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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).

Peru: Undermining Justice

Richard — Fri, 04 May 2012 17:28:57 +0000

If multinationals will do anything to control the public debate, how can indigenous peoples ever assert their rights?

See new film on Monterrico Metals by award-winning film-maker and LMN supporter Mikey Watts at http://www.aljazeera.com/programmes/peopleandpower/2012/05/20125311829466420.html.…
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Rio Blanco and the Conga Fallout

michaela — Thu, 05 Apr 2012 09:11:22 +0000

According to the Peruvian Human Rights Ombudsman, today there are over 20 ‘latent conflicts’ related to extractive activity in the country. Many such disputes are likely to flare up once more as García-era suspensions expire on Humala’s watch. Of these, the conflict over Piura’s Río Blanco project is set to be the most serious.

See http://www.perusupportgroup.org.uk/article.php?article_id=545.

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.

The UK’s scandalous legal aid bill is a threat to global human rights

Richard — Thu, 10 Nov 2011 15:58:06 +0000

Under ruggedly beautiful mountains close to Peru’s border with Ecuador lie billions of dollars worth of copper owned by British-based firm Monterrico Metals. In August 2005, hundreds of Peruvian subsistence farmers and their families staged a protest against Monterrico. They said the owner of the Rio Blanco mine was operating unlawfully, and that the mine’s potential environmental impact was not sufficiently taken into account before work began. The Peruvian national ombudsman later upheld that view.

Why is the UK coalition government proposing a bill that will make it harder for people from poorer countries to get legal redress for human rights violations?

See http://www.guardian.co.uk/global-development/2011/oct/28/uk-bill-threatens-global-human-rights?newsfeed=true.

Peruvian activist priest escapes violent ambush

Richard — Sat, 08 Oct 2011 09:34:33 +0000

The attack occurred on the evening of Thursday 15 September in the region of the Majaz mining copper concession, owned by the Chinese corporation Zijin (and formerly owned by Monterrico Metals of Britain). Father Arana was traveling to Huancabamba to participate in activities commemorating the city’s referendum, held in 2007, in which 97% of voters rejected Monterrico’s proposal to construct the Majaz mine in a fragile cloud forest.

See http://www.minesandcommunities.org/article.php?a=11203.

Royalty and rights issues in Latin America

Richard — Tue, 13 Sep 2011 14:33:08 +0000

BHP Billiton has settled a royalty dispute with the Colombian government – thus enabling the world’s second biggest mining company to continuing operating its Cerro Matoso nickel mine. (At the same time, fifty five workers have filed a lawsuit demanding compensation from Cerro Matoso for a number of occupational diseases and health damages suffered by them in many sectors of the plant.)

The Brazilian government is reforming royalty rates, and this will affect, among others, Anglo American.

Meanwhile, although newly-elected Peruvian president, Humala, has been criticised by some indigenous leaders for failing to grant their communities a veto over new mining projects, others are praising a recently-promulgated law, requiring extractive companies to “consult” about them with their communities. London-listed companies with operations in Peru include Anglo American, Monterrico Metals, Rio Tinto and Xstrata.

See http://www.minesandcommunities.org/11170.

Peru’s Congress passes Indigenous Peoples’ mining consultation law

Richard — Wed, 31 Aug 2011 15:01:59 +0000

Peru’s Congress has taken an important step toward incorporating the International Labor Organisation’s convention on the rights of Indigenous Peoples (ILO 169) into law, since the convention was ratified in 1994.

Although broadly welcomed as an “historic moment” (the enabling act was passed unanimously) a key question has yet to be answered: will communities be able to enforce the principle of “Free, Prior Informed Consent” (FPIC) when confronted with proposals they reject? Is it likely that mining companies will respect not just “how” – but also “if”- there should be operations on indigenous and campesino lands and in their territories?

Already some in Peru’s media have leaped to assure members of Peru’s business sector – especially mining and oil companies – that the new law will not grant a right to veto projects.

See http://www.minesandcommunities.org/article.php?a=11129&l=1.

Among London-listed companies active in Peru are Anglo American, BHP Billiton, Rio Tinto and Xstrata. London-registered Monterrico Metals, now owned by China’s Zijin Mining, has been mired in controversy in the north of the country for years.

CAFOD urges mining firm Monterrico to clean up its act

Richard — Thu, 28 Jul 2011 10:16:40 +0000

Last week, Monterrico Metals settled out of court with torture survivors in Peru. The company insisted that details of the settlement be kept secret. (See http://www.leighday.co.uk/news/news-archive-2011/peruvian-torture-victims-compensated-by-uk-miner.)

CAFOD’s senior analyst on the extractives industry, Karen Luyckx said: “Monterrico cannot hide behind gagging orders and out of court settlements. They must not simply buy their way out of this case; they must change the way they operate in future. The truth is that – welcome as it is for the farmers – this settlement does not address the fact that the criminalisation of protest, and threats and violence against activists are on the increase around the world, and that in more and more cases, we are seeing collusion between the police and military authorities and the multinational mining companies. For every case like this, there are dozens more examples of abuse and violence which are going unnoticed and unpunished, and hundreds more communities whose livelihoods hang in the balance. Even in this case, despite the settlement, Monterrico’s mine is still going ahead without adequate
consultation with the community.”

See http://www.indcatholicnews.com/news.php?viewStory=18644.

Peruvian torture claimants compensated by UK mining company

Richard — Fri, 22 Jul 2011 15:00:00 +0000

Press release from Leigh Day and Co

20 July 2011

Legal proceedings by 33 Peruvians against UK-based Monterrico Metals PLC have been settled by compensation payments, without admitting liability. The London High Court trial was scheduled for 10 weeks from October with about 80 claimant witnesses. Claimants alleged torture by the Peruvian Police after protesting at Monterrico’s Rio Blanco copper mine (near Ecuador) in August 05. The mine is owned by Monterrico Peruvian subsidiary, Rio Blanco Copper SA (“RBC”). RBC is owned (through two Cayman companies) by Monterrico.

See http://www.leighday.co.uk/news/news-archive-2011/peruvian-torture-victims-compensated-by-uk-miner.

Film: 2nd December

Richard — Wed, 16 Feb 2011 09:12:55 +0000

This is the story of the December 2009 attack by the police on the village of Cajas Canchaque, located in the North of Peru, where two farmers were shot dead. Police entered the village, a stronghold of anti mining sentiment against London-based Monterrico Metals‘ Rio Blanco project, and opened fire on villagers blocking the road.

This is a twelve-minute video by award winning film-maker and LMN supporter Mikey Watts.

See http://www.vimeo.com/19680941.

More than 40% of Paramos in Northern Peru under mining concession

Richard — Wed, 08 Dec 2010 09:37:30 +0000

More than 40% of the paramo in the northwesterly department of Piura, Peru is under mining concessions. These high altitude wetlands are vital sources of water for the arid lowlands where important export agriculture operations are situated. According to this article, to date only 0.69% of this area is being mined and 0.63% explored. But serious conflicts have already arisen, most notoriously regarding the Majaz copper-molybdenum project owned by the Chinese Zijin Consortium and the UK’s Monterrico Metals.

See http://www.minesandcommunities.org/article.php?a=10571.

Ethical Tribunal on Transborder Mining in Latin America

Richard — Wed, 22 Sep 2010 15:40:13 +0000

Latin American activists who want to call attention to mining developments located in border areas will gather in Chile to “pass judgement” on projects they regard as detrimental to local communities, the environment and national security. “One of the features of mining today is its expansion into traditionally untouched areas, where entry was forbidden for geopolitical or national security reasons, like border zones,” Lucio Cuenca, of the Chilean branch of the Latin American Observatory of Environmental Conflicts (OLCA), told IPS. One of the companies involved is Barrick Gold; another is Monterrico Metals.

See http://www.minesandcommunities.org/article.php?a=10365.

International campaign: Mining in Paradise? No-go zones for Mining

Richard — Fri, 17 Sep 2010 07:50:48 +0000

LMN member group CATAPA has, with Peruvian organisations, launched a campaign in support of communities in Northern Peru who are saying ‘No’ to mining in their areas, including by companies based in London. Read about the campaign at: http://www.mininginparadise.org/

The campaign is calling for people to sign a petition to European and Peruvian authorities. See http://www.mininginparadise.org/sites/default/files/uploads/petition_long_ENG.pdf.

Sign the petition at http://www.mininginparadise.org/en/node/47.

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.…
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