Volume 4 Number 3 September 1999 MINING Published by the Mineral Policy Institute MONITOR. Monitoring the mining industry in Australasia and the Pacific ICME OPPOSES INDONESIA'S NEW ENV. STANDARDS
The International Council on Mining and bringing in experts. The experts, Nash the Environment (ICME) is lobbying the suggested, could sit down and say here Indonesian government to overturn new wa- are the type of factors that one should take ter pollution standards signed into law ear- into account, heres what can be measured, lier this year by President Habibe. here's what can't be measured, here is what is reasonably achievable. 3 In May 1999 new regulations were intro- duced to set standards that were to apply to Nash says that to date there has been no discharges to the environment from min- official response from the Indonesian Min- ing operations. The Chairman of ICME and ister but my informal network is that they Managing Director of Western Mining Cor- Emmy Haflid. Photo: Bob Burton may be interested in having some form of poration (WMC), Mr Hugh Morgan, told a workshop. Minerals Council of Australia (MCA) con- Asia-Pacific, Rio Tinto and WMC. ference the regulations were drawn up in While ICME is keen to change the stand- consultation with the Indonesian Mining Emmy Haflid, the Director of Indonesian ards they refuse to be drawn on what they Association.1 environment and human rights group would consider appropriate standards. WALHI, said that under the new regula- We never never get involved in saying Morgan said the regulations were regarded what a standard should be I can tell as combining standards that were interna- you a numbers game we wont touch tionally acceptable as well as being appro- We never never get Nash told Mining Monitor. priate for the Indonesian circumstances. Bob Burton involved in saying what a When the regulations had been signed by 1 Hugh Morgan, WMC Ltd, A sustainable minerals standard should be. industry a new era, Speech to the Minerals President Habibe, Morgan told the MCA Council of Australia, 2 June 1999. conference, the industry discovered, to its 2 Interview with Bob Burton, 11 September 1999 horror, that the critical numbers for the lev- Gary Nash 3 Interview with Bob Burton, 14 September 1999. els of permitted concentrations of various metals and other waste constituents had all been altered. tions all mining wastes have been con- sidered as toxic waste unless it can be IN THIS ISSUE Morgan claimed the new standards were so proven not to be. Haflid said the cur- low that levels for key elements were be- rent law is not perfect, but that the stand- IUCN softens parks policy 3 low background values, and impossible to ards adopt a preventative approach.What meet, anywhere in the world. He fears it the mining companies are asking right now BHP offloads Ok Tedi problems 4-5 will be virtually impossible to change those is to have the US EPA standards applied numbers back to their agreed value. which take the approach that mining waste Govt seals green law rewrite 6 Morgan said that the responsible Minister is not a toxic waste unless you can prove was deeply embarrassed by what had hap- that it is so. In Indonesia it is the other Is gold making fools of us? 7-10 pened and asked for a letter from ICME way around, she said.2 detailing the numbers which apply in over- Will BHP cut and run? 11 seas jurisdictions. ICME Secretary-General, Gary Nash, said that it had written to the Indonesian Min- Tailings 12-14 Australian-based members of ICME are ister and suggested ICME could assist with BHP Minerals, Pasminco, Placer Dome a workshop to review the standards by Resources 15
MINING MONITOR . SEPTEMBER 1999 . 1 LETTERS TO THE EDITOR
GOOD QUESTION in particulate emissions, just one year be- hind Europe. EURO4 involves a reduction Why is it that billions of dollars are spent in particulate emissions of 95% against every year extracting gold from inaccessi- current standards (80% less than EURO3), ble parts under the earths surface, in the carbon emissions 71% lower than current process releasing vast quantities of toxic standards (28% lower than EURO3), and waste into rivers and streams only to spend nitrous oxide emissions 60% lower than millions more to lock it away in inaccessi- current standards (29% lower than ble bank vaults and safety deposit boxes? Editors note: MPI has received a number EURO3). of inquiries about whether there is any case Are we mad? for gold mining. This edition of MM has a Oft-repeated claims by some of our critics feature (pp7-10) on the complex issues sur- that the Government was soon to receive David Poland rounding the impacts of gold production, a report from the Motor Vehicle Environ- Canberra the uses of gold and the controversy over ment Committee (MVEC) of the National the sale of the gold reserves held by vari- Road Transport Commission recommend- AND A CURLY ONE ous central banks. ing, with industry approval, precisely the measures agreed to in the tax package are I am an environmental law student en- LESS HOT AIR RISING simply untrue. gaged to be married. However, my boy- friend and I havent bought an engagement I accept that Mr Roodman of the Industry had not ticked off the recommen- ring yet because we want to be sure to buy Worldwatch Institute (MM June 1999) has dations. More importantly, the MVECs a stone and metal that does not involve written in good faith and with the best recommendations extended only to the horrible environmental impacts when it is environmental intentions. However, it ap- implementation of EURO3 for diesel ve- mined. Is there such a thing? Im aware pears that he has little understanding of hicles by 2005-6, with EURO4 only to be that gold mining is really bad, as is dia- the complex interaction between the GST, subject to a review in 2001 with a view to mond mining. Is there any kind of stone the fuel excises, the rebates and the com- adopting Euro4 at a later date. The tax that is not harmful to the environment? pany tax system. If he did, he could not agreement mandates EURO4 by 2005-6. help but conclude that the tax package, as This goes well beyond the MVEC recom- We have already discussed buying an an- modified by the Democrats, reduces rather mendations. tique ring which is my first choice. How- than increases subsidies for fossil fuels by ever I am also concerned that my wearing around $500 million over three years. The tax agreement mandates 500ppm as a diamond, even if it is antique, and thus the standard across the country by 2002. recycled, implicitly advocates the value of The Democrats have delivered a $500 mil- This reduces to 50ppm by 2006. This is wearing (and thus, mining) diamonds, lion increase in taxes on fossil fuels, $937 consistent with environmental progress which I really dont want to be a part of. million of new environment spending pro- and responsibility, two of the key criteria moting renewable energies, alternative in securing Democrat agreement. I know this may be a random question and fuels and greenhouse gas abatement, and if you cant answer it, could you point me world best practice in fuel emission stand- I hope my response demonstrates the in the direction of someone that could? ards for new vehicles by 2006. Democrats commitment to clean up Aus- tralias air. Sabrina Venskus The commitment to move to EURO4 emis- Portland, Oregon, USA sion standards for diesel vehicles by 2006 Meg Lees underpins what will be a huge reduction Leader, Australian Democrats
http://www.hydra.org.au/mpi/ MINING material for major stories. You may send your suggestions, criticisms and praise relating to PATRON PRESIDENT MONITOR. Mining Monitor as a letter to the editor. Bob Brown Paul Chatterton EDITOR: Bob Burton Strong preference is for written contributions TREASURER Mining Monitor is published quarterly by the via e-mail to
The International Union for the Conser- broader-based political support at the in- vation of Nature (IUCN), the international ternational level. peak conservation group, has weakened its policy on mining and national parks Allowing mining in protected areas, in response to lobbying from the interna- ICME argued, would increase social tional mining industry. wealth and reduce rather than increase threats to protected areas. Two of the The head of the IUCNs Programme on main threats to the system of protected Protected Areas, David Sheppard, insists areas are poverty and a general lack of that the draft Position Statement on Min- human and financial resources to ensure ing and Protected Areas was not that such areas are effectively managed changed. Asked for a copy of the draft and ecological values are protected, it policy, Shephard insisted to Mining Moni- claimed. tor, that there is only one statement and The Tyndall Range in Western Tasmania - that is the one I sent. a possible loser from the new policy. While ICME agreed that advanced ex- Photo: Bob Burton. ploration projects should be subject to en- However, the Vice President of Public mission. IUCNs David Sheppard did not vironmental impact assessments it saw no Policy for the Ottowa-based International respond to inquiries from Mining Monitor need for these to be required for prelimi- Council on Metals and the Environment about changes made to the draft policy. nary exploration programs. Approval for (ICME), Scott Houston, told Mining advanced mineral exploration ICME Monitor that we were quite pleased that While IUCN gave ground on procedures for argued should carry with it a presump- IUCN took on board one or two of our tion of the right to develop, unless a clear major concerns. In particular, Houston assessment of the environmental, eco- said, he was pleased with the additional whenever practicable nomic and social impacts dictates other- clause which stated that in the process of wise. identifying new protected areas assess- and feasible, zones of ment should be based on good science high mineralogical Not content to push for mineral explora- including assessments of natural and min- potential would be tion and mining in National Parks, ICME eral values (emphasis added). also argued that the boundaries of exist- excluded. ing protected areas should be subject to In its submission to IUCN, ICME outlined periodic reviews to determine if how this policy change would work. changes in boundaries are warranted in Pointing approvingly to the Canadian ICME light of changing ecological and natural province of Saskatchewan, ICME said resource values. that if the Ministry for the Environment proposed a new protected area the Min- the investigation of new protected areas, The banning of mineral exploration and istry of Energy and Mines is required to ICME was rebuffed in its push to have min- mining in National Parks, ICME argued, do an appraisal to determine if the pro- eral exploration and mining allowed in could deny present and future genera- posed area contains zones of high min- National Parks. tions the possibility of important economic eralogical potential. Industry is consulted and social development opportunities as to evaluate the appraisal.1 In its submission to IUCN, ICME argued well as eliminate the possibility of min- for mining to be allowed in all categories eral sector contributions to biodiversity Spelling out the consequence for possible of reserved lands including national parks conservation. protected areas ICME wrote, that when- and wilderness areas. New science-based Bob Burton ever practicable and feasible, zones of land management approaches have 1 The International Council on Mining and high mineralogical potential would be emerged in recent years, ICME wrote, Environment, ICME comments on IUCNs draft excluded and boundaries for the proposed that are designed to facilitate the joint policy on mining and protected areas, unpublished, new protected area altered accordingly. pursuit of biodiversity conservation and April 1999. The provision has the support of the Min- controlled exploitation of natural resources erals Council of Australia, which was con- ... A more balanced, flexible approach to sulted on the preparation of the ICME sub- mining and protected areas would enjoy
MINING MONITOR . SEPTEMBER 1999 . 3 PAPUA NEW GUINEA BHP OFFLOADS OK TEDI PROBLEMS TO PNG GOVT
In mid-August BHP released a series of economic loss and environmental damage reports revealing that the environmental and argued that BHP should be forced to damage caused by dumping tailings in the build a tailings dam. Fly River is massive and going to get worse. BHP has presented the reports to BHP responded by secretly drafting the near-bankrupt Papua New Guinea legislation for the PNG government, a 30 (PNG) Government and expects a decision per cent shareholder in the Ok Tedi mine, on what are BHPs obligations for making it a criminal offence to take legal repairing the environmental and social action against BHP in courts outside PNG. impacts caused by the Ok Tedi mine. BHP was found guilty of contempt of court for attempting to prevent a person in a case With the Ok Tedi mine accounting for 20 BHP CEO Paul Anderson. Photo: BHP. before the courts continuing their action. per cent of PNGs export income, BHP is (The contempt finding was later in a strong bargaining position to negotiate BHP is considering adding its 52 per cent overturned on appeal).3 favourable terms for either the ongoing shareholding in the Ok Tedi mine to the dumping of tailings or leaving the project list of copper projects it is closing or Damaged by the controversy, BHP agreed without incurring major clean up costs. selling. BHP shareholders should bear to an out of court settlement with the the environmental cost of mine closure, landowners including the investigation of With the benefit of these reports and 20/ and should not be allowed to offload their the alternatives for disposing of the mine 20 hindsight the mine is not compatible environmental responsibilities onto the waste and a compensation package for the with our environmental values and the PNG taxpayer and the government of landowners adversely affected.4 company should never have become PNG, said Brian Brunton, the spokesman involved, BHPs Managing Director and for Greenpeace PNG. The core document is the draft Detailed CEO, Paul Anderson said.1 However, BHP Level Risk Assessment (DLRA) which has not given a commitment to pay for the In 1996 BHP was forced to commission canvasses the ecological and human health costs of rehabilitation. The Port Moresby- reports into the environmental and social risks posed by the various options for the based Manager of Ok Tedi Mining Limited impacts of the mine because of the Ok Tedi mine. The Peer Review Group (OTML), Vincent Bull, insists we dont landmark legal settlement of a class action (PRG) created by BHP to review the have a preferred option on how to deal taken by 30,000 Papua New Guinean reports on the mines impacts stresses that with the damage from mine wastes.2 villagers. The landowners launched a $4 the reports are not yet finalised. billion damages claim against BHP in the However, BHP has presented four possible Victorian Supreme Court in Australia for One scientist, who requested anonymity, options for the PNG government to consider. These are: the immediate closure of the mine; continued mining and tailings dumping for at least another ten years; continued mining along with the dredging OUTSOURCING of tailings from the river; and continued mining with the construction of a tailings OK TEDI'S PROBLEMS dam. BHPs recent handling of the Ok Tedi disaster echoes the A fifth option, preferred by environmental approach of one of the world's leading PR crisis managers, groups in Australia and PNG, in which US-based Peter Sandman. Sandman has advised BHP and other Australian min- the mine closes at the end of 1999, but with ing companies that they should defuse opposition from community groups by continued OTML involvement in the outsourcing hard decisions. rehabilitation of the river system and the transition of local people towards a Offer communities the choice of either insisting on environmental clean-up or sustainable livelihood, has not been trade possible benefits from the company for other social services he said. This considered. is a way of getting external groups to face hard choices, and of outsourcing con- troversial decisions that would have little credibility if made within the company, Community groups, however, fear that he said.
MINING MONITOR . SEPTEMBER 1999 . 4 PAPUA NEW GUINEA
square kilometres, and an optimistic 1,883 consequences will be extremely grave.6 BHP OFFLOADS OK square kilometres. The PRG stresses, The study on fish toxicity, the PRG wrote, TEDI PROBLEMS however, that it remains unknown what was disappointing the methodology, will be the ecosystem and health effects reporting and report are in general from the loss of biodiversity, the impacts inadequate and do not resolve the issue.7 describes the DLRA document as a fair on food resources and whether there will summary of the uncertainties surrounding be an increased risk of malaria or other The PRG has rejected BHPs claim that both the present situation in the Fly River water related illnesses. the reports would be a world class risk system and the potential impacts in the assessment. The PRG warned that the future. It is definitive about very little, Worse still, the potential magnitude of acid report will not be a world class risk ranging from uncertainty over the rock drainage (ARD) is largely unknown. assessment given the major uncertainties potential risks to humans, to the lack of (ARD refers to the generation of sulphuric remaining. However, it is still our opinion data on the potentially catastrophic effects acid after sulphide-bearing rock is exposed that the DLRA will be a useful document of Acid Mine Drainage. to oxygen and water.) The PRG was criti- for decision making.8 cal of BHPs tardiness in addressing this The volume of the tailings dumped in the major issue. ARD modelling is in the pre- The PRG warned that the limited time river is the biggest single problem. As the available for preparing the work would riverbed has been raised by the dumped mean the final reports would contain many tailings, flooding over the riverbanks has ARD modelling is in qualifying statements to allow for the increased. Each flood has spread the many uncertainties in analysing such a tailings even further through the the preliminary stages complex task. surrounding forests killing forests through with a great deal more Bob Burton dieback and smothering village gardens. work to be done. 1 BHP, BHP and Ok Tedi, Media Release, 11 August 1999. The reports to BHP acknowledge that the 2 Interview with Bob Burton, 10 August 1999. problem will continue for decades, even if 3 See Bob Burton, The Big Australians contempt, the mine stopped this year, as material liminary stages with a great deal more work Mining Monitor, Vol 1 No 1 February 1996, pp 4-5. already in the upper sections of the river to be done. This is a critical piece of work 4 Bob Burton, Ok Tedi truce, Mining Monitor, Vol 1 No 3, September 1996, page 3. moves downstream. However the PRG has relative to both environmental and mine 5 Ok Tedi Mining Ltd (OTML), Draft Executive stressed that the future extent of flooding management issues, and should have been Summary, Assessment of Human Health and remains unknown in the absence of done earlier, they wrote.5 Ecological Risks for proposed mine waste mitigation estimates of the amount of material already options at the Ok Tedi mine, OTML, August 1999. 6 Peer Review Group statements in above. in the river system. The PRG went on to state if risks from 7 ibid ARD and metal leaching from deposited 8 ibid. The estimates of the final extent of forests material cannot be eliminated or at least killed by dieback ranges between 3,789 minimised, the environmental
MPI APPOINTS FUNDRAISER
Mention the word fundraising and people roll their eyes to the ceiling, look away or audibly groan... and yet fundraising remains an organisational priority for most not-for-profit, campaigning organisations. Fundraising is also a priority for MPI.
We realise we can not expect to meet our campaign goals without a stable financial base from which to work. Fortunately, with the assistance of the Poola Foundation, MPI has been able to hire a part-time fundraiser. This issue of Mining Monitor introduces our newly appointed fundraiser, Peter Mitchell.
Peter has been employed as a fundraising consultant for MPI since April 1998 and the staff and board are happy to welcome him on a more permanent, less ad hoc basis. Peter comes to us with extensive experience in fundraising, marketing and campaigning. He started off in Greenpeace NZs canvass operation as a Field Manager and Canvass Director, then became a Fundraiser for Amnesty International working mostly in direct mail and special events. He later joined WWF as Direct Marketing Manager, and The Smith Family as National Marketing Manager. He currently lives and works from the mid- north coast of NSW.
In the coming months Peters work will focus on renewing past supporters and promoting MPI through the colourful Avant Card stands in cafes. We wish him well in his efforts to attract and maintain support for MPIs critical environmental campaigning. Geoff Evans
MINING MONITOR . SEPTEMBER 1999 . 5 AUSTRALIAN NEWS GOVT DEAL SEALS BIGGEST RE-WRITE OF GREEN LAWS
The Commonwealth Government is about agreement or the Act itself. In such to commence negotiations with State circumstances, the Commonwealth would Governments to determine the extent of be powerless to intervene. environmental responsibilities to be handed back to the States. The negotiations While the Democrats and the four groups follow the Howard Governments success supporting the legislation argued that it in gaining support from the Australian would be an improvement on the existing Democrats to pass new environmental situation, Fowler thought otherwise. I legislation that streamlines approvals for reluctantly conclude that the amended Bill major development projects. is still inferior to the existing scheme of ad hoc triggers for Commonwealth The legislation also provides for the assessment and approval in relation to signing of bilateral agreements between the environmental matters, Fowler wrote.2 States and the Commonwealth under which Big projects are the big winners from States environmental management the new law. Photo: Bob Burton. While the new legislation improves regimes would be accredited by the provisions for biodiversity protection, it Commonwealth. Once accredited to assess the impacts of the bill. Fowler potentially allows the development of environmental management regimes are in warned that whilst there are numerous nuclear power without triggering place the role of the Commonwealth will commendable improvements to the Bill, Commonwealth environmental be restricted to a narrow range of policy particularly concerning biodiversity assessment. Part of the deal negotiated areas that are included as potential national protection, I believe that it remains between the Government, the Democrats triggers to Commonwealth involvement in fundamentally flawed in relation to the and the four conservation groups that split decision making. provisions for bilateral agreements with from the coalition was agreement to the States.1 support the guillotine to force the bill The passage of the legislation was achieved through before June 30. after the Government negotiated over 400 amendments with the Australian Bilaterally accredited The suggestion of the four groups that Democrats. Central to the deal was the Senator Harradine or Colston would vote support of four conservation groups management plans leave for the unamended legislation was World Wide Fund for Nature, Humane open the prospect of a unfounded. Harradine and Colston voted Society International, the Queensland wide range of approval with the Australian Labor Party and the Conservation Council and the Tasmanian Australian Greens to defer the legislation Conservation Trust. powers being delegated and allow more time for consideration of to the States. the amendments put forward by all the Fearing that the draft legislation would parties. However, the Government only pass unamended the four groups needed the support of the Democrats which participated in extensive secret Rob Fowler guaranteed the quick passage of the bill. negotiations for over a week with the Democrats and the Government. Other In two days the most substantial re-write groups participating in a coalition of Fowler focussed on two particular aspects of Australias environment legislation, groups working on the environmental that troubled him most. Bilaterally along with over 400 amendments were legislation were excluded from the secret accredited management plans leave open rammed through the Parliament. While the negotiations. Other members of the the prospect of a wide range of approval deal provoked a bitter split within the environment groups coalition heard the powers being delegated to the States. environment movement, Senator Hill was details of the deal when it was announced smiling. at a media conference. Worse still, he warned I believe it would Bob Burton still be possible as a matter of law for a 1 Australian Conservation Foundation, Top The Director of the Australian Centre for State government to approve a Franklin environmental lawyer slams amended package, Environmental Law at the University of dam or a sand-mine on Fraser Island Media Release, 23 June 1999. Adelaide, Associate Professor Rob Fowler, without necessarily being in breach of an 2 Ibid. worked his way through the amendments accredited management plan, bilateral
MINING MONITOR . SEPTEMBER 1999 . 6 FORUM: GOLD IS GOLD MAKING FOOLS OF US?
Around the world there is a growing number of people asking the simple ques- tion, Why are we mining gold at all?
US resources researcher John E. Young wrote: Almost every conceivable crime has been committed in the name of gold. The lustrous metal of Kings has been syn- onymous with wealth and power since the dawn of civilisation. Gold is so rare, beautiful, and malleable that wars have been waged for it, empires toppled, and uncounted lives lost. But in all tales about the lust for gold, one side of the story usu- ally been left out; the metals prodigious environmental cost. Gold mines keep getting bigger and mining lower grade ore. Photo: Bob Burton. Australia is the worlds third largest pro- ducer of gold with nearly 80 per cent of For sheer destructive power, Young gold mining Mines produce, on aver- that coming from just one state, Western wrote, few human activities compare to age, nine tons of waste for every ounce of Australia. Australian companies Nor- gold. To produce 2,170 tons of gold in 1992 mandy Mining, Rio Tinto, WMC, Joseph they generated an estimated 650 million Gutnicks Great Central Mines and BHP ...gold mining produces tons of waste. In fact, gold mining pro- are all in the top twenty of the worlds gold duces more waste each year than does iron producers. more waste each year mining, even though the world digs up than does iron mining, 200,000 times more iron. Every ton of Approximately half of all the funds spent even though the world gold produced generates three million tons on mineral exploration in Australia (ex- of waste rock and tailings. cluding petroleum) is for gold. The larg- digs up 200,000 times est seventeen gold mines by production ac- more iron. Each year the environmental costs of gold count for half of all the gold in Australia. mining increase. With the advent of new One mine, the Kalgoorlie Superpit, at processing technologies in the early 1980s seven kilometres long, two kilometres wide John E. Young many formerly uneconomic low-grade ore and one kilometre deep, is one of the larg- bodies became profitable. Mining lower est holes dug in the earth. grade ore deposits means moving and continued on page 8
IS GOLD COSTING THE EARTH?
Gold occurs in such minute quantities in the earths crust that miners must sift through large amounts of soil and rock to obtain even a few ounces. Only the metals high price more than $US300 an ounce makes the search payoff.
Not included in the miners balance sheets, however, is the damage gold mining inflicts upon ecosystems and people. The waste generated each year by gold mining operations could fill enough 240-ton dump trucks to form a bumper to bumper convoy around the equator.1
1 John E Young, For love of gold, World Watch, Worldwatch Institute, June 1993, pp 19- 26.
MINING MONITOR . SEPTEMBER 1999 . 7 FORUM: GOLD
treating increased volumes of ore and over- burden. More water, energy and process- ing chemicals. Larger mines, bigger im- pacts.
Around the world gold mining has become synonymous with leaking or collapsing tailings dams and acid mine drainage. In some areas it has seen indigenous people adversely affected the creation of new roads, the cavalier use of mercury, diseases brought in by invading miners, and human rights abuses by military and paramilitary groups.
Who needs gold? The World Gold Coun- cil (WGC), the peak lobbying group for the global gold mining industry, concedes: people do not need gold. They have never The Kalgoorlie Superpit: big enough to see from satellites. Photo: Bob Burton. needed it. Unlike a roof over your head and other basics, gold is an optional ex- The bulk of the growth in the last twenty Why the growth? Much of the growth in tra. While the WGC concedes gold is not years has occurred not in the developed demand is associated with gold gifts for a necessity, it argues that people do want world but in countries such as India where weddings, as a fashion item for the bur- it for reasons of security, for status, for gold has strong cultural links. In 1980 In- geoning middle class and as a safe invest- pleasure. ment in areas where banking facilities are scarce or of dubious stability. While gold might not be a necessity, in the There is enough gold last twenty years the gold mining industry stashed away in vaults There is enough gold stashed away in has enjoyed a massive growth in demand. around the world ... to vaults around the world, much of it held Between 1980 and 1998 the amount of gold by central banks, to supply existing physi- physically consumed has climbed from a supply existing physical cal demand for approximately a decade. little under 1,000 tonnes to over 3,500 demand for approxi- Gold has already done its damage envi- tonnes. Recent figures reveal that approxi- ronmental and social and distributed its mately 85% of the gold consumed is used mately a decade. economic benefits. in jewellery with 70% of that going to women. The US has the highest per capita When currencies were backed by gold, cen- consumption of gold. San Francisco based dia used about 50 tonnes of gold or 5% of tral banks were required to hold gold re- environmental watchdog group Project world consumption. Eighteen years later serves. However, since the early 1970s Underground estimates that approximately India consumed 815 tonnes or more than most of the worlds major currencies have 10% of new gold is being used for high a fifth of world consumption and nearly been floated free of the gold standard. In- school graduation and fraternity rings. twice as much as the United States. creasingly central banks are calculating
Whats in a gold ring?
If you go looking for a gold ring at a jeweller you will not only have to decide on the design you like but whether you are happy to settle for an eighteen carat gold ring or not.
Carats are a measure of purity of the gold. Eight carat gold is 33% pure while eighteen carat gold is 75% gold. In Australia, Japan, the US and much of Europe most gold jewellery is in this range. However, in Asia and the Middle East gold jewellery is commonly between 21 carat (88% gold) and 23 carat (96% gold).
However, there are many unaccounted costs. As US researcher John E Young put it the material removed by US miners to produce enough gold for an average pair of wedding bands could make a six foot wide, six foot deep and ten foot long pile in the happy couple's backyard.1
1 John E Young, For love of gold, World Watch, Worldwatch Institute, June 1993, pp 19 26.
MINING MONITOR . SEPTEMBER 1999 . 8 FORUM: GOLD
their gold reserves, which attract no inter- est, as a loss-maker that should be disposed of. They are being joined by a loose coali- tion of community groups concerned about the impacts of gold mining and the eco- nomic costs of holding onto gold reserves.
Development advocates have said that the International Monetary Fund should sell its gold to allow it to write off developing countries debts.
Selling the gold, they argue, would reduce the need for new gold exploration and thereby relieve the pressure on remote ar- eas and indigenous lands. Gold sales by central banks would lower the price of gold and decrease the amount of funds avail- able for gold exploration. Gold mining has caused the dispossession of indigenous people. Photo: Bob Burton. In 1997 the Reserve Bank of Australia sold two thirds of its gold reserves prompting a furious outburst by the gold mining in- dustry. The 167 tonnes sold by the Reserve Bank of Australia was small beer compared The Worlds Largest Gold Mining Companies to the holding of some other central banks. Belgium, the Netherlands and Luxem- Name Country Production % of World bourg sold 1,718 tonnes in the lead-up to in tons Production the formation of the European Monetary Union. Research economist with Britains 1. Anglo American South Africa 294.83 11.9 National Westminster Bank, John Slater, 2. Newmont USA 124.62 5.0 argues that the typical reasons for hold- 3. Placer Dome Canada 106.0 4.3 ing gold, at least in developed countries, 1 4. Barrick Canada 99.91 4.0 dont exist anymore. 5. Freeport McMoRan USA 91.04 3.7 6. Homestake USA 73.39 3.0 The US Government, which holds 8,135 7. Rio Tinto Australia\UK 64.12 2.6 tonnes, has not sold gold since 1979. In a 8. Normandy Australia 50.69 2.1 paper for the US Federal Reserve, Univer- 9. Gencor South Africa 50.06 2.0 sity of Michigan Professor, Stephen Salant, 10. Kinross, Canada 37.81 1.5 and Federal Reserve official, Dale 11. Noranda Canada 36.74 1.5 Henderson, estimated that by not selling 12. Lonmin UK 31.1 1.3 all its gold reserves the US lost tens of bil- 2 13. Consolidated African South Africa 30.42 1.2 lions of dollars in foregone income. Salant 14. Rembrandt South Africa 30.18 1.2 argues that while sales would have adverse 15. Harmony South Africa 30.13 1.2 impacts in mining regions the benefits 16. Western Mining would outweigh the costs especially if tar- Corporation Australia 24.73 1.0 geted programs were established to mini- 17. Anglovaal South Africa 22.94 0.9 mise the costs. 18. Great Central Mines Australia 21.9 0.9 19. BHP Australia 19.44 0.8 The Swiss central bank holds 2,600 tonnes 20. Durban Roodepoort and half of that is proposed for sale if ap- Deep South Africa 18.1 0.7 proved by a national referendum later this year. The formation of the European Cen- Together the worlds twenty largest gold mining companies control 50.9% of tral Bank in mid-1998 has left 12,000 world production. Of these companies seven are based in South Africa, four each tonnes held by various central banks of in Australia and Canada, three in the United States and two in the United European Union member nations. Kingdom. * Anglo American owns 50% of Drienfontein. The remaining shares in this mine For its part the gold mining industry ve- is owned by Gencor and Rembranbdt, also of South Africa. hemently opposes any further central bank sales. Faced with decreasing gold prices it SOURCE: Raw Materials Data, Stockholm 1999. Table courtesy of Project Underground USA.
MINING MONITOR . SEPTEMBER 1999 . 9 FORUM: GOLD
has grabbed the opportunity to push gov- thing that troubles everybody is the psy- ernment to give them even more gener- chology of it all. If institutions believe that ous tax concessions. With central banks gold can be sold, and perhaps by defini- holding in the order of 35,000 tonnes of tion no longer has value as a currency and gold the gold mining industry fears large reserve asset, then that erroneous belief sales would not only depress prices but does more damage than introducing rela- cause major corporate collapses. tively small amounts of gold onto the mar- ket.4 In Australia, gold mining companies are Bob Burton amongst the biggest beneficiaries of poli- cies aimed at subsidising the mining in- 1 Miners pay for lackluster gold price, Associated Press, 12 July 1999. dustry. These include the weakening na- Gold mining threatens remnant natural 2 Experts: US should sell its gold , USA Today, 12 tive title legislation and preservation of environments. Photo: Bob Burton July 1999. cheap diesel fuel prices. Not content with 3 Bruce Hextall, Gold pushes for a special tax deal, these concessions they are now pressing Australian Financial Review, 28 July 1999, p.24. 4 IMF nations plans to sell gold stir political fight, the Federal government for more gener- In Australia, gold Washington Post, 8 July 1999. ous taxation concessions.3 mining companies are Through the WGC, the industry is mount- amongst the biggest ing a major lobbying campaign against GOLD RESOURCES further sales, while simultaneously trying beneficiaries of policies to promote gold consumption, especially aimed at subsidising the More information on the gold debate in developing countries such as in India. mining industry. can be obtained at Project Underground Spokesman for the WGC, Victor Webb, on its website at http://www.moles.org argues that its not so much the physical and the World Gold Council at http:// effect of gold entering the market. The gold.com
The World Gold Council (WGC)
The World Gold Council is funded by a $US1 per ounce levy on the gold production of its members which mine 41% of Western gold production. With a budget of $US58 million in 1996 the WGC has over 148 staff located in 24 countries dedicated to maintaining and expanding world gold consumption. The WGC poses the question to its potential member companies If we do not market gold, who will?
Approximately $35 million of the WGCs budget goes on spending to achieve structural change in the gold market. The remaining $23 million is spent on the motivation of the trade including $4 million on advertising. The Chairman of the WGC is Don Morley, the Chief Financial Officer at Western Mining Corporation and its Vice-Chairman is John Willson, President of Placer Dome Limited.
World Gold Council Members (as at 1 July 1999)
Australia: Central Norseman Gold Corporation Limited, Gasgoyne Gold Mines N.L, Gold Corporation, Homestake Gold of Australia Ltd., Placer Dome Asia Pacific Ltd., Sons of Gwalia Ltd., WMC Resources Ltd.
Canada: Barrick Gold Corporation, Battle Mountain Canada Ltd., Euro-Nevada Mining Corporation Ltd., Homestake Canada Inc., Placer Dome (CLA) Ltd.
Chile: Minera Homestake Chile S.A.
South Africa: AngloGold, Avgold Ltd., Gold Fields Limited.
USA: Coeur dAlene Mines Corporation, Franco-Nevada Mining Corporation Ltd., Homestake Mining Company, Newmont Mining Corporation.
Japan: Mitsubishi Materials Corporation, Sumitomo Metal Mining Co.
China: China National Gold Corporation.
MINING MONITOR . SEPTEMBER 1999 . 10 INSIDE THE EYE WILL BHP CUT AND RUN?
The environmental disaster at BHPs Ok into the Ok Tedi River on fish, adjacent Tedi is gone? Tedi Mine in Papua New Guinea is an ethi- swamps and forests are appalling, long last- cal, not a commercial issue. The problem is ing, and likely to cascade down the Fly River MPI is working with affected communities quite simple: will a giant corporation be ac- to the Torres Strait. and PNG NGOs, providing independent countable for the disastrous environmen- analysis of information supplied by BHP/ tal and social impacts its activities have on Local landowners I spoke to at the OTML OTML. We are also researching precedents present and future generations? Will it jump briefing told me they are worried the com- and mechanisms set elsewhere for a mine ship and leave the mess for someone else pany will cut and run leaving them with a exit plan which can ensure sustainability of to clean up, or will it pay to fix up the envi- problem that will last generations. They livelihoods for all communities affected by ronmental and social impacts its mine has acknowledged that previously subsistence the Ok Tedi mine. caused? communities are now dependent on cash from the mine. They are concerned and BHP is used to paying out money for non- In August 1999 I attended a briefing in Port confused about their future. performance. After all, the company has Moresby as a guest of Ok Tedi Mining Ltd written off A$2 billion dollars for the non- (OTML), the mine operator (52% owned by BHPs record at Ok Tedi does not promote financial performance of the Magma Cop- BHP). My trip was paid for by BHP, part of confidence that it will apply the same ethi- per purchase. The challenge is for BHP to its crisis management in action, which cal standards in PNG as it would in Aus- demonstrate its environmental values by amongst other strategies involves engag- tralia. After all, BHP would never have been paying out for non-environmental and non- ing critics in dialogue. allowed to dump waste rock and tailings in social performance. Australian rivers, as it has at Ok Tedi. BHP acknowledges the important work the BHPs CEO, Paul Anderson says the mine Mineral Policy Institute and other non-gov- What options are now available to affected is not compatible with BHPs environ- ernment organisations do, providing inde- communities and the Government of PNG mental values. (AFR, 12/8/99) But val- pendent research and advocacy support, once the mine closes, whether that be in ues are measured by what we do, not what and demanding accountability of giant cor- one or ten years? we say. BHPs values wont be judged by porations to communities impacted by their rhetoric and public relations spin. BHPs actions. values will be demonstrated by the extent to which the company internalises the full Unfortunately, the experience of many BHPs values ... will social and environmental costs of Ok Tedi. Melanesians of the development operations of Australian companies has not been be demonstrated by the good. Ok Tedi might be the latest flare-up extent to which BHP but it is accompanied by many other min- implements proper mine ing-initiated environmental disasters and community conflicts in Melanesia such as closure processes, and at Freeport, Porgera and Bougainville. internalises the social
OTML and BHP need to come clean about and environmental costs Ok Tedi. OTMLs research indicates the of Ok Tedi. mining operation is moving into even more dangerous territory, with increased risk of acid mine drainage and metal leaching from yet-to-be-mined deposits. How much does it cost to rehabilitate over a thousand kilometres of damaged river, or Their studies are incomplete and inadequate vast areas of swamps and forests plastered Geoff Evans, in several critical areas, but it is clear that with tailings? How long will it take to recre- Director the impacts of materials already dumped ate sustainable local economies, when Ok Mineral Policy Institute Notice of Annual General Meeting The annual General Meeting of the Mineral Policy Institute will be held as follows: Wednesday 10th November 1999 at 6:30 pm Please note: Food available at your own expense The Green Room at the Green Iguana cafe (reasonable prices). Guest speaker to be advised. 6 King St Newtown, Sydney (city end of King St.)
MINING MONITOR . SEPTEMBER 1999 . 11 TAILINGS
Nord Pacific, are engaged in a legal battle in statements by BHPs Paul Anderson about the the PNG Courts over the correct interpretation Ok Tedi debacle, the source commented that PAPUA NEW of the Joint Venture Agreement. with 20/20 hindsight, things could have been handled better. GUINEA HP has filed papers with the National Court of Papua New Guinea and engaged a Queens Counsel to pursue its partner in the Ramu project, which has reservations about spending money on the project before proper financing RAMU PARTNER and approval processes are complete. Igor O'Neill MPI Information Officer Referring to the dispute, a source in Nord LAUNCHES LEGAL Pacific said there may be an element of truth 1 PNGs National Fisheries Authority, in the suggestion that Highlands Pacific is Recommendations on the Ramu Nickel Project SQUABBLE rushing the environmental and landowner Environmental Plan, 31 March 1999, Port Moresby. approval process. In an eerie parallel of
Australian Stock Exchange listed company, Highlands Pacific (HP) is rushing headlong into a potentially disastrous mining project in Papua New Guinea (PNG) which has attracted unprecedented levels of public and government criticism. The project is further jeopardised by MCA REVIEWS CODE OF CONDUCT a feud between the project partners that has erupted in PNGs National Court. The Minerals Council of Australia (MCA) recognisable across the board. The MPI recently released a draft review of its Code examined the Code and recommended major The Ramu nickel-cobalt joint venture proposes for Environmental Management. The MCA changes including that: to dump toxic tailings (mine waste) directly has undertaken this review in response to into Basamuk Bay, a smaller embayment of the critiques of the Code from within and outside · the proposed community partnership larger Astrolabe Bay near Madang on PNGs industry. MPI was invited to provide its between the companies and the surrounding north coast. feedback. community must ensure that all affected and involved communities are fully informed, HP holds approximately 60 per cent interest in The Code for Environmental Management and that an independent facilitator is the $1.33 billion Ramu project and manages proposes several issues for consideration by involved in this communication; the project, with Nord Pacific Ltd taking up a mining companies when undertaking a remaining approximately 30 per cent. HPs mining project. The list includes the triple · for adequate Code compliance and share price has been steadily declining and is bottom line considering the economic, assessment, an independent (and accessible) now worth approximately one-quarter its value social and environmental impacts that may monitoring system be used, and sanctions of two years ago. occur. be applied for non-compliance; and The area is the base for PNGs largest tuna The code is a step in the right direction for · the Code be binding on those who choose fishing fleet, an industry worth US$400 million the minerals industry, given it has been, and to participate in the code. annually. Criticism from within government has continues to be, responsible for devastating been fierce, with PNGs National Fisheries environmental and social issues associated The Code for Environmental Management Authority declaring the Ramu project is with mining projects. However, the code is a has been developed at a time when unsustainable socially, economically and voluntary set of principles, which ensures PR environmental, social and economic issues environmentally and cannot be allowed to accolades for the companies that sign on, but need to be addressed. The code can help proceed.1 it has no method of enforcement or for making push companies to improve their the member companies accountable. performance but it is no subsititute for Landowners and PNGs Department of regulation. Environment and Conservation are being Without binding compliance to the code, rushed to comply with HPs hasty timetable environmental and social improvements may while environmental concerns persist. be neither binding nor long-term. Landowners have been pushed to sign a draft Additionally, the proposed in-house Memorandum of Agreement, before a monitoring scheme reduces the credibility government-commissioned review of the and the success of the code. project Environmental Plan is completed. The introduction to the Code comments that Protests have already resulted in a number of the Code is not about setting standards. Nina Lansbury, arrests and damage to company property. In Indeed, the only environmental and social MPI Research Coordinator Mindere, a village in the Rai Coast region, improvements that can and will be made are local community members destroyed the through rigorous and common standards. This guardhouse at the company camp damaged maintains a high and common level of company vehicles. environmental and social protection that is HP and North American joint venture partner,
MINING MONITOR . SEPTEMBER 1999 . 12 TAILINGS
of the local medical centre, Dr Kazybekov, ten-member committee to advise it on changes confirmed two deaths resulted from the cyanide to the current legislation that would facilitate KYRGYZSTAN poisoning. Dr Kazybekovalso confirmed that conduct of seismic survey and related 2,168 villagers, out of 6,397 of the total number operations for oil and gas in protected areas of inhabitants, are registered in his medical including the Kirthar National Park.1 center as the victims of cyanide poisoning. Most CYANIDE VICTIMS of the patients have complaints about skin The World Conservation Union (IUCN) has diseases, eyesores, severe headaches and blood refused to participate in the committee. Nargis pressure irregularities. Alvi, head of IUCNs Karachi office said the STRUGGLE ON IUCN can not become a party to the destruction Early in May 1999 victims of the spill blocked of a national park. While the IUCN has access to the mine and launched demonstrations refused to participate in the committee, the A year after a lorry supplying a Canadian- against the local administration. Villagers World Wide Fund for Nature (WWF) remains owned mine, Kumtor Operating Company, destroyed two trucks working at the mine and a member of the committee. spilled 1.7 tons of highly toxic sodium cyanide when the police were called in clashes occurred. into the Barskaun river in the former Soviet Two villagers and five policemen were later In late July 1999 the Islamabad-based republic of Kyrgyzstan, villagers are still sent to hospital. Police later arrested 34 Sustainable Development Policy Institute struggling to gain compensation and adequate villagers, but those who remained free captured (SDPI) organised a conference on the threat to medical treatment. three local officials and held them for ransom. Kirthar National Park by the oil and gas Later, government officials said one of the local exploration proposal. Premier Shell, which was In the aftermath of the spill authorities in the officials taken hostage by the Barskaun awarded the concession, the umbrella newly independent country, located in central villagers was responsible for embezzling a large organisation of PPEPCA (Paksitan Petroleum Asia and bordering China, have dowplayed the portion of the promised compensation. Exploration and Production Companies health impacts of the spill. The Executive Association) and Shell Exploration were invited Director of US-based Mineral Policy Center, to participate but all declined the invitation. Stephen DEsposito, who visited the site after On the first anniversary of the spill, 20 May the spill says that at first Kyrgyz medical 1999, a group of NGOs and media from Senior Advocacy Officer from SDPI Nafisa authorities attributed four deaths to cyanide Bishkek, the capital city of Kyrgyzstan, joined Shah told the conference that SDPI tried very poisoning. the villagers to commemorate the tragic events and to assist the people of Barskaun to get hard to get Premier-Shell, but they declined to proper compensation. attend after they were advised by the government not to participate in the seminar
Mining Monitor contacted Shell for comment PAKISTAN but they did not respond. 1 Ahmar Mustikhan, IUCN: Oil Search Would Destroy Pakistan National Park, Environment News Service, 30 June 1999, SHELL PUSHES TO http://ens.lycos.com/ens/jun99/1999L-06-30-02.html EXPLORE PAKISTAN NIGERIA
Executive Director of MPC, Stephen NATIONAL PARK DEsposito. Photo: Bob Burton. An oil and gas exploration licence over most GAS FLARES FINED A review by the Ministry of Defense of the of Pakistans Kirthar National Park has been Russian Federation confirmed one of those granted to a consortium, called Premier Shell, deaths was causally related to cyanide that includes Anglo-Dutch oil company Shell. The Nigerian Government has promised in the poisoning. A subsequent report expressed budget it delivered in June 1999 to double the doubts that any deaths occurred, but according The Kirthar National Park, located near penalties for the flaring of gas associated with to DEsposito, they were unable to gain access Karachi, is the largest National Park in oil production in an attempt for force an end to to medical records and so did not reach a Pakistan. the practice. definitive conclusion, he says. Pakistans Ministry of Petroleum and Natural For years local communities have opposed the MPC has the head of the local hospital on Resources has given Premier Oil Exploration flaring of vast quantities of gas which causes tape saying that four deaths were attributed to Ltd., Lasmo Oil and Shell Exploration a license significant local pollution problems. Shell is cyanide exposure and that after the fourth to explore for oil and gas. The licence areas, the largest oil producer in the country. MM death, medical officials were instructed by the termed the Dumbar EL concession, covers approached Shell on a number of occasions for Kyrgz government to stop reporting cyanide roughly round 85-90% of the Park, while some a comment but received no response. deaths, DEsposito says. 15-20% of the concession is outside the park.
According to the Bureau of Human Rights and Following an outcry over the proposed the Rule of Law, a local NGO group, the head exploration program the government formed a
MINING MONITOR . SEPTEMBER 1999 . 13 TAILINGS
Rambuka, who led two army coups against the based on the Qinshan facility, to both Iran and AUSTRALIA election of a Labour Government in Fiji in Pakistan. 1987, was appointed by the London-based Commonwealth Secretariat to broker a peace The $16.18 million loan to the Chinese Nuclear deal between rival landowners. Industry Corporation and the Nuclear Power Qinshan Joint Venture Corporation, provided ROSS CAUGHT IN De Graaf met with Rabuka to discuss the future for an expansion of the Qinshan II Nuclear of the mine. De Graaf downplayed the threat Power Project has been underwritten by the to the mine telling media that it was part of an Australian taxpayer. EFIC is established as a SOLOMONS FIGHT ambit claim. I see it more in the light that statutory corporation of the Commonwealth of they have a fairly big ambit claim on the table, Australia under the Export Finance and which has Gold Ridge as part of it it is not Insurance Corporation Act 1991. The The Gold Ridge mine, owned and operated by directed at Gold Ridge, he said.4 Commonwealth guarantees all monies payable the Brisbane-based Ross Mining has become by EFIC. entangled in upheavals between rival racial The peace deal brokered by Rambuka groups in the Solomon Islands. acknowledges that the traditional Guadalcanal Nuclear abuses in China have included the landowners have been adversely affected and dumping of waste in Tibet, illegal weapons Frustrated by the loss of land and economic compensation for lost land is appropriate. testing and the dark spectre of nuclear hardships, indigenous leaders in Guadalcanal, proliferation. There can be no guarantees that one of the main island in the Solomon Islands, The agreement also says that normal the products of this facility will not be used to have called for the suspension of the Gold Ridge operations of both the gold mine and the palm create nuclear bombs, Wright said. mine and the renegotiation of its lease oil plantation should resume as soon as conditions. possible bearing in mind the contribution of The Canadian government is currently subject these establishments to the national to a lawsuit concerning $1.5 billion (Cdn) of The Gold Ridge mine, touted as an economic economy.5 public financing to the Qinshan facility. The panacea for the countrys ailing economy, has Canadian Government is accused of failing to been a major source of controversy over the last 1 Michael Field, Rumour speculation and live up to its responsibilities under the three years. The Gold Ridge mine lies in the extraordinary power in Solomons, Agence France Canadian Environmental Assessment Act. It Presse, 20 June 1999. is unclear that Australias own loan was subject headwaters of the catchment of the Matepono 2 Ross Mining, Gold Ridge production unaffected River which local people use for water and by Solomons unrest, Media Release, 15 June 1999. to environmental screening. irrigation for the islands main food supply. 3 Solomons mine boss vows to continue with Ross Minings operations are now the subject operation, Postcourier, 29 June 1999. The CANDU type reactors, due to be of a protracted legal battle between Ross 4 Ibid. incorporated at the Qinshan facility, have a very Mining and the landowners and their legal 5 Peace accord in Solomons unrest nears, Agence poor safety record with over 900 incidents advisers, Australian-based law firm Slater and France Presse, 28 June 1999. reported in Canada from 1989 to 1993. These Gordon. events included failure of operating or safety systems, breaches of security, radiation releases After three weeks of turmoil in June 1999 in excess of allowable limits, and exposure of caused by roadblocks thrown up by the EFIC FUNDS workers to excessive radiation. Guadalcanal Revolutionary Army (GRA), an estimated five people have been killed and CHINESE NUKE It is absolutely essential that all support given 10,000 people have fled their homes. The GRA by EFIC to companies and agencies overseas has demanded compensation for land lost to is subject to the highest scrutiny. EFIC the building of the capital, Honiara, on operates behind a veil of secrecy that has Guadalcanal, suspension of the mine and the allowed it to financially support such expulsion of people originating from Malaita. environmental and humanitarian disasters as Bougainville, Ok Tedi and now a nuclear When the GRA threw up roadblocks in other reactor in China, she said. areas of Guadalcanal, one GRA group was based in the tropical forests near the mine. With 1 Mineral Policy Institute, Chinese nuclear loan much of the workforce of the Gold Ridge from underwritten by Australian taxpayer, Media the neighbouring island of Malaita, Ross Release 12 June 1999. Mining called in security advisers in the hope of protecting the mine and its workforce.1 Ross One more nuke. Photo: IAEA Mining was keen to reassure the financial markets that its production would not be In June 1999, former MPI researcher, Sarah Something affected but conceded that there has been some Wright, revealed that an Australian government absenteeism.2 authority, the Export Finance and Insurance to say? Corporation (EFIC), has provided a loan to a Ross Mining Managing Director, Bertus de Chinese nuclear reactor to expand nuclear If you have a view why not write a Graaf, dismissed the call for the suspension of facilities in China.1 letter to the editor (100-200 words) Gold Ridge was part of an ambit claim by and send to: indigenous leaders who were asking for major China, together with France, has defied a n [email protected]; or constitutional changes.3 world-wide effort to ban nuclear weapons tests PO Box 157 O'Connor, ACT, and has a very poor reputation for nuclear n Former Fijian Prime Minister, Sitiveni proliferation, having sold nuclear technologies, 2602, Australia).
MINING MONITOR . SEPTEMBER 1999 . 14 RESOURCES
or from Project Underground, 1847 AVAILABLE FROM MPI Berkeley Way, Berkeley, CA 94703 USA. $8 including postage.
This is an excellent booklet setting out the Mineral Policy Institute, The Ramu nickel- background to the push by Occidental Pe- cobalt mine: briefing paper for financiers, troleum to exploit oil deposits in the tribal MPI, July 1999.5pp. Available from MPI lands of the Uwa people in Colombia. PO Box 21 Bondi Junction NSW 2022, $5. Caught between an oil company, left wing guerillas and right wing paramiliatry This is a brief summary of the environ- squads, the UWa continue to struggle mental and social issues surrounding the against the alienation of their lands. Ramu project in Papua New Guinea being proposed by Highlands Pacific Limited. CARTOONS
AVAILABLE FROM OTHERS Scratch: labour movement cartoons.
The cartoons used in Mining Monitor are by David Pope (aka Hinze). These cartoons are available at low cost ($A30) for community groups.
A gallery of many of David's cartoons is available for review on the Web at http:// www.scratch.com.au or hard copy via PO Project Underground, Blood of our mother: Box 597, Dickson, ACT 2602, Australia. the Uwa people, Occidental Petroleum and the Colombian oil industry, Project Un- derground, July 1998. Sections of the re- port are available at http://www.moles.org Paul Kauffman, Wik, Mining and Aborigi- nes, Allen and Unwin, 1998, 210 pp, $24.95.
This book is a basic but useful brief re- view of 29 agreements between mining ETHICAL INVESTMENT companies and Aboriginal communities around Australia. It has a brief review of ADVICE State and Federal legislation governing Aboriginal land agreements. Contact us regarding financially sound ethical investments.
Kauffman provides some basic informa- tion for each of the case studies on the pro- visions of the agreements covering employ- Ethinvest provides financial and investment ment, royalties, environmental concerns advice to individuals as well as many of and economic diversification strategies Australias leading social justice, environment, used by Aboriginal groups. The author at- community and religious organisations. tempts to develop a best practice model for mining industry and Aboriginal agree- Full range of ethical investment advice from ments and identify examples around the Ross Knowles B.Sc., term deposits to the stock market. country. (Hons.), Dip Ed., AFPA. Authorised Representative of Ethinvest Pty Limited If the title led you to expect that the book included details of the long and ongoing campaign by the mining industry, and Phone: 02 9440-8024 Fax: 02 9144 1873 many of the companies referred to in the 15 Priory Close, St Ives, NSW 2075 case studies against Aboriginal rights, you [email protected] will have to look elsewhere. ACN 003 843 874 Licensed Dealer in Securities - No. 11478
MINING MONITOR . SEPTEMBER 1999 . 15 NUGGETS
COME AGAIN FEELING REASSURED?
Leaving our environment the same way The company is watching over your we found it. BHP. water, forests and wildlife. No harm will come to you from the mine wastes Slogan proudly proclaiming BHPs creden- released into the river. tials on its abandoned Island copper mine in British Columbia, Canada. Ok Tedi Mining Limted poster distributed WHAT DOES IT TAKE? to reassure villagers in the Ok Tedi area. (BHP advertisement, Engineering and Mining Journal, February 1997.) Well thats a good question. (BHP poster circa 1990. Translation from Pidgin by Stuart Kirsch.) Manager of Ok Tedi Mining Limited, Vin- cent Bull, after being asked what he would do differently if he was starting the Ok Tedi mine from scratch.
(Interview with Bob Burton, 12 August 1999.) MONITOR.MINING SURFACE MAIL POSTAGE PUBLISHED BY THE MINERAL POLICY INSTITUTE PAID POST OFFICE BOX 21 AUSTRALIA BONDI JUNCTION NSW 2022 AUSTRALIA
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MINING MONITOR . SEPTEMBER 1999 . 16