Home Complaints database United Tegaru Canada vs. Parallel Mining Corporation
Complaint

United Tegaru Canada vs. Parallel Mining Corporation

Canadian mining companies’ links to human rights violations committed by Ethiopia’s government in the Tigray conflict

Date filed
10 September 2022
Keywords
Countries of harm
Current status
No resolution
Sector
NCP

Allegations

On 10 September 2022, United Tegaru Canada (UTC), an NGO founded in response to the conflict in Ethiopia’s Tigray region, filed complaints against three Canadian mining companies, East Africa Metals Inc., Sun Peak Metals Corporation, and Parallel Mining Corporation, at the Canadian NCP. UTC claims that the companies are contributing to adverse human rights impacts allegedly committed by the Ethiopian government in the Tigray conflict by paying taxes/licensing fees to that government. UTC also questioned whether the companies had human rights policies and whether they were undertaking appropriate human rights due diligence. UTC asks the NCP to assist by providing a forum for constructive dialogue on the issues raised.

Relevant OECD Guidelines

Outcome

On 12 December 2023, the Canadian NCP published its initial assessment partially accepting the complaint and offering its good offices only in relation to the company’s policy commitment to human rights and the adequacy of its human rights due diligence, not its involvement with or contribution to the Tigray conflict. The NCP decided, “The language of the Guidelines and accompanying commentary suggests that the payment of taxes/licence fees to a government is not alone sufficient to substantiate a claim that the enterprise is contributing to or is involved in adverse impacts linked to violations committed by that government.” There was therefore not enough to substantiate the claim that the company was contributing to the human rights violation through its business activities. The NCP also noted that the Guidelines do not call on companies to avoid operating in a country due to the fact that the relevant government may be failing to protect human rights. “This reflects the distinction between the State’s duty to protect human rights and the enterprise’s responsibility to respect human rights, and speaks to the Guidelines’ being concerned more with how multinational enterprises operate, not where they operate (and to which governments they must therefore pay taxes or licence fees). Issues around the ultimate use of State tax revenue will typically not be material to the Guidelines.”

The NCP offered to facilitate one mediation session regarding the company’s human rights policy and due diligence.

On 9 January 2025, the Canadian NCP published its final statement. The initial mediation session planned for February 2024 did not proceed because the company’s representative was unable to attend. Another mediation session took place in October 2024: “Overall, the NCP secretariat observed a constructive discussion that contributed to greater mutual understanding between the parties.” The NCP provided no reason for the extensive delay between the February and October mediation sessions.

At the October 2024 mediation session, “The Respondent emphasized its existing commitment to responsible business conduct and respect for human rights, though recognized that it could look to elaborate more formally on this commitment in its corporate policies/procedures. The Respondent also acknowledged a potential role for providing more information on activities related to due diligence and responsible business conduct in future public communications.” The NCP welcomed this commitment and recommended that the company seek to advance its commitment to complying with the Human Rights chapter of the Guidelines. The NCP also recommended that the company communicate more about its human rights due diligence.

The NCP will follow-up on its recommendations within 6 months from the publication of its final statement.

More details

Defendant
Company in violation
Other companies involved
Complainants
Affected people
Date rejected / concluded
9 January 2025

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