TORONTO, March 26 (Reuters) - Canada's corporate ethics

watchdog on Tuesday said it was likely that human rights abuses

of using Uyghur forced labor had occurred at a mine in China

operated by Vancouver-based firm Dynasty Gold ( DGDCF ).

In a report, the Canadian Ombudsperson for Responsible

Enterprise (CORE) recommended the federal government refuse to

provide any future financial support to Dynasty until it

implemented recommendations to combat abuse.

Dynasty Gold ( DGDCF ) told Reuters that the report is full of errors

and inaccuracies.

The report by CORE is a result of an investigation over

complaints filed by 28 Canadian organizations who alleged that

Dynasty Gold ( DGDCF ) used or benefited from Uyghur forced labor at the

Hatu mining operations that took place in 2017, 2019 and 2020.

In its final report the watchdog concluded that Dynasty

contributed to the use of forced labor through its relationship

with its joint venture partners Xinjiang Non-Ferrous Metal and

Western Region Gold. These two companies had

relationship with another company called Terraxin in which CORE

said Dynasty is a majority shareholder.

Ivy Chong, CEO of Dynasty Gold ( DGDCF ) to Reuters that CORE decided

to publish the report without providing any evidence to support

the claims, even though the company repeatedly explained the

situation and the timeline of the events.

However Chong said the joint venture company (Terraxin) in

Xinjiang lost its exploration license in 2008 and business

license shortly thereafter. And there has not been any

relationship between Dynasty and the State-owned Xinjiang

companies since 2008.

A report by the U.N. human rights chief in 2022 said that

China's treatment of Uyghurs, a mainly Muslim ethnic minority

that numbers around 10 million in Xinjiang, in the country's far

west, may constitute crimes against humanity.

Beijing has denied these allegations.

CORE said Dynasty Gold ( DGDCF ) did nothing to identify, assess, and

mitigate the risk of Uyghur forced labor at the mine, which led

to the watchdog to reach its conclusion.

The watchdog has asked Dynasty to make significant financial

donations to organizations working to combat Uyghur forced

labour, assess its leverage to prevent or mitigate use of forced

labour at Hatu mine and determine whether it should exit

responsibly from its business relationships in the Xinjiang

region.

Dynasty shares were up 3.7%.