Despite recent suggestions in the press that RTZ is looking at ways to reduce shareholder disruption at its AGM meetings [1], Friends of the Earth is escalating pressure on RTZ at all levels to pull out of the controversial proposed mineral sands mining project in Madagascar.

As part of a national shareholder campaign, Friends of the Earth is urging customers holding policies with insurance companies who have significant investments in RTZ to take up the issue with their insurance company [2].

At the RTZ AGM on May 10th 1995 nearly 70 Friends of the Earth activists forced company directors to answer questions on the potentially devastating environmental impacts of the proposed mining project [3]. Following the success of this action, Friends of the Earth is now targeting RTZ's large corporate investors.

Many well known insurance companies have significant investments in RTZ [4]. Friends of the Earth has also written to the one hundred top investors in RTZ asking them to use their influence as a significant shareholder to raise their concern about the proposed mining project.

Sarah Tyack, Forest Campaigner at Friends of the Earth, said:

'We are urging policy holders to insist that their insurance companies use their power as significant shareholders to put pressure on RTZ to pull out of this proposed mining project. We are sure that customers of insurance companies would like to be aware of where their money is being invested and of the real cost of their policies.'

Friends of the Earth believes that more sustainable alternatives to the mining project which would only last for 40 years could be found [5].

ENDS

NOTES TO EDITORS

[1] The Sunday Telegraph reported on June 4th that RTZ was considering consolidating its shares with every 100 shares becoming one new share. This would make a mass shareholder action much more difficult to carry out and more expensive for individual shareholders to attend. RTZ, however, have since denied this plan.

[2] RTZ's wholly owned Canadian subsidiary, QIT Fer et Titane is developing plans to mine ilmenite deposits under the remaining coastal rainforests in South East Madagascar. Ilmenite is a major source of titanium dioxide which is used as a whitening agent in numerous products such as paint.

[3] At the AGM, the corporation admitted that 50% of the remaining coastal rainforest, which is of global significance, would be lost resulting in the extinction of a number of endemic species should the mining project go ahead.

[4] Insurance companies who have significant amounts invested in RTZ include; Prudential, Standard Life, Bank of Scotland, Scottish Widows, Legal and General, Equitable Life Assurance, Commercial Union, Friends Provident Life, Sun Alliance, General Accident, Allied Dunbar Assurance.

[5] Friends of the Earth is urging RTZ to place a moratorium on the project to give the Malagasy Government a chance to consider more sustainable development options such as eco-tourism, and the international community to help with funding support.

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