Volume 7 Number 2 June 2002 reporting on the mining and energy industries Embassy ignored killings at Indonesian mine The Australian government has lems with illegal mining’.5 defended Embassy officials in Jakarta A follow up meeting was held on 2 who lobbied Indonesian security March 2000 in Jakarta with the forces and officials to deal with ‘illegal Governor of Central Kalimantan, the miners’ at an Australian-owned mine. Bupati (regent) of the local regency, In three separate incidents after the police and military officials. Embassy lobbying commenced, two people staff also attended ‘as observers, at have been killed and another five the request of Aurora Gold’. Accord- injured. ing to Downer, Embassy staff ‘high- Controversy over the lobbying lighted the damage to investor activities of Australian Embassy confidence in Indonesia if the Gov- erupted after the shooting incidents ernment was unable to honour by the notorious Mobile Brigade contracts of work and resolve the Mt (Brimob) – in June 2001, August Australian Minister for Foreign Affairs, Alexander Muro dispute’. The following day 2001 and January 2002 – at the Mt Downer. Photo: Bob Burton. Aurora welcomed assurances from Muro mine owned by the Perth based Indonesian government officials that company, Aurora Gold. Downer insists that the Embassy ‘illegal’ miners would be removed.6 Aurora Gold – and its predeces- officials stressed that the difficulties On 25 May 2001, Richard Smith – sors – have encountered local Aurora – a signatory to the Minerals who had taken over from McCarthy opposition to large scale mining over Council of Australia’s voluntary Code as Ambassador in January 2001 – concerns about the obliteration of for Environmental Management – was visited the Mt Muro operations ‘at the traditional small scale mines, past having with ‘illegal miners’ should be invitation of Mr Joe Ariti, President abuses by security forces and pollu- resolved ‘in a peaceful manner’. 3 Director, Aurora Gold Indonesia’.7 tion.1 Despite Embassy officials being Smith addressed a meeting of provin- Aurora’s Chairman, Rory Argyle, aware of the deaths and injuries from cial government officials and, accord- has acknowledged that the collapse the military crackdown, no inquiries ing to Downer, stressed ‘the impor- of the Indonesian economy has were made of either Aurora or Indo- tance of upholding the law, including forced many people to turn to what nesian police until after Senator the company calls ‘illegal mining’ as Brown asked a series of questions in ‘a means of survival’.2 However, February 2002. In this issue Aurora’s economic survival was also In October 1999 IMK unsuccess- tied to the Mt Muro mine, its only fully urged authorities to ‘take control ‘Socially responsible’ source of cash. of illegal mining and unrepresentative climate change? 4-6 In answers to parliamentary groups’.4 Aurora then turned to Aus- 7 questions by Australian Greens tralian Embassy officials. On 2 No- SRI funds worry miners Senator Bob Brown, the Minister for vember 1999 Aurora Gold representa- Coming clean with Foreign Affairs, Alexander Downer, tives briefed the then Australian Old King coal 8-9 revealed that since November 1999 Ambassador, John McCarthy, about Embassy officials in Jakarta have their concerns. Just over two weeks SRI advisers rely on worked with Aurora Gold representa- later, McCarthy met the Indonesian media to ring alarm bells 10 tives in lobbying Indonesian officials Minister for Mining and Energy to and security forces to eject illegal discuss concerns of Australian mining Bringing it back home 11 miners entering the Mt Muro mine. companies, including Aurora’s ‘prob- Phone 61 2 9557 9019 • w w w.mpi.org.au • Email [email protected] Corporate Accountabilty laws relating to illegal occupation of officials or Aurora.10 Nor, wrote waste rock at the Kerikil minesite. mining leases and theft, at Austral- Downer, did Aurora inform Embassy The man’s two companions – who ian-owned mining operations in staff of the incident. fled after the shooting – reported that Indonesia to ensure an environment Despite the killings, desperate he was shot in the head at close in which Australian investors could miners continued their scavenging range. After the shooting protests operate in accordance with their operations. Early on Monday morning resulting in the pit being occupied for contracts of work’.8 27 August 2001, Brimob fired three a day. On 5 June 2001, Brimob mem- shots at a group of small boys scav- A media release the following bers shot at a group of small-scale enging in the Kerikil pit. One – a Thursday by the Mineral Policy miners scavenging waste rock in the teenage boy – was shot and disabled Institute sparked media coverage by waste rock dumps at the Kerikil mine, with a bullet passing through one of the Australian Financial Review and one of a number of pits at the Mt his legs and entering the other. ABC’s Asia Pacific program.12 Ac- Muro minesite. Fleeing the Brimob, According to Downer, ‘the Ambas- cording to Downer, it was not until six of the miners fled into a flooded sador was aware of media reports of five days later that Aurora advised the mine. From the pit edge Brimob the incident’ but made no inquiries of Australian Ambassador of the inci- members continued firing and threw either Indonesian government officials dent. According to Downer, the stones at the trapped miners, killing or Aurora Gold.11 Downer insists Ambassador took no further action. two of them. Another three were However, two weeks after the shoot- injured, one crippled as a result of ing and protests in Indonesia, authori- being shot in the knee. ties announced that Brimob would be Aurora’s then Company Secre- ‘the Ambassador was aware of recalled from the minesite.13 tary, Michael Baud, later claimed media reports of the incident’ The Australian Embassy in Indo- that the deaths ‘were drownings by nesia only began inquiries into the people who were operating illegally in Alexander Downer series of shootings after Brown tabled the mine and fell in to the water at the questions in the Senate on 18 Febru- bottom of a disused pit and ary 2002. Nine days later, the Austral- drowned’.9 Aurora did not inform the Australian ian Embassy ‘sought clarification’ According to Downer, while the Embassy of the incident. from the Indonesian police force Ambassador was aware of media In a further incident on Saturday about ‘the reported incidents’.14 On 5 reports of the incident no attempt 17January 2002, a police officer shot March 2002 Aurora sent a written was made to obtain information from and seriously wounded a 20 year old briefing to the Ambassador on the either Indonesian government man who was searching through series of incidents at the mine. ISSN 1443-5284 Editor: Bob Burton Sub-editing/proof reading: Consensus Productions Mining Monitor is published quarterly by the Mineral Policy Institute (MPI). Mining Monitor aims to provide detailed, referenced information to inform and support community organisations concerned about the impacts of mining projects (including oil and gas) in Australasia and the Pacific. The views expressed are not necessarily those of MPI. Please consult the editor prior to submitting material for major stories. You may send comments and criticisms as a letter to the editor to Mining Monitor. Preference is for contributions via e-mail to <[email protected]>. Otherwise material may be posted to PO Box 157 O’Connor ACT 2602 Australia. Deadline for the next edition is 30 July 2002. Mineral Policy Institute PO Box 89, Erskineville NSW 2043, Australia Phone 61 2 9557 9019 Fax 61 2 9557 9822 Email: [email protected] Website: www.mpi.org.au Patron President Treasurer Director Bob Brown Alison Gibbins Geoff Lambert Geoff Evans Research Co-ordinator Campaign Co-ordinator Information Co-ordinator Nina Lansbury Simon Divecha Igor O’Neill 2 Phone 61 2 9557 9019 • w w w.mpi.org.au • Email [email protected] Corporate Accountabilty Despite the controversy, Downer and prosecution if credible allegations www.auroragold.com.au, 3 March 2000. 7 saw no need to review the role of arise’.18 Minister for Foreign Affairs, Alexander Downer, Senate Hansard, www.aph.gov.au/ Embassy officials in the affair. ‘At no Mining Monitor repeatedly con- hansard/hanssen.htm, question number 116, stage did the Ambassador or Em- tacted Rio Tinto’s media spokesper- 15 May 2002, p 1647. 8 bassy officials request Indonesian son, Ian Head, requesting clarification ibid. 9 Environment News Service, ‘Indonesian Man Government authorities act other than on whether whether Rio Tinto staff Shot at Australian Gold Mine’, http://ens- in a peaceful manner, in accordance had contacted news.com/ens/jan2002/2002L-01-23-01.html, with Indonesian law. In this context, Australian Em- 23 January 2002. 10 Minister for Foreign Affairs, Alexander the Minister does not consider a bassy officials, Downer, Senate Hansard, www.aph.gov.au/ Departmental review necessary’, Indonesian offi- hansard/hanssen.htm, question no 117, 15 Downer informed Parliament.15 cials or Aurora May 2002, p 1648. 11 Minister for Foreign Affairs, Alexander Rio Tinto – a signatory to the about the inci- Downer, Senate Hansard, www.aph.gov.au/ United Nations Global Compact dents at Mt Muro hansard/hanssen.htm, question number 124, promising to voluntarily uphold Local villagers have lost while it was a 15 May 2002, p 1651. 12 international human rights standards valuable land to the major shareholder Mineral Policy Institute, ‘Shootings deaths at mine operations. Aussie mine’, Media Release, www.mpi.org.au, – is also embroiled in the controversy. Photo: JATAM and had been a 24 January 2002; Australian Broadcasting In November 2000 Rio Tinto took director on the Corporation, ‘Security forces shooting at goldmine provokes protests’, www.abc.net.au/ over Ashton Mining in order to control board of Aurora.