region northwest of the country's capital Accra.

(4) When EFIC approved this transaction, classifying it as a Category B project (rather than a Category A – significant impacts), was it aware of any controversy surrounding the Ahafo gold mine since its commencement in 2006.

(5) Can comment be provided on the following 'known' controversies associated with the Ahafo gold mine: (a) allegations of human rights abuses by security forces protecting the mine; b) displacement of 10 000 people (95 per cent of whom were subsistence farmers); (c) inadequate compensation; (d) irresponsible practices; and (e) a serious cyanide spill in October 2009.

(6) Was EFIC aware that a ministerial panel of the Government of Ghana has recommended that the Newmont Mining Corporation be fined US$4.9 million for failing to prevent a major cyanide spill in October 2009 at its Ahafo gold mine, and for failing to properly report on and investigate the spill.