Guinea: Destruction of community livelihoods by the IFC-financed bauxite mine expansion

Sectors: Mining and extractives

The CBG mine, operating since 1973, has caused extensive economic and physical displacement. Affected households have not received adequate replacement land or compensation and have suffered serious livelihood impacts. The mine has failed to effectively rehabilitate and return exploited land. In 2016, IFC provided a loan for the mine’s expansion. E&S mitigation plans–ostensibly meant to show compliance with PSs to secure the loan–have gone largely unimplemented. In 2019, communities filed a complaint to the CAO. Several agreements have been reached, and CBG has agreed to compensate for land takings since 2016. However, major impacts remain. In addition to compliance problems, the case demonstrates weaknesses in IFC standards. While IFC policy requires Broad Community Support, PS5 does not give effect to this requirement through, for instance, provisions for agreement-making with customary landholders on whether or what terms projects should proceed. Requirements for addressing economic displacement do not place enough emphasis on impact avoidance, including through no-go zones, and on timely land rehabilitation and return, and are not effective at meeting the PS5 objective of improving or restoring livelihoods.