Nevsun Resources

Last updated

Nevsun Resources
Type Public company
TSX: NSU
Industry Metals and mining products
Headquarters
Vancouver, British Columbia, Canada
,
Key people
Ian Pearce, Chairman
Peter Kukielski, CEO
Ryan MacWilliam, CFO
Products
Website zijinmining.com

Nevsun Resources Ltd was a Canadian diversified mid-tier miner with a portfolio of base metal assets. The company was acquired by Zijin Mining Group Company Limited on December 29, 2018. The company's three principal assets are its ownership interest in the Timok Project, a high-grade copper-gold development project in Serbia, its Bisha zinc-copper mine in Eritrea, and its balance sheet. The company also holds a number of additional exploration licences and permits in Serbia, Macedonia, and in the Bisha mining district.

Contents

Operations

Social responsibility

Nevsun Resources has a corporate social responsibility program at the Bisha Mine and the company has been producing annual reports since 2011 based on the Global Reporting Initiative standards. The company's CSR program focuses on corporate governance, employment and training, human rights, land acquisition & resettlement, environmental restoration, health and safety, human rights, and community investment. The company has an ongoing community investment program which provides funds and equipment usage in a directed way towards national government planning priorities in Eritrea with respect to sustainable community infrastructure projects centred on enhancing local water accessibility and supply to enhance local food production. In Serbia, the company has a community investment program centred around building local skills capacity for the purposes of economic diversification, as well as donations to communities and charitable organizations near the project area. The company undertakes an annual environmental river clean-up exercise in partnership with the nearby communities and environmental groups for the purposes of removing garbage and debris from the Bor River.

Human rights violations

In November 2014, three former employees of the Bisha Mine filed a civil suit in British Columbia against Nevsun Resources for complicity in torture, forced labour, slavery, and crimes against humanity. [1] [2] [3]

Company CEO Cliff Davis responded, saying: "We are confident that the allegations are unfounded. Based on various company-led and third party audits, the Bisha Mine has adhered at all times to international standards of governance, workplace conditions, and health and safety. We are committed to ensuring that the Bisha Mine is managed in a safe and responsible manner that respects the interests of local communities, workers, national governance, stakeholders, and the natural environment." [4] [5] Nevsun has previously received criticism [6] from Human Rights Watch for failing to exercise proper human rights due diligence when engaging with a country where forced labour is allegedly practiced.

A Human Rights Watch report released in January 2013 found that Nevsun Resources failed to take the risks of forced labour seriously and then struggled to address allegations of abuse connected to the Bisha Mine in Eritrea. [7] Eritrea's government maintains a “national service” program that conscripts Eritreans into prolonged and indefinite terms of forced labor, generally under abusive conditions. It is through this forced labor program that mining companies run the most direct risk of involvement in the Eritrean government's human rights violations. [8]

In 2016, the Supreme Court of British Columbia ruled that the case against Nevsun can proceed in the Canadian courts. The decision was upheld on appeal to the British Columbia Court of Appeal in November 2017. On January 26, 2018, Nevsun sought leave to appeal to the Supreme Court of Canada. [9] In February 2020, the Supreme Court upheld the decision from the British Columbia Court of Appeal in Nevsun Resources Ltd v Araya , stating that the case against Nevsun can proceed in Canadian courts. [10] [11]

See also

Related Research Articles

<span class="mw-page-title-main">Economy of Eritrea</span>

The economy of Eritrea has experienced considerable growth in recent years, indicated by an improvement in gross domestic product in 2012 of 7.5% over 2011, and has a total of $8.090 billion as of 2020. However, worker remittances from abroad are estimated to account for 32 percent of gross domestic product. Eritrea has an extensive amount of resources such as copper, gold, granite, marble, and potash. The Eritrean economy has undergone extreme changes due to the War of Independence.

<span class="mw-page-title-main">Mining</span> Extraction of valuable minerals or other geological materials from the Earth

Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic viability of investing in the equipment, labor, and energy required to extract, refine and transport the materials found at the mine to manufacturers who can use the material.

<span class="mw-page-title-main">Child labour</span> Exploitation of children through any form of work that deprives children of their childhood

Child labour refers to the exploitation of children through any form of work that deprives children of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially and morally harmful. Such exploitation is prohibited by legislation worldwide, although these laws do not consider all work by children as child labour; exceptions include work by child artists, family duties, supervised training, and some forms of work undertaken by Amish children, as well as by indigenous children in the Americas.

<span class="mw-page-title-main">Barrick Gold</span> Canadian mining company

Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada. It has mining operations in Argentina, Canada, Chile, Côte d'Ivoire, Democratic Republic of the Congo, Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, the United States and Zambia. In 2019, it produced 5.5 million ounces of gold at all-in sustaining costs of $894/ounce and 432 million pounds of copper at all-in sustaining costs of $2.52/pound. As of 31 December 2019, the company had 71 million ounces of proven and probable gold reserves.

Labor rights or workers' rights are both legal rights and human rights relating to labor relations between workers and employers. These rights are codified in national and international labor and employment law. In general, these rights influence working conditions in relations of employment. One of the most prominent is the right to freedom of association, otherwise known as the right to organize. Workers organized in trade unions exercise the right to collective bargaining to improve working conditions.

<span class="mw-page-title-main">Teck Resources</span> Natural resources company

Teck Resources Limited, known as Teck Cominco until late 2008, is a diversified natural resources company headquartered in Vancouver, British Columbia, that is engaged in mining and mineral development, including coal for the steelmaking industry, copper, zinc, and energy. Secondary products include lead, silver, gold, molybdenum, germanium, indium and cadmium. Teck Resources was formed from the amalgamation of Teck and Cominco in 2001.

Hudbay Minerals Inc. is a diversified Canadian mining company primarily producing copper concentrate and zinc metal. Much of its history has centered on Flin Flon, Manitoba, where it has mined for over 90 years. Hudbay currently has operations in Manitoba and Peru, and is working towards building a copper mine in southern Arizona. The company also has exploration properties in Canada, Peru, Chile and the United States.

<span class="mw-page-title-main">Anil Agarwal (industrialist)</span> Chairman of Vedanta Group

Anil Agarwal is an Indian Billionaire who is the founder and Chairman of Vedanta Resources Limited. He controls Vedanta Resources through Volcan Investments, a holding vehicle with a 100% stake in the business.

Vedanta Resources Limited is an Indian diversified mining company headquartered in London, United Kingdom. It is the largest mining and non-ferrous metals company in India and has mining operations in Australia and Zambia and oil and gas operations in three countries. Its main products are Zinc, Lead, Silver, Oil & Gas, Iron Ore, Steel, Aluminium and Power. It has also developed commercial power stations in India in Odisha and Punjab.

<span class="mw-page-title-main">Mining industry of the Democratic Republic of the Congo</span>

The mining industry of the Democratic Republic of the Congo produces copper, diamonds, tantalum, tin, gold, and more than 63% of global cobalt production. Minerals and petroleum are central to the DRC's economy, making up more than 95% of value of its exports.

<span class="mw-page-title-main">Eritrean Islamic Jihad</span> Political party in Eritrea

Eritrean Islamic Jihad is referred to as the Eritrean Islamic Salvation Movement, EIJM, EIJ, ERIJ, EISM, Eritrean Islamic Jihad Movement, and/or Harakat al Jihad al Islami al Eritrea. The Eritrean Islamic Jihad Movement (ERIJ), is one of several opposition groups that operates in Eritrea and from surrounding countries.

<span class="mw-page-title-main">Slavery in the 21st century</span> Contemporary slavery, also known as modern slavery or neo-slavery

Contemporary slavery, also sometimes known as modern slavery or neo-slavery, refers to institutional slavery that continues to occur in present-day society. Estimates of the number of enslaved people today range from around 38 million to 46 million, depending on the method used to form the estimate and the definition of slavery being used. The estimated number of enslaved people is debated, as there is no universally agreed definition of modern slavery; those in slavery are often difficult to identify, and adequate statistics are often not available. The International Labour Organization estimates that, by their definitions, over 40 million people are in some form of slavery today. 24.9 million people are in forced labor, of whom 16 million people are exploited in the private sector such as domestic work, construction or agriculture; 4.8 million persons in forced sexual exploitation, and 4 million persons in forced labour imposed by state authorities. An additional 15.4 million people are in forced marriages.

<span class="mw-page-title-main">Trail, British Columbia</span> City in British Columbia, Canada

Trail is a city in the West Kootenay region of the Interior of British Columbia, Canada. It was named after the Dewdney Trail, which passed through the area. The town was first called Trail Creek or Trail Creek Landing, and the name was shortened to Trail in 1897.

<span class="mw-page-title-main">Child labour in India</span> Child labour

A significant proportion of children in India are engaged in child labour. In 2011, the national census of India found that the total number of child labourers, aged [5–14], to be at 10.12 million, out of the total of 259.64 million children in that age group. The child labour problem is not unique to India; worldwide, about 217 million children work, many full-time.

<span class="mw-page-title-main">Tahoe Resources</span> Mining exploration company founded in Vancouver, BC

Tahoe Resources Inc. was a mining company and intermediate precious metals producer with silver and gold mines in Canada, Guatemala and Peru. It was founded in Vancouver, British Columbia by Kevin McArthur, former CEO of Glamis Gold and Goldcorp. Incorporated in British Columbia, Canada, the company's U.S. headquarters is located in Reno, Nevada.

Canadian mining in Latin America and the Caribbean began in the 20th century. Latin America and the Caribbean's vast resources give the region great geopolitical importance, attracting foreign interest for centuries. From the colonial race of European empires, to the multinationals of today's neoliberal capitalist world, this region continues to draw interest. Canada's involvement in Latin America increased dramatically since 1989 with several landmark negotiations and agreements. By 2009, the Canadian larger-company mineral exploration market in this region was valued at US$1.7 billion.

The Mirador mine is a large copper mine located in the Amazonian province of Zamora-Chinchipe in southern Ecuador. It is one of the largest copper reserves in Ecuador, and the first industrial-scale copper project to be developed in the country. The project has generated an environmental conflict that is emblematic in the national political debate on mining.

<span class="mw-page-title-main">Syeda Ghulam Fatima</span>

Syeda Ghulam Fatima is a Pakistani human and labour rights activist, known for her work in ending bonded labour in brick kilns, and is General Secretary of Lahore-based Bonded Labour Liberation Front Pakistan (BLLF).

<i>Nevsun Resources Ltd v Araya</i> Canadian legal decision

Nevsun Resources Ltd v Araya, 2020 SCC 5 is a landmark case in which the Supreme Court of Canada held, in a 5–4 decision, that a private corporation may be liable under Canadian law for breaches of customary international law committed in other countries.

Audrey Macklin is a Canadian scholar of immigration law and the Rebecca Cook Chair in Human Rights Law at the University of Toronto Faculty of Law. She is also the director of the University of Toronto's Centre for Criminology and Sociolegal Studies.

References

  1. Koven, Peter (November 20, 2014). "There are many good reasons for takeover interest in Nevsun — and one really big downside". Financial Post. Retrieved August 5, 2016.
  2. "Ex-Workers Claim Horrendous Abuse At Mine Owned By B.C. Firm" . Retrieved August 5, 2016.
  3. "Canadian Mining Company Nevsun Resources Accused of Complicity in Torture, Slavery, and Crimes against Humanity in New Lawsuit - Business Wire". November 20, 2014. Retrieved August 5, 2016.
  4. Stockhouse.com. "Nevsun Resources (T.NSU) faces allegations of human rights abuses in B.C. court-T.NSU-Stockhouse news" . Retrieved August 5, 2016.
  5. geeskadmin (May 14, 2014). "Canadian Mine in Eritrea had been built Partly by Defacto Slaves - Geeska Afrika Online" . Retrieved August 5, 2016.
  6. "Hear No Evil". Human Rights Watch. January 15, 2013. Retrieved April 16, 2014.
  7. York, Geoffrey (January 15, 2013). "Nevsun accused of turning blind eye to forced labour". The Globe and Mail. Retrieved August 5, 2016.
  8. "Eritrea: Mining Investors Risk Use of Forced Labor". January 15, 2013. Retrieved August 5, 2016.
  9. "Nevsun appeals to Canada Supreme Court in Eritreans' forced labor lawsuit". Reuters. January 26, 2018. Retrieved August 5, 2016.
  10. "Supreme Court of Canada - SCC Case Information - Search". January 2001.
  11. AFP (February 28, 2020). "Canada mining firm accused of slavery abroad can be sued at home, supreme court rules". The Guardian. ISSN   0261-3077 . Retrieved February 28, 2020.