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Calls to amend UK Financial Services Bill to ensure human rights standards

Richard — Wed, 23 May 2012 17:07:42 +0000

Lisa Nandy MP and John McDonnell MP called yesterday for the British Government’s Financial Services Bill to be amended so that companies wishing to list on UK Stock Exchanges would need to report on their human rights record.

Repeated reference was made to London Mining Network’s report, published in March 2012, on UK listed mining companies and the need for stricter regulation (see http://londonminingnetwork.org/docs/lmn-the-case-for-stricter-oversight.pdf) and in particular to mining companies Vedanta and Monterrico Metals.

Financial Secretary to the Treasury Mark Hoban MP did not accept the suggested amendment but suggested that John McDonnell MP and London Mining Network seek a meeting with the Minister responsible for corporate governance and the Financial Reporting Council.

The text of the debate can be found at http://www.publications.parliament.uk/pa/cm201213/cmhansrd/cm120522/debtext/120522-0002.htm#12052240000080 or viewed at: http://www.parliamentlive.tv/Main/Player.aspx?meetingId=10771&st=17%3a03%3a20&player=silverlight (starting at 17.40).

Mineral-Rich Mongolia Rapidly Becoming ‘Mine-golia’

Richard — Wed, 23 May 2012 16:56:02 +0000

Mongolia, the land of Genghis Khan and nomadic herders, is in the midst of a remarkable transition. Rich in coal, gold and copper, this country of fewer than 3 million people in Central Asia is riding a mineral boom that is expected to more than double its GDP within a decade. The rapid changes simultaneously excite and unnerve many Mongolians, who hope mining can help pull many out of poverty, but worry it will ravage the environment and further erode the nation’s distinctive, nomadic identity. Much of the focus these days is on Oyu Tolgoi, a mega-mine in Mongolia’s South Gobi province, about 50 miles north of the Chinese border. The mine — owned by international mining giant Rio Tinto, Canada’s Ivanhoe Mines and the Mongolian government — is scheduled to produce its first copper ore in June and grow dramatically over the next five years.

See http://www.npr.org/2012/05/21/152683549/mineral-rich-mongolia-rapidly-becoming-minegolia.

Mongolia backtracks on state ownership of mining companies

Call it “resources nationalism” if you wish – or simply an attempt by government to secure the best possible returns from leasing out its mineral properties. In any event, political debate in Mongolia over terms of entry by foreign companies to its huge mining deposits, has wildly swung between extremes over the past few years. Now it seems that, if the present ruling party wins elections in June, all pretense at “capturing extractive wealth” for the people will have been virtually abandoned. This may be good news to Rio Tinto, involved at the Oyu Tolgoi copper-gold mine.

See http://www.minesandcommunities.org/article.php?a=11701.

Rio returns to PNG

Richard — Fri, 11 May 2012 17:08:26 +0000

RIO Tinto has joined the growing ranks of major miners lured to Papua New Guinea. It did not make any grand announcements on the matter but has picked up at least three tenements.

See http://www.pngindustrynews.net/storyview.asp?storyid=8682927&sectionsource=s0…
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Indigenous and Afro-Colombians of Jiguamiandó – Rights are Upheld

Richard — Fri, 11 May 2012 17:06:42 +0000

The Colombian Constitutional Court has once again reaffirmed the suspension order made on Muriel Mining Corporation’s Mandé Norte Project in Chocó. Rio Tinto, one of the world’s largest mining corporations (and registered on the London Stock Exchange), has an 80% option on exploitation and has been the major contributor to bankrolling the exploration phase of the Mandé Norte Mining Project.

See http://www.abcolombia.org.uk/subpage.asp?subid=463&mainid=23.

Glencore threatens to pull out of countries that want too much

Richard — Fri, 11 May 2012 17:04:03 +0000

Glencore CEO Ivan Glasenberg told a conference in Switzerland that mining companies will fight resource nationalism by pulling out of countries where they feel demands are too onerous.

See http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=150864&sn=Detail&pid=92730.

Indonesia: No checks on coal mining, says government report

Richard — Fri, 11 May 2012 16:56:33 +0000

Indonesia is the world’s top coal exporter. However, limitations in the supervision of its extraction may be placing the country at risk of massive financial losses and environmental damage. That’s the conclusion of an investigation, recently carried out by the country’s Supreme Audit Agency. The audit claims that more than 1,000 mining companies across the country have failed to comply with environment-related requirements.

Among London-listed companies involved in coal projects in Indonesia are BHP Billiton and Churchill Mining.

See http://www.minesandcommunities.org/11684.

Tribe Appeals To United Nations Over Rio Tinto Mine in Michigan

Richard — Fri, 04 May 2012 19:06:53 +0000

A tribe in the Upper Peninsula of Michigan, USA, is appealing to the United Nations in an effort to restrain sulphide mining.

The tribe hopes to strengthen its position through an international agreement signed by the Obama Administration. The Keweenaw Bay Indian Community says mines that produce sulphuric acid can pollute the water and threaten places sacred to tribes in the Great Lakes.

The Keweenaw tribe fought Rio Tinto subsidiary Kennecott’s Eagle Mine, a new copper and nickel mine under construction in Marquette County.

See http://ipr.interlochen.org/ipr-news-features/episode/tribes-appeal-united-nations-over-mines/2012-05-02.

Action: Tell the United States Congress and President Barack Obama: Pass a moratorium to stop sulfide mining in the Great Lakes watershed!

Sign the petition at http://www.change.org/petitions/the-united-states-congress-and-president-barack-obama-pass-a-moratorium-to-stop-sulfide-mining-in-the-great-lakes-watershed?utm_medium=facebook&utm_source=share_petition&utm_term=autopublish#.

Colombia: going for gold

Richard — Wed, 25 Apr 2012 13:51:44 +0000

Small-Scale Miners in Nariño Face Crackdown as Foreign Companies Set Sights on Colombia.

This article involves South African-based, London-listed AngloGold Ashanti.

See http://www.minesandcommunities.org/article.php?a=11642.

Shareholders Say Guatemalans Should Not Have to Pay for Goldcorp’s Mess

Richard — Wed, 25 Apr 2012 13:48:36 +0000

Several shareholders have filed a resolution with Goldcorp Inc asking the company to commit to the full costs of closure of the Marlin mine in Guatemala, and to fully disclose its closure plans. They indicate that to do otherwise puts the health of local communities at long-term risk and could expose the company to liability through potential litigation for damages.

See http://www.minesandcommunities.org/article.php?a=11647.

Goldcorp is a Canadian company with British investment. Among Goldcorp’s major investors are British-based AXA Investment Managers UK Ltd., Blackrock Commodities Income Trust plc and City Natural High Yield Trust plc.

Odisha to withdraw notification from acquisition of 438 acres of private land in Posco site

Richard — Wed, 25 Apr 2012 13:40:40 +0000

The state government of Odisha (Orissa) in India has initiated the process of withdrawal of notifications for acquisition of 438 acres of private land in seven villages in the project site near Paradip.

The recent verdict of Odisha High Court would compel the state government to withdraw the notification from the acquisition of 438 acres of private land of proposed Posco steel plant.

See http://orissadiary.com/CurrentNews.asp?id=33358.

British-based investors in South Korean company POSCO include Barclays, Alliance Bernstein/Alliance Bernstein Global Wealth Management, Foreign and Colonial Investment Trust PLC, and Henderson Far East Income Limited: see http://moneytometal.org/index.php?title=Special%3ASearch&search=Posco&go=Go.

Gold miners call British firm to account

Richard — Tue, 17 Apr 2012 00:22:02 +0000

Anglo American is being taken to court for not protecting its workers in South Africa from dangerous dust.

More than a thousand former miners from South Africa are bringing a case against Anglo American through the British courts after contracting the incurable lung disease silicosis. They say they were offered no masks, ventilation or proper protection from dust in mines part-owned by Anglo American, even though it was known that the dust could be harmful.

The All Party Parliamentary Group on International Corporate Responsibility is proposing to make it compulsory for companies to report back to shareholders on their human rights record. The group has tabled an amendment to the Financial Services Bill, which would mean that companies would be legally obliged to inform shareholders if others have questioned their corporate ethics.

See http://www.independent.co.uk/news/world/africa/gold-miners-call-british-firm-to-account-7645961.html.

India: Iron fists in dubious gloves

michaela — Fri, 16 Mar 2012 22:57:34 +0000

The Indian state of Goa has pledged to close down all illegal iron ore mines. That’s welcome news, except that some “legal” outfits – such as Vedanta’s Sesa Goa – have also been accused of profiting from illegal operations. Meanwhile, the world’s second largest iron ore exporter, Rio Tinto, is set to invest US$2 billion in its Orissa iron ore project, claiming it’s already “working with local communities” to secure a social license.

See http://www.minesandcommunities.org/article.php?a=11552.

Report calls for stricter regulation of UK mining companies

Richard — Wed, 07 Mar 2012 09:40:48 +0000

Bumi plc's Kaltim Prima Coal mine in Indonesia. Photo: JATAM

London Mining Network has today published a report calling on the government to include a review of regulatory regimes as part of the current discussion on the Financial Services Bill. The Bill is replacing the existing FSA with a new body, the Financial Conduct Authority, which will inherit the FSA’s role as UK Listing Authority.

Looking at eight case studies, the report, UK-Listed Mining Companies & the Case for Stricter Oversight, argues that:

Many mining companies listed in London have very poor records of complicity in human rights abuse, environmental pollution or destruction of people’s cultures and livelihoods around the world.
Once listed in London, some mining companies have continued to flout the law in the countries where they operate, or engage in damaging tax avoidance, or break accepted international mining industry standards, with no move by the UK Listing Authority to discipline them.

The report follows on from dramatic developments at the end of February in which a proposed opencast coal mine in Bangladesh being developed by GCM, one of the eight case studies used in the report, was condemned as “threatening human rights” by an independent panel of UN experts.

John McDonnell MP, who will be chairing the Parliamentary launch of the report today, said:

“We cannot stand by and witness these global mining companies brutally impoverishing and destroying the lives and environments of whole communities. We need not only to expose this exploitation but also to demand that a firm system of international regulation, control and accountability is put in place that halts the destructive activities of these corporate pirates.”

Peter Frankental, the Economic Relations Programme Director of Amnesty International UK, said:

“This report by London Mining Network presents a challenge to the Government to ensure that the proposed regulatory body has the powers to require mining companies to meet acceptable human rights and environmental standards as a condition for listing on the London Stock Exchange”.

Richard Solly, Co-ordinator of London Mining Network, said:

“This report provides a reminder to the Government of the need for measures to ensure that the London Stock Exchange does not continue to act as a repository for dodgy companies that harm the environment and abuse human rights. The ease with which such companies can list in the UK is an indictment of the existing regulatory framework”.

The report can be downloaded from http://londonminingnetwork.org/docs/lmn-the-case-for-stricter-oversight.pdf.

The eight London-listed mining companies looked at tin the report are African Barrick, Brinkley Mining, African Minerals, London Mining, Vedanta Resources, Glencore, GCM Resources and Bumi.

The Government has introduced its Financial Services Bill, which is being considered in Committee between 21 February and 20 March.

* Open-pit coal mine project in Bangladesh threatens human rights – UN experts http://www.un.org/apps/news/story.asp?NewsID=41398&Cr=Bangladesh&Cr1

See also Stop the City of London laundering blood money from mining at http://www.newint.org/blog/2012/03/12/city-of-london-laundering-mining-money/.

Presentation on the Monterrico case given at the report launch

In 2005 Minera Majaz, a wholly owned subsidiary of the British company Monterrico Metals, was working hard in the northern highlands of Piura in Peru to get its social licence and start the operation of its first copper project, known as the Majaz mine. What happened there is important because it illustrates the impact of the mining conflict on HR, the role played by criminalisation as a strategy that clears the way for mining projects and finally the impunity with which these activities are carried out. The project is currently owned by the Chinese Zijin consortium.

On the first of August 2005, thousands of people started a march protesting against the Majaz mine. Their intention was to arrive at the mining camp to let management know that the mine was not welcome. Before they reached the camp, they were ambushed by police, soldiers and security forces with tear gas and live ammunition, whilst being tracked by aircraft. Twenty nine people were caught and held within the mining camp where, they were tortured. One man was killed, and several were seriously injured .

As part of the follow-up strategy, shortly after the ambush Félix Toledo, the public prosecutor began a legal persecution, and accused 107 people of a range of crimes including terrorism. Furthermore, leaders from several nearby communities also reported their houses being searched by the police without a warrant, being detained and threatened they would be killed unless they named the ring-leaders of the protest.

Given that local authorities simply ignored what was happening, the organisation FEDEPAZ (Federación Ecuménica para el Desarrollo y la Paz, a church organisation) requested that the Public Ombudsman investigate the police and corporate persecution against campesino leaders. The National Coordination for HR went a step further and introduced a lawsuit against the public prosecutor for failing in his duty to investigate corporate abuse. Nothing happened until five years later, when in 2010 the judicial system rejected charges against the prosecutor’s behaviour, alleging lack of evidence. All cases against the protesters were dropped.

I would also like to mention that among the 29 people detained there were two women. During their illegal detention the women were not only tortured but also sexually abused. What happened to these women is important because they were treated as “spoils from the raids”. The sexual abuse of women in the context of the mining conflict sends a powerful message to women: a message that seeks to put “women in their place”; a message that says “Women’s place is not with men, and sexual abuse is the price to pay when women choose to deviate from accepted customs”.

Thanks to Leigh Day, the 29 victims of this terrifying attack were financially compensated, and the brutality with which they were treated by a British company made the front page of The Guardian. But we mustn’t forget that victims of corporate and state abuse in the context of this mining project run into hundreds of people and that they haven’t received any kind of compensation at all. Neither the government nor the corporation admit to any wrong doing. This victimisation of ordinary people is often forgotten. But we must not forget that people detained and tortured by the Monterrico were left with permanent scars such as “suicide thoughts”. Also, whilst most of the men tortured during the protest returned to loving families, women didn’t have that safe haven as they experienced rejection by their own families.

Glevys Rondon, Co-ordinator, Latin American Mining Monitoring Programme.

Campaigners demand law urging mining companies to open up their books

michaela — Tue, 21 Feb 2012 22:32:36 +0000

Campaigners from anti-poverty groups CAFOD, Tearfund and ONE today sent an early Valentine’s Day message to newly appointed minister Norman Lamb by carrying a giant love heart with the message ‘love truth’ to the Department for Business, Innovation and Skills. The groups, part of the Publish What You Pay Coalition, are raising awareness of a new law that would force oil, gas and mining companies to tell the truth about payments they make to governments of poor countries in return for their natural resources.

See http://www.indcatholicnews.com/news.php?viewStory=19827.

Struggles over mining law revision in the Philippines

michaela — Wed, 15 Feb 2012 22:50:46 +0000

The Office of the Philippine President is finalising an Executive Order (EO) which will aim to clarify many of the recent conflicts over mining. A draft has been leaked to the press by the Chamber of Mines and a full-scale propaganda offensive by the industry is under-way to influence the President. Those who are concerned about the impacts of mining are also rallying to ensure that any new legislation will as best as possible protect the environment and the rights of communities. Among prominent mining companies involved in the Philippines is London-listed Xstrata.

See http://www.minesandcommunities.org/article.php?a=11491&l=1.