LOCATION: Indonesia
RELATIONSHIP: The China Nonferrous Metal Industry’s Foreign Engineering & Construction Company is the majority owner of the Dairi Prima Mineral PT Dairi Prima Mineral mine.

IMPACT ON COMMUNITIES AND HUMAN RIGHTS

Local communities, including Indigenous Peoples, affected by the Dairi Prima Mineral mine have been trying to stop the project for years due to the risks it poses to their lives and livelihoods. Their concerns were outlined in a public complaint filed in 2019 to the International Finance Corporation’s independent accountability mechanism (the complaint related to the IFC’s alleged financial links to the project).

Concerns included the mine owners not recognizing their Indigeneity and associated rights, inadequate assessment of the risks of mining in an earthquake and disaster-prone area, air pollution, disturbance of water resources, increased road traffic, and chemical contamination from the planned tailings storage facility where toxic waste from the mining activities would be stored. The tailings storage is a primary concern for community members, given seismic activity in the area. Mining experts have said that a catastrophic tailings dam failure is almost certain to occur and that the mine as planned would threaten the lives of local people and the environment. The IFC’s independent accountability mechanism confirmed that the project appears to pose significant and potentially irreversible risk to surrounding communities.

Additionally, communities reported a lack of proper public consultation about the project, including the failure of the company to disclose crucial project information in an accessible form, including impact assessments and to meaningfully consult and respect the Indigenous right to free, prior, and informed consent.

IMPACT ON ENVIRONMENT AND BIODIVERSITY

Leakage from the proposed tailings dam for the mine could contaminate local communities’ water resources. Failure of the tailings dam, which mining experts have said is almost certain to occur, would have additional widespread environmental consequences. Local communities have challenged the environmental permit granted to the mine, and in August 2024, the Supreme Court ruled in their favor. However, the mine owners have pledged to request a judicial review and say they will continue development of the mine in spite of the court’s decision.

RESOURCES

Information on this project was submitted by BAKUMSU and last updated on October 31st, 2024.