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Glencore faces legal action over pollution caused by Zambian copper

Richard — Tue, 24 Jan 2012 19:01:07 +0000

Glencore is facing legal action over pollution caused by its vast and lucrative copper operations in Zambia. Glencore’s Mopani Copper Mines subsidiary has been a thorn in the firm’s side since its £6billion float in May last year, throwing up allegations of environmental recklessness and tax avoidance, which the company denies. The Swiss-based firm could find itself dragged through the courts after Zambian campaign group the Centre for Trade Policy and Development demanded the company explain itself or face a lawsuit.

See http://www.minesandcommunities.org/article.php?a=11440&l=1.

Glencore CEO is South Africa’s richest

Richard — Tue, 24 Jan 2012 19:00:09 +0000

The Rich List has been published, showcasing South Africa’s wealthiest business men and women. Topping the list for 2011 Ivan Glasenberg from Swiss-based, London-listed Glencore International, who has an estimated net worth of R61.48 billion.

See http://www.iol.co.za/business/business-news/glencore-ceo-is-sa-s-richest-1.1216359.

London Stock Exchange – occupied by coal

Richard — Tue, 24 Jan 2012 18:59:01 +0000

New analysis from Carbon Tracker shows how the growing number of coal mining companies listing in London exposes the financial market to a significant systemic risk. Investors tracking the FTSE AllShare Index are facing increasing efforts across the world to regulate the carbon dioxide (CO2) emissions from coal-fired power generation, most recently in Australia. Carbon Tracker estimates that coal reserves equivalent to 44.56 GtCO2 are held by companies listed on the London Stock Exchange. This is equivalent to 400 years of emissions from coal power stations in the UK, which currently stand at around 0.1Gt CO2 per annum.

See http://www.carbontracker.org/coalcapital.

Read the report at http://www.carbontracker.org/wp-content/uploads/downloads/2012/01/CoalCapitalbriefingJan12.pdf.

A third of coal listed in the UK is actually located in Australia, where the government has recently agreed to deliver a carbon tax and emissions trading scheme. So “UK” investors are potentially exposed to climate change regulatory risk in Australia. However, Australia and Indonesia export around three-quarters of their coal production. So, in fact, around half of the coal owned by UK-listed companies is supplying developing economies in China, Russia, India and South Africa. Many asset owners and fund managers representing $20trillion of capital reiterated their call for the Durban climate negotiations at the end of November to deliver a 2°C policy framework. Now is the time for them to also ask financial regulators to deliver a 2°C capital market system. The FSA needs to address the systemic risks of reserves concentrating on the London Stock Exchange and monitor the levels of fossil fuels listed in London. Asset owners investing in the UK market should request that the FSA introduces limits to the levels of overseas fossil fuel reserves. Accountants and analysts should review which reserves are lower quality due to risk of climate regulation, and climate change, and discount their value accordingly.

Fossil fuels are sub-prime assets, Bank of England governor warned

An open letter to Sir Mervyn King says overexposure to high-carbon assets by London-listed companies risks creating a ‘carbon bubble’.

See http://www.guardian.co.uk/environment/2012/jan/19/fossil-fuels-sub-prime-mervyn-king?INTCMP=SRCH.

Read the letter at http://www.carbontracker.org/linkfileshare/Letter-to-Bank-of-England-Financial-Policy-Committee-19th-January-2012-Final.pdf.

Asia’s Tainted Literary Fest

Richard — Tue, 24 Jan 2012 18:57:07 +0000

The DSC Jaipur Literature Festival opened in India on 20 January 2012, and concludes today. Billed as “the largest literary festival in the Asia-Pacific” it had already provoked heated debate before it got underway – the Festival is sponsored by two of the world’s most heavily criticised mining/mineral companies, Rio Tinto and Tata.

See http://www.minesandcommunities.org/article.php?a=11452&l=1.

Amungme leader warns Freeport it could be closed down

Richard — Tue, 24 Jan 2012 18:56:09 +0000

The vast Grasberg copper-gold mine in Indonesian-occupied West Papua is a continuing source of tension between the Indonesian government and those campaigning for West papuan independence. London-based Rio Tinto helped to finance the mine’s expansion and continues to profit from it. The mine is operated by PT Freeport Indonesia, a subsidiary of US-based Freepor McMoRan. West Papuan Amungme Indigenous leader Anthonius Alomang, is now threatening to close the mine down.

See http://westpapuamedia.info/2012/01/24/amungme-leader-warns-freeport-it-could-be-closed-down/.

Rio Tinto hits a snag in US copper mine clean-up

Richard — Tue, 24 Jan 2012 18:54:44 +0000

In November 2001, Rio Tinto secured a “Notice of Completion (COC)” from Wisconsin’s Department of Natural Resources (DNR) confirming that it had successfully reclaimed its Flambeau copper mine. This enterprise generated massive opposition by a coalition of Native Americans, environmental groups, hunters and fisherfolk from the late eighties onwards. Nonetheless, Rio Tinto was allowed to mine thousands of tonnes of copper, gold and silver between 1993 and 1997.

Over the past 10 years a number of those who led the earlier unsuccessful struggle have asserted that the COC was based on unreliable, if not fraudulent data. They said the UK company should not be allowed to walk away from the project claiming it had done everything legal and necessary to clean up its mess.

In particular, the Wisconsin Resources Protection Council (WRPC), along with the Center for Biological Diversity, pointed out that one of the small rivers (“Stream C”), downstream of the mining operations, continued to contain unacceptably high levels of toxic metals. Now the state Department for Natural Resources (DNR) has issued a statement which appears to back this claim.

See http://www.minesandcommunities.org/article.php?a=11433&l=1.

Rio Tinto subsidiary ERA expects flooding to hit uranium output again

Richard — Tue, 24 Jan 2012 18:52:33 +0000

The company warned that recent flooding caused by heavy rainfall in northern Australia will continue to restrict its uranium production for the year.

See http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=143022&sn=Detail&pid=92730.…
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Orissa High Court dashes Vedanta hopes to expand refinery

Richard — Tue, 24 Jan 2012 18:51:32 +0000

Vedanta Aluminium Ltd tried to get the High Court in the Indian State of Orissa to overturn its decision to stop expansion of the company’s Lanjigarh bauxite refinery. It failed.

See http://articles.timesofindia.indiatimes.com/2012-01-19/bhubaneswar/30642318_1_review-petition-vedanta-aluminum-alumina-refinery.…
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Vedanta set to grab further Indian resources – twice over

Richard — Tue, 24 Jan 2012 18:50:11 +0000

Vedanta’s contract with Scottish firm, Cairn Energy, to take a controlling stake in India’s most promising new oil field, still isn’t a “done deal”. But the acquisition has now moved one step closer to completion with backing from the Oil ministry – despite failures to address the Home Affairs ministry’s misgivings about Vedanta’s highly dubious human rights, environmental and governance record. Just as this particular “coup” looks like being ratified by the central government, the company’s principal subsidiary, Sterlite Industries, is proposing to purchase what it doesn’t yet own of BALCO. BALCO is Vedanta’s principal integrated aluminium subsidiary, notorious for its appalling record in safeguarding workers’ health and safety.

See http://www.minesandcommunities.org/article.php?a=11428&l=1.

Huge victory: Obama kills Keystone tarsands pipeline

Richard — Tue, 24 Jan 2012 18:48:47 +0000

Barack Obama rejected the controversial Keystone tar sands pipeline last Wednesday, making good on a promise not to give in to a Republican ultimatum on the project.

See http://www.no-tar-sands.org/2012/01/huge-victory-obama-kills-keystone/.

Company plans to mine a billion tonnes of coal off Wales – without miners

Richard — Tue, 24 Jan 2012 18:47:36 +0000

The debate over the use of coal in Britain is heating up. Reuters reports a British company, Clean Coal UK, is planning to mine an estimated billion tonnes of coal off the Welsh coast using underground coal gasification. The technique converts coal into a synthetic gas that can be used for power and other uses.

See http://www.mining.com/2012/01/18/company-plans-to-mine-a-billion-tonnes-of-coal-off-wales-without-miners/.

ICVL ties up with London-based company Anglo American for scouting coal assets

Richard — Tue, 24 Jan 2012 18:46:38 +0000

International Coal Ventures, a consortium of Indian state-run entities created to acquire coal assets abroad, has formed a strategic tie-up with Anglo American, a global leader in mining, for scouting for coking coal properties globally.

See http://articles.economictimes.indiatimes.com/2012-01-17/news/30635866_1_icvl-coking-coal-international-coal-ventures.

Court orders Anglo American to reveal contract with Mitsubishi

Richard — Tue, 24 Jan 2012 18:45:49 +0000

A Chilean court has ordered London-based Anglo American to reveal the contract under which it sold a 24.5% stake in its central Chile assets to Japan’s Mitsubishi. The court order follows a legal action filed by state copper producer Codelco aimed at gathering information to prepare a lawsuit requesting that the contract between Anglo and Mitsubishi be declared null and void.

See http://www.bnamericas.com/news/mining/court-orders-anglo-american-to-reveal-contract-with-mitsubishi1/283895013.

Xstrata knocked back in Philippines

Richard — Fri, 13 Jan 2012 16:29:26 +0000

Efforts to bring the massive Tampakan copper-gold project to commercial phase suffered a major blow after the Department of Environment and Natural Resources rejected the proponent’s application for an environmental compliance certificate (ECC).

Documents obtained by the Diocese of Marbel showed that Environment Secretary Ramon Paje rejected the ECC application of Sagittarius Mines, Inc., (SMI) due to the open-pit mining ban imposed by the provincial government of South Cotabato.

Sagittarius Mines is controlled by Xstrata Copper, the world’s fourth largest copper producer. Xstrata is based in Switzerland but listed on the London Stock Exchange.

See http://www.mindanews.com/environment/2012/01/13/denr-denies-smi%E2%80%99s-ecc-application-smi-to-appeal-for-reconsideration/.

Philippines: Another natural disaster reignites the mining debate

Shortly before Christmas 2011 the Philippines reconfirmed its reputation for natural disasters when tropical storm Washi (local name Sendong) caused devastation on the north coast of Mindanao. As previously, the cause of much of the catastrophe appears man-made, thanks mainly to the denudation of forest cover on the watersheds.

Although the Philippine mining industry was quick to note there was no large-scale mining that would have directly affected this particular tragedy, the role of mining in the region has been highlighted again. It has certainly highlighted the exemption that allows mining companies to continue logging despite bans put in place after similar incidents.

Then on January 5th a subsequent landslide hit a gold-mining area, which is subject to such incidents, with an estimated 25 fatalities. This particularly highlighted the potential for widespread disaster at Xstrata‘s nearby Tampakan project.

See http://www.minesandcommunities.org/article.php?a=11405&l=1.

Rio Tinto subsidiary Kennecott Utah Copper Blamed By Doctors And Moms For Pollution

Richard — Fri, 13 Jan 2012 16:27:23 +0000

When winter comes to Utah and atmospheric conditions trap a soup of pollutants close to the ground, doctors say it turns every resident in the Salt Lake basin into the equivalent of a cigarette smoker.

They have filed a lawsuit against Kennecott Utah Copper, accusing it of violating the U.S. Clean Air Act. The company operates with the consent of state regulators who enforce the federal law.

The company is the No. 1 industrial air polluter along Utah’s heavily populated 120-mile Wasatch Front and operates heavy trucks and power and smelter plants.

See http://www.huffingtonpost.com/2011/12/26/kennecott-utah-copper-lawsuit_n_1169915.html.