CORE -a  business and human rights grievance mechanism- launched its investigation after 28 complaints were lodged against GobiMin and Dynasty Gold relating to mining activities and operations in China.

The allegations which were submitted to CORE in early 2022 accuse both companies of using or benefiting from Uyghur forced labour.

A coalition of national and international NGOs, including Canadians Against Oppression & Persecution, Uyghur Rights Advocacy Project and Vancouver Society in Support of Democratic Movement, raised the more than two dozen complaints.

In CORE's initial assessment report, the coalition alleges that GobiMin was "implicated in Uyghur forced labour through exploration work carried out at its Sawayaerdun mine in Xinjiang, China," before 2022.  

GobiMin sold its subsidiary Xinjiang in 2022 and has since delisted from the TSXV. The company has denied the collation's allegations.

"After assessing the complaint against GobiMin, I have decided to make recommendations to the company about revising its policies and sharing the revised versions with the CORE by a set deadline," said Ombudsperson Sheri Meyerhoffer.

Additional complaints

Last month, CORE published an initial assessment report stemming from similar allegations put forth by the same coalition against Canadian junior Dynasty Gold.

In it, the precious metal explorer is accused of using or benefiting from forced Uyghur labour at the Qi-2 (Hatu) gold mine in Hatu, a mining district in northwest Xinjiang located close to "detention" or "re-education" centres.

In an April 2022 press release Dynasty also disputed the allegations made against it.

"The company has no current operation in Xinjiang and wishes to provide some background of its historic experience with its mining operation in Xinjiang," the company said.  

The statement outlines the company's difficulties in working with project joint venture partner XFN, noting XFN listed the mine on the Shanghai Stock Exchange in 2016 without notifying Dynasty, which held a 70% controlling interest.

Dynasty then took XFN and its subsidiaries to court in Xinjiang to restore and enforce the joint venture and reward compensation. The court did not rule in Dynasty's favour. Subsequent, COVID-19 lockdowns prevented the Dynasty from travelling to China and appealing the decision, according to the company.

Addressing the specific forced labour allegations, Dynasty explained that more than 150 workers were employed during the project's development, and all were provided with "equitable compensation."

"[The] workforce consisted of people from many ethnicities in the region, including Uyghur who were represented at all levels of the workforce," the company said. "All protocols and cultural practices were followed. Since 2008, all operating responsibilities and labour relations have been the sole responsibility of XFN. Dynasty has had no involvement whatsoever."

In its July report, CORE acknowledged it would begin investigating the allegations against Dynasty.

"On its face, the complaint raises serious allegations regarding the possible abuse of the international human right to be free from forced labour," it read. "[Dynasty's] brief response to the complaint raises questions of fact that warrant investigation."

Forced labour

In 2021, the US implemented the Uyghur Forced Labor Prevention Act prohibiting the import of goods that were partially or wholly manufactured with forced labour from China, particularly the Xinjiang Uyghur Autonomous Region, or Xinjiang.

Earlier this year, Global Affairs Canada and the Canadian Trade Commissioner Service issued a human rights advisory related to companies conducting business in Xinjiang.

"There are credible reports of human rights violations affecting Uyghurs and other ethnic minorities in the region, including mass arbitrary detention, forced mass arbitrary separation of children from their parents, suppression of religious and cultural practices, repressive targeting and surveillance measures, forced labour, forced sterilisation, torture and other forms of mistreatment," the advisory stated.

It also warned of potential consequences of not adhering to the responsible business conduct.  

"The Government of Canada urges businesses and individuals with links to Xinjiang or labourers from Xinjiang to closely examine their supply chains to ensure that their activities do not support repression, including, for example, the Chinese government's surveillance apparatus in Xinjiang, detention or internment facilities, or the use of forced labour," it concluded.