Shnogh Villagers Demanding from Danish Export Credit Fund to Annul Agreements Signed with 'Teghout' CJSC

Shnogh Villagers Demanding from Danish Export Credit Fund to Annul Agreements Signed with 'Teghout' CJSC

EcoLur

Shnogh villagers, Lori Region, are opposing to the implementation of Teghout copper and molybdenum mine. The villagers have addressed a letter to Anette Eberhard, CEO Danish Export Credit Fund, Mogens Agger Tang - Director of Communications Danish Export Credit Fund, and Claus Stamp - Investments Chief Officer Pension demanding to annul the loan agreement concluded with the VTB Bank, as well as to annul the agreements concluded with Teghout CJSC. Though the letter says that the letter is addressed on the behalf of Teghout community residents, the letter is signed by 57 Shnogh villagers.

The letter says, “In 2013, the Denmark-based “Pension Denmark” private pension fund, the company “FLSmidth”, the Export Credit Fund (EKF), and the Armenia-based “Teghout” CJSC signed agreements

whereby financial support was provided for the operation of the copper-molybdenum mine located in our communities.

The reports and official communication of both the pension fund and EKF tout strict compliance with the environmental and social responsibility standards.

We would like to stress that the statements in your reports, according to which the company operating the Teghut mine meets the international standards of operation and that no norms and laws are violated, is not true.

1. The permits for operation were issued with grave violations of the Armenian law, thus the operation of the mine is illegal.

2. Our communities were not aware of the details and possible impact of the mine operation; we did not duly participate in the decision-making process. This is a breach of the Aarhus Convention, as recognized by decision ECE/MP.PP/2011/11/Add.1 IV/9b of the UN Economic and Social Council.

3. Our communities have suffered huge material damages, including losses of private and community lands for which the communities have not been adequately compensated to date. Our complaints have not been adequately examined by the Armenian judicial bodies; a total of 109 households have challenged in court the decisions about their land plots. 9 cases are currently being examined by the European Court of Human Rights.

4. The Armenian judicial authorities have not ensured access to justice for local NGOs that wish to prove through the legal system the irregularities and falsifications committed during the licensing of the mine. This is another breach of international law (namely Article 9 of the Aarhus Convention), as recognized by decision ECE/MP.PP/2014/2/Add.1 V/9a of the UN Economic and Social Council.

5. In the environmental assessments demanded by you, it is mentioned that the 2005 environmental impact assessment had many faults. It is also stated that the mining project had changed, and those changes were not authorized by the state, nor was there a new environmental impact assessment. This assessment was supposed to undergo public hearings, and we at the communities were supposed to participate in the approval of this assessment. The environmental and social management plan, which is based on the environmental assessment demanded by you, does not have any legal grounds. Moreover, it is not approved by the Armenian government.

6. Teghout CJSC has damaged the drinking water pipes of Teghut village, as a result of which  the community did not have drinking water for a long time; even after the repairs, the village suffers from the scarcity of drinking water. The springs have dried up. According to a recent monitoring by the government, the quantity of molybdenum in the Shnogh River exceeds the permissible levels. Overall, the Teghut community is deprived of any opportunities to do farming or forest-related activities.

7. To date, no health assessments have been made in our communities.

8. The activities on the mining company have never been inspected by any government body in the last 8 years, despite calls made for years by the Armenian Human Rights Defender, members of the parliament, NGOs, and individual citizens to inspect the operation of the company. The authorities in charge of inspection refuse to inspect, despite the fact that the promises and obligations of the company have not been fulfilled. This speaks of a high level of patronage and corruption.

These and many other facts show that what is written in your reports and official communications is nothing but window dressing that conceals the contradictions to your own internal regulations, the legislation of Denmark, the international law, and the Armenian legislation.

In view of the aforementioned, we, the undersigned, hereby demand:

To abolish the credit agreement with VTB bank, and to abolish all agreements made with Teghout CJSC.

We call upon you not to be part of the illegalities committed by Teghout CJSC and VTB Bank.”

Translation by Khachatur Adumyan

December 18, 2014 at 14:30