London Mining Network

Universities Superannuation Scheme faces ethical dilemma over strip-mining operation

Richard — Mon, 08 Mar 2010 12:29:47 +0000

Investment by the Universities Superannuation Scheme in a British mining company could damage an ancient forest sacred to an Indian tribe, activists say.

Survival International, a charity that supports tribal peoples, has been lobbying the main pension provider for academics to pull its investment from Vedanta for two years.

The company plans to open a bauxite mine on Niyamgiri Mountain in the state of Orissa, eastern India.

The Dongria Kondh tribe, about 8,000 of whom live in the area, have left the trees on the mountain untouched as they believe that a god inhabits the forest.

See http://www.timeshighereducation.co.uk/story.asp?sectioncode=26&storycode=410629&c=1.

Vedanta takes on critics of mining at India tribal site

Richard — Mon, 08 Mar 2010 12:27:54 +0000

London-based resource giant Vedanta has decided to take on its critics who have been attacking from all sides over its plans to mine an area in India held sacred by a tribal group.

See http://news.yahoo.com/s/afp/20100304/wl_sthasia_afp/indiabritainminingvedantarights.

Indian Environment Minister to review Vedanta clearances

Richard — Mon, 08 Mar 2010 11:24:33 +0000

Ramesh to review Posco, Vedanta clearances

Controversy-prone Indian minister for environment and forests Jairam Ramesh has now decided to review the forest clearances granted to Posco and Vedanta Resources. Both the giant Korean firm (Pohang Steel Company) and the UK-based Vedanta Resources have been pressing to start mining operations in Orissa. Their efforts have been stalled by protests launched on the ground by different indigenous tribal groups. Mr Ramesh has however decided to take the bull by the horns and stated categorically in a recent press interaction, “No mining or construction can start till such time as both Posco and Vedanta receive stage two clearances which the government has not granted so far. They have violated the guidelines under the Forest Conservation Act.”

The minister said, “No project will be allowed in tribal areas without rights of tribals being first settled in forest areas. This has not happened in the Niyamgiri areas,” which are home to the Dongria Kondh tribes.

See http://epaper.asianage.com/Asian/AAge/2010/02/28/ArticleHtmls/28_02_2010_003_011.shtml.

Vedanta raises Rs 17,000 crore debt for Orissa project

Richard — Mon, 08 Mar 2010 11:22:13 +0000

Vedanta Aluminium, a subsidiary of the billionaire Anil Agarwal-promoted Vedanta Resources, has raised a Rs 17,000-crore debt for its ongoing project in Orissa to increase its fully-integrated aluminium smelting capacity. (One crore is equivalent to ten million. 17,000 crore rupees is equivalent to nearly £2.5 billion sterling.)

See http://www.business-standard.com/india/news/vedanta-raises-rs-17000-cr-debt-for-orissa-project/386782/.

INDIA: Indigenous Groups Step Up Protests Over Mining Project

Richard — Mon, 08 Mar 2010 11:20:27 +0000

Indigenous Dongria Kondhs trekked to Niyam Dongar hill, the abode of their presiding deity Niyam Raja, and designated it as inviolate, meaning that they were stepping up their resistance to a controversial alumina refinery and bauxite mine project. They carried out religious rituals to Niyam Raja – the sacred dispenser of law – and then put up a totem pole in the area located in Niyamgiri hills in their homeland Lanjigarh, a bauxite-rich hilly area in Kalahandi of Orissa state in eastern India. This was the latest act of defiance here against the backdrop of unrest since 1997 among communities, environmental and rights activists over the 2.13 billon U.S. dollar mining project by Vedanta Aluminium Ltd, the Indian arm of London-based Vedanta Resources Plc.

See http://www.ips.org/TV/wsf2010/india-indigenous-groups-step-up-protests-over-mining-project/.

Labour groups rally around locked out Rio Tinto borax miners

Richard — Mon, 08 Mar 2010 11:19:15 +0000

The 600 workers were shut out of the world’s second largest borax mine on January 31 after a five month contract dispute with Rio Tinto.

See http://www.minesandcommunities.org/article.php?a=9945.

New PLATFORM report reveals RBS is UK bank most involved in financing loans to tar sands companies

Richard — Mon, 08 Mar 2010 11:18:14 +0000

Tar sands extraction in Canada is devastating Indigenous communities, wildlife and vast areas of boreal forests, as well as being many times more carbon-intensive to produce than ‘conventional’ oil.

“We are seeing a terrifyingly high rate of cancer in Fort Chipewyan where I live. We are convinced that these cancers are linked to the Tar Sands development on our doorstep. It is shortening our lives. That’s why we no longer call it ‘dirty oil’ but ‘bloody oil’. The blood of Fort Chipewyan people is on these companies’ hands.” - George Poitras, former chief of Mikisew Cree First Nation.

The higher oil prices in recent years have meant that it’s become a more attractive prospect for oil companies to expand their operations in the costly process of obtaining and processing the thick bitumen into a usable form. It’s estimated that the industry is looking for a capital investment of $120-$220 billion over the next 20 years to build the new pipelines, mines, refineries and upgraders that are necessary to sustain the boom.

This report looks at the role that UK banks are playing in providing the necessary capital, and how RBS, which is 84% owned by the UK public, has been the bank the most heavily involved in underwriting loans to companies engaging in tar sands extraction.

See http://blog.platformlondon.org/rbstarsands.

A fund for climate chaos

RBS investment in tar sand exploitation is a highly irresponsible use of public bailout money.

See http://www.guardian.co.uk/commentisfree/2010/mar/04/rbs-tar-sands-publi-investment.

Take action

Tar sands (also known as oil sands) are one of the biggest single factors threatening efforts to tackle climate change. Tar sands make up the world’s second largest oil reserves (173 billion barrels) and the damage they can cause to the climate is even worse than conventional oil. The greenhouse gas emissions of converting tar sands into fuel is three times higher than for conventional oil and roughly three barrels of natural gas are consumed to create one barrel of oil. Tar sands also have human rights costs. The pollution, deforestation and wildlife disturbance associated with tar sands developments also threaten the traditional livelihoods and wellbeing of indigenous communities. If you are a member of a pension scheme, your pension provider almost certainly has substantial shareholdings, held on your behalf, in the companies who are involved in (or considering becoming involved in) tar sands developments. This spring your pension provider will have the chance to vote on tar sands developments at shareholder meetings of BP and Shell, and will be making up its mind about how to vote anytime now.

See http://www.fairpensions.org.uk/tarsands/action.

London-listed companies and the earthquake in Chile

Richard — Mon, 08 Mar 2010 11:15:09 +0000

London-listed Anglo American, BHP Billiton and Xstrata are all involved in copper mining in Chile.

Chile copper mines, ports recover

All but one of Chile’s biggest copper mines hit by the massive weekend earthquake had restored operations by Monday, but persistent power supply problems threatened to restrict production rates.

See http://www.reuters.com/article/idUSTRE61R2WL20100301.

Anglo American’s earthquake-related copper losses less than 1,500t

Multinational resource group Anglo American’s (LSE: AAL) Chilean copper operations suffered a production loss of less than 1,500t due to stoppages following Saturday’s (Feb 27) earthquake, the company said in a release.

See http://www.bnamericas.com/news/mining/Anglo_American*s_earthquake-related_copper_losses_less_than_1,500t/177099610.

BHP embroiled in Falklands row

Richard — Mon, 08 Mar 2010 11:12:43 +0000

Argentina’s ambassador to Australia says mining group BHP Billiton will face business sanctions if it pushes ahead with oil exploration in Falklands waters. BHP has a licence to explore off the Falkland Islands and is scheduled to start doing so in the next four months. But Ambassador Pedro Villagra says if the company proceeds, their business in Argentina will suffer.

See http://www.abc.net.au/news/stories/2010/02/26/2831810.htm.

Two analyses of developments in the mining industry by Barry Sergeant of Mineweb

Richard — Mon, 08 Mar 2010 11:11:01 +0000

Both articles analyse the relative strengths and weaknesses of companies across set time-frames. The first of them deals with how much companies have returned to investors over the last decade of the so-called ’super-cycle’. Note BHP Billiton led by returning almost $30 billion to shareholders, followed by Ango American at $20 billion. The second reviews the top 10 companies over 3 years, focussing on cash generated and re-invested, as well as out-standing debt.

Smoke, mirrors and reality among major diversified miners
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=99488&sn=Detail&pid=92730

Just how strong are the world’s biggest miners?
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=99341&sn=Detail&pid=92730

How Sustainable Is ‘Socially Responsible’ Mining?

Richard — Mon, 08 Mar 2010 11:05:06 +0000

In the ten years since the mining industry has gone “responsible,” have things really improved for local communities–or has the industry’s PR just got better? (Mentions Vedanta, Monterrico Metals).

See http://www.thenation.com/doc/20100301/kennard?rel=emailNation.

Tanzanians more cursed than blessed

Richard — Mon, 08 Mar 2010 11:00:52 +0000

In this opinion piece the author asks whose interests drive the government and politicians in Tanzania and who is at the heart of policy development and formulation when mining corporations enjoy a better relationship with politicians than their electorates do? He argues that mining companies and government Ministers have missed an opportunity “to repair the damages caused and compensate the poor villagers of their looses” and chosen to advance their own interests in the New Mining Bill. The article mentions AngloGold Ashanti, a South African company with a subsidiary listing on the London Stock Exchange, and Barrick, a Canadian company with London-based financial investment (see below).

See http://www.africafiles.org/article.asp?ID=23066.

Barrick is a Canadian company but London-based AXA Investment Managers UK Ltd had over $10 million invested in the company in 2007, BlackRock Commodities Income Trust plc has invested in the company, and the company also has connections with Millhouse Capital, controlled by London resident Roman Abramovich, and New City Investment Managers Ltd/NCIM (UK). (See From Money to Metals by Roger Moody, http://moneytometal.org/index.php/From_Money_to_Metals.)

Cerrejon Coal joins Global Business Initiative on Human Rights (GBI)

Richard — Mon, 08 Mar 2010 10:55:12 +0000

GBI has formally announced that the Initiative’s core group of members will be joined by Colombian mining company Cerrejon Coal, a joint venture of London-listed Anglo American, BHP Billiton and Xstrata.

GBI states that its aim is to advance human rights in business around the world. Core membership of the Initiative now includes: ABB, Cerrejon, Flextronics, GE, HP, Mansour, Novo Nordisk, Shell, The Coca-Cola Company and Total.

Many involved in London Mining Network may be surprised at the involvement in this human rights initiative of companies which have widely criticised records in this matter.

See http://www.global-business-initiative.org/.

Barrick in trouble over Pascua Lama project

Richard — Mon, 08 Mar 2010 10:53:27 +0000

Huascoaltinos claim over Pascua Lama deemed admissible by the Inter-American Court of Human Rights

The Inter-American Commission on Human Rights (IACHR) has acknowleged that the Chilean state may have committed violations of rights, enshrined in the American Convention on Human Rights, when it approved Barrick Gold’s Pascua Lama mining project.

“The Pascua Lama project, as occupying part of our ancestral territory, takes away from us the possibility of protecting our natural and cultural heritage” says the Diaguita Huascoaltinos.

The Sun supports the Dongria Kondh, attacks Vedanta

Richard — Mon, 08 Mar 2010 10:25:55 +0000

Tribe’s fight to save their Pandora

British tabloid The Sun has joined those comparing the story of James Cameron’s film Avatar to that of the Dongria Kondh people resisting London-based Vedanta Resources in the Niyamgiri Hills in the Indian state of Orissa.

See http://www.thesun.co.uk/sol/homepage/showbiz/film/2880779/Oscars-week-The-real-life-story-like-that-in-Avatar.html.