Presentation at PBI Conference 31 October 2011
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Transcript of Presentation at PBI Conference 31 October 2011
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The impacts of UK extractiveindustry companies operating in
Asia
A Dangerous Business - 31 Oct 2011
By Andy Whitmore, London Mining Network
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London Mining Network
The London Mining Network (LMN) is an alliance of 25human rights, development and environmental groups
LMN pledges to expose the role of companies listed on theLondon Stock Exchange, London-based funders and theBritish Government in the promotion of unacceptablemining practices
LMN does this by publishing reports, participating asdissident shareholders in company meetings, holdingeducational events and, where appropriate, addressingdecision makers such as investment institutions, politiciansand other NGOs
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Why London?
Most of the worlds biggest mining companies, and many
smaller mining companies, are listed on the London StockExchange (LSE) or on its Alternative Investment Market,
(AIM). 4 of the worlds top 5 mining companies were listedon the London Stock Exchange (the exception being Vale)
London is the worlds biggest centre for investment in the
minerals industry
The mining industrys key lobbying organisation, the
International Council on Mining and Metals (ICMM) is basedin London, as is the London Metal exchange, and theleading precious metals trader, the London Bullion MarketAssociation
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Why Mining?
Leaving environmental issues aside, LMN's main concern ison the disproportionately negative impact on land-basedcommunities, especially Indigenous Peoples
Mining is frequently associated with forced evictions,militarisation, conflict and human rights abuses
Prof. Ruggie noted that the extractive sector oil, gas, andmining utterly dominates this sample of reported abuses,with two-thirds of the total received by him
It is estimated that 60% of the world's remaining mineralresources are located in Indigenous Peoples Territories
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Wide spread of cases
Myth that problems are only associated with 'junior'companies, or other countries (e.g. China case ofMonterrico metals in Peru)
However, despite large CSR programmes, the bigcompanies also have cases, with the classic example ofrights conflict & natural resources being around Rio Tinto(CRA) & Bougainville (also associated with Grasberg mine)
There are a number of companies recently listed, or aboutto be listed, on the stock exchange with potential problemse.g. Glencore & Vallar/Bumi
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Xstrata - Tampakan
Xstrata is one of the biggest global mining companies, butis a relative new-comer. It is tied up with the Swiss traderGlencore (which still owns around 34% of the shares)
It has registered office in London, but its main HQ is in Zug,Switzerland and it runs its copper business out of Australia
Xstrata is the 62.5% controlling owner of the proposed
Tampakan copper/gold project, bordering 3 provinces in thesouthern Philippine island of Mindanao. If it goes ahead itwill be biggest mine in the Philippines
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Xstrata - Tampakan
The Indigenous B'laan took a case to cancel the license in1997, which ended up in the Supreme Court in 2004. The SCover-turned its own decision on appeal to allow the project
There is widespread opposition - the province of SouthCotabato, has an ordinance to ban open-pit mining
There is an armed insurgency in the area (NPA), and there
have been a number of armed attacks on the company. Thearmy and paramilitaries and armed-security are all in thearea alleged intimidation of opposition
The project has been associated with a number of EJKs
Eliezer Boy Billanes (2009) & Fr. Fausto 'Pops' Tentorio
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The Tampakan Project .. has been, and remains, a public targetfor various armed terrorist organisations - Xstrata
Fr. Fausto is the sixth anti-mining advocate killed this year
and was one the most active advocates and staunch opponentsto the foreign mining project of Xstrata Kalikasan PNE
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Vedanta
Vedanta Resources registered on the London StockExchange in 2003. It is the worlds 17th largest publicly-listed mining company
It is essentially a vehicle for Anil Agarwal, Vedantas
founder, majority share owner and Executive Chairman(and his family)
In a number of scandals around the company the most wellknown is a fight over their attempts to mine the Niyamgirimountain, which have brought them into conflict with theDongria Kondh people who hold the mountain sacred
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Vedanta
In 2005 the CEC of India's Supreme Court criticised thecompany on a number of levels, and urged the venture berejected for environmental reasons and because it wouldviolate the constitutional rights of the Kondh people
In a 2009 complaint before the OECD complaintsmechanism, the UK NCP ruled that Vedanta did not
respect the rights of the Dongria Kondh; did not consider
the impact of the construction of the mine on the [tribe's]
rights; and that it failed to put in place an adequate andtimely consultation mechanism
The mining project was cancelled by Indias Ministry of
Environment and Forests in mid-2010, with the international
campaign but accusations of violations continue
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Continuing to invest in the company would presentan unacceptable risk of contributing to grossly unethical
activities. - Norwegian Council on Ethics, 2007
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What is to be done...?
There is:-
the need for greater transparencyof business operations
better accountabilityof businesses for their impacts
improved access to justicefor victims of harmful corporateconduct
Vehicles for this could include:-
An effective replacement to the FSA (expel companies from LSE)
Legislation following Dodd-Frank (Sec 1502) or C-300, or RMI
A UK Commission for Business, Human Rights & the Environment
Improved company law (& reporting under company law)
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Statement of John Rumbiak, ELSHAM
To put an end to these dynamics of destruction andviolence, the international community - particularlyinternational investors - must, first and foremost,
recognize indigenous communities' basic rights tochart their own development paths, to manage theirown resources, to pursue their traditional livelihoodsand cultures, and to say NO to multinationaloperations on their lands. The failure to respect
communities' basic right to "just say no" exists at theheart of the nexus of human rights violations,environmental degradation and conflict.