Canada's NCP Annual Reports, Record of Specific Instances and Statements

Annual Reports
NCPs submit annual reports to the OECD Committee on International Investment and Multinational Enterprises. These reports describe the main activities of the NCPs with respect to the fulfilment of their responsibilities. The Canadian reports are posted below.

Record of Specific Instances and Statements
Since 2000 the Canadian NCP has received 7 submissions from interested stakeholders regarding corporate conduct and the OECD Guidelines for MNEs. As of June 2006, four of these have been considered by the Canadian NCP as specific instances. A description of these specific instances and NCP statements regarding the specific instances can be found below. For information on submissions which were not accepted as specific instances please refer to the Canadian NCP annual reports.

1) First Quantum Minerals Ltd and Oxfam Canada

Description: In July 2001, the NCP received a submission from Oxfam Canada involving the operations of First Quantum Minerals Ltd in Zambia. The NGO reported that the operations of the company were not respecting three OECD Guideline recommendations: 1) Chapter II, paragraph 2, regarding respect for human rights; 2) Chapter II, paragraph 7, regarding development of practices that foster confidence and trust between companies and the societies in which they operate, and; 3) Chapter V, paragraph 2(b), regarding communication and consultation with communities on environmental, health and safety policies. The central underlying issue that gave rise to the submission was the impending removal of poor local farmers from company-owned land. To address this issue, the Canadian NCP facilitated a flow of communications between the company's headquarters in Canada and the Canadian office of the NGO. All communication flowed through the office of the NCP. Both Canadian parties in turn communicated with their operations in Zambia where face-to-face meetings took place. While there was a variance in the facts and opinions reported on each side, a resolution was reached after the company met with groups from the affected communities and worked out an approach whereby the farmers could continue to use the land, at least for the short-term. The Canadian NCP sent a final communication to the Canadian company, copied to the Canadian NGO, that welcomed the spirit of cooperation demonstrated by both parties. We also encouraged the company to maintain an open line of communication with the Canadian NGO and other groups concerned about the welfare of people affected by the operations of the Zambian mining company. Throughout the process, the Canadian NCP kept its counterpart in Switzerland informed of developments.

2) Canadian Companies named in the Second UN Panel of Experts Report on Illegal exploitation of natural resources and other riches in the Democratic Republic of Congo (DRC)

Description: In October 2002, the Second UN Panel of Experts Report on Illegal exploitation of natural resources and other riches in the Democratic Republic of Congo (DRC) report included an annex with a list of companies who in their view violated the Guidelines. In October 2003, the UN published a subsequent report in which seven of the eight Canadian companies were listed as issues "resolved - no further action required." One company was listed as "Pending Cases with Governments". The NCP accepted the Panel's conclusions and followed up with the "eighth"company Kakanda Development Corporation. In response to the NCP's follow-up actions, the company replied with a letter describing their involvement in the DRC. The letter indicated that the company had not been active in the DRC since 1997 and they had officially halted all activities in the DRC as of June 4, 2004. The NCP has brought this case to a close in terms of its status as a specific instance procedure.

3) Ivanhoe Mines Ltd and the Canadian Labour Congress

Canadian National Contact Point for the OECD Guidelines for Multinational Enterprises Statement concerning Ivanhoe Mines Ltd in Burma

The Canadian National Contact Point NCP (NCP) for the OECD Guidelines for MNEs (Guidelines) received a complaint in November 2002 from the Canadian Labour Congress (CLC) regarding the operations of Ivanhoe Mines Ltd. in Burma. The complaint focused on elements of the Guidelines chapter on Employment and Industrial Relations. Following a review of the submission, the NCP decided that the CLC submission merited further examination under the Guidelines. Following this decision, the NCP had a number of discussions with each party and offered to facilitate a dialogue between the two sides. Ultimately we were not able to proceed with the dialogue as there was no agreement between the parties to participate in the process. A letter was sent to both parties in February 2006 to formally bring the NCP's involvement with the submission to a close. The Government of Canada expects and encourages Canadian companies to observe the OECD Guidelines for MNES in their operations abroad.

4) Ascendant Copper Corporation and Mining Watch Canada, Friends of the Earth Canada and DECOIN.

Canadian National Contact Point for the OECD Guidelines for Multinational Enterprises Statement Concerning Ascendant Copper Corporation in Ecuador

Canada's National Contact Point for the OECD Guidelines received a submission dated May 16, 2005 raising issues regarding the conduct of Ascendant Copper Corporation in Ecuador and the OECD Guidelines for Multinational Enterprises. The submission was submitted by Mining Watch Canada (MW), Friends of the Earth Canada (FoE) and DECOIN.

The issues raised pertained to: Chapter 1) paragraph 7) regarding respect for national law; Chapter II) paragraph 2) regarding human rights, paragraph 5) regarding refraining from seeking exemptions, paragraph 10) regarding subcontractors and the OECD Guidelines; Chapter III) paragraph 1) regarding disclosure policies, paragraph 4e) regarding disclosure of material foreseeable risks, paragraph 4f) regarding material issues regarding employees and other stakeholders, paragraph 5c) regarding information on relationship with employees and other stakeholders, and; Chapter V) paragraph 2a) regarding communication with the public and employees on environmental, health and safety impacts and paragraph 2b) regarding communication and consultation with the communities on environmental, health and safety policies.

Following intradepartmental and interdepartmental consultation, including close contact with the Canadian Embassy in Quito, the NCP determined that the submission was relevant to the Guidelines and decided to seek agreement from Ascendant and DECOIN to participate in an NCP facilitated dialogue on the issues raised in the submission which are relevant to the Guidelines. In the Fall of 2005, following discussions with the NCP, both parties agreed to participate in the dialogue. The NCP facilitated dialogue with Ascendant and DECOIN was scheduled to take place at the end of January 2006.

The following terms of reference, which outline the purpose of the dialogue, were sent to both parties:

"The purpose of the NCP facilitated meeting is:

• to provide a non-confrontational forum for the parties (DECOIN and Ascendant) to present their views and discuss issues relating to the proposed mining operation;

• to facilitate an objective discussion by the parties of the issues presented in the DECOIN submission to the NCP;

• to allow the parties to provide updates on recent developments and clarify related facts and goals;

• to pave the way for an ongoing dialogue between the parties on key issues, should they so choose; and,

• to contribute to the resolution of issues."

The purpose of the meeting was not to conduct an investigation into the operation of Ascendant with a view to determining a violation, or not, of the OECD Guidelines as such investigations are not a part of the NCP's mandate. The meeting was subject to confidentiality. The NCP planned to record that the meeting took place and following the conclusion of discussions, was to use its discretion to issue a statement and make recommendations as appropriate, in relation to the implementation of the Guidelines.

In early January 2006, DECOIN, FOE and MW pulled out of the process in disagreement over the set terms of reference for the meeting, specifically the need to maintain "confidentiality". In response to this action the NCP sent the NGOs and Ascendant letters indicating that the NCP remains open and willing to facilitate a dialogue consistent with the Guidelines should DECOIN, FoE and MW wish to reconsider their decision. Furthermore, the NCP encouraged Ascendant to continue to independently pursue ongoing dialogue with communities affected by their operations with a view to resolving outstanding issues. Finally, in line with the Government of Canada's expectation that Canadian companies observe the OECD Guidelines for MNES in their operations abroad and operate transparently and in full consultation with the host government and local community, the Canadian NCP indicated an intention to remain interested in Ascendant's operations in Ecuador and an interest in being kept up date, by the Canadian Embassy in Quito, on relevant developments related to the community development plan that Ecuador's Sub secretary of Mines requested and Ascendant's Environmental Impact Study.