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TERRA.WIRE

Gold-mining giants leave Africa to clear up mess: report

PARIS, Oct 9 (AFP) Oct 09, 2007

Open-cast gold-mining operations in Africa by multinationals have created an ecological and health time-bomb and failed to help local people out of poverty, campaigners said at a book launch Tuesday.

"It's an ecological time-bomb," said Swiss journalist Gilles Labarthe, the author of "Black Gold", which is being published in collaboration with Oxfam France-Agir and the association Survie (Survival).

"The accumulation of ecological degradation and the damage to health caused by open-cast gold-mining is going to ruin the producing regions for generations to come," he added.

Cyanide and mercury contamination of the groundwater had led to cases of paralysis, blindess and numerous miscarriages, he said. The two toxic substances are used to purify the minerals during mining.

In two villages in the southwestern region of Sadiola in Mali, four out of five women miscarried, said Kaou Sissoko, general secretary of the association of Sadiola expatriates in France.

The region hosts one of Mali's main mining operations.

It would cost 16 billion dollars (11.4 billion euros) to clean up the polluted groundwater in Africa, said Labarthe, adding that he feared the countries concerned would have to foot the bill.

Africa holds half the world's known gold reserves and produces 600 tonnes a year -- a quarter of the world's output.

But 80 percent of the major African mines were controlled by multinational companies, which made big profits because of the cheap cost of labour and the tough working conditions, said Labarthe.

He identified the three main companies as AngloGold of South Africa; Barrick Gold of Canada; and US company Newmont Mining. All three were financed by major banks such as UBS of Switzerland and France's Societe Generale. Gold also served to finance armed movements as in the Democratic Republic of Congo, said Labarthe. And because it can be melted down repeatedly, it is harder to trace back to its origin, he added.

Oxfam France-Agir is the French wing of Oxfam, while Survie is a campaigning group dedicated to exposing French policy in Africa.

A report last month by the International Federation for Human Rights on mining and human rights in Mali commented: "Mali is the third largest gold producer in Africa but harvests only dust."

Under a World Bank-supported scheme, mining companies enjoyed large tax breaks, "depriving the State of the resources that could have been obtained from this economic activity," said the report.

Mali ranks 175th among 177 countries in terms of human development, it noted.

 

Forest Service, BLM targeted Environmentalists
allege gov't collusion in S. Idaho phosphate mining pollution

By Kristen Moulton
The Salt Lake Tribune Article Last Updated:
09/20/2007

A regional environmental group accused the Forest Service and Bureau of Land Management on Thursday of colluding with phosphate-mining companies in southern Idaho to cover up decades of serious pollution.

The result, said Marv Hoyt, the Idaho director of the Greater Yellowstone Coalition, is that mining continues to leach selenium into streams and the aquifer - while 17 Superfund sites from past mining go untouched.

Lynn Ballard, spokesman for the Caribou-Targhee National Forest and BLM, denied there was any collusion with the mining industry to cover up the pollution.

"We've never operated that way," he said.

Mining for phosphate exposes rocks rich in selenium, which, once exposed to rain and snow, flows into streams and underground aquifers. It can build up in plants, reaching high concentrations that can kill livestock and wildlife and harm the people who eat them.

The Greater Yellowstone Coalition and Caribou Clean Water Partnership released a report written by a retired federal hydrologist, who pored over thousands of documents obtained from federal agencies through the Freedom of Information Act.

Edgar Imhoff, the hydrologist, during a press conference via telephone Thursday, said he was astounded by the toxic levels of selenium found as long as two decades ago in streams near phosphate mines north and east of Soda Springs.

"Given the dangers, the mining company and federal agencies had to be aware they had a serious problem on their hands," Imhoff said, referring to the owner of one of three active phosphate mines, Boise-based The J.R. Simplot Co.

Hoyt said the documents showed the federal agencies didn't just fumble their jobs. "This was something a lot more deliberate that just dropping the ball," he said.

The documents did not reveal secret deals, but rather a pattern of downplaying or obscuring the gravity of the pollution, Imhoff said.

He gave examples. Imhoff said in his report that data collected by the Forest Service's Intermountain Research Station in Logan in 1990 - it showed extremely high concentrations of selenium in surface water downstream from a mine - was not shared with the Environmental Protection Agency until 1997.

It was only after animals began dying that mining companies and federal agencies began acknowledging the pollution, casting it as a newly discovered problem, Hoyt said.

"People actually did know about this long before they say they did."

The Forest Service's Ballard said 1996 horse deaths prompted the Forest Service to "focus resources on a full investigation [of] what was causing the selenium impacts."

The agency also has required and received yearly water reports from Simplot, which opened the Smoky Canyon mine in the early 1980s.

He could not say whether the Forest Service considered selenium levels reported in those yearly documents as acceptable.

A Simplot spokesman could not be reached for comment.

The new report is aimed at preventing Simplot from expanding the Smoky Canyon mine near the Idaho-Wyoming state line.

A final environmental impact statement is due out within 30 to 45 days and is expected to endorse mining under certain conditions.

"There are mitigations placed in there that Simplot would have to do," Ballard said.

The environmental coalition also wants to light a fire under government agencies to force the owners of the 17 Superfund sites - including Simplot, whose Smoky Canyon mine has been declared a Superfund site - to clean up past messes.


FYI – Please do what you can.

www.iLoveMountains.org

Dear _____ ,

 

By signing up for iLoveMountains.org, you've become an integral part of the movement to raise awareness about mountaintop removal coal mining - and you've helped to expose the more than 470 mountains that coal companies have already destroyed in Appalachia.

Today, I want to tell you about a place that is ground zero in the fight to stop mountaintop removal coal mining , a place called Coal River Mountain.

Located in westernmost Raleigh County, West Virginia, Coal River Mountain is under threat from Massey Energy.

Massey has applied for two mountaintop removal permits, and is considering a third, that would destroy nearly 6,000 acres of Coal River Mountain, effectively decapitating it. They would fill 18 Appalachian valleys with toxic coal mining waste and destroy the tallest peaks ever to be mined in West Virginia.

But a coalition of grassroots organizations, led by Coal River Mountain Watch, have joined together to protect Coal River Mountain - and bring the attention of the nation to the ongoing tragedy that is mountaintop removal coal mining.

You can help. Will you forward this email on to just one person you know, and ask them to add their voice to the more than 20,000 Americans who are standing up to raise awareness about mountaintop removal coal mining?

Simply forward this email right now, or click on this link to send an invite from your personal action page on iLoveMountains.org: Take Action!

The effort to stop the Coal River Mountain project is gaining momentum at the local level. Just last week, more than 100 local citizens filled the bleachers at a public hearing held by the West Virginia Department of Environmental Protection at the Clear Fork Elementary School to speak their minds about the massive proposal.

There has never been such a turnout to a public hearing on a mine permit in West Virginia... but even more incredibly, every single citizen who spoke, spoke in opposition to the mine.

There are many reasons that local citizens oppose the mine: it will pollute their drinking water, heighten the risk of local flooding, and destroy the mountains and the beautiful landscape that have been their family home for as many as nine generations.

The mine, too, would destroy the long-term economic future of Coal River Mountain. As many citizens said at the hearing, for just a few years worth of jobs and a few years worth of coal, the mine would wipe out the opportunity to build a wind power facility that could provide long-term jobs and enough power to meet the needs of more than 90,000 homes forever. (Click here to learn more about the alternative wind power facility.)

Yet despite the united - and, at the hearing, unanimous - opposition to the plan to destroy Coal River Mountain, local citizens hold little hope that their testimony alone will stop the mine - because the West Virginia Department of Environmental Protection has never denied a permit application for a mountaintop removal mine. Never.

That's why it is absolutely critical that you forward this email on to at least one friend or family member today.

Even though most Americans would never support the destruction of this beautiful mountain and irreplaceable landscape, the people living near Coal River Mountain believe that their mountain will be destroyed because most Americans simply don't know what's happening in the hills and hollows of Appalachia.

The power to change that lies in your hands, right now. Please, forward this email to your friends and family, and ask them to join you in standing up to end mountaintop removal coal mining. They can join by clicking here:


http://www.ilovemountains.org/take_action/

Thank you for taking action and standing with the people of Coal River Mountain .

Mary Anne Hitt
iLoveMountains.org


Contribute to iLoveMountains.org today!

 


FYI. A recent report on the the debate going into Barrick's second quarter report/shareholder conference call.

https://www.indybay.org/newsitems/2007/08/02/18438380.php

Text:

August 2 marks the publishing date of Barrick Gold's second quarter results. With profits down by 14 percent, the Pascua Lama project delayed, and Norway's pension fund considering pulling their investment on ethical grounds, things aren't looking good for this gold mining giant. But, are any of these developments a big surprise? There are many shareholders who might think so, but that is only because Barrick has been systematically hiding vital information from them through glaring omissions and outright lies.

Glaring Omissions

The first place to look for Barrick's reporting on shareholder's issues would be their 2006 annual report, seemingly complete with a section listing "Litigations and Claims." However, Barrick failed to even mention a costly lawsuit with landowner Rodolfo Villar, a stumbling block that could prove costly (around the tune of $300 million) and one which will possibly delay the Pascua Lama project, a proposed mine on the border of Chile and Argentina, according to the Valaparaiso Times.

But that's not all, Barrick also failed to mention a 2005 complaint filed with the Organization of American States (OAS) on behalf of the Diaguita indigenous communities. It alleges that the Pascua Lama project poses a grave risk to the subsistence rights of the Diaguita indigenous communities in the area, and that the Chilean government would be breaking its international commitments if it approves the project. The Diaguita also had a lawsuit filed in 2001 that lays claim to disputed land needed for the project. Despite this litigation, formal complaints, and two letters written by Diaguita leadership to Barrick and the President Bachelet of Chile in 2006, the Diaguita Indigenous group are not mentioned once in any of Barrick's Annual reports since 2001.*

In the U.S., Barrick failed to mention a lawsuit brought by the Te-Moak Tribe, the Western Shoshone Defense Project, and Great Basin Mine Watch against the U.S. Bureau of Land Management that Barrick is also party to. At the center of the lawsuit is the Bureau of Land Management's approval of Cortez Gold Mines' gold mining exploration proposal on and around Mt. Tenabo and Horse Canyon, important spiritual areas for the Western Shoshone. It causes one to wonder if Barrick will mention to their shareholders that the 135-year-old hard-rock mining law that grants Barrick cheap mining in the U.S. is now being reviewed by the U.S. Congress. A change in the law could impose the first-ever royalty fees and environmental restrictions for mining on public land.

Outright Lies

From the Washington Post ...

When Rodolfo Villar sold 20,000 acres to Barrick Gold for its Pascua Lama gold mining project, the mineral speculator signed a contract that he thought would pay him $1 million. Instead, the contract gave him only $19, and a fine-print stipulation that if he tried to obtain rights to any other lands in the surrounding area, he would face a $95,000 fine.

Aided by legal team of 30, including some of Chile's most prominent lawyers, Villar sued Barrick and won. Rather than getting the million dollars, he got his land back and is now asking $300 million for it. "Literally, we are sitting on a gold mine," remarked one of his lawyers to the Washington Post. Barrick is appealing the case.

Beyond the omissions – of which there are too many to mention here – there are lies that Barrick continues to peddle to the press and shareholders about their operations. Among the most visible, literally, is the mystery of the depleted glaciers near Pascua Lama. This issue has recently been getting a lot of press in both Chile and Argentina , as a recent study has revealed a 50 to 70 percent depletion in the glaciers near Barrick's exploration activity. While Barrick continuously blames Global Warming, a simple comparison with other glaciers in the same area (but not near Barrick's activities) illustrates that this is not the case. (see picture)

The real reason for the depletion is the dust kicked up by the construction activity, acccording to Luís Faura Cortes, a Councilperson from Alto del Carmen. According to Faura, the dust kicked up from Barrick's activites settles on the glaciers, causing them to absorb heat rather than reflect the sun rays, causing them to melt at a faster rate. (see picture)

Will anyone hold Barrick accountable for these lapses in their own reporting? WIll Barrick finally own up to the difficulties that they face and acknowledge resistance to their mining operations? Or will this be another Bre-X case where shareholders are merely left with the lesson and reminder of the lax regulatory standards that Canada's mining corporations face.

* a remark about methodology, I downloaded every annual report since 2001 and used a search function to find mention of the Diaguita.

(pictures shown on indybay link)
--
"Believing that they possess consciousness, men have not exerted themselves very much to acquire it." - Nietzsche, The Gay Science


Not all that glitters is good

By Al LewisWayne Murdy
Denver Post Staff Columnist
Article Last Updated: 08/05/2007 06:42:00 PM MDT

Wayne Murdy built a gold-mining empire at Newmont. (AP file)

Life is good for Wayne Murdy.

In 6½ years, he built Denver-based Newmont Mining Corp. into one of the world's largest gold producers. During his tenure as CEO, gold soared from about $250 to $665 an ounce.

On June 30, Murdy, 63, retired with a pension valued at $19 million, plus stock and options worth millions more.

Ripping open the earth and extracting its gold is a messy business. It sometimes means dealing with corrupt governments, accidentally spilling cyanide and mercury, destroying traditional livelihoods and displacing the little people from their native lands.

Yet after leading these activities on a global scale, Murdy is about to be honored as a humanitarian.

Murdy On TV

* Watch Post business columnist Al Lewis on 9News on Sunday.

has been chosen to receive the University of Denver International Bridge Builders Award at the 10th annual Korbel Dinner, a glitzy fundraiser for DU's Graduate School of International Studies at the Denver Marriott City Center on Aug. 30.

Former Secretary of State Madeleine Albright will give the keynote address. The dinner, after all, is named after her father, Czech diplomat Josef Korbel, who founded the international-studies school and became its first dean. Albright was unavailable for comment for this column.

Philanthropists Robert and Judi Newman - whose names are on DU's $72 million performing-arts center - will receive DU's Josef Korbel Humanitarian Award. The award Murdy will receive isn't exactly for humanitarianism. It's for building relationships between Denver and the rest of the world.

Nevertheless, the Korbel Dinner awards and DU's international-studies program are so inextricably linked to the humanitarian ideals they profess that many people don't see the difference.

Kara Martinez, a 2003 graduate, says she's insulted that her alma mater would whitewash a gold-mining company.

"I went to DU for a degree in international human rights," she said. "DU giving this award to Newmont is completely contradictory to that value. ... It's a revictimization of the communities Newmont has harmed."

Newmont routinely battles protests, lawsuits, sanctions and even criminal charges. The Western Shoshone of Nevada, for example, have been pressing claims against Newmont that sound remarkably like what cowboys have been doing to Indians for centuries. And claims from groups in Indonesia, Ghana and Peru are so horrible and strikingly similar that Newmont's own shareholders have passed a resolution demanding that the company address them.

To be sure, Newmont is perpetually under attack from activists. Not all of the mud sticks. In April, an Indonesian court acquitted the company and one executive on criminal charges for allegedly dumping arsenic and mercury into a bay where villagers ate fish that made them sick. Prosecutors are appealing the verdict.

"At best it's ironic and at worst it's hypocritical for a human-rights program to give an award to Wayne Murdy," said Glenn Morris, a professor at the University of Colorado at Denver.

Morris, who is also an attorney and sits on the leadership council of the American Indian Movement of Colorado, said he will help organize protests outside the Marriott on Aug. 30. Other groups say they will help organize protests as well.

"During Wayne Murdy's tenure, we have not seen Newmont take significant steps to address the needs and rights of local communities," said Paula Palmer, executive director of Global Response, a Boulder-based group that aids people impacted by Newmont's activities. "I think most of the changes have been on paper."

I think Newmont does what it can to mitigate the consequences of its activities - but in the end, it's a giant corporation on a mission to get the gold. People affected by this naturally fail to appreciate this sort of enterprise.

"The cost is too high for these communities," Palmer said. "It's not as if we all desperately need gold. ... Most gold is just used for ornamentation and is enjoyed by wealthy people."

Murdy was not available for comment, said Newmont spokesman Omar Jabara.

"It's unfortunate that an opportunity to help the University of Denver is being used to advance a bizarre agenda," Jabara said. "Like most people, Wayne Murdy believes business success and economic development are only sustainable through the protection of human rights. In addition, it's a well-established fact that economic development, like the kind we bring to many underdeveloped areas, is a catalyst for improved human rights."

In the past, the Bridge Builders award has gone to less controversial executives such as former Denver Mayor Wellington Webb and Ralph Peterson, the affable CEO of engineering giant CH2M Hill.

I asked Tom Farer, dean of the international-studies school, if he regretted choosing Murdy.

"Most of my colleagues wish that I hadn't recommended Murdy ... for the award," he said. "I've taken a fair amount of abuse for it."

Many professors in his department signed a letter asking him to reconsider. But he says he's willing to take the heat.

Farer is no stranger to humanitarianism. He once served as president of the human- rights commission of the Organization of American States.

He said he chose Murdy because - believe it or not - under Murdy, Newmont has improved. Farer offers the award as a carrot, instead of using a stick, and hopes it will inspire Newmont to hold itself to higher standards.

Already, DU's Daniels College of Business works as a consultant to Newmont, teaching its top executives such subjects as corporate strategy, social responsibility and environmental sustainability.

Bruce Hutton, dean of the business school, said he believes it's better to involve a company like Newmont in this sort of education than to simply beat on it as so many activists do.

"There are no perfect companies out there," he said. "Our job is to bring them in, work with them and move forward."

But do you really have to give a gold miner a humanitarian award?

"Wayne Murdy has to be responsive to 1,000 voices," Hutton said. "Sometimes, things good happen. Sometimes, things bad happen. We think we should give him credit when things good happen."

DU's business school is well-known for its work in corporate ethics and responsibility. Hutton and Farer hope to launch this fall a project called the Global Institute for Sustainable Development.

I asked Farer if he had sought funding from Murdy or Newmont for this effort.

"I certainly plan to," he said.

So the institute will ask corporations for money, which it will then use to investigate corporate abuses. Is this really going to work?

"Corporations that give us money will have to believe that if we research them objectively, they'll look better than they would if they're simply subjected to attacks from militant groups," Farer said.

But what if you research them and the facts are damning? I asked.

"Well, then they may regret it," he said. "Universities are committed to honest research. We pull no punches."

But you do give prizes.

Al Lewis' column appears Sundays, Tuesdays and Fridays. Respond to him at denverpostbloghouse.com/lewisor 303-954-1967 or alewis@denverpost.com.

 

 

Lawmakers to discuss 1872 law reform Under the law, companies
haven't paid taxpayers $245B on minerals from public land

By John Miller The Associated Press Grouse Creek Mine
from Salt Lake Tribune
07/23/2007

Grouse Creek MineThe Grouse Creek Mine near the Frank Church River of No Return Wilderness, is shown... (John Miller)

ATLANTA, Idaho - A small plane dodging wildfire smoke over Idaho's Rocky Mountains affords a view of an unnatural wonder few hikers ever see: Huge open pit mines.

Jim Kuipers, a former mining engineer-turned-industry critic, and Montana environmentalist Bonnie Gestring, offered a sky tour a week before a U.S. House subcommittee tackles a long-standing beef of American environmentalists. On Thursday, lawmakers will discuss a bill to dismantle the General Mining Act of 1872, signed by President Ulysses Grant to help develop the West's mineral deposits in the 19th century, but unchanged since.

Under the law, private companies haven't paid royalties to taxpayers for an estimated $245 billion worth of minerals extracted from public lands in the last 135 years. It also allows companies to buy public land for as little as $5 an acre. And it elevates mining's importance above other uses of public land, making it difficult for agencies like the U.S. Forest Service to deny any mine applications, environmentalists say.
Democrats won Congress last November, so reform efforts have gained momentum. Rep. Nick Rahall, D-West Virginia, and chairman of the House Natural Resources Committee, is its sponsor and aims for a vote by December.

The wild card, however, is U.S. Sen. Harry Reid, the Democratic majority leader from Nevada. A gold miner's son, Reid waxes sentimental about his hard-rock roots - and has stifled efforts to revamp the 1872 law before.

So last week, Kuipers and Gestring chartered a plane from a Colorado nonprofit, Ecoflight, to tour sites deep in Idaho's forested public lands they call ''poster children'' for why changes to the 1872 law are overdue.

''What's needed is a comprehensive system of environmental standards and reclamation criteria, so our public lands are adequately protected,'' said Gestring, of the Missoula, Mont.-based Earthworks.
Still, mining is worth $5 billion yearly to Nevada and industry is wary. Reid got more than $100,000 in campaign contributions from mining interests between 2001 and 2006, according to the Center for Responsive Politics.

Given these realities, most say Rahall's bill will be altered - if it's to become law.

Antiquated law

In the past, Reid has described working with Rahall on hard-rock mining as ''difficult.'' Now, he says he's more optimistic.

''Congressman Rahall's bill represents a good start to the debate, but certainly we have a long way to go,'' Reid told The Associated Press via e-mail.

Rep. Jim Costa, D-Calif., and co-sponsor of Rahall's bill, said after next week's hearing, he'll meet with Reid in Elko, Nev., on Aug. 21 for another public meeting and a separate tour of hard-rock mines.
''Unless it's a 'motherhood resolution,' where there's no debate, there's always a difference of opinion,'' Costa said in an interview. ''Anything that involves making changes - especially when there haven't been any changes since 1872 - is difficult by definition.''

From the passenger seat of the Cessna 210 over Idaho, Kuipers points toward 3 o'clock.
Bruce Gordon, the pilot, does a tight circle as the Stibnite Mine, an open-pit gold mine once run by Mobil Oil, emerges from the haze. Shuttered for a decade, groundwater here still has some of the highest concentrations of arsenic in the nation, according to the U.S. Forest Service.

Thirty miles to the southeast, the Grouse Creek Mine is perched on a mountaintop industrial site. Coeur d'Alene, Idaho's Hecla Mining Co., is investing $40 million into cleanup and says the effort will continue for years.

And above the 40-soul hamlet of Atlanta, Idaho, a Forest Service-owned hillside is etched with roads, tailings and shafts from mining since 1863. A Canadian company wants to build a new $40 million, cyanide-leach mine to capitalize on gold prices hovering at $680 an ounce - more than double 2000 prices.

Boise, 100 miles to the west, gets a fifth of its drinking water from the Boise River that's fed by tributaries near the proposed Atlanta mine. Mayor Dave Bieter pushed a resolution opposing it.

''Unfortunately, the resolution was largely symbolic,'' Bieter said this week. ''Antiquated federal regulations don't give enough consideration to the potentially negative effects of mining operations on the environment and livability of downstream communities.''

Future of mining

Rahall's changes would impose environmental requirements, give more rejection power to federal land managers and assess an 8 percent royalty to pay for cleaning up abandoned mines.

But with Bieter and environmentalists on the offensive, mining companies are leery of Rahall's plan, dubbing it unofficially ''The No-More Mining Act of 2007.'' Some changes in the 1872 law are needed, they say, but an 8 percent royalty would drive the U.S. industry to financial ruin.

''We have to be cost competitive,'' said Carol Raulston, spokeswoman for the National Mining Association in Washington, D.C. ''We want to pay more to the government. But sooner or later, you have to ask, 'Have we come to a tipping point when it's no longer feasible to mine in this country?' "
Atlanta Gold officials didn't immediately return phone calls.

But Hecla Mining's CEO Phillips Baker said many mining companies have acted responsibly under the existing law.

''We've spent about $40 million in closure costs and reclamation [at Grouse Creek],'' Baker said. ''Within Idaho, since 1969, there has not been a company that has started a mine and closed it where taxpayer money has been required. I would say we've had an extremely effective system of monitoring and regulating the opening and closing of mines in the state of Idaho.''

Environmentalists counter that money paid by companies to remediate mining pollution on public land won't be enough to cover future catastrophes, in Idaho or elsewhere. They point to cleanups in states including Montana, where estimated remediation costs at an open-pit complex near Ft. Belknap exceed the company's bonds by $33 million.

The West has changed, they say; so should the 1872 mining law.

''The 1872 mining law was written to help promote the development of the West,'' said John Robison, of the Idaho Conservation League that's fighting the Atlanta mine. ''As you can see, the West has already been developed.''

"Anything that involves making changes - especially when there haven't been any changes since 1872 - is difficult by definition."

REP. JIM COSTA
California Democrat

 

www.themountainmail.com/main.asp?SectionID=7&SubSectionID=7&ArticleID=11248

Mining companies digging our pockets

Guest Opinion

by Ryan Alexander
Thursday, June 21, 2007

When lawmakers make legislative mistakes, it can take a long time to fix the error. That's the nature of a deliberative body. Wednesday was the "birthday" of one piece of legislation that has taken longer to fix than any other we know of - the General Mining Act of 1872 (more commonly referred to as the 1872 mining law).

The "granddaddy" of federal subsidies is alive and going strong, but rest assured we won't be throwing it a party or buying it presents. No, the only ones getting presents today are the gold, copper and other mineral companies that are the beneficiaries of 135 years of subsidies and giveaways.

The 1872 mining law robs taxpayers by allowing companies to "patent" - take title of - public lands for the rock bottom price of $5 an acre (that's a measly 31 cents per acre when adjusted for inflation!), a giveaway signed by Ulysses S. Grant as a way to help populate the western United States.

Once they have purchased this practically free land, mining companies are allowed to extract metals and minerals - an estimated $245 billion worth over the years - without paying a dime in royalties.

To be clear, we are not talking about subsidies going to the old '49ers who set up camp during California's gold rush back in the 19th Century. Today, minerals are mined by big companies making even bigger profits.

Every year, billions of dollars of gold, silver, and copper are taken from public lands, and Uncle Sam is literally giving the stuff away.

In 2006, Australian-based Rio Tinto reported profits of $7.9 billion and Canadian-based Barrick Gold Corporation sold over $4.4 billion worth of gold. It total, these two companies alone hold 39,322 claims covering 785,490 public acres in the United States.

Unlike other extractive industries, hard rock mining companies can dig for gold, silver and other precious metals and minerals on taxpayer-owned lands for free. Coal, oil, and natural gas companies must pay a royalty back to the U.S. Treasury that runs as high as 16 percent of the value of the resource they extract.

It only makes sense that these companies pay a royalty. Taxpayers should not give away free commodities that private companies will turn around and sell. And it shouldn't be any different for mining companies.

According to a recent analysis of government mining records, just 10 mining interests, five of which are foreign-owned corporations, own more than one-sixth of all claims.

These 10 companies hold 86,396 claims, representing 1,720,380 acres of public lands. In 1993, the largest of these companies, Barrick Gold Corporation, patented claims in Nevada for a mere $10,000. The estimated mineral value of those claims was $10 billion.

Adding insult to injury is that taxpayers foot the bill for billions of dollars in cleanup costs when mines are stripped bare and abandoned. One estimate puts the total cleanup cost at between $32 billion and $72 billion.

Reform of the 1872 mining law is more urgent than ever. Taxpayers have already given away many billions of dollars worth of metals and minerals, and new energy trends indicate the pace of the giveaway could accelerate without congressional action.

With the nuclear power industry pushing to increase their market share, companies looking to mine uranium have staked hundreds of new claims on public lands in the West hoping to cash in. Speculation in recent years has already caused uranium prices to double, and with gold and silver prices riding high, the pressure is like never before to exploit the bygone 1872 mining law for private gain.

As that mining law grows another year older, Rep. Nick Rahall (D-W.V.) is leading an effort to modernize it. You can be sure that the deep pockets of the mining industry will fight like crazy to keep the subsidies flowing, so it's going to take a lot of hard work to ensure that substantial reforms are enacted and taxpayers are protected. Let's just hope we don't have to wait another 135 years for reform.

Ryan Alexander is president of Taxpayers for Common Sense, a non-partisan federal budget watchdog. Column distributed by MinutemanMedia.org.


EARTHWORKS Protecting Communities and the Environment


Alan Septoff
Research/IT Director
202-887-1872x205
202-271-2355 (mobile)
202-887-1875 (fax)
aseptoff@earthworksaction.org
www.earthworksaction.org
1612 K St., NW, Suite 808
Washington, D.C. 20006
United States

=== EARTHWORKS Protecting communities and the environment from the adverse impacts of mining, digging, and drilling === Alan Septoff EARTHWORKS Research/IT Director 1612 K St., NW, Suite 808 Washington, D.C., USA 20006 p: 202-887-1872x205 f: 202-887-1875 e: aseptoff@earthworksaction.org w: earthworksaction.org


Mining project cancelled after long environmental protest.

Famatina, Provincia of La Rioja, Argentina
May 16, 2007

Vecinos de Famatina Autoconvocados en Defensa de la VIDA
Coordinadora de Asambleas Ciudadanas por la VIDA de Chilecito
Vecinos Autoconvocados de Pituil
Vecinos Autoconvocados de Chañarmuyo
Vecinos Autoconvocados de La Rioja Capital
ONG Oeste de Chilecito.

In Famatina, province of La Rioja, in the republic of Argentina, we hereby communicate:

Through telephone communication carried out between representatives of the criminal Transnational corporation Barrick Gold and the Chilecito departmental Judge Alfredo Ramos, we have been informed that as of Monday May 14, 2007, Barrick Gold Corp was definitively withdrawing their "Famatina project." They have asked for twelve days beginning Monday May, 21 to dismantle the mining camp which was under construction in the site "Cueva de Perez." An official document will be signed between representatives of the company, the sub-secretary of human rights, the federal justice and representatives of our assemblies.

It is fitting that our different assemblies in the area have carried out a permanent blockade at Peñas Negras on El Famatina mountain for the past two months and eight days, preventing Barrick the route to the mines of La Mejicana. Tourists and local people have enjoyed free passage, but not personnel of Barrick Gold, as since the beginning of the blockade there have only remained two guards to care for the incampment.

We inform this corporation and all similar companies (plunderers and criminals), that on our Riojan territory, come what may, whatever governors, officials, judges whomever may come... They will never have social support. Now that society is conscious of the consequences that this type of exploitation generates, we will never permit more plunder of our common resources and contamination of our earth, air and water.

We ask too, from our earth to our sister provinces equally affected by mega-mining: Don't give up the fight, let us all keep fighting to expel these bloodsuckers from our territories. In these mountains are the sources of our life -- in this fight we all fight together or we don't fight at all. We are obligated to leave our lands healthy and beautiful for our future generations to inherit.

BARRICK GOLD: OUT OF FAMATINA!

BARRICK GOLD: OUT OF LA RIOJA, SAN JUAN, MENDOZA, CHILE, PERÚ, EL SALVADOR
CRIMINAL MINING FIRMS OUT OF OUR LAND!

OUT WITH SELL-OUT POLITICIANS WHO SELL AND GIVE AWAY OUR LAND!

THE PEOPLE ARE AND WILL ALWAYS BE SOVEREIGN!

YOU WILL NOT TOUCH EL FAMATINA!

Buenos Aires, Argentina

La Nacion, 16 May, 2007

Mining project cancelled after long environmental protest.

Canadian firm Barrick Gold decides to abandon the controversial exploration of Famatina.

LA RIOJA - The tenuous fight of environmentalists of Chilecito and Famatina has caused the definitive end to exploration operations which Barrick Gold Corp the Canadian mining corporation was carrying out in the region.

Within twelve days, according a communication signed yesterday by the provincial government, the personnel and machinery of the gold mining giant will be evicted from their operations in the mountainous Famatina Range.

Company access to the mining encampment was cut off in "Peñas Negras" on the road to the La Mejicana mines two months ago by area residents opposed to Barrick's plan to operate an open-pit mine with cyanide. The project put the water reserves of this arid and agricultural region into grave risk. Until now, the route had been "partially" blockaded, the assemblies permitting the two Barrick guards remaining to change shift guarding the camp, every Saturday.

But days ago, the assembly of residents had said that if Barrick did not abandon the project a total blockade would be initiated beginning this Saturday.

Yesterday, the sub secretary of human rights of the province, Domingo Bordón, participated in a meeting with members of the autonomous assemblies of residents and producers of Chilecito and Famatina, "to ensure that the camp is removed and that (the residents) permit the withdrawal o personnel and machinery on part of the Canadians from the Peñas Negras camp."

Chilecito judge Alfredo Ramos informed the environmentalists about the request made by Barrick to lift the blockade, and about the 12-day timeline set for the withdrawal operation. The residents asked the judge to have the company sign an official notice regarding their withdrawal.

Not Necessary

Questioned by the La Nation, the company stated that "explorations at Famatina are one of over 100 projects that the company has in exploration around the world, and in this contest, "is not a priority project." Now, except for Barrick Gold's operations in neighboring San Juan, "the rest o the explorations are complementary and not crucial,"

Barrick had set up shop in La Rioja after signing an agreement in April 2005 with the Yamiri, in which the local government had a 20% participation. Many of the details of this agreement were only made public at the beginning of this year, and became the root for a political struggle between the governor Angel Maza and vice-governor Luis Beder Herrera.

Now ex-governor Maza was first suspended and then stripped of his role by a political process, accused of the crime of corruption with State goods (illegally selling public land to the miners). Now Beder Herera is the governor.

In the infamous accord, according to an investigation published by the newspaper El Independiente, Barrick Gold was awarded exclusive rights to exploration and operations in the Famatina range. In return, the company was to pay off $500,000 over five years.

As governor, Angel Maza was a fervent promoter of "responsible mining" in his province, often visiting Canada to attract projects. In April of 2006, Carlos Araneda, Latin American vice-President or Latin America of Barrick Gold, visited the then-governor Maza: "Up to now we are satisfied with results of the Famatina project," Araneda had said, with Barrick already having invested over two million out of a scheduled ten million dollars.

"We have passed the initial stage, and this next stage is crucial for the project," said Araneda at that time, adding that in 2007 the company would decide whether or not the province had "an economically viable level of minerals." This past March 8, the provincial Legislature, dominated politically by Beder Herrera, passed a law demanded by the environmentalists: To prohibit the operation of open-pit mines using cyanide.

At the same time, the date of July 29 was chosen as the date of a popular consult in Chilecito and Famatina to decide to reject or accept that law. A investigative commission was created to investigate the relations of Yamiri, and to annul the agreement with Barrick. Maza denied any irregularities in the agreement which favored Barrick so.

On March 10, with movement in the mining zone blockaded by residents, in a tense and highly-charged meeting, a Barrick representative and environmentalists arrived at an agreement: Barrick promised to begin to dismantle the mining camp within seven days. Two months later and eight days later, the environmentalists now want to be certain that the transnational company will keep its word this time.

By Arturo Ortiz Sosa

La Rioja Correspondent

 

Native American Group
Wants Barrick Gold Corporation Off Sacred Lands

2 May 2007

For more information, contact:
Helen DaSilva, Press Officer
617-728-2409
617-331-2984 (mobile)
hdasilva@oxfamamerica.org

 

TORONTO — Today at its annual shareholders meeting, the Barrick Gold Corporation will have to answer some tough questions from the Western Shoshone Defense Project (WSDP), a grassroots Native American group based in Nevada and supported by Oxfam America, an international relief and development organization. Dedicated to protecting the land rights and preserving the homelands of the Western Shoshone people, the WSDP is concerned about Barrick’s plans to mine on Mount Tenabo and Horse Canyon, important spiritual areas in Northern Nevada and home to Shoshone creation stories. “As the world’s largest gold mining company, Barrick should be an industry leader and respect the rights of communities to give their free, prior, and informed consent to all mining projects proposed on their lands,” said Keith Slack, senior policy advisor for Oxfam America. “Respecting the right of consent is critical for protecting indigenous peoples’ sacred sites.” "The United Nations has recognized that the U.S. government and the mining companies are violating Western Shoshone land rights,” said Larson Bill, community organizer for the Western Shoshone Defense Project. “We have repeatedly tried to engage with Barrick regarding their plans to mine on Mount Tenabo, but all they have done is bring in more drilling rigs and put up fences.” “We are bringing a petition signed by over 18,500 people telling Barrick to stop all activity on Mount Tenabo and Horse Canyon. These are people all over the country who understand that this is Western Shoshone land and the mining companies have no right to destroy it,” said Bill. Slack continued, "Today's meeting is an opportunity for the WSDP to take their concerns directly to Barrick and its shareholders." Oxfam America works to ensure the oil, gas, and mining industries respect the rights of community members impacted by extractive industries projects, and that projects contribute to the long-term reduction of poverty. For more information, or for an interview with Keith Slack or Larson Bill, please contact Helen DaSilva at hdasilva@oxfamamerica.org, (617) 728-2409 (office) or (617) 331-2984 (cell). Article Tools: Printer-friendly Printer-friendly Email this article Email this article



E&E Daily: mining reform bill

Friday, May 11, 2007
Debra Kahn, E&E Daily reporter

5. MINING: House bill would revamp 1872 hardrock law

The chairman of the House Natural Resources Committee introduced legislation yesterday aimed at reforming the 1872 hardrock mining law that allows companies to avoid paying royalties on minerals taken from public lands.

Rep. Nick Rahall (D-W.Va.) and Energy and Mineral Resources Subcommittee Chairman Jim Costa (D-Calif.) are sponsoring the "Hardrock Mining and Reclamation Act of 2007," H.R. 2262, which would impose an 8 percent royalty on the net production of minerals on claims filed under the law. It would also identify types of federal land to place off-limits to mining and require mine operators to submit reclamation plans before they receive mining permits.

"It is far past the time for responsible reform of the Jurassic Park of all federal laws," Rahall said at a news briefing.

Tiffany & Co. Chairman and CEO Mike Kowalski, who appeared with Rahall and Costa, said his company's support for the bill was "motivated by self-interest."

"We desperately need new mines in this country," Kowalski said. "This bill is a hugely important step in the right direction."

The government has missed more than $245 million in royalties on mineral reserves since the mining law was enacted 135 years ago, Rahall said. And taxpayers will eventually be burdened by an estimated $32 billion bill for cleaning up thousands of abandoned mines, he said. The law would affect up to 270 million acres of public lands, Rahall added.

Claimholders can acquire public land through the patenting process for as little as $2.50 per acre under the existing law. Congress has renewed a temporary moratorium on such land purchases every year since 1994.

Gold, uranium and other minerals are selling at record-high prices and production is at historic highs, particularly in Nevada, Arizona and California, Rahall said. The congressman said he has "reached out" to Senate Majority Leader Harry Reid (D-Nev.) -- who has opposed mining reform in the past -- and held "lengthy discussions" on the bill's intent.

Reid told the Associated Press he did not expect a hardrock-mining reform bill to surface in the Senate this year. "We have a lot of things to do," Reid said. "It won't be this year."

Reid opposed efforts in the the mid-1990s to reform the law. He told the AP that such efforts were spurred then by "people ... interested in destroying hardrock mining."

The bill marks the fourth time Rahall has tried to reform the law since 1985. "We are cognizant of factors that stymied the '80s bill," Rahall said, as well as "political problems that plagued" the 1994 Senate conference." He said Reid agreed with him "on the goal of fair returns to the American taxpayers."

Other past efforts to reform the law have included former Reps. Richard Pombo (R-Calif.) and Jim Gibbons' (R-Nev.) attempt to insert language into the House-passed budget in 2005 that would have lifted the moratorium on mining patents and raised the land price to $1,000 per acre (E&E Daily, Dec. 12, 2005).

Costa said he planned to hold at least one field hearing later this year and move the bill to the full Natural Resources Committee by the end of this year or early next.

Along with legislative action, mining companies and retailers are taking voluntary action in the form of nonbinding standards for cyanide and mercury management, labor standards, public disclosure and emergency response. Tiffany & Co., Earthworks, Newmont Mining and BHP Billiton are among the supporters of the Initiative for Responsible Mining Assurance, which is meeting this fall to draft initial standards. Earthworks President Stephen D'Esposito speculated last week that mining companies were willing to subject themselves to voluntary standards in anticipation of the "regulatory noose" tightening over time (Greenwire, May 4).

The National Mining Association released a statement Wednesday saying it wanted any mining law to recognize existing authority over the closure of areas to mining, as well as ensure "security of title and tenure" throughout a mine's operations. "We look forward to working with Chairman Rahall and ranking member Don Young (R-Alaska) as the House Natural Resources Committee begins consideration of amendments to the law," the industry group said.

Rahall said he would not rule out any potential amendments, which could include "Good Samaritan" provisions for companies that conduct voluntary cleanup efforts. He also said he was not wedded to the royalty method of compensation as the only method of payment. He said he had no feedback from the Bush administration yet.

 

 

Mining Law a Dilemma for Sen. Harry Reid

Senate Majority Leader Harry Reid Faces Political Crosscurrents in Mining Law Rewrite

By ERICA WERNER
The Associated Press
WASHINGTON
May 10, 2007
http://www.abcnews.go.com/Politics/wireStory?id=3159227

Senate Majority Leader Harry Reid of Nevada, a gold miner's son from the top gold-producing state in the nation, is confronting competing political interests as House Democrats prepare to rewrite an antiquated hard-rock mining law.

The minerals mining industry holds huge sway in Nevada and industry is balking at some of the most far-reaching reforms. Reid must work with environmentalists and fellow Democrats in Congress, but also hang onto support at home or risk the fate of his ousted predecessor, Tom Daschle.

In an interview Reid said he supports reforms to the General Mining Law of 1872 and said he can work with House Natural Resources Committee Chairman Nick Rahall, D-W.Va. Rahall planned to introduce a rewrite of the bill on Thursday.

During the Clinton administration Reid had pitched battles with fellow senators he thought were trying to amend the mining law to hurt the mining industry. Reid always prevailed and the law remained fundamentally unchanged.

"We had people then that were more interested in destroying hard-rock mining," said Reid. He added that he met with Rahall on the issue last week.

"In the past he's been difficult to work with on hard-rock mining issues. He's a coal-mining person, not hard-rock mining, but a lot of things have transpired" since the reform attempts of the mid-1990s, Reid said.

"Nick and I had a long conversation. He'll be easy to work with," Reid predicted.

Rahall spokeswoman Allyson Ivins Groff declined comment in advance of Rahall's press conference Thursday.

Nevada political analysts said Reid will accept reform but nothing the mining industry can't live with.

"It all depends on how you define the word reform. I think Harry Reid supports reform as much as the next person who represents a state with powerful mining interests," said Jon Ralston, a nonpartisan Nevada political analyst and columnist.

"The mining industry considers Harry Reid one of the greatest allies they have on Capitol Hill," Ralston added. "I can't imagine that's going to change after this bill."

Reid got more than $100,000 in donations from the mining industry between 2001 and 2006, according to the Center for Responsive Politics. Mining is a $5 billion industry in Nevada and is especially crucial to the economy outside of Las Vegas.

Reid's political support is weak in those areas of rural Nevada anyway, analysts said. Nonetheless Reid, who will face re-election to a fifth term in 2010, must remain continually watchful of political support in his home state, where Republicans slightly outnumber Democrats.

Daschle, the former Senate Democratic leader, lost re-election in South Dakota in 2004 in part because his national role cost him home-state support.

The mineral mining industry, also an important force in Arizona, Utah and other largely Western states, has benefited from a law that has not changed with the times. Unlike with coal, oil or gas, the industry doesn't pay federal royalties on minerals it extracts. There are few environmental protections or reviews. The law allows public lands to be sold cheaply for mining, though Congress has annually imposed a moratorium on that.

Rahall would impose a series of environmental requirements, give more power to federal land managers to deny mining applications, and impose an 8 percent royalty fee that would go into a fund to clean up abandoned mine sites, among other changes.

The National Mining Association says it supports some changes that would add more certainty to permitting and is interested in an abandoned mine cleanup fund. But spokeswoman Carol Raulston said that an 8 percent royalty fee "could be very punitive to the industry."

"I wouldn't want to speak for Senator Reid, but I think you'll find the delegations of all the big mining states are supportive of the industry and want to make sure we can maintain those jobs," Raulston said.

Some attempts to change the law came close during the Clinton years but there has been little action under President Bush. With Democrats now in control of Congress, supporters of reform see a good opportunity for action.

But there's not yet a sponsor for a Senate version of the bill, and Reid indicated Senate action wasn't an immediate priority.

"We have a lot of things to do. It won't be this year," Reid said, adding there could be action in 2008.

 

Miners stunned, environmentalists cheer after northern uranium project blocked

Wed May 9, 2007
By Bob Weber, The Canadian Press
http://ca.news.yahoo.com/s/capress/070509/national/uranium_mine_rejected

(CP) - Miners are stunned and environmentalists cheering over a northern regulator's recommendation that a uranium exploration project be denied because it threatens the spiritual and cultural well-being of the area's Dene people.

The Mackenzie Valley Environmental Impact Review Board says Ur-Energy's (TSX:URE) plan to drill up to 20 holes near the Thelon River should not proceed under any circumstances.

"Although the proposed development is physically small, the potential cultural impacts are not," says the board in a written decision.

It is only the second time in the board's history that it has dismissed a project outright.

It's now up to federal Indian Affairs Minister Jim Prentice to decide whether to accept the recommendation, which throws doubt on the future of hundreds of mineral leases and claims in a vast area of the Northwest Territories.

"It's a major concern if you can't run a minimal-impact exploration program," Mike Vaydik of the Northwest Territories and Nunavut Chamber of Mines said Wednesday.

"Mineral exploration in the southeast part of the N.W.T. is basically stopped."

Monte Hummel of the World Wildlife Fund agreed.

"This stands to have a serious impact on not just this project," he said. "That's what the people who live there want."

Ur-Energy described the decision as a delay.

In a release, company president Bob Boberg said Ur-Energy is disappointed with the review board's recommendation and "will continue to pursue any and all approaches that will allow us to advance exploration."

Boberg said Ur-Energy would discuss the recommendation with Prentice.

The Thelon Basin is considered one of the earth's last pristine wildernesses.

During hearings on the project, one ecotourism outfitter said he'd spotted six grizzlies, 12 moose, 20 wolves, 100 muskox and 100,000 caribou on a single trip.

Residents from the community of Lutsel K'e described the area as "the place where God began" and "the heart and soul of the Dene."

"(The) Thelon River is Thaydene Nene. Thaydene Nene is our ancestors," elder Bernadette Lockheart said in her testimony.

Even a single exploration camp is too much for such hallowed ground, testified 13-year-old Michael Lafferty.

"If you do find uranium, you'll try to get it, right?" he asked. "It's better just not to check. Just leave it there."

The area drained by the Thelon River, which flows from the N.W.T. into Nunavut, has been the subject of an intense staking rush in recent years.

At least 40 companies are prodding the tundra for uranium after prices for the silvery metal grew from $7 a pound a few years ago to over $100 now. They have registered hundreds of prospecting permits, claims and mineral leases - 1,000 such dispositions on the N.W.T. side alone.

Nunavut has identified 405 prospecting permits that may conflict with ecological values. Some permits overlap proposed conservation areas or territorial parks.

The area is also subject to an agreement between Ottawa and the Akaitcho Dene not to make any decisions on the land for five years pending a land-claim settlement. That interim land withdrawal is currently awaiting cabinet approval.

As well, part of the region has been singled out by Environment Minister John Baird for the creation of East Arm National Park near the east arm of Great Slave Lake.

Earlier this week, Lutsel K'e Chief Adeline Jonasson sent an open letter to all resource companies saying they shouldn't bother asking about development on the Thelon because the Dene aren't interested.

"We are in complete opposition to having a mine in the Thelon area, and therefore will not support even the initial stages of such a possibility," she wrote.

The board says Canada's mining regulations contribute to the problem by allowing prospectors to stake claims before consulting area aboriginals, and then giving those claims precedence in any subsequent land talks.

As the quickening pace of northern industrial development runs head-on into land claims and environmental concerns, it's time the federal government dealt with tough land-use questions, said Hummel.

"As you delay more and more, mineral permits of one kind or another are being issued," he said. "It's fragmenting and reducing the area the (Dene) said they wanted to protect."


From the Daily Grist:

Nevada Mined Newmont Mining Co. will undergo social-responsibility review

It wasn't enough to be acquitted of pollutey wrongdoing in Indonesia; the world's largest gold-mining firm is begging for more green cred. This week, 91.6 percent of Newmont Mining Co.'s shareholders approved an independent review of the company's environmental and social impacts worldwide. Along with the high-profile trial in Indonesia, Newmont's operations in Ghana, Peru, and Native American lands in Nevada have provoked "a pattern of community opposition," said Julie Tanner of Christian Brothers Investment Service, which introduced the resolution. Tanner noted that protests were beginning to affect stock prices, and giving faith-based shareholders moral qualms. For its part, Newmont took the unprecedented step of advocating for the review. Said a Newmont spokesperson, "We do need to know where we can improve. There's nothing worse than having an issue out there and not knowing about it until it's too late or festered into a big problem."

straight to the source: The Christian Science Monitor, Ben Arnoldy, 26 Apr 2007

straight to the source: The Spokesman-Review, Kevin Graman, 25 Apr 2007

straight to the source: Mineweb, Dorothy Kosich, 25 Apr 2007


WHAT'S NEW ON CORPWATCH
Holding Corporations Accountable
http://www.corpwatch.org
May 1, 2007

Barrick's Dirty Secrets:
Communities Worldwide Respond to Gold Mining Impacts

http://corpwatch.org/article.php?id=14466

Canadian-owned Barrick Gold, the world's largest gold producer, is exploring, building and operating huge, open-pit gold mines on nearly every continent on the planet.

On average, gold mining today produces 70 tons of waste for every ounce of gold, while also consuming and polluting massive amounts of water. An estimated 50 percent of these mining operations occur on native lands.

For many Indigenous peoples, who often rely on their environment for food and necessities, mining threatens not only their livelihood, but also their spirituality and traditional way of life.

These new "modern mining" projects leave thousand-year legacies of acid mine drainage, destruction of ecosystems, disease, and regional climate change. Riches in the form of gold, silver and copper are exported to first world shareholders, leaving behind poverty, dependency and pollution.

A new CorpWatch report details the operations of Barrick gold in nine different countries, focusing on the efforts on the part of the communities to seek justice from this powerful multinational.

In the report, you will discover:

  • individual profiles on Barrick's operations in Chile, Argentina, Peru, Tanzania, Papua New Guinea, the U.S., Australia, the Philippines, and Canada.
  • how Barrick's Valedero and Pascua Lama projects got placed in a UNESCO World Biosphere Reserve;
  • a roundup of mine security and police repression in Peru;
  • how "illegal" miners have had their lives threatened and taken away in Tanzania and Papua New Guinea;
  • how Barrick threatens indigenous spiritual grounds of the Wiradjuri in Australia and the Western Shoshone in the U.S.
  • how Barrick threatens the water sources in water scarce areas in Chile, Argentina, Australia, and Nevada. In New South Wales, Australia, Barrick's mine is licensed to use 17 million liters on water per day. Meanwhile, that region is experiencing their worst drought in the last hundred years.
  • profiles of on-going community struggles against Barrick around the world

 

Also on May 2nd, as part of an "International Day of Action" against Barrick,  protests will take place in six different countries as well as in Toronto, Canada, where Barrick is based. On the same day, Canada's second largest gold mining company, GoldCorp, will be protested at their annual meeting in
Vancouver. For more information about these actions, go to protestbarrick.net.

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Barrick takes rare loss on hit to unwind hedge
Anti-mine activists arrested outside annual meeting of shareholders

May 03, 2007
Lisa Wright
Business Reporter
TORONTO STAR
http://www.thestar.com/Business/article/209897

Two anti-mining protesters were arrested yesterday outside Barrick Gold Corp.'s annual meeting at the Metro Toronto Convention Centre just as the company celebrated a long-awaited milestone with the elimination of its controversial hedge book.

A woman in her late 20s who was handing out pamphlets about the negative impacts of global gold mining and a Toronto man in his early 40s, who tried to intervene during her arrest, were hauled off in a police van at about 9:30 a.m., accused of trespassing and obstructing officers, police said.

"They're free to get their point across but they were on private property," Sgt. Mark Hayward told the Toronto Star.

"They were asked to leave and they refused to leave so they were arrested," he said, adding a handful of others complied and moved across Front St. The woman was released and not charged, while details of the man's status were not immediately available.

He added that eight officers were waiting at the scene this morning after receiving intelligence of potential protests against Barrick, the world's largest gold miner and a favourite target of environmental
activists for their mining practices.

"We want to raise awareness about the significant ecological damage that their projects have caused in remote communities," said Natalie Lowrey of Friends of the Earth Australia.

A Barrick spokesperson said the police were simply doing their job protecting the public.

Another small rally was held outside Barrick's head office on Bay St. late yesterday to continue the day of protest in tandem with the annual meeting in the John Bassett Theatre, with some environmentalists given time to speak to shareholders.

Barrick reported a net loss of $159 million (U.S.) in the first quarter - its first quarterly loss in five years - after taking a hit of $557 million to unwind its hedge book.

Barrick is now free to sell all production from its 27 mines at spot prices. Gold fell by $2.10 to close at $672.30 yesterday in New York.

The strategy of forward selling production was a $2 billion windfall over the late 1980s and 1990s when bullion continued to tumble. But Barrick's share price took a beating as gold began to climb over the
last five years.

"When you look at the whole ball of wax, in the 20 or so years of Barrick hedging, it's probably been an even sum game for them, but I think the market will take it kindly," said analyst Michael Fowler of
Desjardins Securities.

Flamboyant company founder Peter Munk told the audience Barrick has done "a superb job" in growing to the top of the heap globally and that the lagging stock price should reflect that.

"We're very pleased about what we've accomplished because the market is looking for unhedged producers and there's a very bullish sentiment on the gold price now," said chief financial officer Jamie Sokalsky.

Barrick boosted its annual dividend 36 per cent and has $3 billion in cash. Shares jumped $1.56 (Canadian,) or 5 per cent, the most in almost a year, to close at $32.71 in Toronto.

 

 


FYI – Let’s see what happens with this….

http://www.cbisonline.com/page.asp?id=873


Christian Brothers Investment Services: Newmont Is First Mining Company To Urge Shareholders To Vote For Social Resolution, Company Will Produce Report On Impacts Of Mining Operations On Local Communities

DENVER, CO.
April 19, 2007

In a first for a U.S. mining company, Newmont Mining Corporation (NYSE: NEM), one of the world's leading gold producers, will encourage shareholders to support a social resolution sponsored by Christian Brothers Investment Services, Inc. (CBIS) and 10 other faith-based investors. The concerned shareholders are urging the company to produce a report addressing community-based opposition to its operations in the U.S. and around the world. The shareholder resolution will be voted on at Newmont's annual meeting April 24, 2007.

Julie Tanner, corporate advocacy coordinator at CBIS, said: "This is a real breakthrough in that it is the first time that a mining company has agreed to urge shareholders to support a social resolution. This is a bold step by Newmont, and, with the release of a substantive and thorough report, will indicate that the company takes the issue seriously. To be credible, the report will need to include the input of independent experts and the communities affected by the mining operations of Newmont. We look forward to working closely with company officials."

The resolution reads: "Several Newmont projects in developing countries have been undermined by community protests over the years. A pattern of community resistance to the company's operations, especially in Peru, Indonesia, and Ghana, raises concerns about issues such as the company's mining waste disposal practices, the potential for water pollution, development on sacred sites, and community resettlement ... [Therefore] shareholders request that a committee of independent board members be formed to conduct a global review and evaluation of the company's policies and practices relating to existing and potential opposition from local communities and to our company's operations and the steps taken to reduce such opposition; and that the results of that review be included in a report that is made available to shareholders prior to the 2008 annual meeting."

In addition to CBIS, the shareholder resolution is supported by Catholic Health East; Sisters of Saint Joseph of Chestnut Hill, Philadelphia; Mercy Investment Program; CHRISTUS Health; General Board of Pension and Health Benefits; United Methodist Church; Presbyterian Church (USA); Missionary Oblates; Unitarian Universalist Service Committee; Evangelical Lutheran Church in America; and Catholic Healthcare West.

The leading proxy voting service, Institutional Shareholder Services (ISS), has also recommended a vote in favor of the resolution.: "ISS believes that it is important for global companies, particularly those that operate in developing markets or regions with social, political, or economic unrest, to have appropriate and effective policies for interacting with the host governments and local communities that will be impacted by their operations. Successful relationships between a company and such stakeholders can improve the efficiency of operations, expand the company's license to operate in challenging markets, improve the public's perception of the company, and mitigate the risk of controversy, protests and litigation."

The faith-based investors have stressed that the Newmont report will need to be comprehensive and open to many viewpoints in order to be regarded as credible. In addition, the report should include:

* An evaluation of the company's existing systems to identify, assess and control for social and environmental risks;

* A global review of the adequacy and effectiveness of existing social and environmental guidelines, policies, and practices relating to community engagement and to existing and potential opposition from local communities and to our company's operations;

* A review of those issues most often associated with community opposition, including the environmental practices and concerns about potential environmental risks posed by the company's operations, adequacy of timeframes set aside for community engagement from project identification to start up, job creation, revenue sharing, and the development of community investment programs;

* An assessment of the actions of other mining and natural resource extractive companies to minimize community opposition, such as the creation of social guidelines designed to gain the free prior informed consent of communities; and

* A review of the findings, conclusions and recommendations on specific actions or decisions the Board should consider, including steps to strengthen Newmont's engagement policies and procedures and actions to mitigate future community opposition overall, reduce risk, and improve community well being, along with an implementation timeline.

CBIS will also be supporting the proposal put forward by New York City Pension Funds asking for a review of company policy regarding waste disposal at Newmont's mining operations in Indonesia.

For the full text of the CBIS resolution, click here. http://www.cbisonline.com/page.asp?id=575&type=both&sri_id=100

ABOUT CBIS

Christian Brothers Investment Services, Inc., manages more than $4 billion, combining faith and finance in the responsible stewardship of Catholic financial assets. CBIS' combination of premier institutional asset managers, diversified product offerings, and careful risk-control strategies constitutes a unique investment approach for Catholic institutions and their fiduciaries. CBIS strives to integrate faith-based values into the investment process through a disciplined approach to socially responsible investing that includes principled purchasing (stock screens), active ownership strategies (proxy voting, dialogues, and shareholder resolutions) and community investment. Visit CBIS on the Web at http://www.cbisonline.com.

S.H.A.W.L. Society (Sovereignty, Health, Air, Water, and Land) Goals: To keep toxic waste from ruining our environment; to protect the air, water, and land for our children; and to promote awareness and educate the community about environmental concerns and social injustices.

Deb Abrahamson, Wellpinit, WA (509) 258-8952 Twa-le Abrahamson, Wellpinit, WA (509) 258-4313

 

FYI -

Attended by environmentalists from Bolivia, Canada, the United States, England, France, Germany, Iraq, Papua New Guinea and Switzerland as well as most Australian states, the campaign to protect Lake Cowal continues to gain international recognition as momentum grows in the fight to stop the desecration of Indigenous lands and the environmental destruction resulting from gold mining on all continents."

From: Natalie Lowrey natalie.lowrey@foe.org.au
movementforchange@yahoogroups.com.au; glparramatta@greenleft.org.au

9 April 2007

14 Protestors Arrested at Wiradjuri Lake Cowal demonstration

Fourteen protestors have been arrested at a demonstration in support of Wiradjuri Traditional Owners who want the Lake Cowal Gold Mine stopped.

Around 100 Aboriginal and environmental supporters demonstrated at the Lake Cowal Gold mine, 47 kms from West Wyalong over Easter to protest against the desecration of traditional Wiradjuri lands and environmental damage caused by gold mining.

Some of the demonstrators locked themselves onto pieces of machinery, shutting down mine operations, while others occupied the mine's offices.

West Wyalong police charged the protestors with entering "inclosed land" under the obscure Inclosed Land Act 1901. The protestors were released on bail on the condition that they did not come within 10 kilometres of the mine.

Wiradjuri Traditional Owners have been holding convergences at Lake Cowal for a number of years as part of their campaign to raise awareness about the destruction of their ancient cultural heritage and their demands for the mine to be closed.

During yesterday's protest, a Barrick Gold mine manager refused to accept an eviction notice from Traditional Owner, Neville "Chappy" Williams. Mine Manager, Bill Shallvey, rudely refused to take the notice, the fourth issued to Barrick since 2002, shouting that Williams and his supporters were "misleading people".

"Our Aboriginal People are being denied access to our sacred ground. Protestors from around the world are here to support our claim for access to our ancient lands. Australian Aboriginal Peoples have the oldest continuing living culture in the world. We Wiradjuri People are also being denied the right of spiritual and religious freedom under s.116 of the Australian Constitution," Mr Williams said.

"Barrick is desecrating our sacred site and Dreaming Place and denying us access to our traditional lands. The company has moved or destroyed more than 10 000 artefacts including marked trees, damaging the integrity of the area forever.

"The company did a deal with five unauthorised Wiradjuri, who signed away the ancient inheritance of over 30 000 people of the Wiradjuri Nation. After signing the secret agreement with Barrick they discontinued their Native Title Claim over the area. Our Mooka and Kalara united families' claim is still active in the Federal Court and is proceeding towards determination. Our claim group is more than several thousand people who have bloodline back to Country over thousands and thousands of years.

"Despite Barrick's assertion that we are misleading people, what we are doing is our ancient cultural duty to protect our sacred Country for the generations to come. We are also raising awareness of the dangers of cyanide leach gold mining and the mine's excessive use of precious water in the middle of the worst drought on record. The fullest dams, in the very parched countryside between Condobolin and the mine, are the toxic tailings ponds west of the open cut pit, which extends into the lakebed.

"I am proud of the courageous and brave protestors who entered the mine, occupied its office and locked onto the conveyor belt, shutting down operations. They had my authority to enter our traditional lands."

The Easter Sunday protest was the climax of the weekend of actions that included a Saturday morning demonstration in Condobolin outside the offices of the Wiradjuri Condobolin Corporation funded by Barrick under the secret agreement.

Attended by environmentalists from Bolivia, Canada, the United States, England, France, Germany, Iraq, Papua New Guinea and Switzerland as well as most Australian states, the campaign to protect Lake Cowal continues to gain international recognition as momentum grows in the fight to stop the desecration of Indigenous lands and the environmental destruction resulting from gold mining on all continents.

Activists are working towards international solidarity against Barrick on 2 May 2007, the day of its Annual General Meeting.

Contacts:
Neville Williams 0416 316 774
Ellie Gilbert 0427 795 639


NOTICE TO BARRICK GOLD TO CEASE ILLEGAL OCCUPATION OF LAKE COWALM

I, Neville Williams, on behalf of the Traditional Owners of Lake Cowal have already issued Barrick Gold with three Notices to Quit our sacred ground. Under Wiradjuri Custom, Tradition and Law/Lore, you have received your three warnings. You must now respect the unceded sovereignty of the Wiradjuri Nation and cease all operations, restore the landscape; remove all equipment and replace all artefacts to their GPS'd positions. This is to be done under supervision of the Traditional Owners of Lake Cowal. We reserve our right to take further action as necessary.

Signed this day 8 April 2007.

Neville "Chappy" Williams for and on behalf of the Mooka/Kalara united families within the Wiradjuri Nation.

Contacts: Neville Williams 0416 316 774
Ellie Gilbert 0427 795 639

Natalie Lowrey National Liaison Officer Friends of the Earth Australia T: 02 4782 1181 M: 0421 356 067
E: natalie.lowrey@foe.org.au    http://www.foe.org.au

 

PRESS RELEASE

“Court Remands Archaeological Portion to Board”

“Uranium Exploration Permit on Hold”

April 6, 2007

Rapid City, SD (USA)- A South Dakota state circuit court judge ordered the archaeological portion of a uranium exploration permit back to the SD Board of Minerals and Environment, the same Board who admits they sent the State Archaeologist to the wrong place. The permit they issued is on hold until a valid permit is granted, although opponents want an injunction until the appeal process is finished.

Two volunteer environmental organizations, ACTion for the Environment and Defenders of the Black Hills filed an appeal to the state circuit court, according to the SD Administrative Procedures Act, after attending a hearing with the SD Board of Minerals and Environment on January 17 and 18, 2007. The groups were appealing a decision by the Board granting a permit to Powertech (USA) Inc., a Canadian company, to drill 155 additional deep exploratory wells in the southwestern Black Hills for uranium. The company already has 4,000 wells in this specific area. The Black Hills are considered sacred to many member of the Defenders organization, and also to many Native American nations from the North American continent.

The two organizations filed the appeal citing due process of law and equal protection of the law from the South Dakota laws and the US Constitution. Some of the issues presented to the court in the appeal are:

  • the signing of the permit by the Board prior to the plaintiffs being given the opportunity to present their objections,
  • the failure to consider the plaintiffs written exhibits that were given to the Board,
  • the failure to provide interpreters in the Lakota language for two of the elderly members of Defenders of the Black Hills, or for the Board to be able to understand the concerns of these elders,
  • and the Board‘s practice of allowing the mining company to present data on the quality of the underground water when the mining process will contaminate the water presenting a conflict of interest. It would be in the mining companies best interest for the water to already be contaminated with uranium and radioactive materials.

W. Cindy Gillis from The Law Offices of Mario Gonzalez is the lead counsel for the Defenders of the Black Hills and ACTion for the Environment courtesy of the Oglala Sioux Tribe. The Tribe has already experienced pollution from past uranium mining in the southwestern Black Hills.

The Board is represented by SD Deputy Attorney General Roxanne Giedd, and Powetech (USA) Inc. is represented by Max Main, attorney from Belle Fourche, SD. The Board will conduct a hearing at 10:00 (CDST) on April 19, 2007, at the SD Department of Environment and Natural Resources, 523 E. Capitol Ave., Pierre, SD.

Contact: Charmaine White Face, Coordinator, Defenders of the Black Hills, PO Box 2003, Rapid City, SD 57709, Phone: 605- 399-1868 Email: bhdefenders@msn.com

 

from: http://www.grist.org/
Coal Plants - Supreme Court strikes

Karma Duke
Supremes say upgrading coal plants without reducing pollution a no-no

We love the Supreme Court this week. In a unanimous decision yesterday, Big Justice overturned a lower court ruling and declared that Duke Energy did indeed violate the Clean Air Act when it modernized coal plants without paying for pollution-reduction equipment. Duke had claimed it wasn't required to consult the U.S. EPA when upgrading eight plants between 1988 and 2000, as it did not increase their hourly emissions; green groups had sued, arguing that modifications increased the number of hours the plants were in operation, thus increasing annual emissions, thus necessitating a permit. Right you are, said the Supremes, in a ruling that may have a green-colored ripple effect. The case now heads back down to district court. SCOTUS chose not to rule on Duke's backup argument, that federal clean-air requirements should not be triggered by "routine maintenance." And a complete overhaul of a plant is totally routine maintenance, right?

 

Supreme Court overturns Duke clean air law ruling


By Chris Baltimore
Apr.03, 2007
http://www.reuters.com
http://www.reuters.com/article/governmentFilingsNews/idUSN0242399420070402

WASHINGTON (Reuters) - A unanimous U.S. Supreme Court on Monday overturned a lower court's ruling that would have allowed utility Duke Energy Corp. to modernize aging coal-fired power plants without reducing air pollutants.

The case had been closely watched by the industry because it could determine whether U.S. electric utilities must spend billions of dollars on emission-reduction equipment and whether similar lawsuits against other U.S. utilities for alleged noncompliance with the Clean Air Act will succeed.

About half of the nation's electricity comes from coal plants, many of which have been operating for decades and need to be overhauled to stay out of mothballs.

The justices set aside a ruling by the Fourth Circuit Court of Appeals that Duke did not need a permit from the U.S. Environmental Protection Agency because hourly emissions from Duke's plants in North and South Carolina would not increase.

Writing the high court's opinion, Justice David Souter said the appeals court's reading of 1980 regulations "was inconsistent with their terms and effectively invalidated them." The case was remanded to the lower court.

Environmental groups had argued that federal law requires utilities to install anti-pollution equipment if they make plant modifications that change their annual - not hourly - emissions of nitrogen oxides, sulfur dioxide, and other pollutants.

Those emissions are linked to heart disease, respiratory ailments and other health problems.

The Natural Resources Defense Council, an environmental group, called the ruling a victory and said it will lead to cleaner air in dozens of U.S. states where coal plants operate -- mostly in the Midwest and Southeast.

Charlotte, North Carolina-based Duke said it was disappointed with the ruling.

"We continue to believe we have solid defenses against the government's claims and will show in the lower courts that our power plant projects were not subject to (federal emissions regulations)," Duke Energy's chief legal officer Marc Manly said in a statement.

Between 1988 and 2000, Duke replaced or redesigned tube assemblies at older coal-fired power plants it built prior to 1975 in order to extend their working life.

hose actions spurred a lawsuit from the Clinton administration's Justice Department in 2000, which alleged that Duke violated federal law by failing to get permits.

The Edison Electric Institute, which lobbies for most major utilities, said the ruling leaves intact major regulatory uncertainties which have clouded the industry's path going forward.

However, the court did not rule on a major issue of many federal lawsuits -- whether "routine maintenance" activities at power plants should trigger federal requirements.

"This exclusion was not addressed by the court, and it remains a valid defense for the industry," said Dan Riedinger, a spokesman for the group.

Utility experts say the case does not bode well for the industry's ability to run aging coal-burning plants without retooling them.

"Everything is trending against running cheaper power for longer periods of time," said Kevin Book, an analyst with Friedman, Billings, Ramsey and Co. Inc. "As a proxy for other coal related law suits, this doesn't bode well."

(Additional reporting by Jim Vicini in Washington and Lisa Lee in New York)

 


FYI – Pondering if the same types of deals/intimidation was made in terms of Western Shoshone lands and Treaty Rights?...The gold mining taking place on Western Shoshone lands is now the 3rd largest in the world.

Note that Indian tribes are involved ~ Once again, here is the proof that your elected officials in D.C. are not interested in protecting the Legal Right's of the American Indian. Almost as if they are more interested in destroying the Sovereign Right's of the Tribes.

Ex-Auditor Says He Was Told to Be Lax on Oil Fees

March 29, 2007
By EDMUND L. ANDREWS
http://www.nytimes.com/2007/03/29/business/29royalty.html

WASHINGTON, March 28 — A former top auditor at the Interior Department accused senior officials on Wednesday of prohibiting him and other investigators from recovering hundreds of millions of dollars in underpayments from oil and gas companies that drill on federal land and in federal waters.

“There’s hundreds of millions of dollars, billions of dollars out there, and I don’t think we should be scared of the oil companies,” said Bobby L. Maxwell, a former senior auditor who, as a private citizen, sued the Kerr-McGee Corporation, claiming it intentionally cheated the government of royalties for oil and gas it produced in the Gulf of Mexico.

In February, a federal jury in Denver agreed with Mr. Maxwell and ruled that Kerr-McGee had underpaid the government by $7.5 million. Under a law intended to encourage whistle-blowers, the company could be liable for more than $30 million, and Mr. Maxwell would be entitled to keep as much as 30 percent of that.

“There were statements made: ‘Don’t bother the oil companies,’ ” Mr. Maxwell told the House Natural Resources Committee, which is investigating allegations of mismanagement in the royalty program run by the Minerals Management Service of the Interior Department.

“The M.M.S. is the proverbial ostrich that has its head in the sand, that sees nothing, knows nothing, but says that no royalties are due,” Mr. Maxwell continued.

Another former auditor, from New Mexico, Kevin Gambrell, told lawmakers that he had been repeatedly blocked from trying to recover payments for oil and gas production that were owed to Indian tribes.

A. David Lester, executive director of a group that represents Indian tribes with oil and gas reserves, said the Interior Department’s enforcement efforts amounted to an “honor system” for oil and gas producers that “unfailingly results in underpayment” to the tribes.

C. Stephen Allred, assistant Interior secretary for land and minerals management, defended the Bush administration’s enforcement efforts. “I am convinced, after my review, that the M.M.S. is collecting the royalties that are set forth in the legislation” that governs the government’s oil and gas leasing program, he said.

Last year, the Interior Department collected almost $12 billion in royalties and lease payments tied to oil and gas production, up from $9.3 billion in 2005, primarily because of high energy prices.

Mr. Allred acknowledged that revenue generated by enforcement efforts had plunged since 2001, but he said most of that decline came after about a dozen major oil companies made huge payments in earlier years to settle charges of cheating.

According to Interior Department data, enforcement revenue averaged well over $100 million a year during the 1990s, peaking at more than $331 million in 2000. In the six years since then, enforcement revenue has averaged about $46 million a year.

In December, the inspector general of the Interior Department scathingly criticized the department’s dwindling use of detailed audits and its growing reliance on softer “compliance reviews” that rely primarily on company statements rather than sales records.

The inspector general estimated that the Interior Department had reduced the number of auditors by 15 percent since 2000 and was completing about 22 percent fewer audits than it did six years earlier.

“It does appear that we’re getting ripped off, plain and simple,” said Representative Nick J. Rahall II, Democrat of West Virginia and chairman of the House Natural Resources Committee.

The Interior Department is under fire for other problems in the royalty program as well. It is struggling without much success to correct leasing mistakes that could allow oil companies to escape $10 billion in royalties over the next decade or so.

The Justice Department is investigating evidence of corruption in the fast-growing “royalty in kind” program, under which the government collects about $4 billion a year in royalties in the form of oil and gas rather than cash.

The investigation focuses on evidence that the program’s manager and several other employees had consulting deals with companies that were bidding to market the royalty oil and gas for the government or had romantic ties to company executives.

Mr. Maxwell told lawmakers that Interior officials had instructed him and other auditors not to audit companies that pay in-kind royalties. Interior officials contend that payments in the form of oil and gas are more straightforward than cash payments and require less auditing.

Interior officials have accused Mr. Maxwell and other rebellious enforcement officials of trying to profit by suing oil and gas producers as private citizens.

The Interior Department fired Mr. Maxwell in early 2005, one week after his lawsuit against Kerr-McGee became public. Three other current auditors also have filed suits against more than a dozen oil companies.

This E-mail was posted by:
Larry Kibby
Elko Indian Colony, Nevada

Larry's Information and Directory Center - http://reservationindian.bravehost.com Larry's Reznews Homepage - http://reznews.bravehost.com Daily Reznews - http://reznews.bravehost.com/daily_reznews.html Indigenous forum - http://reznews.bravehost.com/indigenous_forum.html Larry's Trading Post - http://reznews.bravehost.com/trading_post.html

 

Groundbreaking Report on Mining, Oil and Gas Companies Released: Civil Society and Industry Representatives Agree on Good Overseas Practices

March 29, 2007

(Ottawa) Canada could become a world leader on Corporate Social Responsibility (CSR) if the federal government and other stakeholders accept and act on the recommendations of a groundbreaking report released today.

The report comes out of a ten month government-led roundtable process that included representatives from civil society organizations, industry, academia, labour, and socially responsible investors acting as an Advisory Group, as well as representatives from communities affected by Canadian mining, oil and gas operations in the developing world.

The Advisory Group report lays out recommendations for a CSR framework of good conduct for Canadian mining, oil and gas companies operating abroad.

“There have been growing concerns about the environmental, social and human rights impact of Canadian extractive companies operating in the developing world. The Advisory Group has worked together to develop an effective framework for addressing these issues, achieving an important consensus from industry and civil society representatives,” says Gerry Barr, President and CEO of the Canadian Council for International Cooperation. “We now urge the government to act upon our recommendations.”

“Canada’s extractive sectors are committed to improving their social and environmental performance and adhering to best practices wherever they operate,” states Gordon Peeling, President and CEO of the Mining Association of Canada. “The Advisory Group report acknowledges the fact that in weak governance zones, companies face challenges that require new sets of tools, skills and support and that all stakeholders must work together to achieve positive outcomes.”

If implemented, the CSR framework would establish standards and reporting obligations for Canadian companies. It would also create an ombudsman office to investigate and assess complaints, and to evaluate compliance with the standards. The report lays out procedures for withholding government services to companies in cases of serious non-compliance, while also supporting the development of tools to promote good practice in the extractive sector and adherence to the CSR framework.

“Canadian mining companies listed on Canadian stock exchanges are the largest outward investors, with interests in more than 8,000 properties in over 100 countries around the world,” adds Tony Andrews, Executive Director of the Prospectors and Developers Association of Canada. “Their activities can help to create new economic opportunities in the developing world. However, it is equally important that they continually improve their performance in line with corporate social responsibility expectations. The Advisory Group’s report will contribute to the development of necessary guidance and tools.”

The roundtables were set up in response to a unanimous report by the Standing Committee on Foreign Affairs and International Trade that called on the federal government to “put in place a process involving relevant industry associations, non-governmental organisations and experts, which will lead to the strengthening of existing programmes and policies in this area, and, where necessary, to the establishment of new ones.”

“Parliamentarians responded to repeated appeals for assistance from villagers and indigenous peoples affected by Canadian mining companies and tasked the Government of Canada to take action,” says Catherine Coumans of MiningWatch Canada. “Industry and civil