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Risky gold mine in Laos gets Australian public money

February 7, 2003 - The Australian Export Credit Agency, the Export Finance Insurance Corporation (EFIC) has just approved political risk insurance for a controversial mine in Laos – the Sepon gold and copper mine.

The Australian Export Credit Agency, the Export Finance Insurance Corporation (EFIC) has just approved political risk insurance for a controversial mine in Laos – the Sepon gold and copper mine.

The mine, developed by Australian mining company, Oxiana, and co-financed by the International Finance Corporation (IFC) of the World Bank Group has been highly criticised by non-government organisations (NGO) internationally.

“This mine is deficient in many areas including attention to independent monitoring, mine closure, risk assessment, impact on fisheries therefore food security and community development,” said Kate Walsh, Export Credit Campaigner at Australian NGO AID/WATCH, a watchdog of Australian aid and trade.

“There are also questions surrounding the lack of comprehensive environmental and social regulations in Laos and the effect this will have on independent monitoring and recourse in the event of gross environmental or social mismanagement.”

“The Australian government should not be using taxpayer’s money to underwrite such an environmentally risky project. In the end, if there are any problems the Australian public will ultimately pick up the bill. This is an unacceptable use of public funds.”

The approval of this project will trigger a review of the EFIC Environmental Regulations introduced in 2000. “AID/WATCH looks forward to the review of the guidelines. If a projects such as the controversial Sepon Gold Mine can pass the test and receive public money, then it shows that the guidelines are totally inadequate,” said Ms Walsh.

For more information, please contact Kate Walsh +61 2 9557 8944 or eca@aidwatch.org.au

To learn more about Export Credit Agencies go to http://www.aidwatch.org.au
Or write a letter to the government about it

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