Mining matters Unacceptable metal mining in developing countries and the responsibilities of companies in the Netherlands Friends of the Earth Netherlands onderkant pagina onderkant pagina Credits Research: Friends of the Earth Netherlands (Milieudefensie) Text: Albert ten Kate Editing: Iris Maher Production: Joukje Kolff Design: Ruparo, Amsterdam © Milieudefensie - Friends of the Earth Netherlands, May 2009 Friends of the Earth Netherlands (Milieudefensie) Office: Nieuwe Looiersstraat 31, 1017 VA Amsterdam Post: P O Box 19199, 1000 GD Amsterdam The Netherlands Phone: (00 31) (0) 20 5507 300 Email: [email protected] Website: www.milieudefensie.nl Special thanks to: Anne van Schaik (Friends of the Earth Netherlands, FoE NL) Anne-Sophie Simpere (Les Amis de la Terre, FoE France) Carina Tertsakian (Global Witness) Esther de Haan (SOMO/makeITfair) Jan Willem van Gelder (Profundo) Päivi Pöyhönen (Finnwatch/makeITfair) Coca-Cola: Robert Seegers (public affairs & communications manager Netherlands) Corus: Eric van der Oest (manager public affairs Netherlands) Corus: René Boulonois (manager sustainable development Netherlands) Draka: Annette Schermer (manager safety, health and environment) Draka: Martin de Koning (director corporate communications) Photo cover: Heineken: Hans Kroes (manager safety, health and environment Netherlands) Miners extracting tin Philips: Jan Roodenburg (senior vice president supply, development and sustainability) ore from the Bisie mine in the Democratic Republic of Congo This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsi- © JOHAN SPANNER/ bility of Milieudefensie and can under no circumstances be regarded as HOLLANDSE HOOGTE, reflecting the position of the European Union. NOVEMBER 2008. Contents Executive summary 4 Conclusion and recommendations 7 1. Trade links from the Netherlands to mining in developing countries 9 1.1 Tin 9 1.2 Bauxite 12 1.3 Copper 14 2. Review of mining practices in developing countries 16 2.1 Tin: Indonesia, the Democratic Republic of Congo, Bolivia and Burma 16 2.2 Bauxite: Jamaica and Guinea 24 2.3 Copper: Chile, Peru, Zambia and Indonesia 29 3. Companies reviewed 37 3.1 Methodology of the review 37 3.2 Cookson / Alpha-Fry Technologies 37 3.3 Corus 39 3.4 Aluminium smelters Aldel and Zalco 41 3.5 Draka 42 3.6 Philips 43 3.7 Heineken 45 3.8 Coca-Cola 47 4. Dutch government policy on supply chain responsibility 48 5. Preliminary research on the use of copper and tin resources 51 Annexes: A: Abbreviations 56 B: Questionnaires sent to the companies 57 Executive summary • The Netherlands is a large importer of copper, fuel a terrible war that has already gone on for aluminium and tin from developing countries ten years. Working conditions in the mines are • Mining causes major environmental and human extremely poor. Furthermore, tin mining poses rights violations in developing countries an immense threat to the survival of the eastern • Dutch companies import and/or use met- lowland gorilla, which is hunted for food by min- als, but leave problems for planet and people ers and traded by rebels. unsolved Due to the enormous oppression of Burma’s • The metals mined are used in cars, electronics, people, the EU has put trade sanctions in force housing and packaging materials against the military junta, including tin. Nonetheless, raw tin materials mined from In this report, mining practices in ten develop- the DRC and to a lesser extent in Burma still ing countries are reviewed with regard to labour arrive in the Netherlands through Asian smelt- rights, human rights and the environment. The ers, such as tin from the company Thaisarco mining products examined are tin, bauxite and in Thailand (supplying 7 per cent of Dutch copper, metals which have major trade links with imports) which contains tin mined in eastern companies in the Netherlands. Various compa- Congo. nies in the Netherlands import and/or use met- als. This report reviews the supply chain respon- In the Netherlands, the companies Alpha-Fry sibility towards mining practices in developing Technologies (producer of solder and subsidi- countries of seven companies in the Nether- ary of the UK-based Cookson group) and Corus lands. (producer of tinplate and subsidiary of Indian Tata Steel) are the largest importers of tin. Tin: mining practices and trade links Most of the tin imported for further processing Bauxite: mining practices and trade links in the Netherlands can be linked to serious envi- Alumina is the mineral made from mined baux- ronmental, labour rights and human rights con- ite; in smelters it is turned into aluminium. cerns in developing countries. Tin is used mainly Jamaica accounts for 60 to 70 per cent of annual for solder in electronic products and tinplate (to alumina imports by Dutch aluminium smelt- make cans). ers. Bauxite mining is the single largest cause of Tin mining in Indonesia – number one deforestation in Jamaica. The mining industry exporter of tin to the Netherlands – only takes has stripped thousands of hectares of forest and place on and off the shores of Bangka island, has caused even larger destruction by creat- east of Sumatra. The mining damages coral ing access roads into forests, making the forests reefs; seriously affects fishermen’s income; has accessible to loggers. created hundreds of toxic craters on the island; Air pollution from the chimneys of the four causes abrasion of the coastline; and does not bauxite processing plants (mainly particulate provide a sustainable livelihood for the people matter and sulphur dioxide emissions) cause seri- on the island. ous health problems, like respiratory diseases, In Bolivia, which also supplies tin to the Neth- in the communities living nearby. Community erlands, thousands of children work in under- health risks due to air pollution have been badly ground tin, zinc and silver mines. According to monitored and as yet no investigation has been the International Labour Organization (ILO) this carried out. Dust resulting from bauxite mining, is one of the worst forms of child labour. bauxite processing and port activities is also a Tin imports to the Netherlands may also origi- big nuisance for people. nate from the eastern part of the Democratic A matter of great concern are the red mud Republic of Congo (DRC), where miners are lakes of waste covering hundreds hectares near subject to oppression by rebel groups and gov- the four bauxite processing plants in Jamaica. ernment army factions. Revenues from mining The lakes consist of metals, water and alkaline 4 substances. Releases of water from red mud minium smelters Zalco and Aldel Executive summary lakes can seriously contaminate ground and sur- • Draka: third-biggest copper cable producer in face waters. Europe Most of the bauxite mining in Guinea (Africa), • Philips: user of tin in its electronic and lighting which is also an indirect bauxite supplier to the products Netherlands, takes place in tropical rainforests. • Heineken: producer of beer packed in tinplate The area is one of the world’s most biologically cans rich, yet seriously threatened, ecosystems. • Coca-Cola: producer of non-alcoholic bever- The Dutch aluminium smelters Zalco (Zee- ages packed in tinplate cans land Aluminium Company) and Aldel (Aluminium Delfzijl) are both owned by the UK-based Klesch Results of the review & Company. Together they account for all annual Cookson, the aluminium smelters, Draka and alumina imports into the Netherlands. Corus use massive amounts of mining products. Moving further down the supply chain, Philips, Copper: mining practices and trade links Heineken and Coca-Cola use considerably fewer Most of the copper and copper products mining products themselves, as the mining prod- imported by the Netherlands probably have ucts used to make their products are spread their origin in Chile. In this country, the biggest throughout multiple companies. problems of copper mining are related to the Most companies acknowledged they have massive amounts of water and energy needed to not yet mapped out the supply chain of their produce copper concentrates. Often the use of mining products nor have they identified prob- water for copper mining conflicts with the needs lems related to the environment, human rights of farmers. Water shortage is a major issue in and labour rights. This means that the compa- Chile, as well as in Peru, which also exports cop- nies are purchasing metals without being aware per to the Netherlands. of the consequences of the mining practices. In Chile, there are plans to build huge hydro- Reporting to the public about their trade power dams in Patagonia, in the south of the relationships with specific mining practices is country, to supply energy to the mining industry. not common yet among the seven companies These dams will flood thousands of hectares of reviewed. In fact, not a single annual report or native forest in a pristine area. CSR (Corporate Social Responsibility) report was Indonesia contains the biggest and most found including any information on the mining polluting copper mine in the world: the Gras- practices or the origins of the tin, bauxite and berg copper and goldmine in West Papua. copper used by these companies. Massive toxic releases from the mine flow into The situation in the eastern part of the Dem- natural river systems. The main mining compa- ocratic Republic of Congo (DRC) is probably the ny is Freeport McMoRan, which has also been best known case triggering responsibility among accused of illegal payments to members of the companies for mining practices. Corus and Indonesian military. Philips have acted on the DRC issue. Both com- In Zambia, environmental practices and work- panies now demand that their suppliers exclude ing conditions in the copper mines are poor. raw tin materials from the DRC from their prod- The Dutch cable producer Draka is probably ucts. While seeming sincere in their intentions, the biggest Dutch importer of copper.