8/3/2019 Presentation at PBI Conference 31 October 2011

1/13

The impacts of UK extractiveindustry companies operating in

Asia

A Dangerous Business - 31 Oct 2011

By Andy Whitmore, London Mining Network

8/3/2019 Presentation at PBI Conference 31 October 2011

2/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

3/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

4/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

5/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

6/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

7/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

8/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

9/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

10/13

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

8/3/2019 Presentation at PBI Conference 31 October 2011

11/13

Continuing to invest in the company would presentan unacceptable risk of contributing to grossly unethical

activities. - Norwegian Council on Ethics, 2007

8/3/2019 Presentation at PBI Conference 31 October 2011

12/13

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)

8/3/2019 Presentation at PBI Conference 31 October 2011

13/13

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.