Archived press release

Rio Tinto Threat To Madagascar

7 April 2004

Mining giant Rio Tinto will face tough questions at its AGM today, Wednesday 7^th April [1], on the company's plans to develop an ilmenite mine on the island of Madagascar, threatening a unique and precious ecosystem which is home to a number of endangered species. The company is due to make a decision on the plans in the coming year.

Rio Tinto, operating through its wholly owned Canadian subsidiary QIT Fer et Titane, intends to dredge hundreds of millions of tonnes of mineral sands along a 6,000 hectare strip to extract the mineral ilmenite, used as a whitener in toothpaste and paint. The company claims it will protect Madagascar's unique primeval forest by planting fast-growing trees and recreating the ecosystems from scratch, but Friends of the Earth has criticised the proposals as being inadequate, as outlined in a new briefing published today [2].

The company is also facing criticism for environmental damage and worker abuses at its activities Freeport-Rio Tinto Grasberg gold mine in West Papua, Indonesia. Eight workers died in an incident at the mine last year - despite warnings from workers that a disaster was imminent and could be prevented [3].

Friends of the Earth will also be asking questions on behalf of the Mirrar people in Australia, who are concerned about water contamination from Rio Tinto's Ranger uranium mine [4].

Friends of the Earth's Corporates Campaigner Hannah Griffiths said:

"For more than 10 years, Rio Tinto's plans for this mine have hung like a shadow over south east Madagascar and prevented other development taking place. Over that time, Rio Tinto claims to have invested considerable sums in reducing the impact on the environment, but many questions still remain. Crucially, they have failed to show how they will replace precious habitat that has evolved over millions of years and how they will resolve longterm impacts. Companies like Rio Tinto must be made responsible in law, through foreign direct liability, for their impacts overseas. Only then will British companies face up to the long-term responsibilities to the environment and to local communities."

Friends of the Earth is campaigning for changes to UK company law so that financial obligations are counterbalanced by social and environmental concerns. It wants the Government to introduce mandatory reporting, requiring all UK companies to report annually on the impact of their operations, policies, products and procurement practices on people and the environment both in the UK and abroad; new legal duties on directors to take reasonable steps to reduce any significant negative social or environmental impacts; and foreign direct liability to enable affected communities abroad to seek redress in the UK.

Foreign Direct Liability would provide local communities that have been or may be negatively effected by Rio Tinto's operations (e.g. in Indonesia or Madagascar) the right to seek redress by bringing a case in the UK courts

Notes

[1] Queen Elizabeth II Conference Centre, Broad Sanctuary, London SW1, 11am, 7^th April 2004

[2] Rio Tinto, What's Yours is Mine available from the press office at Friends of the Earth

[3] Photos of the incident at the Freeport-Rio Tinto Grasberg mine in West Papua, Indonesia, are available from the press office at Friends of the Earth.

[4] Gundjehmi Aboriginal Corporation press release, 26/3/04 - available from Friends of the Earth.

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--> AGM Season 2004 - Is the Government governing UK plc? (PDF format)
Rio Tinto: what's yours is mine (PDF format)

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Published by Friends of the Earth Trust