There are a number of villages located within a 5km radius of the facility, including Berezovka and Tungush, and various interpretations of the requirements for the resettlement of these villages exist. Residents have reported daily exposure to black clouds of burn-off and industrial effluents, noted an increase in health problems, and have consequently been lobbying to be resettled. After a series of delays, the town of Tungush was resettled; however, residents still have complaints of misinformation, lack of consultation, and inadequate compensation.
The town of Berezovka had originally received a letter (May 2002) from the Ministry of Natural Resources stating they are within the zone which requires resettlement. However, in December 2002 at the request of KPO the Kazakhstan Ministry of Health reduced the size of the zone, excluding the Berezovka village for resettlement. The decision was made based on the claims that KPO uses technology that reduces emissions of hydrogen sulfide. The monitors from Crude Accountability, however, identified high level of toxic substances in Berezovka, which cause a number of respiratory and cardiovascular diseases.
The IFC maintains that any resettlement is the responsibility of the government and therefore does not fall under the IFC policy. However, NGOs question IFC’s due diligence process since the Environmental Impact Assessment states that the IFC Resettlement Policy is applicable to the project. The residents of the village of Berezovka filed a number of complaints with the IFC, including complaints addressed to the IFC Compliance Advisory Ombudsman and to World Bank President Paul Wolfowitz.
Finally, the village saw a small victory in April 2008 when the Office of Compliance, Advisor/Ombudsman (CAO) concluded the IFC was out of compliance with safety standards for toxic emissions at Karachaganak . Although the resettlement issue has not been resolved, this latest ruling provides evidence of the problems at Karachaganak.
IFC out of compliance at Karachaganak (BIC website)