Ramu mine owners banned by international banks for fraud and corruption

The Chinese Metallurgical Construction Company (MCC) Ltd, majority owner of the controversial Ramu nickel mine in PNG,  has been barred from doing any projects or works involving the World Bank,  Asian Development Bank, European Bank for Reconstruction and Development, and the Inter-American Development Bank.

Poor construction work is one of many problems that have blighted the Ramu mine

This is because its sister companies, China First Metallurgical  Construction Company and China First Metallurgical Group, have been found guilty of fraud and corruption in a World Bank investigation into the construction of a bridge in Bangladesh as part of the Dhaka Urban Transport Project. The investigation found the bridge was so poorly constructed it was condemned before it was opened for fear it would have collapsed when people started using it – potentially killing hundreds of people.

The Ramu nickel mine has been heavily criticized for stealing land from indigenous people, poor construction, use of imported convict labour, appalling health and safety standards, the planned dumping of toxic mine waste into the sea and the highly favorable tax holidays that it secured from the heavily pro-Chinese government of Michael Somare.

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4 Comments

Filed under Corruption, Human rights, Mine construction, Papua New Guinea

4 responses to “Ramu mine owners banned by international banks for fraud and corruption

  1. Paul Taria

    When you get banned by the World Bank of all people you know you’re bad. Hard to believe MCC is even worse than we all thought. Damn! And just being in Madang recently I can tell you the problems with this shabby outfit are just beginning.

  2. Wesely

    Ramu Nico are corrupt to the core………………..
    And typically, their management seeks to create a Chinese enclave in Madang.
    The whiole way they have managed their “long march” to the commissioning stage of this project has been a disaster from the outset.

  3. Pingback: MCC not the only major Chinese enterprise on World Bank corruption blacklist | PNGexposed Blog

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