GCM Resources : Update on OECD examination

20 November 2014

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Update on OECD examination

GCM Resources plc ("GCM" or the "Company"), a London based resource exploration and development company, is pleased to report that the conclusions of the OECD examination, which are almost entirely in favour of the Company, have been finalised and released.

The UK National Contact Point to the OECD ("NCP") has today published a report (the "Final Statement") on its examination as well as the review into the NCP's procedures undertaken by the Review Committee. Both reports may be found athttps://www.gov.uk/government/collections/uk-national-contact-point-statements.

The outcome reflects the Company's continued adherence and commitment to the highest international and national social and environmental standards as it continues to work to develop the Phulbari Coal Project ("the Project"). The OECD has commended GCM for its willingness to engage with the NCP and other international bodies.

In its Final Statement, the NCP concluded that the Company had not breached the OECD Guidelines for Multinational Enterprises ("Guidelines") as alleged. Of the seven alleged breaches, three were rejected by the NCP immediately, and three were rejected after examination as shown in the below table:

The NCP found one partial breach due to GCM's reduced communication with local communities in the period from 2006 until 2012, being the period following completion of the Project's Feasibility Study. 

GCM is pleased to confirm that since 2012, and together with the endorsement of the Bangladesh Government, the Company has broadened its community communication and engagement activities with the aim of ensuring the local community remains fully informed on the Project and that the Company's social impact plans remain up-to-date. We are grateful for the support we continue to receive from the local communities.

Michael Tang, Executive Chairman commented: "We are pleased that after a thorough assessment, the OECD's findings are consistent with the Company's position. In line with our engagement strategy, we continue to welcome constructive communication with all interested parties.

"GCM looks forward to delivering benefits to all stakeholders of the Project and I would like to take this opportunity to thank the UK NCP team for their professionalism and impartial approach during the examination."