CORE’s Release of its Investigation Report on Dynasty Gold Canada

FOR IMMEDIATE RELEASE                                                     

CORE’S RELEASE OF ITS INVESTIGATION OF ITS REPORT ON DYNASTY GOLD CANADA

Uyghur Rights Advocacy Project (URAP) and Human Rights Action Group (HRAG) welcomes the Canadian Ombudsperson for Responsible Enterprise’s (“CORE”)  first investigative report in its capacity as Canada’s watchdog for corporate abuses abroad. CORE’s report is in response to a complaint filed in June 2022 by a URAP-led coalition of 28 organizations alleging that 14 Canadian companies had ties to Uyghur forced labour in their supply chain. Dynasty Gold Corporation (“Dynasty”) is a Canadian mining company that continues to have operational and investment interests in mining projects in East Turkestan (known as Xinjiang Uyghur Autonomous Region). The complaint, filed with representation from HRAG lawyers, alleged that Dynasty’s mining operations at the Hatu Qi-2 gold mining project in the Uyghur region use or benefit from Uyghur forced labour. 

The report identifies that Dynasty’s joint venture partners, Western Region Gold (WRG) and state-owned Xinjiang Non-Ferrous Metal (XFN) most likely engaged in the People’s Republic of China (PRC)’s forced labour projects at the Hatu Qi-2 gold mine, as both companies have self-reported that they participated in the PRC’s labour transfer program. Further, there is evidence suggesting that both WRG and XNF are involved with the Bingtuan (Xinjiang Production and Construction Corps), a state-run paramilitary corporate organization. Dynasty’s business relationship with WRG and XFN connects the company to the use of Uyghur forced labour at the Hatu Qi-2 gold mine. Notably, Dynasty’s own communications reveal that its operations in the mine employed Uyghur labour. 

The Ombud has concluded that a human rights abuse has occurred at the Hatu Qi-2 mine. CORE’s investigation found no evidence of human rights due diligence conducted by Dynasty in its operation or business relationships, concluding that Dynasty’s failure to take steps to prevent or mitigate the use of Uyghur forced labour demonstrates that “Dynasty could be contributing by omission to the use of Uyghur forced labour at the Hatu gold mine.” Furthermore, the report states that Dynasty’s lack of participation in the complaint process “falls far short of the CORE’s standard of good faith participation.” 

The Ombud states that the “only realistic option for Dynasty to prevent or mitigate its use of Uyghur forced labour in XUAR, given that the abuse is state-sanctioned, would be to consider ending the relationship.” Fortunately, the Ombud adhered to many recommendations proposed by the counsels for the complaints, Sarah Teich and David Matas, in response to the CORE’s findings. The Ombud has recommended reparations, in the form of a donation to not-for-profit organizations working to combat Uyghur forced labour. It has also recommended that Dynasty develop and adopt policies indicating how it will carry out human rights due diligence in its operations. We urge that Dynasty use respectable and independent third-party auditors such as the Initiative for Responsible Mining Assurance when developing such policies. Further, as per our counsel's recommendation, the Ombud made several recommendations to the Minister of International Trade, suggesting the withdrawal denial of trade advocacy support by Global Affairs Canada, refusal by Global Affairs Canada to provide future trade advocacy support, and refusal by Export Development Canada to provide future financial support.

URAP and HRAG applaud the thorough work of the Ombud, agree with CORE’s analysis and urge Dynasty’s compliance with the recommendations. URAP and our fellow coalition organizations are looking to CORE to act as a responsible body to compensate for the current failings of Canadian legislation and enforcement. URAP and HRAG expect the Government of Canada to abide by CORE’s recommendations and uphold its pertinent obligations to prevent Canadian companies from benefitting or profiting from the use of Uyghur forced labour. 

Contact Information:

Mehmet Tohti, Executive Director, Uyghur Rights Advocacy Project, mehmet@urap.ca

Sarah Teich, Co-founder & CEO, Human Rights Action Group, steich@rightsactiongroup.org