October 2012 protest against AngloGold Ashanti’s La Colosa project

In an open letter to AngloGold Ashanti shareholders timed to coincide with the company’s May 13 AGM in South Africa, an alliance of organizations in Colombia list the human rights and environmental impacts of the company’s attempts to open a huge new opencast gold mine in the department of Tolima in Colombia.

See http://www.colombiasolidarity.org.uk/articles/57-features/591-notice-to-anglogold-ashanti-shareholders.

Rethink London listing rules after ENRC: top investor

The Government and regulators must urgently re-draw the UK’s listing rules to stop foreign firms with lapsed controls from being presented as premium stocks, a leading shareholder has warned, as fresh details emerged of the crisis at miner ENRC. George Dallas, head of corporate governance at F&C Management, said too many companies listed as “premium” stocks in the FTSE 100 index “don’t appear to match the label.” In the wake of recent stockmarket scandals such as Eurasian Natural Resources Corporation (ENRC) and Bumi, the rules need to be tightened and updated, he said.

See http://www.telegraph.co.uk/finance/newsbysector/industry/mining/10023823/Rethink-listing-rules-after-ENRC-top-investor.html.

Listing badly – Kazakh and Indonesian miners battle shareholders in London

EMPIRE-BUILDERS of old claimed they were spreading Britain’s civilising influence. Similar explanations were offered when the London Stock Exchange (LSE) started welcoming mining firms from emerging economies. Listing in London would spur them to adopt British corporate-governance standards, investors were told. The firms would find it easier to raise the vast amounts of capital needed to develop big mines. And punters would be able to bet on a booming industry without worrying about the weaker protections for investors in the wilder parts of the world. Alas, it didn’t work that way, as the latest upheavals at two London-listed firms show.

See http://www.economist.com/news/business/21576705-kazakh-and-indonesian-miners-battle-shareholders-london-listing-badly.

There is now a growing acceptance of the requirement for indigenous peoples’ Free Prior Informed Consent (FPIC) in many industries, including the extractive industries. This has been reflected by its incorporation into policies of an increasing number of mining companies, although admittedly sometimes in a more diluted form. As the need for FPIC is introduced into state law, and made a requirement of financing, companies are increasingly struggling with how to implement FPIC.

Yet, for indigenous peoples it is clear that their right to give or withhold FPIC should be seen in a context of them as rights-holders, rather than just yet another stake-holder. Therefore, there seemed to be a need for research to act as a basis for constructing a common ground with regard to the requirement for indigenous peoples’ FPIC.

The report, Making Free Prior & Informed Consent a Reality: Indigenous Peoples and the Extractive Sector seeks to do just that. Authored by Cathal Doyle and Jill Carino, it advocates for multinational mining companies, the investor community, and state actors to understand the importance of the FPIC principle from ethical, sustainability and economic perspectives. Fundamentally it argues that it is essential to understand FPIC from an indigenous peoples’ rights-based perspective in order to effectively implement it in a manner which is in accordance with indigenous peoples’ exercising their right to self-determination.

See http://www.minesandcommunities.org/article.php?a=12279&l=1.

The report can be viewed at: http://www.piplinks.org/report%3A-making-free-prior-%2526amp%3B-informed-consent-reality-indigenous-peoples-and-extractive-sector (along with an extract of the conclusions and recommendations, together with a Word version of a Spanish translation of the extract).

Photo of Alberta tarsands “development”: Northern Rockies Rising Tide

If it’s only a social movement that can change the power equation upholding the official’s stance, then the Idle No More uprising may be it.

Triggered initially in late 2012 by opposition to the Conservative government’s roll-back of decades of environmental protection, this Indigenous movement quickly tapped into long-simmering indignation. Through the chilly winter months, Canada witnessed unprecedented mobilizations, with blockades and round-dances springing up in every corner of the country, demanding a basic resetting of the relationship between Canada and Indigenous peoples.

The stakes could not be greater. The movement confronts a Conservative Canadian government aggressively pursuing $600 billion of resource development on or near Indigenous lands. That means the unbridled exploitation of huge hydrocarbon reserves, including the three-fold expansion of one of the world’s most carbon-intensive projects, the Alberta tar sands. Living closest to these lands, Indigenous peoples are the best and last defence against this fossil fuel scramble. In its place, they may yet host the energy alternatives – of wind, water, or solar.

Sustained action that puts real clout behind Indigenous claims is what will force a reckoning with the true nature of Canada’s economy – and the possibility of a transformed country. That is the promise of a growing mass protest movement, an army of untold power and numbers.

See http://www.minesandcommunities.org/article.php?a=12261.

Glencore Xstrata told investors it would return excess cash, slash costs and might sell unwanted assets, raising expectations it would easily exceed planned synergies of $500 million from the deal that created the new group. Unveiling a management team packed with veteran Glencore executives, the group promised to “cut bureaucracy and duplication”, vowing it would reduce administrative staff, cut divisional offices and underperforming projects to ensure success even at a time of cooling commodity prices. Mining mega-deals have had a mixed record of success at best over the past decade, but a day after Glencore sealed the acquisition of Xstrata, the biggest ever takeover in the sector, its shares soared 6 percent, helped by a jump in the copper price. At current prices the group is worth $73 billion.

See http://www.mineweb.com/mineweb/content/en/mineweb-mining-finance-investment-old?oid=188783&sn=Detail.

Big Mick Davis and Goldman Sachs building takeover war chest

Mick Davis, outgoing CEO of Xstrata post the $76 billion takeover by commodities traders Glencore, is already building an acquisitions war chest. At the outset of what was then a merger negotiation 15 months ago, Davis was put forward as the leader of the combined group, but in a deal with the Qatari sovereign wealth fund to save the deal from collapse, Glencore CEO Ivan Glasenberg secured the top post for himself. Davis is expected to stay on for a few months, but FT.com reports he has hired Goldman Sachs to help him raise a new fund that will buy stakes in mining assets.

See http://www.mining.com/big-mick-davis-and-goldman-sachs-readying-takeover-war-chest-34362/?utm_source=digest-en-mining-130506&utm_medium=email&utm_campaign=digest.

See http://www.bdlive.co.za/national/labour/2013/04/29/sick-miners-ask-anglo-for-details-of-defence.

See http://www.theaustralian.com.au/business/mining-energy/bn-coal-export-project-shelved/story-e6frg9df-1226634235997.

There has been very strong community opposition to construction of the terminal.

The report, Yellowcake Fever: exposing the uranium industry’s economic myths, released by the Australian Conservation Foundation, shows uranium accounted for only 0.29 per cent of national export revenue and less than 0.015 per cent of Australian jobs in the decade to 2011.

Among companies mining uranium in Australia are London-listed BHP Billiton and Rio Tinto (through its subsidiary ERA).

See http://www.minesandcommunities.org/article.php?a=12262.

The revised assessment follows the release of an initial draft assessment in May 2012 that looked at the potential consequences of a Pebble Mine-like development in the Bristol Bay watershed.

Pebble is 50% owned by Anglo American and 50% by Northern Dynasty, in which Rio Tinto has a minority holding.

See http://www.mpe-magazine.com/enviromine/us-watchdog-warns-alaska-project-could-cause-ecological-damage?utm_medium=email&utm_source=Mines+%26+Money+Events+Ltd&utm_campaign=2450772_MPE+Newsletter+May+2013&dm_i=5O3,1GJ10,S3KYF,4YHL3,0.

Lie down protest in front of government mining offices, Surigao City, on Earth Day 2013. Photo: Roel N. Catoto, Mindanews

The challenge continues to be made to the constitutionality of the benefit sharing parts of the 1995 Mining Act.  The case has kept issues related to the costs and benefits of mining in the news (particularly in arguments over Xstrata‘s Tampakan project), while the industry has been hitting back.

See http://www.minesandcommunities.org/article.php?a=12260.

The ruling, which may come into force in a couple of weeks, would apply to all exports and imports over $10,000, Zambia’s deputy finance minister, Miles Sampa, told the FT. Companies would have 60 days to deposit funds in a commercial bank in the southern African country and they would be forced to provide banks with evidence that supports reasons for transferring funds offshore, such as dividend payments, or to import equipment.

The country doubled its mining taxes in 2011 to 6%, claiming that Zambia was not getting enough benefits from its mineral wealth. Contrary to what analysts predicted, the measure did not scare away mining companies such as Glencore International and Vedanta Resources.

See http://www.mining.com/zambia-corners-mining-companies-to-stop-tax-evasion-15641/?utm_source=digest-en-mining-130429&utm_medium=email&utm_campaign=digest.

See http://www.minesandcommunities.org/article.php?a=12280&l=1.

FOR the 590 miners who lost their jobs when Scottish Coal collapsed last month, there is a lot at stake this week. Liquidator KPMG looks likely to announce what will happen to the company’s portfolio of six opencast coal mines in Ayrshire, Lanarkshire and Fife, 11 former mines and several other sites with permissions to start digging.

See http://www.heraldscotland.com/business/company-news/dole-not-coal.20984854.

Daw Mill colliery operators UK Coal on brink of administration

URGENT talks have been held after it was revealed that the owners of Daw Mill colliery are on the brink of administration. Six hundred miners at the colliery were put out of work earlier this year when a huge blaze hit the mine – but now redundancy packages could be in doubt as owners UK Coal look at restructuring plans.

See http://www.thisistamworth.co.uk/Daw-colliery-operators-UK-Coal%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20-brink/story-18869135-detail/story.html#axzz2S8f44nD8.

UK Coal still in talks to save up to 2,000 jobs

UK Coal, Britain’s largest coal miner, yesterday confirmed that it was still in talks with creditors to stay solvent and save up to 2,000 jobs. The company warned in February that a fire at its largest mine, Daw Mill, could harm the viability of the whole company unless it received outside help from Government or creditors. According to a report in The Sunday Times yesterday, bosses at UK Coal are in talks with HM Revenue & Customs over a £2m tax bill.

See http://www.yorkshirepost.co.uk/business/business-news/uk-coal-still-in-talks-to-save-up-to-2-000-jobs-1-5649601?.

Miners’ chief wants action after UK Coal escapes fine

A MINERS’ union chief is demanding action after a mining company avoided a fine following a prosecution for the death of one of its employees. Jeff Wood, president of the Mansfield-based Union of Democratic Mineworkers (UDM), feels the Health and Safety Executive has let miner John Harbron and his family down. UK Coal Operations Ltd was found guilty of failing to ensure an employee’s welfare after Mr Harbron was killed when 40 steel pipes he was unloading from a rail car at Thoresby Colliery fell on him in July 2009.

See http://www.chad.co.uk/news/local/miners-chief-wants-action-after-uk-coal-escapes-fine-1-5635383.

See http://www.mineweb.com/mineweb/content/en/mineweb-fast-news?oid=188755&sn=Detail.

This financial backing is despite the serious concerns raised about the project: see list of articles at http://londonminingnetwork.org/?s=oyu+tolgoi.

Meanwhile, at its recent AGM in Papua New Guinea, Rio Tinto’s Bougainville Copper subsidiary released a study which lent further weight to its own “case” for re-opening the Panguna mine.

See http://www.minesandcommunities.org/article.php?a=12281&l=1.