Posts Tagged ‘Eisenerz’

China: Ein Blick auf das Verhältnis zu Lateinamerika

Dienstag, Juni 8th, 2010

What is China’s interest in Latin America?

By Virginia de la Siega

The People’s Republic of China (PRC) has been slowly but surely emerging as world power for the last 30 years. It has become the world’s third-largest economy after the United States and Japan and it’s leaving behind Germany as the world’s top exporter. Nor is China any longer a manufacturer of low value, low technology items: it has become the world’s largest producer both of wind turbines and solar panels, and last year its auto sales doubled to more than a million vehicles a month surpassing the United States.

If to that we add that it has the world’s third-largest defence budget, and the largest national population (1.3 billion people), it quickly becomes evident that China does not have sufficient oil, natural gas, aluminium, copper, or iron to satisfy its energy and manufacturing needs, and that it necessitates trade partners to sustain its growth.

China is also a key player on the world political scene. Besides the strategic role it plays in Asian geopolitics and its status as a nuclear nation, it is a member of the U.N. Security Council, the World Trade Organization, the Group of 77 Developing Nations, the Asia Pacific Economic Coopera¬tion Group and the Inter-American Development Bank. China has also observer status in the Organization of American States (OAS) and keeps a peacekeeping mission in Haiti.

Moreover, China has started to show the first elements of an imperialist state in the making. It has strengthened its diplomatic presence and economic influence, often referred to as “soft power,” in the developing world, specifically in Africa, Latin America, and Southeast Asia. It has tried to earn international goodwill through financing infrastructure and natural resource development projects, assisting in the execution of such projects, and backing PRC state enterprise ventures in many developing countries. If in terms of development grants China is a relatively small source of global aid, when its commercial and concessional loans, technical assistance, and state-sponsored or subsidized investments are included, the PRC becomes a major source of economic assistance. [1]

If the role that China has been playing in Africa has attracted much attention, the one played in Latin America has not nearly as much. And yet, bilateral trade between China and Latin America has been expanding significantly since November 2004, when China’s president Hu Jintao promised to invest $100bn in the region.

According to the Chinese Ministry of Commerce, Chinese investments have mounted from $200 million per year in 1975 to $70.2 billion per year in 2006 and are predicted to reach $100 billion per year in 2010. [2] Even though China’s trade figures in the region amount to much less than those of the United States US ($560bn) or the EU ($250bn), the trend is significant. A sign of the importance the PRC gives to the region is the publication of its first ever policy paper on Latin America on 5th November 2008. The trade and investment relationships have been complemented by other contacts, including high-level delegations of political, cultural, trade and military officials, and China’s participation in the Latin American institutions above mentioned.

China’s twofold strategy in Latin America

The PRC has defined two strategies for Latin America. The first is economic: to secure China’s access to the primary materials that it needs for its economic growth and to find a market for its manufactured goods. The second strategy is mainly political: to obtain diplomatic recognition from those countries still recognizing Taiwan as the government of China.

Argentina, Bolivia, Brazil, Chile, Ecuador, Mexico, Panama, Peru, Venezuela and Cuba play a major role in the first strategy.

Brazil, the first economy of the region, is clearly China’s most important partner, both as a market for Chinese goods and as a source of raw materials. Brazil supplies some 45 % of all PRC soybean imports and is also the source for other agricultural products, as well as iron and petroleum. The PRC has launched several major collaborative projects with Brazil in these sectors. Brazil’s status as a large middle-income country also makes it important as a market for Chinese goods, including electronics, machinery and labour intensive manufactured goods, such as footwear and toys. Brazil possesses a nuclear industry and uranium resources — important to China as it expands its own nuclear industry to meet its energy needs. The Brazilian aerospace industry has created multiple opportunities for collaboration with China, including technology.

The global recession emphasized and magnified the importance of China to Brazil. While Brazilian exports to the United States fell 37.8 % in the first quarter of 2009, exports to the PRC increased by 62.7 %. Consequently, in the first half of 2009, China became Brazil’s number one export destination. China has also emerged as a key financier for Brazil’s projects to develop the newly discovered deepwater oil reserves in the Campos and Santos basins. When in May 2009, China and Brazil signed an agreement for a $10 billion loan from China Development Bank, the president of Petrobras, Sergio Gabrielli, noted, “There isn’t someone in the U.S. government that we can sit down with and have the kinds of discussions we’re having with the Chinese”. [3] According to this agreement, the loan was given in exchange for a guaranteed supply of oil over the next decade. The two nations are also pursuing a range of important joint ventures, including joint production of jets, the China-Brazil Earth Research Satellite (CBERS) program and other space cooperation programs.

As in the case of Brazil, China’s economic policy in relation to Argentina, the other large South American economy, is not restricted to buying natural resources. Argentina has collaborated with China in space projects, such as a satellite laser ranging project in Argentina’s San Juan University, and has discussed collaboration in designing a new-generation nuclear reactor.

However, China main interest is in Argentina’s mining and oil sectors. In 2003, the CNPC (China National Petroleum Company) acquired a stake in the Argentine oil and gas firm Pluspetrol, which operates fields in northern Argentina and Peru, and there has already been an investment from the Chinese-Angolan company Sonogol. In May 2010, China National Offshore Oil Corporation (CNOOC) purchased a 50 percent stake in Argentina’s Bridas Holdings for $3.1 billion. There have also been rumoured talks between the Spanish firm Repsol-YPF and CNOOC regarding Repsol-YPF’s Argentine holdings –although none of the possibilities raised has yet materialized.

The USA views with suspicion the PRC financial deals to facilitate commerce with Argentina. In March 2009, China signed a $10.2 billion debt swap with Argentina, [4] in what the American government considers an expanding challenge to the primacy of the dollar as an international reserve currency. [5] It is to be noted that Brazilian President Lula explicitly argued for working with China to move away from the dollar during his trip to China in May 2009. [6]

The PRC has also been courting Argentina as a purchaser of its own manufactured goods, but here, the relationship has been much more conflictive owing to Argentina’s plan to redevelop some industrial sectors.

For two of the three Latin American members of APEC (Asian Pacific Economic Co-operation), Peru and Chile, China has become a crucial trading partner. According to UN figures, in 2007 nearly 40% of Chile’s exports went to the Asia-Pacific region, mostly China. For Peru, the figure was 19%. This has moved countries such as Colombia and Costa Rica to want to join APEC.

The PRC has invested in Peru in the oil and gas sectors. It has purchased fishing fleets and fishmeal processing facilities, and has made investments in the mines in Toromocho, Rio Blanco and Maracona. This is not surprising if we consider that 85.2% of Peru’s exports to China are copper, fish flour and iron ore.

The PRC has an interest in Bolivia’s gas and iron resources. Bolivia has the second largest natural gas reserves in South America, behind only Venezuela. Bolivia’s lack of sea access poses a problem, but the introduction of new refining technologies, such as the liquefaction of gas or its use in producing other fuels, increase the feasibility of exporting Bolivian gas to China. And Evo Morales has opened up a number of possibilities for an expanded Chinese presence in that country: a concession has been signed to the Chinese conglomerate Shandong Llueng, granting them the right to develop all or part of the iron deposits at El Mutún—one of the largest in the world, if not the largest; and Chinese oil companies have signed agreements to help YPFB to overcome some of the problems with capital and experience which the nationalization of the country’s oil brought about.

The investments in Ecuador have also been huge and have had diplomatic effects. China has invested in oilfields, port operations and pipeline assets. In 2003, China bid on concessions to Ecuador’s major oil fields. The oil operations by CNPC have caused serious problems with the indigenous populations in Tarapoa and Succumbios particularly because of the lack of interest of Chinese investments in the preservation of the environment. The decision by the Ecuadorian regime of Rafael Correa not to renew the agreement giving the U.S. access to Manta was the necessary first step to invite the Chinese to develop the airport into a hub for trans-pacific flights, even though the PRC never made any explicit suggestions.

China has also set up investments and joint ventures with state-owned petroleum and mineral extractive companies such as PdVSA (Venezuela), YPFB (Bolivia), Petrobras (Brazil), and Cubaniquel (Cuba).

The case of Panama is slightly different due to its strategic position. Panama’s primary-product exports or its potential as an import market are minor. However, as owner of the Panama Canal, it has an enormous strategic value for China. The PRC firm Hutchison-Whampoa, with alleged connections to the Chinese People’s Liberation Army (PLA), owns property on either end of the Panama Canal, giving it visibility over military and commercial traffic transiting the canal, and potentially serving as a staging area for future operations to control transit through this strategic checkpoint.

China’s political strategy affects mainly Central America and the Caribbean. Here, the PRC has mainly focused on using economic and diplomatic levers to secure diplomatic recognition from those countries still recognizing Taiwan as the government of China. Of the remaining 23 countries that still recognise Taiwan, 11 are found in this region. So far, Costa Rica is the only country that changed alliances in 2007, and has been consequently rewarded: Hu Jintao visited Costa Rica in 2008 to inaugurate a new football stadium donated by the PRC.

Who benefits?

The China-Latin America relationship is not win-win for all partners. As of 2005, the trade surpluses that Latin American countries had with China have been reversed. Nowadays, 93% of China’s exports to Central and South America consist in manufactured goods (25% of textiles and garments, and 44% machinery and equipment).This is negatively affecting the efforts of the most advanced Latin American economies to develop their own local industry and is beginning to create problems.

Mexico, Latin America’s third APEC member has been particularly affected for two main reasons: its close ties with the US economy and the overlap between Chinese and Mexican exports. Of Mexico’s 20 main exporting sectors, 12 are in open competition with China. This not only reduces Mexico’s possibility to export to China to only about 3% of its total exports, but it also affects its trade relations with the USA. In 2003, China ousted Mexico from its position as the second largest exporter to the USA. With a $28bn trade deficit with China, it is no wonder that the Mexican government wants to review the trade agreements. An official of the Mexican government complained that “for every $30 of Chinese goods that Mexico imports, Mexico only exports $1 of Mexican goods to China.”

Something similar is happening with the textile industry from Central America, which is being smothered by Chinese textile exports.

Another example of tension in the relations with the largest Latin American economies is the case of Argentina. Argentina supplies 23 % of all soy product imports of the PRC. China has suspended an order for more than 2 million tons of soya oil, part of which is in transit, because Argentina decided to tax shoes imported from China as a measure to protect its local producers. Argentina’s commercial deficit with China in 2009 reached $1200 million and for the first two months of 2010 it is already $600 billion. The Argentinean government is not willing to let it increase. China’s response has nothing to envy to those of other imperialist powers when their “commercial rights” are affected by uppity emerging countries.

Basically, Latin American governments find two problems with Chinese investments: 1) their main purpose is to serve China’s development needs by facilitating the export of the raw materials, often imposing the demand that a significant portion of project to obtain and process those materials and services be sourced in China; 2) they have found that the level of Chinese direct foreign investment in the region is not as high as it seems, and that much of the official figures go into offshore tax havens.

What is clear is that Chinese trade with Latin America has fuelled a boom in the region’s commodity-export sectors in countries such as Argentina, Brazil, Chile, Peru and Venezuela, at the same time that Latin American manufacturing sectors have been badly damaged by expanded competition from Chinese goods. The situation is even worse for countries and regions with large manufacturing sectors and limited primary-product export sectors such as Mexico and Central America.

China: The new kid in the American’s backyard

Does China want to replace the USA as the ruling power in the region? Nothing’s farther from the truth. So far, the PRC has clearly shown that its main concern is not to undermine the Chinese-US relation, which it considers of the outmost importance from the strategic and economic point of view. At most, the PRC would be willing to occupy the empty spaces that the USA may leave. The strongest Latin American economies have been trying to profit from the power triangle that China’s policy is bringing about with diverse luck.

China’s concern not to cross the USA also affects its relations with Venezuela, Bolivia, Ecuador, and above all Cuba. China has signed military agreements with Venezuela, but this should not be seen as an outright backing of the Bolivarian regime. Even if China has signed an extensive military cooperation with Venezuela, it is doing so reluctantly, forced by its need for oil. To some extent, China is unwillingly filling a gap created by the deterioration of Venezuela’s political and military relationship with the United States. The fact that the Venezuelan government has frustrated the operations of some Chinese corporations such as CNPC shows that the relations between the two countries are not free of contradictions.

The relation with Cuba is slightly different from that with Venezuela. In spite of China’s pragmatic approach to foreign policy, there is still a slight ideological element at play. The economic relations are closer, and the PRC ranks ahead of Spain and second to Venezuela among Cuba’s trade partners. China also played a key role in upgrading the Cuban Air Defence System, and has frequently exchanged high-ranking Chinese military delegations. Cuba also supplies the PRC with strategic materials and agricultural products. In addition to sugar, Cuba also has both offshore petroleum and the world’s largest proven nickel reserves. In January 2005, China’s oil and gas giant Sinopec Corp. signed an agreement with Cuba’s state-run Cubapetroleo (Cupet) to jointly produce oil on the island. However, the relationship is not without problems. A $500 million joint venture to produce 68,000 tonnes a year of ferro-nickel in eastern Cuba signed between Cubaniquel and the Chinese firm MinMetals was abruptly cancelled, and the concession was given, instead, to Venezuela.

Conclusion

How the relationship between China and Latin America will develop in the future is a matter of speculation, although certain tendencies are already clear.

‣ The PRC has no interest in damaging his strategic economic and political relation with the USA. The relation with the governments in Venezuela, Bolivia, Ecuador and Cuba has been restricted mostly to commercial agreements in which it has proved to be practically the sole beneficiary.

‣ The relation between the PRC and Latin America is one of unequal partners owing to the potential of the former’s economy and the limits of latter’s. This is a source of constant conflict with those emerging economies —like Mexico and Argentina— that have plans to develop an independent industry and set up barriers to defend their national manufacturers from Chinese exports.

‣ Another source of conflict with Chinese investments is the fact that Chinese direct investments seek high levels of return regardless of social, labour or environmental conditions. This has already created conflicts with native populations in Ecuador, Peru, Venezuela and Argentina.

Timeline on Chinese investments in Latin America’s energy and commodities sector since 2005

Jan. 2005

– Cuba:

China’s oil and gas giant Sinopec Corp. signs an agreement with Cuba’s state-run Cubapetroleo (Cupet) to jointly produce oil on the Caribbean island.

China’s state-owned Minmetals is investing $500 million in a joint venture to produce 68,000 tonnes a year of ferro-nickel in eastern Cuba.

Feb. 2005

– Chile:

China’s Minmetals Corporation signs an agreement to invest an initial $550 million, which could eventually rise to $2 billion, to set up a joint venture with Chilean state copper company Codelco.

Sept. 2005

– Bolivia:

China’s Shengli International Petroleum Development Co. Ltd. signs a framework pact with state-run Yacimientos Petroliferos Fiscales Bolovianos to invest $1.5 billion over 40 years in Bolivia’s onshore oil and gas sector.

—Ecuador:

Chinese-led consortium Andes Petroleum, which includes China National Petroleum Corp. and Sinopec group, buys Canada-based Encana’s oil and pipeline assets in Ecuador for $1.42 billion.

June 2007

– Peru:

Peru Copper Inc. agrees to be bought by state-owned Aluminum Corp. of China Ltd. in a friendly deal worth C$840 million ($792 million) in cash, the Canada-headquartered company says.

May 2009

– Brazil:

China Development Bank announces that it will lend $10 billion to Petrobras, the state-owned Brazilian oil company, in exchange for a guaranteed supply of oil over the next decade.

July 2009

– Ecuador:

China forges a $1 billion loan-for-oil deal with South American OPEC member Ecuador.

Sept. 2009

– Venezuela:

Venezuela signs a $16 billion investment deal with China over three years to raise oil output by several hundred thousand barrels per day in the OPEC member’s Orinoco belt.

Oct. 2009

– Brazil:

Chinese steel and iron ore group Baosteel proposes to pay 1 billion pounds ($1.6 billion) for a 30 percent stake in Anglo American’s huge Minas Rio iron ore mine in Brazil.

March 2010

– Argentina:

CNOOC purchases a 50 percent stake in Argentina’s Bridas Holdings for $3.1 billion.

Virginia de la Siega is a member of the national leadership (CPN) and the International Commission of the NPA in France.


NOTES

[1] China’s Assistance and Government-Sponsored Investment Activities in Africa, Latin America, and Southeast Asia, Report for (US) Congress Prepared for Members and Committees of Congress, Thomas Lum, November 25, 2009.

[2] Latin Business Chronicle, China Undermines U.S. in Latin America, Monday, June 04, 2007, see

[3] The Wall Street Journal, May 18, 2009.

[4] La Nacion [Argentina], March 31, 2009.

[5] Nacion [Costa Rica], March 31, 2009

[6] Xinhua News Agency, May 22, 2009.

(Quelle: International Viewpoint.)

Indigene Völker protestieren gegen Uran-Abbau

Donnerstag, Juni 3rd, 2010

“Two statements to UN CSD on Indigenous Peoples & uranium

Published Date: 29-05-2010
Source: Statement
Source Date: 06-05-2010

The following are two civil society statements to the May 2010 UN Commission on Sustainable Development. One of the themes of the meeting was on mining, and its contribution to sustainable development [sic]. There were a number of presentations from multiple stakeholder groups, and two of them (one presented on behalf of the Indigenous Peoples group and another submitted on uranium) are published below.

Next year’s meeting in May 2011 will come up with policy recommendations on the subject. You can find out more, including access to other papers, at www.un.org/esa/dsd/csd/csd_csd18.shtml.

Presentation from Indigenous Peoples Group to UN CSD on thematic session on mining

CSD18 Review Session, Interactive Panel: Thematic Session on Mining 6 May 2010 UN Headquarters, New York Mining and Sustainable Development

Victoria Tauli Corpuz Member, UN Permanent Forum on Indigenous Issues

Executive Director, Tebtebba Foundation (Indigenous Peoples’ International Centre for Policy Research and Education)

Introduction

The topic of this thematic section is on the potential contribution of mining to sustainable development. I would like to address this issue from the perspective of indigenous peoples and also from the UN Permanent Forum on Indigenous Issues.

I am an Igorot from the Cordillera Region in the Philippines. My region is where large scale gold, silver and copper mining has been taking place since the 1900s, during the American colonial period, and continues up to the present under the postcolonial governments. Until the early 1980s, almost 75 % of the exports of gold, silver and copper came from my region. The Igorot in Benguet Province are still suffering from the legacy of mining adverse environmental and social impacts. Since mining remains as one of the pillars of economic growth of the Philippine government, mining operations expanded to many parts of the country and in most cases, Indigenous Peoples are the ones most affected as it is in their territories where these minerals are found.

I was also the Chair of the UN Permanent Forum on Indigenous Issues from 20052009 and I am on my last term as a member this year. We just finished our two-week session last Friday, April 30. As it has been since the Forum started, issues related to mining were raised many times over during this session. Last year the Forum held an International Expert Group Meeting on Extractive Industries and the report of this can be found in E/C.19/2009/CRP. 8 dated 4 May 2009.

The final report of this 8th Session contained several recommendations which I will talk about later. So much of what I will be talking about comes from my own experiences in my own country and other countries which I visited and the discussions which happened at the Forum in its 9 years of existence and also from the UN Working Group on Indigenous Populations which existed for more than 20 years under the Commission on Human Rights.

The need to differentiate mining activities

I have listened with interest to the opening comments of Member States yesterday. There is a widespread agreement that mining is an essential element of a modern economy. It seems, that we cannot live without it’s products or at least some of them. It is hard to imagine that there is anyone who thinks the human need for gold jewellery outweighs the human need of poor indigenous farmers or hunters and fisher folk to the means to provide food for their families.

Yet when we talk of mining we are carelessly doing it in a generalised way as if all mining had similar benefits and similar impacts. It most clearly does not. Iron ore and copper mining and some others do indeed provide key core raw materials for contemporary production and satisfaction of basic needs. Not that this would make any more acceptable the rights violations that are sometimes associated with these mines. However, by contrast gold mining produces a metal with very limited productive uses and with a vast existing reserve in some central banks. Its extraction and processing is associated with some of the most problematic environmental dangers. Yet over the last 20 years exploration and mining for gold has, with some variations, attracted a disproportionately large amount of total mineral exploration expenditure globally. This currently can be seen as a response to the uncertainty of economic crisis and more generally because gold mining tends to show quicker returns on capital invested and lesser average levels of investment than for the base metals sector.

Uranium, as another example. Uranium mining is not in any sensible discourse — a credible contributor to sustainable development. Its two major uses are first in the production of nuclear weapons (clearly global destruction is not part of any sustainable development strategy. ) |Its other use is in generating nuclear power. Here, from being a discredited and largely abandoned option, following the Three Mile Island and Chernobyl disasters, it has seen a recent resurgence as companies and govts are emboldened by the climate crisis to promote the nuclear option. However there are serious fundamental problems associated with uranium.

First, an estimated 70% of the world’s uranium deposits are located on the lands of indigenous peoples. Uranium mines leave behind huge amounts of “tailings” as radioactive waste. The tailings, contain approximately 80% of the original radioactivity of the ore, with half lives up to 240,000 years. Surely this is the ultimate in unsustainability! Everlasting potentially deadly pollution. There is no means of safe disposal of the tailings, which in many cases are left in the open.

Exposed to wind and rain, and radioactive and poisonous materials are contaminating the surface water, groundwater aquifers, the soil, the air, plants and produce, livestock and wild animals, the air to breathe, and will continue to do so for thousands of years into the future.

The health impacts are serious; leading to elevated rates of cancers. These heightened incidences are not just confined to workers but also affects communities nearby.

In Niger, according to reports from indigenous peoples, uranium mining has already contaminated the groundwater (the level of uranium in the drinking water are 10 110 times as high as the WHO standards), depleted fossil water aquifers which will never be replenished, and the mining company announced officially that their planned new mine will have depleted the local fossil water aquifer about the same time that the uranium deposit will be exhausted. This leaves the Touareg people from those communities with nothing to survive on. We have had several Touareg representatives coming to the Permanent Forum presenting the problems they face with uranium mining. Uranium mining companies have not found any means to solve these problems and to store their wastes in any adequately responsible way. Many uranium and other mining companies have followed a common strategy and gone bankrupt after the deposits were depleted leaving their aftermath to the States to clean up.

In my view the only way forward is a global ban on uranium mining and ensure that the uranium and nuclear industry, monitored by the international community, clean up their aftermath, pay compensation to the victims of their activities and allow for a continued monitoring of the sites in question. And similar efforts are probably the essential minimum if mining is to regain its social licence to operate.

The case of the nuclear industry raises other issues. As I hope we all know in the past and up to the present, indigenous people’s lands and waters have been extensively used as nuclear test sites without regard or in some cases even warning to the traditional owners. These have led to catastrophic consequences such as cancers, blindness, stillbirths and what is now known as jellyfish babies, among others. Within the US, indigenous lands are sometimes chosen as sites for the most dangerous and toxic of industries including nuclear weapon manufacture within the US.

Now some Indigenous Peoples living in remote areas are obliged, even when they have recognition of their rights, to “welcome” such dangerous and polluting industries and dumps because of their absolute poverty and lack of other cash earning opportunities. So some consent to host such facilities and some may even allow mines. If and where this is done consciously clearly it is an exercising of their right to control developments within their own territories. However I think we should all be deeply disturbed by the implications of the toxic materials and poisonous wastes generated by rich industrial societies being dumped upon the poor and marginal whether these be indigenous or not or whether they “consent” to such discriminatory actions. Because such “consent” is clearly in large part an acknowledgement that their acceptance of the toxic waste is based on the desperation of their poverty.

So when we speak of mining then we need to be more differentiating in our assessment. Are we speaking of open pit copper mining, underground mining, mining for iron or for gold or diamonds.

Environmental and Social Impacts

Yesterday I also heard Member States expressing their grave concern that the environmental and social impacts are regrettable and disturbing. But my question to us all is what are we going to do about the clear documented and continuing evidence of the association of some mining activities with grave human rights violations including, the disregard for already adopted international minimum standards for the dignity and welfare of indigenous peoples, such as the UN Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169?

As I mentioned earlier, in my capacity as Chair of the UN Permanent Forum on Indigenous Issues from 20052008 and as a member this year, I have heard numerous and most serious presentations on the impacts of mining on Indigenous Peoples. Some involving violent dispersal, killings, destruction of homes, desecration of sacred sites, the destruction of subsistence economies constituting a threat to life and culture and many more. Without naming names these complaints identify companies small and large, including members of the ICMM which is an alliance, as we heard yesterday, of industry leaders promoting best practice.

The mining industry has an appalling record for environmental and social impacts going back over a long period. Deeply negative impacts from mining have been felt on every continent (so far with the exception of Antarctica). Both past and present mining has generated environmental impacts that include the devastation of river systems and valley peoples like the Ok Tedi and Fly rivers in Papua New Guinea. The impacts of pumping mine waste into these rivers started by BHP (currently the world’s largest mining company) are predicted by scientists to generate pollution of the river system and the poisoning of adjacent forests that are not only killing fish and other life forms in the river but causing die back in surrounding forests that is predicted to grow worse and continue to spread for hundreds of years into the future. Even ancient mining activities can generate lasting negative environmental impacts that persist long after the demise of the people and corporations that caused them.

Aluminium, copper and steel production alone account for more than 7% of global energy consumption. Bauxite is often mined over extensive areas resulting again in the stripping of surface vegetation disruption and pollution of water courses and the common range of both environmental and social impacts. However in addition bauxite processing on average requires 15 kilowatt hours of electricity for each kilo of aluminium produced. Recycling of aluminium however on average requires only approx 5% the energy input of primary production. Recycling of aluminium currently accounts for approximately 1/3 of production. Yet large amounts of recyclable aluminium and other minerals are still lost in landfill. Other recycling efforts also remain underdeveloped.

Additionally according to Citigroup “At higher latitudes, high rainfall may require some operational adjustments, with the integrity of tailings dams being an issue for consideration, and the potential for consequential environmental damage.” The analysts also asserted that “Critical infrastructure such as ports may be at risk from small sea level rises particularly if combined with storm events.”

Other forms of tailings containment may also require a rethink or a ban. Unpredictable weather shifts may also require additional safety measures and expenses in arid and semi arid regions. In high mountain areas there have been some recent attempts to store mine wastes including potentially toxic materials in glaciers. However in the Andes and Central Asia global warming has exposed the short-sightedness and irresponsibility of such claims. Melting glaciers are already posing problems of containment of potential serious pollution.

Despite increased reference to industry best practice, clearly unacceptable and widely banned practices including Riverine and Marine dumping are still continuing. Such practices have resulted in the choking of rivers and inshore waters including corals. Marine dumping has been a source of great controversy and is banned in many states. Companies nonetheless advocate the increased use of marine dumping of mine waste. This despite the fact that we remain unclear about the full role of the sea in maintaining a balance in global climate. Research, however, points to a vital role for small marine organisms as potential absorbers of carbon. Yet large scale pollution of waterways and direct marine dumping are adding to marine pollution and putting marine ecosystems under increased pressure. Marine mining and further dumping is now also developing.

Clean water is a precious and increasingly scarce resource yet it is used in vast quantities in mining even in semi arid and arid regions. Mining in these regions and seasonally dry areas has always posed severe problems. Mining is a massive user of water. The Citigroup analysis of climate change risks to mining suggest “availability of fresh water is critical to most mining and processing operations.” In the USA between 1964 and 2005 Peabody coal has drawn millions of gallons from aquifers under the deserts of the South West that are a main source of drinking water for Navaho people and their stock.

This vital life-giving water was used by Peabody Energy to pump coal in a mixture of gasoline and water in a slurry pipeline operation to transport extracted coal to the Mohave electricity Generating Station in Laughlin Nevada.

The report of the DESA for this Session which is entitled ” Trends in Sustainable Development: Chemicals, Transport, Mining and Waste Management” states that “approximately 10 per cent of active mines and 20 per cent of exploratory sites are located in areas of high conservation value, while nearly 30 per cent of active mines are located in water stressed areas.

The increasing consumption of resources (mostly energy and water) needed to extract metals as well as the pollution generated by the extraction process are main constraints to sustainability of mining”.

Pollution problems due to mining are exacerbating in most mining areas. Direct dumping into rivers is still practised by major companies. The Grasberg mine in West Papua, Indonesia for example produces up to 300,000 tons of waste per day. Which dwarfs the problem of a city even like New York that produces up to 15,000 tonnes per day. Dumping into the ocean has been and is practised despite our lack of knowledge of its full consequences on marine organisms.

Depositing on the land is also practised mostly in arid and semi arid zones. But in this time of climate change and unpredictability this may prove problematic also. Tailings dams are common and numerous but are subject to collapse and breaches. Over past 25 years Philippine mines alone have experienced on average more than 1 serious incident every 2 years. These have included several incidents resulting in deaths from the slides and lasting environmental and economic consequences inundating fields, poisoning rivers etc This is not including the many small spills.

All such waste disposal systems are also confronted by new threats from climate change. Again in the Philippines our best tailings pond (lake better describes it) were built to withstand a 1500 year event. However in the last 10 years the Philippines has recorded an increase in the number and the intensity of typhoons last year two major typhoons hit the northern Philippines within 10 days causing tremendous devastation. Dams were protected by releasing as much material as possible before and during the typhoon.We are increasingly concerned that climate change will make the impacts of mining more severe and the lives of those downstream less secure. Acid mine drainage and other damages to rivers resulting in their death, skin lesions and other health problems for people, fish, livestock caused by downstream pollution of mines, air pollution by dust from the mining operations and many others.

In the 21st century I say frankly that in a time of review and policy recommendations for a sustainable future we have to be more forthright in terms of identifying what the real problems are and make recommendations on how these can be addressed. Majority of the UN member states have obligations under International Human Rights Law and under Multilateral Environmental Agreements which they should meet and compliance with these obligations is one of the steps in addressing issues of human rights violations and adverse environmental and social impacts of mining. Within the framework of CSD, we cannot turn a blind eye to these bad consequences because we are hooked on mining providing a cheap, too cheap perhaps, supply of raw materials.

At the last year’s 8th Session of the Permanent Forum we came up with a recommendation which supported the framework which John Ruggie, the Special Representative of the Secretary General on the issue of Human Rights and Transnational Corporations and other Business Enterprises, developed on Human Rights and Business. This recommendation states;

12. The Permanent Forum supports the conceptual and policy framework proposed by the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises. This framework rests on three pillars: first, the duty of the State to protect against human rights abuses by third parties, including transnational corporations and other business enterprises, through appropriate policies, regulation and adjudication; second, the corporate responsibility to respect human rights, which means acting with due diligence on all matters to avoid infringing on the rights of others; and third, greater access for victims to effective remedies, both judicial and non-judicial. (E/2009/43 E/C.19/2009/14)

I hope the CSD 18th Session and the member states will reiterate this framework and further elaborate on it as it applies to the mining industry. There are other Special Rapporteurs who also made comments on mining and how this affects the right to food and subsistence, housing, freedom of religion, among others. The past and present Special Rapporteur on the situation of human rights and fundamental freedoms of indigenous people, (Rodolfo Stavenhagen and James Anaya), also made several references on their annual reports on mining and indigenous peoples.

There are clear signs that the mining industry is moving on in important areas. We would acknowledge that some companies have made welcome advances, for instance in Australia with the employment of Aborigines. These have been conscious policies resulting in significant improvements and benefits for local people. Companies like Rio Tinto and others conduct some trainings on human rights for their staff. This is most welcome as a start and if it could be rolled out elsewhere I think it would be widely welcomed and would contribute positively.

However in the area of respect for basic human rights, the recognition of basic rights like the need to secure the Free Prior and Informed Consent of Indigenous Peoples before operating on their lands, despite discussions and explanations this is not, as I understand FPIC is not yet endorsed to by the ICMM. And the Intergovernmental Forum on Mining and Sustainable Development has had no interaction with the UNPFII nor with UN Special Rapporteur on Indigenous Peoples Rights. Even if this is an intergovernmental forum it should not remain as an exclusive intergovernmental body. The CSD is an example of inclusiveness and this practice should be followed by the IGF.

Some companies have taken the welcome step of announcing their individual commitment to human rights standards and I can quote from the Rio Tinto Annual report for 2009 as one example. It says “Rio Tinto operates in a manner consistent with the UN Declaration on Indigenous Peoples and sovereign obligations. We respect the land connection of indigenous communities and work with them on their land in a spirit of reciprocity, transparency and recognition of their culture…..”

Now there are indigenous brothers and sisters of mine who would dispute if in fact Rio Tinto does fully operate in such a manner. There is a problem we face generally of the absence of credible independent monitoring of corporate behaviour, which means such claims remain unconfirmed. However, I am sure that such commitments are a welcome development in so far as they go and can be, if supported by actions and independent verification the foundation for reductions in conflict and greater mutual respect.

The Rio Summit nearly 20 years ago and Agenda 21 which will soon to be remembered and built on, popularised and inspired millions with its call for sustainable development. The situation was so serious then that there was a willingness to contemplate new and different approaches. For indigenous peoples we were hailed for our sustainable living our walking gently on the earth which is both the philosophy and practice of indigenous societies throughout the world. We were hailed and acknowledged in those documents as a model for the future no longer consigned as so often before into being remnants from the past.

However there is often a gap, a time lag, between words and actions. At the time Indigenous Peoples had been suffering great hardship as the result of the insatiable and unsustainable demands of the global economy. Through logging, mining, industrial fishing and other assaults our praised models of sustainable living were and remain under a severe attack. Indigenous Peoples, who have contributed the least to the generation of these current global economic and ecological crises, are however the first to suffer its impacts and most of the times, left with no recourse or redress. This is because most of us live closely with and depend on nature. Our regard of earth as our mother, which always was the source of our security, now becomes the source of our greater vulnerability as the earth strikes back.

I would like to conclude by reiterating some of the recommendations presented by the indigenous peoples’ major group statement yesterday.

1. The respect for human rights and aspiration for social justice is an essential pillar of our shared striving and vision for sustainable development. It is for Indigenous Peoples, and us all, the foundation of engagement with this multi-stakeholder process.

2. I call on mining corporations both transnational and national, as well as investors for mining (whether institutional or individual) to endorse the UN Declaration on the Rights of Indigenous Peoples. I recommend that mining Corporations and their associations such as the ICMM and the IGF work with indigenous peoples to elaborate operational guidelines on how to use the UNDRIP in their day to day operations and how to monitor and promote its implementation.

3. Whatever good or best practices there are, in the main, mining is such an unsustainable destructive activity which is why I strongly recommend that stronger regulations in different areas should be done. Voluntarism is not enough given the seriousness of the economic, environmental, social, cultural and spiritual impacts for indigenous peoples. Mining legislation which allows for the unfettered operations of mines should be repealed and revised.

4. One lesson from the financial crisis of great importance is not allowing speculative hot money to force an artificial acceleration of the exhaustion of our natural none renewable resources in mining. Derivatives trading and other speculation against metal ore stocks may damage both the environment and the mining industry.

5. Indigenous Peoples and others deeply affected by mining have raised their complaints in many arenas, whether in the judicial or non-judicial systems. Still there is a limited capacity to respond to such complaints. I strongly recommend that information on channels and mechanisms for complaint, justice and redress at all levels from the local to the global level, be disseminated widely to indigenous peoples and these should be made more accessible to them. Relevant capacity building activities should be done with the support from bilateral donors, intergovernmental bodies and the States.

6. The mining industry and governments have established an intergovernmental panel on mining and sustainable development. However, indigenous and other affected communities are excluded from this body and other bodies like the ICMM. The threats to and opportunities for sustainable development posed by the mining industry require a more balanced standing body representing all concerned sectors to work with independent monitoring structures to present and disseminate in a transparent manner more information on the serious issues concerning mining extraction.

7. The World Bank Group and other international financial institutions should continue to monitor and review their operational directives and safeguard policies pertaining to indigenous peoples in conjunction with existing international standards, especially the right to free, prior and informed consent as required under the United Nations Declaration on the Rights of Indigenous Peoples. The Bank should also implement the recommendations of its own Extractive Industries Review. Likewise, other multilateral lending institutions should include the requirement to obtain free, prior and informed consent in their safeguard policies on indigenous peoples’ environments and other concerns.

8. With the changing patterns in sustainable production and consumption, and with consideration of the principle of common but differentiated responsibilities and the ecosystems based approach, all sectors, especially Governments, should actively promote more sustainable ways of life, including those practised by indigenous peoples for generations including small-scale mining. Respect for their traditional knowledge, practices and innovations, and their customary governance systems and laws on extraction of natural resources should be ensured. States, corporations and society at large should work to reduce and promote the reuse, recycling and substitution of metals and minerals help minimize mining and related processing activities which result into toxic wastes. I also recommend that the specific roles and contributions of indigenous women in developing more widespread sustainable production and consumption should be strongly supported.

9. The CSD, corporations and States should operationalize the framework on human rights and business developed by John Ruggie which rests on three pillars: first, the duty of the State to protect against human rights abuses by third parties, including transnational corporations and other business enterprises, through appropriate policies, regulation and adjudication; second, the corporate responsibility to respect human rights, which means acting with due diligence on all matters to avoid infringing on the rights of others; and third, greater access for victims to effective remedies, both judicial and non-judicial.

10. Finally, I reiterate the proposal of the UNPFII which calls on the ICMM to invite the members of the Forum, the affected communities and indigenous experts to visit 10 of their sites which they claim are doing best practice, so they can see and make their own evaluation of these. Then they can use the experience to craft more relevant recommendations for the Policy year in 2011. Thank you very much.
Victoria Tauli Corpuz email: vicky@tebtebba.org website: www.tebtebba.org


Uranium Mining at the UN Committee on Sustainable Development (CSD)

African Uranium Alliance Statement

6 May 2010

New York – In the area of mining, the mining of uranium is a special issue. Uranium is heavy metal which is radioactive, toxic (chemically poisonous) and repro-toxic (toxic / dangerous for the reproduction). Its only uses are for nuclear weapons, including Depleted Uranium weapons, and for the generation of electricity through nuclear power plants.

Nuclear weapons are not desirable; many statements of politicians state that nuclear weapons should be abolished altogether. Nuclear energy is the other use of uranium; although it is often said – and advertised by the nuclear industry – to be a “saviour” from global warming, nuclear energy CANNOT contribute anything substantial to the problem of global warming; this has been shown and proven by different scientific studies.

Approximately 70% of the world’s uranium deposits are located on / under the lands of indigenous peoples. Thus, the rights of indigenous peoples, their land rights, their human rights in terms of health, securing their livelihoods and their means of subsistence, their way of life / their culture are often at stake when dealing with uranium mining.

Uranium mines leave behind huge amounts of “tailings”, radioactive waste due to the fact that uranium is contained in the ore only at 0.1 to 1 or 2 percent. The quantity of the tailings alone is a serious problem.

The tailings, which include solid tailings as well as liquid / slurry, contain approximately 80% of the original radioactivity of the ore – a cocktail of a dozen of radioactive decay products of uranium, with half lives up to 240,000 years – dangerous forever, in human terms. These tailings are in most cases left in the open, exposed to wind and rain, and radioactive and poisonous materials are contaminating the surface water, groundwater aquifers, the soil, the air, plants and produce, livestock and wild animals, the air to breathe, and will continue to do so for thousands of years into the future.

Uranium mining companies have NOT found any means to solve these problems and to dispose of their wastes in any responsible way, and they are NOT living up to their corporate social responsibility to clean up. (In fact, companies rather ‘invest’ in PR and other activities to promote themselves as “good corporate citizens” through sponsorships, donations etc. rather than to deal with reality.)

On the contrary, many uranium mining companies have gone bankrupt after the uranium deposits were depleted – leaving their aftermath to the states / Governments to clean up; in most cases – from the US through Canada to Niger, Namibia, South Africa and to Asian states such as Kazakhstan, the companies have NOT cleaned up or provided for ANY secure methods to deal with the wastes they created.

In addition, attempts to contain the tailings have proven to be ineffective and have been shattered by all kinds of influences, from engineering faults to unforeseen events.

This shows that humankind has NOT found a safe way to deal with the wastes from uranium mining, and that it is virtually impossible to deal with them in way that will assure “safety” for thousands of years.

Based on the track record of companies, as well as on the factual difficulties / impossibility to ‘contain’ uranium mining wastes safely for thousands if years, uranium mining is not – and will never be – a ‘sustainable development’.

The health effects from uranium mining to miners, people living in the vicinity of the mines, are also detrimental, as reports form mines in Namibia and Niger are showing, and reports from former uranium mines confirm the deadly impact (7,000 cases of lung cancer in Germany due to former uranium mines).

The low-level radiation material spilled / emitted by uranium mines will affect many generations to come through damage to the DNA which is passed on from generation to generation. Thus, uranium mining is not – and will never be – a ‘sustainable development’.

At present, uranium mining is pushing ahead with companies targeting countries in Africa – explicitly and for the simple reason that laws and regulations in countries like Australia are considered to be “too sophisticated” for them to operate. Thus, countries on the African continent are “preferred” targets – some do not have any radiation protection laws at all (e.g. Namibia) or they do not have the capacity to monitor (e.g Malawi, Niger) the mines and enforce their laws and regulations.

Uranium mining is by no means a “sustainable development”, but rather subject to “hit and run” policies which has been controlled by uranium mining companies all over the world for many years (as is shown by the many abandoned and un-reclaimed tailings dams evident in all parts of the world).

Finally, in places such as Tanzania and Mali, mining activities are literally destroying existing sustainable economies:

In the Bahi region of Tanzania, referred to as “Bahi swamp”, in reality a rice-growing area, local farmers are effectively growing rice; their fields could potentially be taken over by uranium mining companies and turned into open-pit mines for uranium – thus, destroying the livelihood of people in a country which is struggling for food security. A few more examples of the impact of uranium mining especially on indigenous peoples:

In Namibia, the Topnaar-Nama people living in / near the Namib-Naukluft desert see their livelihood threatened by uranium mining which uses huge amounts of water pumped from the underground aquifers, bringing down the water level so that grass does not grow anymore, trees die, and their livelihood / means of subsistence is being destroyed. In Tanzania, The Wasandawi people, living as hunters and gatherers, in the central part of the country; open-cast uranium mining will destroy their traditionally used lands, uproot their society and destroy their way of life. In Niger, uranium mining has already contaminated the groundwater (the level of uranium in the drinking water 10 – 110 times higher than WHO standard), fossil water aquifers, non-renewable resources, have been depleted and will NEVER BE REPLENISHED.

AREVA a French mining company, announced officially that their planned new mine (Imouraren) will have depleted the local fossil water aquifer about the same time that the uranium deposit will be exhausted – leaving local Touareg people with nothing to survive on. In Malawi, the newly opened Kayelekera Uranium Mine (Paladin Resources, Australia) has claimed the lives of two workers even before the mine opened; the mine and its tailings pose a serious threat to Lake Malawi which is a critical huge freshwater resource in South-East Africa, on which some 3 million people depend; the state / Government of Malawi pointed out that they do NOT have the capacity to monitor the mine, its effluents etc. independently and “trusts” the company to basically monitor itself. The list of the short AND long-term negative impacts of uranium mining could be continued ad infinitum.

The negative and long-term impacts with NO way to resolve them at present, clearly demonstrates that uranium mining is by NO MEANS a sustainable activity. It needs to stop.

As far as South Africa is concerned, we have experienced Acid Mine Drainage (AMD) and the failure to find a solution to acidic and radiotoxic uranium mine tailings impacts that demonstrate that uranium mining can never be sustainable.

More importantly, we find the end-use of uranium — namely, nuclear weapons and depleted uranium ordnance — morally reprehensible and cannot support an industry where the long-term destruction of human life is its overriding purpose. The subsequent cover-up of an overly expensive and dirty civilian nuclear power industry is an equally unacceptable by-product of the weapons industry, when so many healthier and cheaper alternatives to electricity conservation and generation exist.

We conclude that only a global ban on uranium mining, with the uranium and nuclear industry obligated to clean up affected sites, pay compensation to the victims of their activities, and the constant monitoring of the sites in question, help improve, diminish and eliminate the current crises suffered by people and the environment.

AFRICAN URANIUM ALLIANCE
c/o Citizens For Justice-(CFJ) Friends of the Earth, Malawi,
Off Lilongwe-Blantyre Highway, Falls Estate, Plot # 57431, Post Dot Net, Box X100, Crossroads, Lilongwe, Malawi.
Phone: +2651727822 and +2651727828, Fax: +2651727826 Email: reinm@cfjmalawi.org

(Quelle: Mines and Communities.)

Uganda: Das Rennen um die Rohstoffe hat begonnen

Freitag, Mai 21st, 2010

“Uganda: Scramble for Minerals Begins

By Ibrahim Kasita

Kampala — Foreign firms are rushing to get hold of mineral deposits as prices continue to rise due to economic recovery.

Firms from China, India, Australia and South Africa have shown interest in exploring and producing the minerals.

‘We have really attracted significant investors both abroad and local ones. They are all doing well,’ Joshua Tuhumwire, the commissioner in charge of geology department in the ministry of mineral development, said.

The revelations come shortly after an aerial survey report confirmed that Uganda is endowed with copper, iron ore, cobalt, tin, gold as well as platinum.

There is anticipation for Foreign Direct Investment in the mineral exploration sector in the Great Lakes region as China looks for raw materials to oil its growing economy.

China’s entry into Africa is seen as catalyst for renewed interest in Africa by the European Union and US to undermine China’s emerging influence due its non-political interference policy on investments in Africa and the potential for monopoly access to energy and mineral resources.

China is not alone in searching for mineral supply. Already the Russians have installed a 1.5m gold refinery in Kampala to process gold within Uganda as well as from the region.”

(Quelle: allAfrica.com.)