Last checked at 20 Nov 2014 10:06
20 November 2014
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Update on OECD examination
GCM Resources plc ("GCM" or the "Company"), a London based resource exploration and development company, is pleased to report that the conclusions of the OECD examination, which are almost entirely in favour of the Company, have been finalised and released.
The UK National Contact Point to the OECD ("NCP") has today published a report (the "Final Statement") on its examination as well as the review into the NCP's procedures undertaken by the Review Committee. Both reports may be found at https://www.gov.uk/government/collections/uk-national-contact-point-statements.
The outcome reflects the Company's continued adherence and commitment to the highest international and national social and environmental standards as it continues to work to develop the Phulbari Coal Project ("the Project"). The OECD has commended GCM for its willingness to engage with the NCP and other international bodies.
In its Final Statement, the NCP concluded that the Company had not breached the OECD Guidelines for Multinational Enterprises ("Guidelines") as alleged. Of the seven alleged breaches, three were rejected by the NCP immediately, and three were rejected after examination as shown in the below table:
Alleged breach of Guidelines | Preliminary result | |
1 | II.2 - to respect the internationally recognised human rights of those affected by their policies | Rejected after examination |
2 | IV.1 - to respect human rights, which means they should avoid infringing on the human rights of others and should address adverse human rights impacts with which they are involved | Rejected after examination |
3 | IV.2 - within the context of their own activities, avoid causing or contributing to adverse human rights impacts and address such impacts when they occur | Rejected upon initial assessment, unsubstantiated |
4 | IV.3 - Seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations, products or services by a business relationship, even if they do not contribute to those impacts | Rejected upon initial assessment, unsubstantiated |
5 | IV.5 - Carry out human rights due diligence as appropriate to their size, the nature and context of the operations, and the severity of the risks of adverse human rights impacts | Rejected after examination |
6 | II.7 - Develop and apply effective self-regulatory practices and management systems that foster a relationship of confidence and mutual trust between enterprises and the societies in which they operate | Partial breach in respect of the Company's communication for the period 2006-2012. |
7 | III.2e - Ensure that timely and accurate information is disclosed, including material information on foreseeable risk factors | Rejected upon initial assessment, unsubstantiated |
The NCP found one partial breach due to GCM's reduced communication with local communities in the period from 2006 until 2012, being the period following completion of the Project's Feasibility Study.
GCM is pleased to confirm that since 2012, and together with the endorsement of the Bangladesh Government, the Company has broadened its community communication and engagement activities with the aim of ensuring the local community remains fully informed on the Project and that the Company's social impact plans remain up-to-date. We are grateful for the support we continue to receive from the local communities.
Michael Tang, Executive Chairman commented: "We are pleased that after a thorough assessment, the OECD's findings are consistent with the Company's position. In line with our engagement strategy, we continue to welcome constructive communication with all interested parties.
"GCM looks forward to delivering benefits to all stakeholders of the Project and I would like to take this opportunity to thank the UK NCP team for their professionalism and impartial approach during the examination."
For further information:
GCM Resources plc James Hobson CFO & Company Secretary +44 (0) 20 7290 1630
| Bell Pottinger Public Relations Lorna Cobbett / Joanna Boon +44 (0) 20 3772 2500
|
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price +44 (0) 20 7060 2220 |
GCM Resources plc | |
Tel: +44 (0) 20 7290 1630 | |
info@gcmplc.com; www.gcmplc.com |