Archived press release

Rtz to face environment and human rights critics at agm

7 May 1997

RTZ-CRA, the world's largest mining conglomerate, will face detailed questioning over its environmental and social policies, at its AGM in London today (Wednesday, 7 May 1997).A number of institutional shareholders are known to have already raised concerns privately with RTZ's Board.

RTZ is involved in a number of contentious projects around the world. FOE and WDM are particularly concerned about mines in Madagascar [1] and West Papua, Indonesia [2],where the environment and local communities are under threat. These and other concerns are shared by a number of individual and institutional shareholders who, it is hoped, will join FOE and WDM in quizzing the Board at the AGM. Some insurance companies - including Prudential, Friends Provident and Sun Alliance - have told FOE and the WDM that they have already raised concerns about the projects in Madagascar and West Papua.

Tony Juniper, Campaigns Director of Friends of the Earth, said:
"Large institutional investors need to consider carefully the environmental and social consequences of their investment decisions. Insurance and pension companies' customers don't want their money used to sacrifice the environment for profits. They know it is ultimately a self-defeating strategy. That is why the investors need to use their influence to raise standards as well as dividends".

Barry Coates, Director of the World Development Movement, said:
"Companies like RTZ hide behind glossy PR brochures which boasts of their commitment to local communities and their environment. Sadly these words

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haven't been translated into action. Institutional investors have the power and responsibility to make the companies fulfil their empty promises. It's time for them to act".

NOTES TO EDITORS:

[1] Friends of the Earth has renewed calls on giant mining conglomerate RTZ to withdraw from a proposed mineral sands mining project in south-eastern Madagascar which is being developed by RTZ's wholly owned Canadian subsidiary Qit Fer and the Malagasy Government. Should the mine go ahead, around 6,280 hectares of irreplaceable forest will be lost. The mineral sands contain titanium dioxide which is used as a whitener and would be extracted by a process known as surface wet dredging.

The biodiversity of the three main forest fragments is of global significance. Studies have shown that there are at least 29 species of plants and animals that are not found anywhere else in the world.

Questions over the benefits to the local economy, resettlement and compensation for the affected communities and the environmental impact of the mine have not yet been properly addressed.

[2] The World Development Movement has called on RTZ to stop funding the expansion of the Grasberg copper and gold mine in West Papua, Indonesia, until they have the agreement of the Amungme Tribal Council - the original owners of the land.Tribal communities in the area have united in their struggle against the human rights violations and environmental destruction associated with the mine. The Amungme are seeking legal redress in the US courts, demanding $6 billion in compensation from Freeport, the operating company.

The mine's expansion - only possible with RTZ's cash injection - is opposed by indigenous peoples like the Amungme, whose peaceful protests have been quelled by the Indonesian army. Earlier this year more troops were stationed in the sub-district surrounding the mine site than anywhere else in Indonesia.

WDM has warned RTZ's shareholders of an increasingly volatile situation at the Grasberg mine and called for urgent action. Unless shareholders exercise their governance, extreme local opposition and civil unrest may disrupt the Grasberg mine, like the Bougainville mine in Papua New Guinea.

More detailed briefings about RTZ's activities in Madagascar and West Papua are available from FOE and WDM on request.
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