Britain’s scramble for Africa’s energy and mineral resources Published: July 2016 War on Want 44-48 Shepherdess Walk Written and researched by Mark Curtis London N1 7JP United Kingdom Cover picture: Tel: +44 (0)20 7324 5040 Restricted diamond area, Namibia Email: [email protected] www.waronwant.org Design by www.wave.coop @waronwant facebook.com/waronwant Company limited by guarantee Reg No. 629916 Charity No. 208724 Printed on recycled paper War on Want fights against the root causes of poverty and human rights violation, as part of the worldwide movement for global justice. Charity No. 208724 / Company limited by guarantee Reg No. 629916 Preface 01 The continent of Africa is today facing a Under the guise of the UK helping Africa in its War on Want fights against the root causes new colonial invasion, no less devastating economic development (a mere continuation in scale and impact than that which it of the colonial paternal narrative), $134 of poverty and human rights violation, as part suffered during the nineteenth century. billion has flowed into the continent each of the worldwide movement for global justice. As before, the new colonialism is driven year in the form of loans, foreign investment by a determination to plunder the natural and aid. However, the British government resources of Africa, especially its strategic has aided and abetted the extraction of We do this by: energy and mineral resources. At the $192 billion from Africa mainly in profits by forefront of this ‘scramble for Africa’ are foreign companies, tax dodging and the cost of • working in partnership with grassroots social movements, British companies, actively aided and adapting to climate change. trade unions and workers’ organisations to empower abetted by the UK government. people to fight for their rights This report also highlights British mining This report reveals the degree to which British companies being at the forefront of • running hard-hitting popular campaigns against the root companies now control Africa’s key mineral environmental degradation in Africa. It also resources, notably gold, platinum, diamonds, shows mining operations of British companies causes of poverty and human rights violation copper, oil, gas and coal. It documents how 101 being associated with killings in or near mine companies listed on the London Stock Exchange areas, unfair and often forced resettlement • mobilising support and building alliances for political (LSE) — most of them British — have mining programmes, labour rights and abuses. action in support of human rights, especially workers’ rights operations in 37 sub-Saharan African countries. They collectively control over $1 trillion worth War on Want believes that UK companies • raising public awareness of the root causes of poverty, of Africa’s most valuable resources. must be held responsible for their extractivist inequality and injustice, and empowering people to take behaviour in Africa. The UK government must action for change The UK government has used its power be held accountable for its complicity in the and influence to ensure that British mining plunder. We work with grassroots communities companies have access to Africa’s raw affected by mining in sub-Saharan Africa and Join us! materials. This was the case during the colonial support their call for mining revenues to stay period and is still the case today. in the countries where they are mined; for The success of our work relies on inspiring people to join raw materials to be processed in the countries This report exposes the long term involvement where they are mined to promote maximum the fight against poverty and human rights abuse. Get of the British government, (whether Labour or value addition; and for governments to act to involved with our work: Conservative) through its trade and investment protect the rights of people affected by mining policies, to influence and control British rather than protecting the profit margins of Visit waronwant.org/donate companies’ access to raw materials and the way corporations exploiting them. Email [email protected] trade is conducted with Africa. It has been secured Call 020 7324 5040 through a revolving door between Whitehall and We urge the UK public to engage in British mining companies, with at least five British solidarity actions here in the UK to hold Write to War on Want government officials taking up seats on the boards British companies and the British 44-48 Shepherdess Walk of mining companies operating in Africa. government accountable. London N1 7JP This kind of close control and influence over facebook.org/waronwant @waronwant the political and economic systems of African countries has enabled a company like Glencore to show revenues 10 times that of the gross John Hilary domestic product (GDP) of Zambia. Executive Director Contents 1Controlling African resources 02 03 War on Want has reviewed the operations of In addition, theses 101 companies also control 1. Controlling African resources 03 all the companies listed on the London Stock large amounts of gas, copper, cobalt, silver Exchange (LSE) that have mining interests in and other resources. These operations Africa. This includes those currently operating mean that LSE-listed companies now also 1.1 Who are the major companies? 03 or developing mines or with licences allowing control much of sub-Saharan Africa’s land. 1.2 Which are the key countries? 07 them to explore for minerals. We have 36 of the 101 LSE companies were given considered all of Africa’s key minerals and concession areas totalling 371,132 km2. 6 1.3 Tax havens and the London Stock Exchange 08 metals, but have focused on gold, platinum, diamonds, copper, oil, gas and coal. Africa is 1.1 Who are the major companies? 7 2. British foreign policy 11 rich in these resources and many countries are dependent on them as key sources of The full list of companies is presented in government revenue. the annex to this report. Below, some of 3. Case studies 15 the key players in each commodity sector Britain’s scramble for Africa’s energy and mineral resources The results of this review are staggering. are highlighted. 3.1 Rio Tinto in Madagascar 15 As many as 101 companies listed on the LSE have mineral operations in sub-Saharan Oil 3.2 British companies in occupied Western Sahara 18 Africa, covering 37 countries. The 101 LSE- In the oil sector, as many as 27 LSE-listed listed companies are mainly British with companies are working in 27 sub-Saharan 3.3 Glencore and Vedanta in Zambia 21 59 incorporated in the UK and a further African countries. This includes long-standing The New Colonialism: 12 incorporated in the British tax havens of oil producing countries such as Nigeria and 4. Other cases 26 Guernsey and Jersey. Many of the remaining Angola but also countries where discoveries companies are actually based in London, despite have recently been made such as Kenya their country of incorporation. Of the 101 and Ghana. 4.1 Killings 26 companies, 25 are incorporated in tax havens. The major companies include Anglo-Irish 4.2 Relocations 27 These 101 companies now control an corporation Tullow Oil, which controls 307 4.3 Labour rights violations 30 identified$1.05 trillion worth of resources million barrels of oil in 12 countries in sub- in Africa in just five commodities — oil, gold, Saharan Africa and describes itself as ‘Africa’s 4.4 Tax dodging 31 diamonds, coal and platinum. This is a very leading independent oil company’; and Shell, conservative figure since it includes resources whose licences control 691 million barrels, 5. Conclusion: A new colonialism? 32 listed by only some companies. Many mainly in Nigeria. Also important is Glencore, companies provide few or no figures on the a company incorporated in Jersey and best resources they control. known as a giant commodity trader, but which 6. Annex: Extractive companies 36 also controls 175 million barrels of oil in The resources controlled by these 101 Cameroon, Chad and Equatorial Guinea. companies are: • 6.6 billion barrels of oil (currently worth But some lesser-known companies have also $276 billion)1 become important in Africa. For example, • 79.5 million ounces of gold (worth Madagascar Oil, a company incorporated $119 billion)2 in Bermuda but whose corporate office is • 699.3 million carats of diamonds (worth in London, has interests in five oil blocks in $134 billion)3 western Madagascar, including the Tsimiroro • 3.6 billion tonnes of coal (worth $216 block, which contains a massive 1.7 billion billion)4 barrels. Chariot Oil & Gas, registered • 287 million ounces of platinum (worth in Guernsey, holds interests in oil blocks $305 billion)5 in offshore Mauritania and Namibia worth Kangala Coal Mine, Mpumalanga, South Africa 04 05 900 million barrels to the company. Another projects in Tanzania, Kenya, Burkina Faso and major player is Genel Energy, a company Mali. Randgold, a company incorporated in registered in Jersey, which states that it ‘is Jersey, owns and operates five gold mines in targeting 2 billion barrels of oil’ in Somaliland. Africa and has exploration projects in Senegal, Mali, Côte d’Ivoire and the Democratic Gold Republic of Congo. Its gold mines contain 24.6 In the gold sector, 30 LSE-listed companies million ounces of gold, worth $36.9 billion. are operating in 21 sub-Saharan African countries. The big players are Acacia Mining Smaller gold companies include the British Plc and Randgold Resources. Acacia, a firmsAvocet Mining (which controls 7 British company which is part of the Canadian million ounces of gold in Burkina Faso and group Barrick Gold Corporation, controls Guinea), Amara Mining (which says it has 12.5 million ounces of gold and is the leading ‘the largest resource base of any London- Caboz © Jay Britain’s scramble for Africa’s energy and mineral resources gold producer in Tanzania, where it operates listed junior gold mining company with over three mines.