The purpose of this Shareholder Advisory is to inform potential investors in the business combination proposed by DeepGreen Metals and Sustainable Opportunities Acquisition Corporation (SOAC) to form The Metals Company (TMC). We believe that the Advisory is of particular relevance to SOAC public shareholders, who would be anticipating an investment with strong sustainability credentials and who will shortly be invited to vote on approving the business combination and/or to elect to maintain or redeem their investment. 

[Report available in Spanish only] The “Energy Transition” promoted by capitalists is a clear greenwashing attempt, and does not represent a significant departure from what the world already knows as an inseparable relationship to the mining extractivist model. The example of lithium in Mexico is a case in point.

Despite statements being made about world lithium shortages, and its unparalleled importance for the “energy transition”, world lithium production fell by nearly 20% in 2019, and in the same year, despite this fact, the slow growth of lithium demand only met 75% of the total supply. A slowing down in the sale of elec- tric vehicles (exacerbated by the removal of Chinese subsidies), as well as a reduction in the practice of stockpiling, among others, depressed production. Despite this, the primary sources of information for the industry, as well as the principle financial institutions, continue to insist that we are on the cusp of a lithium demand boom.

The Quebrada Blanca Phase II (QBP2) Expansion Project will require more than 4.7 billion dollars in capital investment and is financed by Japanese and Canadian  banks and finance corporations. The expansion project is an open-pit copper-molybdenum-silver mine which contemplates a life-of mine of over 25 years, with a capacity of 140,000 tonnes per day (tpd). Following construction the mine will be one of the largest mines in Chile and among the 20 largest mines in the world. It is being erected atop of the existing pit in the Tarapacá region – an area of Chile that is already saturated with large-scale mines.

The Canadian Environmental Law Association, Friends of the Attawapiskat River, MiningWatch Canada and WCS Canada provided comments to the Ontario Ministry of Energy, Northern Development and Mines regarding multiple mining exploration proposals. We ask that the ministry pause any decision-making on the proposals, and only proceed when public and Indigenous engagement can be achieved.

On October 7, 2020, MiningWatch submitted this brief to Global Affairs Canada with detailed recommendations for a complete overhaul of Canada’s National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises (OECD Guidelines). This Canadian non-judicial body was set up to receive complaints filed by people from around the world who have been harmed by the activities of Canadian corporations that have breached the OECD Guidelines in their operations. The NCP's utter lack of effectiveness in handling these complaints has resulted in further deepening the harm suffered by those bringing the complaints.

On March 15, 2019, the United Nations Environment Assembly Resolution adopted resolution 4/19 on mineral resource governance. On September 16, 2020, MiningWatch Canada participated and presented in the North American consultation organized by the United Nations Environment Program (UNEP) on mineral resource governance. This brief represents MiningWatch’s written submission to this consultation and includes a critique of Mining Association of Canada’s voluntary Towards Sustainable Mining (TSM) standard as well as the text of our presentation to the North American consultation.

A disappointing start for Canada’s new agency meant to facilitate private sector investment in “challenging markets that come with a high degree of inherent risk.”