Our demand for metals could cost us the earth

For too long mining companies have used the mantra of growth to excuse environmental destruction, writes Melody Kemp in the Guardian UK, with references to Papua New Guinea.

Have you noticed that mining is increasingly getting up people’s noses? Globally, more communities are fighting it. Gaggles of poor villagers are taking on well-connected, cashed-up companies representing the brutish but powerful foundation of the globalised free market system. You have to admire their style.

Take Sumba, eastern Indonesia, which is currently pocked with the telltale signs of gold exploration. Its seams, Australian Hillgrove Resources says, are rich and promising. The local people’s response? Consistent riots and outrage. As they see it, gold mining threatens their land, water, culture – their very being. It usually takes about 691,000 litres (almost 700 cubic meters) of water to produce one kilo of glitter. In the necklace of dry eastern Indonesian islands that hang delicately above Australia, water is more precious than gold. Australian behemoth BHP, which recently posted a A$22.5bn (£15bn) profit, ceded the licence after local protests showed no sign of abating. Hillgrove cannot say it wasn’t warned.

On Palawan, a glistening gem of an island in the Philippines, a story all too familiar in Asia is also unfolding. A rich and powerful Forbes-listed airline magnate, Lucio Tan, in partnership with a UK mining giant Toledo Nickel, wants to mine one of Asia’s last significant old growth forests (thus reducing significant carbon sequestration potential) to take advantage of record prices for the nickel needed to run hybrid cars and satisfy our addiction to gadgets. But the tech-savvy indigenous people would rather have trees. On the Philippine island of Luzon, mining companies with names like health resorts, Oceana and Oxiana, are both facing opposition from the locals.

In Australia, things are no better. A random news sample indicates that farmers, not known for their radicalism, have lately been sitting resolutely on folding chairs bearing placards against coal seam mining. Western Australian farmers were told to remove signs opposing an iron mine threatening to sap water needed for crops and livestock.

As global financial institutions seismically heave, demand for metals – gold in particular – intensifies. Shareholders might nervously read reports of protests, but their loyalty is bought by increased dividends. How can the environment win against such kitchen bribery? The plodding Australian resources minister Martin Ferguson dismissed the opposition, asserting the people have no rights over what lies beneath, adding ominously that farmers and indigenous peoples cannot veto mining. We are told it is in the national interest, but increasingly that is code for elite interests. After all, the test of any participatory democracy is the power of its peoples to influence their destiny. Mining companies thus far have used the mantra of growth and profits to excuse their habitat destruction.

The environment is one of the last of the global commons, and the sociocultural consequences and environmental costs of mining are increasingly unacceptable. This is especially so on small islands where water and arable land are limited. Papua New Guinea’s minister for mines Byron Chan recently announced that he was changing the law to “hand ownership from the government to land owners”. Greg Anderson, of the Australian chamber of mines and petroleum, choked on his tie when asked to respond. Obstacles and community shareholders are clearly not his thing.

Sumba, where electricity is intermittent, cannot spare the 143 gigajoules of energy it takes to produce one kilo of gold – nor do they need the greenhouse emissions or toxic additives like cyanide. Merely opening the earth delivers methane and carbon emissions. More carbon is produced by processing, transport and manufacture. The price of gold cannot possibly make up for what the environment pays.

In a dazzling display of chutzpah, the Queensland environmental defenders’ office, along with Friends of the Earth, launched a court case against Xstrata coal, opposing a 32,000 hectare claim in Western Queensland. The EDO’s case cites the future climate consequences to the global environment of both the mine and the coal’s future use. One is tempted to cheer.

Donald Brown’s series on points of ethics might have inspired them. He posits that we have not confronted “governments or individuals who oppose national climate change policies on the grounds of national economic cost alone whether they deny that, in addition to national economic interest, nations must comply with their obligations, duties, and responsibilities to prevent harm to millions of poor, vulnerable people around the world”. He could be talking about mining when he says “the potential harms are grave to some people or ecological systems, and… those being put at risk have not consented to be put at risk”.

Until now, mining has been a favoured child, not overly fettered by ethics. It’s time that people’s rights took precedence. Ethics and morality, seemingly redundant in an instant gratification world, may soon re-enter the dance, nudging unbridled growth off the stage.

8 Comments

Filed under Environmental impact, Financial returns, Human rights, Papua New Guinea

8 responses to “Our demand for metals could cost us the earth

  1. knoxx

    In PNG, if we are serious about corruption in our government, someone should research the nature, design and purpose of computer viruses and the HIV virus. Research what they are and how they behave once they get in the system. Expand this research to include how legal deeds and contracts and trust funds work and how government backs mining projects in Papua New Guinea and inform the general public on that, then, I believe everyone will see and appreciate how important it is to guard and protect the spirit of our national constitution and make amendments where needed to avoid further exploitation and intrusion of corruption generating viruses to impact our society through our government. I suspect such documents like the legal contracts (e.g. the trust deed) are systematic devices that legally work corruption in and through the entire system of government, weakening all government effort to delivered real services to its 6.7-7 million people in PNG.

    We should not fight among ourselves, thus, we will be easily divided, and plundered as one people, one nation. Breaking our social contracts only among ourselves will only make way for corruption to weaken and destroy the fabrics of our emerging society and freedom.

  2. Wesely

    Knoxx,
    This is an interesting line of thought.
    Extending it to “bad thinking” and a lack of knowledge in the community.
    I saw the bit about the woman at Simberi complaining and demonstrating about a lack of progress in community development the other day.
    What’s wrong with that picture?
    These people (the community at Simberi) have an MOA with the company.
    This gives them a legal right and process to approach the company and discuss and resolve these matters.
    MRA has a duty to ensure that the community employs this process.
    But rather than use the very process that the company, the state and the people have agreed on to resolve such matters someone (Chan?) agitates them to complain in a useless and counterproductive forum.
    Now, CVhan has a duty to inform the agitators that they are required to use the provisions of te MOA to sort the matters out.
    Has he done anything in this regard
    I absolutely bet you he has done nothing because Chan wants a dispute.
    He does not want harmony and progress.
    This is what is WRONG with the picture.
    It’s useless and counterproductive because it does not engage anyone in any useful communication, it’s all just for show.
    Now where is MRA in all of this?
    Why has MRA failed to inform these people that they have a legal vehicle for discussing the matters with Allied Gold?
    Why has MRA failed to discharge its obligation to the state and its peoples and the mining proponents?
    Without employing the provisions of the MOA nothing can happen.
    MRA knows this but sits back and it appears, deliberately agitates disputes.
    This is what happened throughout 2009 and 2010.
    It suggests that the MD of MRA quite deliberately sat on his hands in breach of his duty to both the land owners and the company.
    It’s a diseased and pathological way to go about things and MRA is to blame, at the heart of it all.
    It also demonstrates the complete lack of commitment within government and particularly the MRA to make these agreements work and to ensure that all stake holders interests are protected.
    The MD of MRA has utterly failed in this regard and really needs to take a good look at himself rather than trotting around as a political candidate

      • Francis

        Andy
        Here are the shortfalls in capacity with previous MD of MRA as againts current JD

        Job Description/MD MRA
        • Post Graduate qualification
        NO

        • At least 5 years’ experience as a Chief Executive Officer or Managing Director of a medium to large organisation
        NO, not really, just five years of failure in Ports Authority.

        • Experience in the mining industry would be a distinct advantage
        NO

        • Must possess a high level of financial competency
        NO

        • Demonstrated experience in managing teams
        NO

        • Demonstrated knowledge and skills in Project Management
        NO

        • Regulatory experience is desirable
        NO

        • Effective leadership, organization and communication skills
        NO

        • Effective business management and administration skills
        NO

        • Knowledge of computer application software, including MS Word, MS Excel, MS Project and Project Management Tools
        NO

        • A proven team player, who is reliable, able to mentor and motivate others, has integrity, accepts responsibility and is accountable for performance and outcomes.
        NO, NO, NO, NO, NO, NO………………………….

        It is not at all surprising that MRA is in a mess right now.

        Kepas Wali was a political appointee (Arthur Somare) and was an utter disaster, as when he was in Ports and Harbors.

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  4. knoxx

    I like the statement from Interface technology Inc. The statement speaks well about them: their product and their services. This statement kind of summarizes my thoughts on the Government- MRA-Company, the people and the MOA process; it reads:

    ‘Process alone does not build software. People do. People with whom you can have meaningful conversations. People who are working in functional, collaborative, healthy teams’.

    I know situations where MOA’s don’t often work as they are intended to, and so processes tend to fail, the reason simply being that, in the line of duty, one party breaks its part of the original deal agreed upon by all stakeholders involve. From my own observation, drafting out of new policies often shift a process (e.g. negotiation) away from the binding spirit of the initial MOA. This kind of shifting often happen when demand is placed on the MOA itself from the political, economic and social factors to extend the capacity of the MOA to accommodate the growing interest of stakeholders in the output of the contract; the people usually are unaware of such development and changes to policies, because changes take place within the circle of government-MRA-company. People’s power is often sought out and abused in such situations because among themselves (government-MRA-company), they already know where their weaknesses and strengths and opportunities and threats lie.

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