Liberia: IFC’s irresponsible exit from toxic gold mine

In July 2014, the IFC invested in Liberia’s first commercial gold mine, New Liberty. At the time of Board approval, the U.S. abstained, citing “serious concerns” about resettlement and the disposal of cyanide in the tailings storage facility. Nonetheless, the IFC moved forward, purchasing 12.8% of the company’s stock. One year later, it increased its stake to 17.4%. Unsurprisingly, local communities were left bearing the burden of the IFC’s reckless decision-making. The company mishandled the resettlement process, leaving over 300 families uncompensated and living in temporary housing for at least five years. The eventual final resettlement site proved unsuitable, with no agricultural land to support subsistence and livelihoods. In March 2016, the tailings facility, which had been leaking pollutants for over seven months, failed disastrously, releasing high levels of cyanide and arsenic. The company’s response was to construct two hand pumps and deliver frozen fish. Meanwhile, the IFC quietly divested its stake in the project. Communities were left to fend for themselves, with few options available for recourse. IFC’s new Responsible Exit Principles, which don’t include concrete remedy commitments, leave no guarantee that a similar situation won’t occur again.