Undermining the forests The need to control transnational mining companies: a Canadian case study BY Forest Peoples Programme, Philippine Indigenous Peoples Links, World Rainforest Movement J ANUARY, 2000 UnderminingUndermining the forests the The need to control transnational miningforests companies: a Canadian case study The need to control transnational mining companies: a Canadian case study ONE IN A SERIES OF REPORTS ON TRANSNATIONAL Contents CORPORATIONS AND THEIR IMPACTS ON FORESTS AND FOREST-DEPENDENT PEOPLES Preface 1 BY Forest Peoples Programme Introduction 2-3 Marcus Colchester Philippine Indigenous Peoples Links Executive summary 4-5 Maurizio Farhan Ferrari World Rainforest Movement Part I Mining the planet: the Canadian mining industry J ANUARY, 2000 and its influence world–wide 6-19 Roger Moody Part II Global trends in mining and the role of international agencies 20-23 Forest Peoples Programme Geoff Nettleton 1c Fosseway Business Centre Mining and the rights of indigenous peoples in international law 24-27 Stratford Road Fergus Mackay Moreton-in-Marsh GL56 9NQ Mining impacts 28-32 UK Maurizio Farhan Ferrari Philippine Indigenous Peoples Links Part III 111 Faringdon Road Guyana 33-40 Stanford-in-the-Vale Fergus Mackay Oxfordshire SN7 8LD Suriname 41-51 UK Fergus Mackay World Rainforest Movement Maps 43-46 International Secretariat Guyana 43 Casilla de Correo 1539 Suriname 44 Montevideo French Guiana 44 Uruguay The Philippines 45 Indonesia 46 Project coordinators Maurizio Farhan Ferrari (FPP) French Guiana 52-55 Geoff Nettleton (PIPLinks) Fergus Mackay Text Editor Sarah Sexton The Philippines 56-70 Design Daniel Brown ([email protected]) Catherine Coumans & Geoff Nettleton Indonesia 71-81 FPP, WRM and PIPLinks are grateful for the support and advice Carolyn Marr received in the production of this report. Special thanks are due to Minewatch Asia Pacific and MiningWatch Canada who Reflections and Recommendations 82-85 provided invaluable information and comment. The analysis and Appendix 86-87 recommendations in the report are, however, the responsibility of References 88-89 the publishers. Material in this report has been taken mainly from published sources and care has been taken to ensure its accuracy. The situation with regard to Also in this series: mining companies and their operations changes rapidly, however, and ‘High Stakes—the need to comments and additional information will be welcome. control transnational logging companies: a Malaysian case Email: PIPLinks ([email protected]) study’ Forest Peoples Programme ([email protected]) AUGUST 1998 © FOREST PEOPLES PROGRAMME, PHILIPPINE INDIGENOUS PEOPLES LINKS, Available in English, French, WORLD RAINFOREST MOVEMENT Spanish and Bahasa Malaysia from: Publication of this report World Rainforest Movement was made possible through ([email protected]) support from the International Secretariat, Netherlands Committee for Casilla de Correo 1539, Montevideo,Uruguay the World Conservation Forests Monitor Union with additional support from Novib, the Mott ([email protected]) Foundation and the Margaret Laurence Fund. 62 Barton Road, Ely, Cambs CB7 4HZ, UK PREFACE 1 Preface HIS REPORT is the secondi in a series which focuses on the social, environmental, economic and political impacts of transnational corporations (TNCs) on forests and forest peoples. The reports present analysis and case studies of particular sectors, Tcountries or regions and examine key companies’ activities, political connections and modus operandi. The reports also examine the capacity of the main actors—national governments of both the home and host countries; civil society; relevant intergovernmental institutions and TNCs themselves—to mitigate the negative impacts of TNC operations. The selection of the case studies is based on: § requests for information from affected local communities; § particular current importance of the issue or sector; § relevance to national and international debate and policy on forests and forest peoples. The question of how to control multinational corporations is not a new one and is of fundamental significance to the emerging international agenda on how to achieve environmentally and socially appropriate development. Recently, the discourse of regulation of industry has been eroded in favour of self-regulation through mechanisms such as industry- developed codes of conduct, which are increasingly being put forward as a means to achieve sustainable development. This change manifested itself most clearly in the early 1990s, with the effective closure of the UN Center on Transnational Corporations (UNCTC), a body established to monitor the activities of TNCs, and at the 1992 Earth Summit in Rio, when a draft chapter on the environmental responsibilities of TNCs was removed from the agenda following pressure from the business community and Northern governments. Whilst the role of states should be to represent the best interests of their citizens, all too often it is the relatively few economically powerful voices within a state, such as TNCs and their subsidiaries, which exert the strongest influence. And whilst TNCs can be important contributors to a state’s economic, social and environmental health, this is not necessarily the case: in fact, it is frequently the opposite. Accordingly, the need for control of TNCs has to be addressed. It is our hope that this series of reports will make a significant contribution to the debate on how to achieve a balance between economic interests, the state and civil society, a balance which is geared more closely to realising sustainable and equitable forest use and management. With this objective in mind, these reports aim to: § Raise awareness within industry of its impact on forests and forest peoples. § Inform policy and decision makers of the potential dangers of unsustainable development, especially in those countries which are inviting in foreign investors, or are under pressure to liberalise their economies or to offer incentives to investors who do not adhere to strict social and environmental standards. § Be a resource guide for local environmental and social NGOs working on issues raised by the industry sectors and companies mentioned in the report series. § Bring the issue of TNC operations and their impacts on forests to the agenda of intergovernmental processes dealing with forests, particularly the Intergovernmental Forum on Forests (IFF).ii As the series progresses, occasional papers may be produced focusing on themes which emerge from the research and data presented in the case studies. i The first report, titled ‘High Stakes; The Need to Control Transnational Logging Companies:a Malaysian case study’ was published by the World Rainforest Movement and Forests Monitor in August 1998. ii The IFF was established under the Commission on Sustainable Development (CSD) in July 1997 to continue the international policy debate on forests. The main components of its mandatge are the promotion and facilitation of the implementation of the proposal for action produced by the Intergovernmental Panel on Forests (IPF, 1995-1997); consider matters left pending and other issues arising from the programme elements of the IPF process; debate international arrangements and mechanisms to promote the management, conservation and sustainable use of forests. 2 UNDERMINING THE FORESTS Introduction N CONVENTIONAL FORESTRY DEBATES mining barely gets a mention.i Forests are seen as the professional domain of the forester, whose job is to manage stands of trees. Typically, governments deal with forestry and mining as separate “sectors” often through quite separate Iministries and subject to quite distinct bodies of law. In fact, the areas of land subject to the jurisdiction of mining and forestry institutions and legislation often overlap directly while the goals and objectives of one “sector” often conflict with and undermine the other’s. All too often, moreover, the official policies and priorities of both sectors exclude or marginalise the rights of forest-dwellers. Commonly, forested areas are treated as state lands where local residents have few, or even no, rights. Likewise, in all but a few countries, sub- surface resources are treated as state assets to be “developed” in the national interest. For forest- dwellers, therefore, mining in forests is a double blow, a near unstoppable intrusion on their lands and threat to their livelihoods. The World Rainforest Movement (WRM), an international alliance of NGOs from North and South, concerned about forest destruction, was established in the mid-1980s specifically to challenge the conventional approach to forests,1 which promotes the exploitation of forests by commercial interests while excluding local communities.2 The WRM emphasises that pressure on forests often comes mainly from outside the forestry sector and thus solutions to the forest crisis need to be cross- sectoral, addressing these outside pressures as much as reforming forestry itself.3 Above all the WRM calls for a shift in priorities away from top-down solutions and impositions and in favour of processes that respect the rights and initiatives of local communities, indigenous peoples and the rural poor.4 That mining can pose a threat to the integrity of forests is obvious. Clearance of surface vegetation and soils to gain access to sub-surface minerals has evident and often long-lasting impacts. Surface scarring by mines themselves, with associated erosion and siltation, is exacerbated by spoil heaps, tailings