Since its opening more than 50 years ago, the Grasberg mine in West Papua has severely impacted the lives of the indigenous and local communities, devastating the forest and the rivers essential to their sustenance and well-being. We stand in solidarity with the affected communities and demand accountability and justice.

Today, Global Legal Action Network (GLAN) and the London Mining Network (LMN) alerted the London Metal Exchange (LME), and their regulator the Financial Conduct Authority (FCA) to the risk of trading in products which use copper from the Grasberg mine, in West Papua, Indonesia. 

Copper originating from the Grasberg mine may constitute “proceeds of crime” since it is produced in circumstances that would breach UK criminal law if they were to occur in the UK. The action focuses on the extensive environmental damage caused by the mine, in particular on the disposal of massive volumes of tailings into the river system. The mine operator has pursued this harmful practice of tailings disposal for decades. The destruction of the rivers, central to the livelihoods of the indigenous peoples in West Papua, causes continued suffering to the local communities.

Disposing mining tailings into rivers and seas would qualify as a serious environmental offence in the UK. We are therefore challenging the legality of trading these products on the London Metal Exchange under the Proceeds of Crime Act (2002). Despite being aware of the risks of trading Grasberg copper products for over a year, the LME has not delisted them and they are still offered on the Exchange.

Our unprecedented action could hold broader repercussions for the commodities sector, in particular for the companies accessing international markets through the LME.

The London Metal Exchange and the Financial Conduct Authority must act against the potential laundering of proceeds of crime from West Papua on the world’s biggest metal trading exchange. 

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