Archived press release

RTZ AGM - shareholder protest

11 May 1995

The RTZ Corporation plc AGM starts at 11am in the QEII Centre, Broad Sanctuary (off Parliament Square) SW1.

Dozens of Friends of the Earth activists will attend the RTZ AGM today to ask company directors questions about the controversial Madagascar mineral sands mining project [1].

If this project goes ahead, at least two thirds of the remaining littoral forest along the south-east coast of Madagascar would be destroyed whilst many unique species of animals and plants could be made extinct [2]. Andrew Lees, former Campaigns Director at Friends of the Earth, died on December 31st 1994 whilst investigating the impacts of the proposed mine.

RTZ says no final decision has been made on the proposed project and that the Malagasy government will be responsible for the final go-ahead. Friends of the Earth believes that shareholders of RTZ, which include most local authorities and many insurance companies, would like to see RTZ take more responsibility for the proposed project which will be mostly funded by the company and carried out by it [3].

Tony Juniper, Senior Biodiversity Campaigner at FOE, said:

'RTZ's shareholders want to know the real cost of their share dividends. The company must give the AGM details about this project including how much forest will be lost and how much money this poor country will really get'

Friends of the Earth believes that more sustainable alternatives could be found to the proposed mining project which would last for only 40 years [4]. It is urging RTZ to place a moratorium on the project, for the Malagasy Government to consider more sustainable development options and for the international community to help with funding support.

ENDS

NOTES TO EDITORS

[1] RTZ's wholly owned Canadian subsidiary, QIT Fer et Titane, is developing plans to mine deposits containing ilmenite which is a major source of titanium dioxide (TiO2). Titanium dioxide is used as a whitening agent in numerous products such as paint.

[2] The littoral forests under threat from the proposed mine are unique, representing a transition between rainforest and spiny forest environments. Approximately 45% of all known native species of Madagascar's vertebrates occur within this region. Twenty-nine plant species are unique to this area. The project would also threaten neighbouring freshwater lakes and rivers and infringe on traditional livelihoods.

[3] Friends of the Earth will be seeking answers to questions such as:

Exactly how much of the unique eastern coastal forests will be lost as a result of the Madagascar mineral sands project?

How many species of animal or plant might become extinct as a result of the Madagascar mineral sands project being executed?

Does RTZ expect that the Madagascar mineral sands project will lead to a reduction or increase in the amount of forest lost to local slash and burn agriculture and collecting of wood?

Does the company believe that the Madagascar mineral sands project can be financially viable without the support of a major fund like the World Bank?

How much profit does the company expect to make from the Madagascar mineral sands project?

What percentage of the profits from the Madagascar mineral sands project will go to the Government of that country?

When will the company publish in the UK all the documents included in the environmental assessment study of the Madagascar mineral sands project?

Will the company complete a thorough social impact assessment and publish it before any final decision to go ahead with the mine is taken?

How will local opinion regarding the likely social and environmental impacts of the Madagascar mineral sands project be gauged?

What does the company estimate the preparatory work to date on the Madagascar mineral sands project to have cost?

[4] It has been estimated by independent studies that there is 40 years' worth of ilmenite deposits in the coastal sands.

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Published by Friends of the Earth Trust