London Mining Network » legal

Forest Ministry free to say ‘no’ to Vedanta

Richard — Fri, 23 Jul 2010 09:16:54 +0000

The Attorney-General of India has given the government a free rein to refuse forest clearance for Vedanta Aluminium’s bauxite mining proposal in the Niyamgiri Hills of Orissa.

The project has been put on hold, while a committee led by NAC member N.C. Saxena examines how it would impact the life, livelihood and culture of Dongria Kondhs, a notified tribal community living in the region, as well as a possible impact on biodiversity and wildlife. Forest Conservation Act clearances for diversion of 660 hectares of land have not been granted to Vedanta and its partner, the Orissa Mining Corporation.

See http://www.thehindu.com/news/national/article528834.ece.

Further delays for Vedanta

Richard — Wed, 21 Jul 2010 15:11:32 +0000

Third blow for Vedanta in a month as mine faces new probe

In the third major blow to Vedanta in a month, the Chief Secretary of the Indian state of Odisha (formerly Orissa) has ordered a new investigation into the rights of the Dongria Kondh tribe affected by Vedanta Resources’ controversial bauxite mine. The announcement comes just two weeks after the Indian Minister of Environment and Forests ordered an investigation on the same topic, and ten days after leading Dutch investment firm PGGM sold its stake in the company over human rights concerns.

See http://www.survivalinternational.org/news/6224?utm_source=E-news+%28English%29&utm_campaign=64ecdb7bd3-July_e_news7_15_2010&utm_medium=email.

Vedanta’s Niyamgiri project delayed as Orissa goes for fresh forest survey

The London Stock Exchange listed Vedanta Resources has to wait for some more time to source bauxite from the Niyamgiri mines for its 1 million tonne alumina plant at Lanjigarh as the state government has decided to conduct a fresh survey of the forest area to settle the claims under Forest Right Act.

See http://www.financialexpress.com/news/vedantas-niyamgiri-project-delayed-as-orissa-goes-for-fresh-forest-survey/645029/.

Formal Human Rights Complaint re HudBay in Guatemala

Richard — Wed, 21 Jul 2010 15:08:59 +0000

A high-level Canadian civil society investigation into alleged grievous human rights abuses at a nickel mine in Guatemala in 2007 has confirmed that local people were viciously attacked by police and mine security, forcibly evicted from their homes, and that several women were raped. Although the accusations were submitted to the Canadian ambassador in Guatemala back in May, no response had been received. Now Canada’s foreign minister has been urged to carry out its own investigation into the charges.

The company responsible for operating the mine is HudBay (formerly Skye Resources) which is part-owned by Vedanta Resources plc in London.

See http://www.minesandcommunities.org/article.php?a=10247.

Philippine Bishops want Truth Commission vs environmental crimes

Richard — Wed, 21 Jul 2010 15:05:51 +0000

The Philippines has a new President. He is the son of the national heroine, ‘Cory’ Aquino. After the pro-mining policy of previous President, Gloria Macapagal-Arroyo, there are hopes that “Noynoy” (as he is popularly known) will literally bring in a new regime. He has promised a ‘Truth Commission’ over his predecessors’ corruption, and the Catholic Bishops are asking that this be extended to looking at environmental crimes, most notably previous mining disasters. They are also calling, once again, for the repeal of the 1995 Mining Act. This would affect London-listed Xstrata.

See http://www.minesandcommunities.org/article.php?a=10245.

Xstrata tries to get round opencast mining ban in Philippines

Richard — Wed, 21 Jul 2010 15:04:51 +0000

AMID keen interest by big firms in the country’s mineral resources, the Philippines Government has stepped into the controversy created by a local government unit’s (LGU) decision to ban open-pit mining in the southern Philippines. The Department of Environment and Natural Resources (DENR) said that President Benigno Aquino 3rd already gave the agency the mandate to pursue a compromise solution on the issue.

See http://www.manilatimes.net/index.php/business-columns/21454-malacanang-orders-win-win-solution-to-open-pit-mining-row.

London Calling reviews Australian taxation – the tax is dead, long live the tax…

Richard — Wed, 21 Jul 2010 14:49:58 +0000

The net result of the recent heated debate in Australia over whether mining companies should pay considerably more tax, led to the ousting of the prime minister after millions of dollars were subscribed to a high-profile advertising campaign by the big mining companies (Anglo-Australian entities such as BHP Billiton, Rio Tinto and Xstrata chief among them).

This was backed by real, or vacuous threats, to quit the country’s shores – or at least withdraw from some key projects.

In fact, none of the companies have made concrete moves to do so, while investors’ confidence in the industry, over the past 2 months, hasn’t appeared to be significantly dented. Although Australia’s fiscal policy has been in disarray for some time – not least following the September 2008 meltdown – the country is still the world’s biggest supplier of coking coal, alumina, lead and iron ore - the three global giants would have cut off big chunks of their noses, had they actually followed through on their threats.

The compromise measures, now apparently agreed between miners and government, are in some respects not significantly different from the discredited “Super Profits” tax, except insofar as applying a tax rate of 30%, as opposed to 40%, charging at a lower “trigger point”, and with fewer companies subject to the new measures.

The new tax will be called a “Resource Rent” – a well-worn concept, no doubt calculated to provoke far less anxiety than the spectre of companies ripping off the state and people and walking away with billions off ill-gotten gains.

In reality, however, while the former proposal was estimated to recoup Aus$12 billion in revenue for the government by 2012, the revised taxation regime is likely to garner only a little less (around Aus$10-11 billion).

Mind you, there’s quite a lot to which the “missing” billion might have gone. Not least in increased dues to the Aboriginal communities who have had to sacrifice an increasing amount of their territory and resources to mining over the past 25 years.

See http://www.minesandcommunities.org/article.php?a=10228.

Shoshone Battle to Stop Gold Mine on Mount Tenabo Continues

Richard — Wed, 21 Jul 2010 14:46:31 +0000

Although to some extent the recent Court of Appeals decision is a defeat for the Western Shoshone (as it reversed an earlier stay on expansion by Barrick Gold of its major Cortez gold mine in Nevada), it is still part of ongoing legal actions. Also, although expansion can continue, US regulators must respond to a new appeals court order to better assess potential impacts. They further agreed with the tribe that the Bureau of Land Management (BLM) failed to adequately consider the projects’ cumulative impacts on the Shoshone, although the claim that the BLM fulfilled its duty to consult the tribe is somewhat surprising.

See http://www.minesandcommunities.org/article.php?a=10233.

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.)

EU Commission refuses ban on cyanide in gold

Richard — Wed, 21 Jul 2010 14:44:09 +0000

Recently the European parliament called for an outright ban on the use of cyanide in gold processing (see http://www.minesandcommunities.org/article.php?a=10102). But the European Commission has rejected the demand, claiming that sufficient safeguards are in place to avoid any disaster. This response is clearly motivated by industry fears of closure, and officially excused as protecting jobs. It is all the more indefensible in light of the fact that, just four months ago, the world’s second biggest gold miner was found guilty of causing a massive cyanide spill in Ghana.

See http://www.minesandcommunities.org/article.php?a=10246.

Landmark Extractive Industry Transparency Law Passed in United States Congress

Richard — Wed, 21 Jul 2010 14:42:04 +0000

Amendment in Financial Reform legislation sets new global standard for corporate transparency

When will UK follow suit?

Communities living in resource-rich countries won a historic victory today when the U.S. Congress passed landmark transparency legislation as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Once signed into law in the coming days by President Obama, the provision will require oil, gas, and mining companies registered with the US Securities and Exchange Commission (SEC) publically disclose their payments to governments for the extraction of natural resources on an annual basis.

See http://www.earthrights.org/campaigns/extractive-industry-transparency-provision-signed-law.

US appeals court rejects De Beers’ $272.5m class action settlement

Richard — Wed, 21 Jul 2010 14:28:08 +0000

A U.S. appeals court has rejected a $272.5 million class-action settlement between De Beers and purchasers of the company’s diamonds who said they were harmed by the company’s antitrust behaviour. The appeals court sent the settlement back to a lower court for further consideration and to clarify which claims are subject to the treatment as a class, or group of plaintiffs who are allowed to sue the company collectively.

De Beers, the world’s top diamond producer, which is 45 percent owned by Anglo American, reached an agreement in 2005 to establish a $272.5 million fund for indirect purchasers of its diamonds. The settlement came after the company pleaded guilty in 2004 to a decade-old price-fixing charge, allowing it to compete directly in the United States. The class-action settlement was certified by a U.S. District Court in New Jersey but 34 of the indirect purchasers objected to the deal. The indirect purchasers include retailers, consumers and some middlemen.

See http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=107929&sn=Detail&pid=92730.

Guatemala says to suspend Goldcorp’s Marlin mine

Richard — Sat, 26 Jun 2010 08:57:57 +0000

The Guatemalan government said it would suspend operations at Goldcorp Inc’s Marlin mine due to allegations the facility was contaminating water supplies. The government said in a statement it would act to comply with the complaint lodged on behalf of communities near the mine by the Inter-American Commission for Human Rights, known by its Spanish acronym CIDH.

See http://af.reuters.com/article/metalsNews/idAFN2325995720100624.

Goldcorp is a Canadian company but among its major investors are British-based AXA Investment Managers UK Ltd (US$4.3 million), Blackrock Commodities Income Trust plc, and City Natural Resources High Yield Trust PLC, according to the document From Money to Metals (http://moneytometal.org/index.php/From_Money_to_Metals) by mining researcher Roger Moody.)

Rio gets go-ahead for $542M mine; mining opponent convicted of trespass on public land

Richard — Sat, 26 Jun 2010 08:47:24 +0000

According to an article in Mining News (http://www.miningnews.net/StoryView.asp?StoryID=1136802) Rio Tinto will begin construction of the $US469 million ($A542 million) Kennecott Eagle nickel-copper mine in Michigan after receiving environmental approval.

A local commentator says:

“I’ve seen Rio Tinto submit basically the same news release on a number of occasions when they feel a need to overshadow something else that is occupying the media’s attention. Recently, Cynthia Pryor was convicted for “trespassing” on public land (see http://miningjournal.net/page/content.detail/id/545328.html?nav=5006). I believe that Rio Tinto didn’t know which way this case would go and wanted to overshadow it by reiterating their huge investment in the Eagle Mine. The company is nervous to have any sort of legal discussion about the validity of their surface use lease with the State of Michigan. The core of Pryor’s argument was that she refused to leave because the company doesn’t have a valid, legal lease. The judge allowed the prosecution to strike that from the case, so Pryor wasn’t even allowed to argue the reasoning behind her refusing to leave public land that day. The prosecutor, however, was able to use the lease to his own advantage on a number of occasions. The jury was only allowed to consider whether Kennecott asked her to leave, whether they have authority to ask her to leave (oddly she wasn’t allowed to challenge that authority in court), and whether she refused to leave. The judge made it simple for the jury to convict her. She won all the arguments but lost the case. So, Rio Tinto is trying to avoid scrutiny of their mine plan (still in court) and their land lease, so is trying to steamroll ahead with their economic arguments. They have already bulldozed the entire site, leaving Eagle Rock an island in the middle of a bare wasteland. Once they’re moving, it’s difficult to stop them, even with a legal victory. It’s similar to what they did in Wisconsin two decades ago.”

For background, see http://londonminingnetwork.org/2010/04/rio-tinto-opponent-arrested-for-trespassing-on-public-land/.

Papua New Guinea removes land owner rights

Richard — Wed, 09 Jun 2010 10:16:07 +0000

Lawyers for a landowner group won an injunction against a mine’s submarine tailings disposal on the basis of a lack of a free and independent environmental plan, as is a prerequisite to their licensing by the Department of Environment and Conservation. The Government has now responded to this by creating a law which will block indigenous Papuans being able to object to projects that are in the “national interest”, once the government has issued a certificate of approval. This goes against international precedents and trends, as well as cultural values concerning land. Powes Parkop, Governor of the National Capital District and a former human rights advocate, has released copies of his letter objecting to this move as “a total sell out of the sovereign rights and interest of the people of PNG”.

Among the mining companies with an interest in PNG are Barrick (Canadian, but with finance from London) and London-based Rio Tinto.

See http://www.minesandcommunities.org/article.php?a=10145.

Vigil at Rio Tinto Michigan mine site ends with two arrests

Richard — Tue, 01 Jun 2010 11:17:04 +0000

For a month, a small group of American Indians and environmental activists occupied an isolated patch of woods in Michigan’s Upper Peninsula where the world’s third-largest mining company, Rio Tinto, is preparing to drill for nickel and copper. The protesters vowed to stay put, saying the mine would desecrate sacred ground and pollute waters that flow into nearby Lake Superior. But their vigil ended Thursday, as police enforced an order by Rio Tinto subsidiary Kennecott Eagle Minerals to clear the area and arrested two people on misdemeanor trespassing charges.

See http://www.guardian.co.uk/world/feedarticle/9100343.

For background and more information see http://standfortheland.com.

BHP’s ‘tea money’ missing in Cambodia

Richard — Wed, 26 May 2010 13:48:20 +0000

BHP Billiton is being investigated by the US Securities and Exchange Commission (SEC) over violations of anti-graft laws. There was some speculation on the unnamed jurisdiction. It now appears likely to be Cambodia after these Sydney Morning Herald articles discover evidence that money paid for community development never reached those communities.

See http://www.minesandcommunities.org/article.php?a=10108.