According to Mines and Communities:

Rio Tinto, Kennecott’s parent company, has the attention of the NRDC (Natural Resources Defense Council.)  The NRDC is protesting the Pebble mine in Alaska’s Bristol Bay.

The NRDC describes Rio Tinto as a London-based mining conglomerate that has left a trail of toxic contamination from Indonesia to Utah.  In 1996, a dam failed at the Porco mine in Bolivia where Rio Tinto had a significant interest.  A Belgian scientist working in the region reports the rivers are totally dead.

The Grasberg Mine in Indonesia is a Rio Tinto joint venture reported by the New York Times in 2005, to have buried nearly 90 squared miles of wetlands with mine waste.  Almost all fish have disappeared.

Rio Tinto is facing a class-action lawsuit in which locals citizens in Papua New Guinea charge the company with “knowingly emitting and depositing volatile and highly toxic mine waste onto the land and into the water.”

The Bingham Canyon mine near Salt Lake City operated by Rio Tinto’s wholly owned subsidiary, Kennecott Utah Copper has created a 72-square-mile plume of contamination that has rendered a large area of local groundwater too polluted for human consumption.  The EPA recommended listing the mine as a federal Superfund Site in 1994.

Write Rio Tinto in London as soon as possible to protest the Pebble mine and to protest the Eagle mine here in Marquette County.  When a county commissioner makes reference to the Kennecott Woodland road issue as getting excited about a few frogs and mosquitoes, the writing is on the wall, Marquette County citizens need to take matters in their own hands.

According to Kennecott, there are only two routes for the ‘haul road’, the one they want or the one that everyone does not want.  They are creating a false choice in order to get approval of the road they want.  When Kennecott has completed the mining of Eagle Rock how will the ‘haul road’ continue to be utilized?  Why not build a road that will add to the infrastructure of the county.

If the mine is to be completed it must be safe for the people who will work there; it must have minimal negative impact on our environment and any changes to our infrastructure must be an asset to the County.  Based on Rio Tinto (Kennecott’s) track record, I don’t believe they are willing or capable of the task.  I, personally, don’t give a “bleep” about the bottom line for the shareholders in London, England.

HudBay burns a home to the ground while forcibly evicting citizens in Guatemala; James Rodriguez

• On September 27, 2009, fears of forced violent evictions of several Mayan communities located near the Fenix mining project sparked a series of community protests.

• In the early afternoon of September 27, 2009, Adolfo Ich was with his wife at his house in La Uníon when he heard gunshots being fired from the direction of mine buildings, located not far from his house. Adolfo went to find out what was going on, to warn people to stay back and to see if he could help restore calm. He was not carrying any weapons.

• When Adolfo Ich arrived, private security forces of the mine recognized him as a prominent community leader and appeared to invite him to speak with them about the community protests.

• As Adolfo Ich approached, approximately a dozen armed security forces surrounded him, beat him and hacked at him with a machete, before shooting Adolfo in the head at close range. Adolfo Ich died of his wounds shortly after.

The building mine security dragged Adolfo's body after killing him

For more information about the lawsuit go to http://www.chocversushudbay.com/about

Resolution Explores for Copper Outside Superior, Arizona; Photo courtesy Flickr

Rio Tinto, a company that has made its name exploiting public and indigenous mineral wealth for decades, is set to make off with an astounding $140 billion in publicly-held mineral rights, in Arizona, for what is expected to be North America’s largest copper mine.

On Wednesday, the Senate Energy and Natural Resources Committee approved a land swap allowing Resolution Copper Mining (a joint venture between Rio Tinto and BHP-Billiton) access to 2,400 acres of the Tonto National Forest.  The area contains sites sacred to local Native American tribes and was previously protected from mining activities by the Eisenhower administration.

According to the Arizona Republic, in a deal reached between the Obama administration, Senate Democrats and Arizona Senator John McCain, the only thing standing in Resolution’s way is a federal environmental review that must be completed prior to the land deal.

An opponent of the deal, US Representative Raúl Grijalva has concerns with Rio Tinto’s human rights record and urges a full investigation before a land swap is considered.

US Representative Raúl Grijalva opposes Rio Tinto's land swap and condemns the company's human rights record

“(Rio Tinto) has as bad a record as you’ll find anywhere in the world, yet the Senate Energy and Natural Resources Committee (approved) a deal that would grant it another $140 billion in mineral rights currently held on public land,” Grijalva said in a prepared statement.

“We, as lawmakers, owe the public some due diligence before rushing to pass a bad bill in the name of job creation.  The economy cannot be jump-started at the expense of the labor, civil rights and environmental laws we hold dear in this country.”

“Voting to pass this legislation blatantly ignores Rio Tinto’s troubling human rights record,” Grijalva said, pointing to the Norwegian government’s recent decision to divest itself of approximately $890 million in Rio Tinto stock after deeming the company’s activities overseas “grossly unethical.”

“The Senate Energy and Natural Resources Committee, by moving the legislation forward without greater consideration of Rio Tinto’s worldwide business practices, has done “a grave disservice to our taxpayers and abused Congress’ role as the guardian of public resources,” he said.

Grijalva  serves as Chairman of the National Parks, Forests and Public Lands Subcommittee on the House Committee on Natural Resources where he could block a vote on the bill.

Lake Superior Mining News has reported on Rio Tinto’s theft of public resources in the past.

In Michigan the company plans to mine copper and nickel from its planned Eagle Mine.  The multi-billion dollar project is partially located on public land and would use a rock outcropping sacred to local Native American tribes for its mine portal.

In Utah, Salt Lake County Mayor Peter Corroon has criticized Kennecott Copper (wholly-owned subsidiary of Rio Tinto) for exploring on prized public recreation land.

Similarly, mining companies in Minnesota have  found it easy garner political support for the use of public land in order to mine metallic sulfide deposits.

PolyMet’s NorthMet project will move forward if the company can gain access to roughly 6,700 acres of public land in the Superior National Forest.  US Representative Jim Oberstar and US Senator Amy Klobuchar have introduced legislation that would directly give PolyMet that land.

Duluth Metals and Franconia Minerals also have projects, located just outside the Boundary Waters Canoe Area Wilderness, in Minnesota, that would rely on the use of the Superior National Forest.

The Los Angeles District Court has ruled that, due to the “universal” nature of Rio Tinto’s crimes, Bougainville islanders do not need to exhaust legal options in Papua New Guinea and, under the US Alien Tort Claims Act, can seek legal remedy for crimes against humanity,  war crimes and racial discrimination committed by the mining giant in the 1980s and 1990s.

The plaintiffs allege that Rio Tinto created extensive environmental damage at its Bougainville mine, paid Black workers less than white counterparts and instigated a violent civil war, leading to the deaths of roughly 10% of the island’s population.

A news release issued by the law office of Seattle-based Hagens-Berman, says that General Singirok, former commander of the Papua New Guinea Defence Force (PNGDF) during the alleged atrocities in the 1990s, has said that “PNGDF was Rio Tinto’s personal security force and was order to take action by any means necessary.”

At Rio Tinto’s April 2008 Annual General Meeting, Chairman Paul Skinner dismissed concerns regarding the company’s complicity in atrocities at the Bougainville mine, explaining, “There will always be isolated cases where people object to the progress of economic activity. I am not aware of where we are flying in the face of opposition.”

Now Rio Tinto has an opportunity to argue their case in a federal court.

Rio Tinto has faced similar allegations of extensive human rights abuses at its massive Grasberg Mine, in neighboring West Papua, which it operates with US-based Freeport McMoRan.  This year, the company acknowledged that it continues to illegally pay the Indonesian military to protect its mining interests in West Papua.

At Grasberg, the Australian Council on Overseas Aid found mine security and military personnel were responsible for the “disappearances” of 22 civilians and torturing of 13 others between 1994 and 1995. Rio Tinto acknowledged paying the Indonesian military $4.7 million in 2001 and $5.6 million in 2002 for its services.

In September 2008, the Government of Norway, formerly one of Rio Tinto’s largest shareholders, divested a roughly $800 million stake in the company, calling Rio Tinto’s activities at the Grasberg Mine, in West Papua, “grossly unethical.”

London, England – A beleaguered Rio Tinto board defended itself from criticisms coming from a number of shareholders at the company’s annual general meeting (AGM) Wednesday, in London, England. High on shareholder’s minds was the proposed $19.5 billion deal to sell access to a number of key company assets, including Kennecott, to the Chinese government-owned Chinalco as part of what many speakers described as offensive to existing shareholders and a direct result of poor investment and management decisions made by the company over the last several years.

A triumphant exit from the Rio Tinto meeting; from left Andrew Hickman, Richard Solly, Reverend Jon Magnuson and Andrew Whitmore

At the meeting, Lutheran pastor, Jon Magnuson, from Marquette, Michigan, presented a document signed by one hundred faith leaders of ten faith traditions in Marquette, Baraga and Keweenaw counties. Magnuson said that the document was part of a petition that collected roughly ten thousand citizen’s names in opposition to Rio Tinto’s Eagle Project nickel and copper mine, located on the Yellow Dog Plains, in Marquette County.

Reverend Jon Magnuson strategizing at a local pub

“Many of our parishioners and members of our faith communities are . . . involved in the mining industry,” said Magnuson. “But on this particular project we have taken a very strong position – in this place, at this time, for these specific reasons. And one is the massive environmental damage that is threatened to the Great Lakes and the second and most prominent concern is that, what we perceive and experience is a cavalier dismissal of the claims of one of the major Indian tribes in Michigan, the Keweenaw Bay Indian Community.”

In response, company CEO Tom Albanese said that Rio Tinto is “not unmindful of the questions and the controversy” and claimed that Rio Tinto Copper CEO Bret Clayton “visited the site and met with a number of the stakeholders as a result of requests of some of the questions that came up in last year’s AGM.”

While Clayton did visit with a number of parties sympathetic to the mine’s development, including the local Chamber of Commerce and various local politicians yet made no attempt to meet with Michigan citizens and tribal representatives while in the area.

Gabriel Caplett, from Skandia, Michigan, spoke to a lack of competence and care in designing the Eagle Project mine.

“I’m just wondering if other shareholders are curious as to why this project hasn’t been brought on line yet and I think there’s a very simple reason for that and it lies within the mine design itself,” said Caplett. “The mine as designed could be charged with fraud under Michigan’s metallic mining law. The mine, as designed, would collapse – the crown pillar holding up the mine ceiling would collapse. Many technical experts have agreed on that.”

Caplett explained that Dr. David Sainsbury, a rock mechanics expert hired by the State of Michigan to review the mine’s mine structure inquired with Rio Tinto if anyone at the company had rock mechanic’s expertise. “He didn’t receive a response,” said Caplett. Sainsbury, who was transferred to work overseas after continually reporting to the State that the company’s conclusions regarding the crown pillar’s stability were “not defensible,” told a mine engineering colleague that the Eagle application, produced by Golder & Associates and Foth & VanDyke, was equivalent to “high school level” work.

Caplett asked the Rio Tinto board if, “after deferring the Eagle Project mine are you willing to waste any more shareholder money on this project or will you ultimately abandon it instead of pursuing this project.”

Two shareholders addressed concerns regarding Rio Tinto’s continued involvement in the controversial Grasberg Mine, in West Papua. According to shareholder Andrew Hickman, last year the government of Norway divested roughly $800 million in shares, calling the company’s record in West Papua “grossly unethical”. Hickman said that mine officials have acknowledged to paying the Indonesian military “less than” $1.6 million to guard the facility and repress local opposition to the mine.

Other shareholders addressed the recently acknowledged leakage of roughly one-hundred thousand liters of contaminated tailings water at Rio Tinto’s Ranger uranium mine, in Australia; as well as concerns regarding the company’s joint venture arrangement with Muriel Mining Co. in Colombia that has forced the relocation of an indigenous community and occupied a sacred mountain.

Richard Solly, organizer for Rio Tinto and Anglo American AGMs and member of the London Mining Network and Colombia Solidarity Campaign

The Reverend Magnuson and Caplett have also met with representatives at the Church of England’s Pension Board and Ethical Investment Advisory Group and will be meeting with the United Kingdom’s Department for Business Enterprise and Regulatory Review on Friday.

For some decent coverage of the meeting from elsewhere, click below. . .

http://www.guardian.co.uk/business/2009/apr/15/rio-tinto-agm-anger

http://business.smh.com.au/business/shareholders-have-a-dig-at-board-20090415-a7iy.html

http://www.news.com.au/heraldsun/story/0,21985,25344622-664,00.html

http://www.ft.com/cms/s/0/587377b8-2982-11de-9e56-00144feabdc0.html?nclick_check=1

Rio Tinto is a “good company that operate[s] to the same level of safety and environmental standards worldwide, regardless where we’re operating,” Cherry said.

But University of Wisconsin, La Crosse sociology professor and mining expert Al Gedicks disagrees.

“A company’s track record in other places is one of the best predictors of future behavior,” said Gedicks. “If decision-makers in Michigan choose to ignore this record, they are setting themselves up to join the long list of communities burdened with cleaning up Kennecott’s mine pollution.”

Many others also disagree with Cherry’s claims. In September, 2008, the Government of Norway (formerly one of Rio Tinto’s largest shareholders) divested from the company, citing “grossly unethical” environmental abuse at the Grasberg Mine, in West Papua. Additionally, at Grasberg, the Australian Council on Overseas Aid found mine security and military personnel were responsible for the “disappearances” of 22 civilians and torturing of 13 others between 1994 and 1995. Rio Tinto acknowledged paying the Indonesian military $4.7 million in 2001 and $5.6 million in 2002 for its services.  Citizens of neighboring Papua New Guinea are suing the company, under the Alien Tort Claims Act, alleging that Rio Tinto created extensive environmental damage at its Bougainville mine, paid Black workers less than white counterparts and instigated a civil war.

Cherry made no mention of such past history or pending lawsuits.  Instead, he compared Rio Tinto’s Humboldt plans with former milling at the site. According to Cherry, Callahan Mining Company’s Ropes Gold Mine and Humboldt Mill “operated rather successfully,” and Rio Tinto’s proposed milling process is “the exact same process that Callahan and the Ropes Mine used.”  Rio Tinto is not “proposing to do anything at the Mill that hasn’t been done before,” Cherry said, and the company “can probably do it a little better.”

Some Humboldt Township residents were unconvinced, since Callahan’s mill left part of the community with undrinkable well-water. “When Callahan was there they ran all their water out of the pit and ruined all of the wells on the Wolf Lake Road,” said Ron Norkoli. He told Cherry to “find another way to put that water other than through my backyard.”

Cherry was unable to explain which toxic chemicals were planned for the milling process. “Without having the applications opened up right in front of me I can’t tell you exactly which ones those are,” he said. But he assured the audience that the company’s water treatment “will meet the State-required standards for mercury.”

According to Cherry, the process at Humboldt would involve crushing 12-inch or smaller-sized rocks down to a sand, or talc, consistency.  The powder would then be mixed with water and placed in tanks and agitated. Alcohol and compressed air would assist in creating a froth, while chemicals would be added to cause the metals to attach to bubbles, which would be skimmed-off the top and de-watered. Waste material would be deposited underwater, into a pit on-site. The company plans to discharge treated wastewater into wetlands that feed into the middle branch of the Escanaba River.

According to documents obtained through an open records request, the Michigan DEQ believes mercury discharges may be a serious issue at the mill site. Says the DEQ: “There are no proven technologies to consistently achieve [a] low level. . . Mercury would likely be a major concern to the public and environmental groups.”

Most public comments that evening focused on the importance of jobs and local economic investment. One man, from Mohawk, Michigan, argued that the Keweenaw Peninsula “was founded and raised on copper mines. It was the best thing that ever happened to our area. When the copper mines closed, it was a ghost town.  We need jobs, we don’t need tree huggers.”

One Humboldt resident cited Cliffs Natural Resource’s layoff of over 300 workers, saying: “We had jobs and now we’re losing them.”  Pointing at a group of citizens that expressed disapproval of Rio Tinto’s plans, he said, “Yous want to take everything away from us.”

Others say that we should not have to trade worker and community health for jobs. Skandia Township resident Barb Bradley told the crowd that she has been struggling for years to find a good job but cares more about the health of our water than short-term jobs.

“I’m looking at the picture ahead and future generations . . . Will they have clean water to drink?” questioned Bradley. “That’s more important to me than a few jobs.”

One Republic Township resident said he was “glad” numerous interests were involved in creating Michigan’s new metallic sulfide mining law and that the legislation “protects every one of us.”

“We live in a beautiful area and we need to protect it. If they can build it safe, we need the jobs; let’s do it and let’s do it safe,” he said.

One Humboldt resident insisted that Rio Tinto is “doing everything by the law.”

Marquette resident Teresa Bertossi disagreed, saying she participated in the rules process as an unpaid concerned citizen. According to Bertossi, a local iron miner helped cover her expenses to attend the rules meetings. “Whenever we would try to get some strong parts into the rules,” Bertossi said, “they [Rio Tinto] would threaten takings lawsuits against the Michigan Department of Environmental Quality.” (A “takings” lawsuit means that a company that is denied access to their resources may sue the state for the value of those resources. This law remains untested in Michigan.)

Richard Hendricksen, also from Marquette, agreed with Bertossi.  “There was not a consensus in the rules,” he said.

According to Cherry, Rio Tinto is proposing to produce both nickel and copper concentrates at the Humboldt Mill. The product would “most likely” be shipped via rail to smelters in Canada. The waste material, containing heavy metals and acid-generating material, would be deposited underwater at the mill site, on top of Callahan’s tailings. Rio Tinto plans to use the mill to process ore from multiple mine sites. In November 2007, Rio Tinto Copper CEO, Bret Clayton, told a group of Australian investors that the company has six project areas in the UP, in addition to the Eagle Project. According to Cherry, he is optimistic that the company will locate additional ore bodies and maintained that the Eagle Project “is just the beginning.”

While the Humbolt Mill project is by no means a done deal, Rio Tinto hopes to receive final Michigan DEQ approval in July.  Ultimately, the people of Humboldt will decide the fate of the old Humboldt Mill by voicing their opinions.  Concerned citizens are encouraged to write their local, county, and state officials with their comments and questions and to request access to clean drinking water. Citizens are also encouraged to contact their healthcare professionals for more information about the risks of mercury.

London-based Rio Tinto, ,parent company of Kennecott Minerals,  currently controls roughly 500,000 acres of mineral rights on public and private land in the Upper Peninsula. The company’s largest shareholder is the People’s Republic of China. As of this writing, China is seeking an even larger stake in the company.

Marquette County, Michigan – In the same week both the United Nations (UN) and human rights advocates criticized China for violations involving systemic torture and suppression of journalists, Rio Tinto has indicated a desire for an expanded relationship with the country.  The US $19.5 billion asset and convertible bond sale to the China-owned Chinalco has already drawn the ire of many major investors, as well as the Australian government and recently resigned board member, Jim Leng.

The deal gives Chinalco, already Rio’s largest shareholder, a nearly 20% stake in the company and up to two non-executive board seats.  The deal represents China’s largest overseas investment and signifies the government’s new role as the most powerful emerging economy in the world.  The deal sent Rio Tinto’s European-listed shares plummeting.  The company was the biggest loser of the day with a more than 8% drop in share value.

As part of its announcement, Rio Tinto is also shelving its Eagle Project copper-nickel mine in Michigan’s Upper Peninsula.  According to a company release, “The development of the Eagle Nickel mine in Michigan, US [has] been deferred until market conditions recover.”

Boom and Bust

“It is important to note that the Eagle project is one of many projects that add value to Rio Tinto,” said Eagle Project manager, Jon Cherry.  “As market conditions continue to impact all industries, the Eagle team remains focused on realizing the inherent value of the project. We are continuing to work on our permits, litigation, and engineering design so that when the opportunity presents itself we will be poised to evaluate economic conditions and our next steps. The roughly 25 employees that are part of the Eagle project are integral to the ongoing activates in the U.P. These positions remain unchanged as we continue to focus on efforts and activities related to Eagle mine, Humboldt mill, and ongoing exploration activities.”

Despite the boom-and-bust nature of the mining industry and a deleterious affect on long-term local economic health, many local civic leaders are convinced the project would be a boon to the area’s economy.  Cherry is scheduled as keynote speaker at the Economic Club of Marquette County’s February 16 meeting.

Until recently, Rio Tinto’s value was skyrocketing due to increased demand from developing nations China and India.  According to Rio Tinto China’s Managing Director, Anthony Loo, from 2000 to 2006 the company’s sales to China increased nearly 10-fold.

While Rio Tinto and China have grown, the effect has been disastrous for the ordinary US worker.

From 1989 to 2003, at least 1.5 million US jobs were displaced due to the growing trade deficit with China, with the pace of job loss more than doubling following China’s entry into the World Trade Organization, in 2001.  The State of Michigan was among the nation’s top ten losers.  By 2005, long before the current global recession, the state lost at least 50,991 jobs as a direct result of this trade relationship.  According to the American Manufacturing Trade Action Coalition, Michigan has lost at least 315,000 manufacturing jobs, while dropping nearly 500,000 total jobs, since 2000.

While things are certainly looking brighter for China, the demand for nickel (and copper) has certainly taken a hit.  The world’s largest mining company, BHP-Billiton, has recently conceded that opening its massive Ravensthorpe nickel mine, in Australia, was a mistake.  CEO Marius Kloppers says the decision “wasn’t one of our best.”  According to the Canberra Times, the project’s nearly US $4 billion cost initially drew considerable criticism from analysts.  BHP, although not taking quite the same beating as debt-laden Rio Tinto, has been forced to cut about 3,400 jobs (Rio is cutting a reported 14,000 jobs), globally, and is closing Ravensthorpe only eight months after it opened.

In an attempt to thwart BHP’s 2008 bid for Rio Tinto, Chinalco and Canadian Alcoa secured a 9% stake in the company for $14 billion.  Alcoa is now selling its share of the investment to the Chinese company for roughly $1 billion.

BHP may decide to offer counter bids for some of the asset sales, including the Escondida Mine, in Peru, of which BHP owns a majority stake.

China Buys Kennecott Stake, Investors and Australia Nervous

The China deal, if approved by shareholders, in May 2009 and given the go-ahead by the Foreign Investment Review Board, would give China a 25% stake in Rio Tinto’s wholly-owned Kennecott Copper, a 30% stake in the company’s controversial Grasberg Mine assets, as well as up to a 50% stake in seven other mining operations in aluminum, bauxite, copper and iron ore.  The deal would give China greater leverage in future pricing negotiations for iron ore, a key ingredient in the country’s rapidly expanding economy.  The arrangement also affords Rio Tinto certain access to mineral deposits in China.

According to Ted Leschke, an analyst at Shaw Stockbroking, “The perception is that the strategic positioning of Rio will be eroded over time…it’s one thing to retain operational control of the assets, it’s another to negotiate over pricing of output.”

Rio Tinto CEO Tom Albanese disagrees and maintains that the deal with the Chinese company “would have been attractive before the downturn and is double so today.”  According to Albanese, Rio Tinto will retain “operational control of the joint venture assets with clear governance arrangements” while the relationship with Chinalco will be at “arm’s length.”

China seems to see the strategic advantage in the deal.  “With the portfolio of these global assets Chinalco will be better positioned to serve its customers in China and globally,” said Chinalco president Xiao Yaqing.

The China deal was widely expected following last week’s abrupt departure of Rio Tinto’s chairman nominee, Jim Leng.  Leng strongly disagreed with the asset and bond sale, on strategic grounds, and argued that the company should raise needed equity from current shareholders.  According to the London Times Online, Leng found support in company finance director, Guy Elliott, leading to speculation over a potential board split.

Ultimately, Rio’s board decided to not pursue a rights issue (offering current shareholders additional shares) as an option to paying off its nearly $40 billion debt acquired through the purchase of Alcan, in 2007, at the peak of a commodities boom.  Since then, metal prices have fallen between 40 and 60 percent while Rio Tinto’s share value has plummeted.  Although Chinalco offered Rio Tinto a price nearly double current market value, many investors are concerned with the long-term strategic implications of the quick sale.

“Rio Tinto’s board must be beside themselves having to do this,” said Mark Pervan, a senior commodities analyst at ANZ Bank.  “It’s very unfortunate timing, buying at the top and selling at the bottom.”

Some major investors have reported to the media that they had not been consulted on the deal.  One large shareholder told the Financial Times, “I’m absolutely flabbergasted…it is unacceptable at every level.”

Australia isn’t excited either.

According to the government’s treasurer, Wayne Swan, Australia will revisit its foreign ownership laws in order to tighten regulations that would apply to the current Chinalco deal.  Current Australian law prohibits foreign investment greater than 15% in national assets.

China‘s Stained Record

Gao Zhisheng likely wouldn’t be impressed with the deal either.  That is, if he is anywhere near a radio or television.  The Nobel Peace prize nominee “disappeared” during the middle of January.  Zhisheng was tortured between June 24 and July 4, as well as September 22 and early November by the draconic regime before being returned to house arrest.  He defended a member of Falun Gong, a highly-repressed spiritual group, and renounced his membership in the Communist Party in 2005.  Zhisheng has avoided assassination and faced a three-year prison sentence for “subversion.”  Only eight years ago, the former coal miner and soldier was voted a “top ten” lawyer by a government-run publication due to his successful legal work on behalf of poor practitioners.

Since the 1989 Tiananmen Square massacre, China has faced increasing criticism of its egregious human rights record, a criticism that has been tempered, lately, due to global and strategic importance of the country’s massive economic growth.

Human rights-based group, Amnesty International’s, 2005 China report condemned the government, noting that “Tens of thousands of people [continue] to be detained in violation of their human rights and were at risk of torture or ill-treatment.  Thousands of people were sentenced to death or executed.”

According to Amnesty’s February 2009 submission to the United Nations “in the course of 2007 over 100 Falun Gong practitioners died in detention or shortly after release as a result of torture, denial of food or medical treatment, or other forms of ill-treatment.  According the Amnesty, detention without trial, torture and “other ill-treatment,” and the death penalty remain primary tools for China to quell dissent.  Falun Gong, Uighur Muslims, Tibetan Buddhists, underground Christian groups and journalists are among the most targeted in the country.

A 2007 US State Department report on human rights accused the Chinese government of restricting public access to information, particularly through the internet.  As of 2008, roughly 30 journalists and at least 50 individuals were known to be in prison for expressing beliefs different than the Chinese government, some simply for accessing banned websites.  In response to outside pressure, China has blocked at least 91 websites from public viewing since January 8, including Amnesty International’s site, Google and MSN.

In May 2008 “dozens of women in south-west China” reported being subjected to forced abortions, while “trafficking of women and girls remains widespread.”

According to a report submitted to the UN, China maintains that it “respects the principle of the universality of human rights.”  Foreign Ministry spokeswoman Jiang Yu told Beijing reporters on February 10 that the government is committed to “protecting and improving” human rights.  China’s chief delegate to the UN forum said that “China is fully committed to the promotion and protection of human rights.”

Like Peas in a Pod

To be fair, Rio Tinto is no stranger to human rights violations either.  Indeed, the company has made its name not only in selling to but also by operating in countries that violate Geneva Conventions on human rights.

The company’s Rossing uranium mine, in Namibia, operated in violation of the United Nations Council for Namibia’s “Decree No. 1″ and various UN and International Criminal Court sanctions that related to Namibia’s occupation by South Africa’s apartheid government.  A UN report at the time noted that workers at the mine operated under “near slave conditions.”

Similarly, the Rio Tinto/Freeport McMoRan Grasberg Mine, in mineral-rich West Papua, operates with the country under occupation by the government of Indonesia.  When local citizens formed the armed Free Papua Movement, the Indonesian military, using US-supplied attack jets, fought on behalf of the mining company.  In 1998, when Amungme spokesperson Yosefa Alomang tried to attend Rio Tinto’s annual general meeting she was prevented from boarding her plane.  In response to her public criticisms of the mine, Alomang had been detained and kept locked in a closet for three weeks by Indonesian soldiers, in 1994.

Some major international business players are slowly catching on.  In September 2008, the Government of Norway (formerly one of Rio Tinto’s largest shareholders) divested from the company, citing “grossly unethical” environmental abuse at the Grasberg Mine.  Additionally, at Grasberg, the Australian Council on Overseas Aid found mine security and military personnel were responsible for the “disappearances” of 22 civilians and torturing of 13 others between 1994 and 1995.  The company has acknowledged paying the Indonesia military $4.7 million in 2001 and $5.6 million in 2002 for its services.  Additionally, citizens of neighboring Papua New Guinea are suing the company, under the Alien Tort Claims Act, alleging that Rio Tinto created extensive environmental damage at its Bougainville mine, paid Black workers less than white counterparts and instigated a civil war.

The Norwegian government recently sold its $890 million stake in mining giant Rio Tinto, based on the company’s “grossly unethical conduct” at its Grasberg Mine, in West Papua. Norway’s Ministry of Finance made the decision after realizing that continued investment in Rio Tinto would “contribute to severe environmental damage.”

Norway’s $375 billion Government Pension Fund-Global invests the country’s oil and gas revenues in foreign stocks and bonds. The Fund was one of Rio Tinto’s largest shareholders and is Europe’s largest equity investor, holding roughly 1 % of all European-listed shares. Norway’s Council on Ethics offers recommendations to the Ministry of Finance regarding the Fund’s holdings.

According to Kristin Halvorsen, Minister of Finance, “Exclusion of a company from the Fund reflects our unwillingness to run an unacceptable risk of contributing to grossly unethical conduct. The Council on Ethics has concluded that Rio Tinto is directly involved, through its participation in the Grasberg mine in Indonesia, in the severe environmental damage caused by that mining operation. There are no indications to the effect that the company’s practises will be changed in future. The Fund cannot hold ownership interests in such a company.”

Since 1996, Rio Tinto has held a 40% stake in the largely open-pit Grasberg Mine and has contributed roughly $1 billion in capital investments. The mine, which borders Lorentz National Park, a United Nations Educational, Scientific and Cultural Organization (UNESCO) heritage site, is considered to be profitable until 2041. Daily, the company dumps at least 230,000 tons of tailings waste into the local river system that contains high amounts of heavy metals, such as copper, lead and zinc, as well as toxic levels of selenium, arsenic and cyanide.

The Council on Ethics maintains the company is “taking advantage of the low environmental standards and the lenient law enforcement in the country where it operates” and that its system of tailings disposal has “led to the destruction of most aquatic life in the waters affected by the discharge.” The Council reports that tailings disposal will increase with future mine expansions and that “there are no indications to the effect that these practices will be changed in future, or that measures will be taken to significantly reduce the damage to the environment.”

In response to a September 9, 2008 Ministry of Finance press release, Rio Tinto Copper CEO, Bret Clayton, said, “We believe we have an excellent safety and environmental record and that this is an unfounded position and that we are an industry leader for many years in this area.”

Rio Tinto spokesman, Nick Cobban, maintained that the company has “an exemplary record in environmental matters, world-leading in fact, and they are given the very highest priority in everything we do.”

Regarding tailings and acid mine drainage contamination, the Council on Ethics reported that, “riverine tailings disposal is undoubtedly the major environmental problem associated with the mining operation today as the daily disposal of 230,000 tons of tailings generates severe and long-term environmental damage. Furthermore, the Council deems it probable that acid rock drainage from the stockpiles will constitute an increasing and considerable environmental problem with potentially far-reaching harmful effects in the future. Consequently, the Council takes as its point of departure that the damage is severe and that there is an unacceptable risk that the environmental impact caused by the mining operation is lasting and irreversible.”

In a response to the Council on Ethic’s December 4, 2007 letter of inquiry Rio Tinto insisted that it “maintains the highest environmental standards at all its operations wherever they are located.”

According to the Council, Rio Tinto did “not address” the mine’s extensive acid rock drainage (commonly-known as “acid mine drainage”) which is “considered one of the most serious mining-related environmental problems across the world.” The Council’s report noted that, “Acid rock drainage from the deposit sites was first observed in 1993, and leaching into the groundwaters has also been reported, causing the pollution of springs in the Lorentz National Park, among others.”

According to Partizans (People Against Rio Tinto And It’s Subsidiaries) founder, Roger Moody, “Rio Tinto has excused its participation in this unacceptable project for thirteen years claiming that, because it doesn’t actually manage the mine, therefore it’s not responsible for its impacts. In fact, Rio Tinto’s financing proved crucial to the massive expansion of this mine a decade ago, and the company has been directly complicit in creating the unmitigated disaster it is today. The Norwegian government has recognized this. Hopefully other investors will quickly do so too. Just about every major bank, and many pension funds, also have shares in Rio Tinto.”

At Rio Tinto’s April 17, 2008 Annual General Meeting (AGM), several shareholders discussed the extensive environmental and economic devastation that has occurred due to the Grasberg Mine, as well as human rights violations of rape, torture, murder and arbitrary detention linked to the company’s cooperation with the repressive Indonesian military. The Australian Council on Overseas Aid found mine security and military personnel were responsible for the disappearance of 22 civilians between 1994 and 1995. The company has acknowledged that it paid the military $4.7 million in 2001 and $5.6 million in 2002 for its services.

Benny Wenda, an independence leader from West Papua, and founder of the Free West Papua Campaign, spoke at the AGM, raising concerns over the continued Indonesia occupation of West Papua and military control over freedom of speech. Wenda was “arrested, tortured and threatened with death” for peacefully protesting the Rio Tinto/Freeport McMoRan Grasberg gold and copper mine. He escaped from prison and resides, as an exile, in the UK.

Rio Tinto is the parent company of Kennecott Minerals, which is seeking to open a metallic sulfide mine on the Yellow Dog Plains, southwest of Big Bay, Michigan. According to the US Environmental Protection Agency (EPA), Kennecott is the second largest toxic polluter in the US. The company maintains that, at its Eagle Project, it is “promoting harmony and preserving balance between people and nature.”

State approval of the mine project is currenty in contested case, in Lansing. The Michigan Department of Environmental Quality (DEQ) has admitted, in sworn testimony, that the mine does not meet legal standards to protect the environment and that Kennecott has no contingency plan for a mine collapse or tailings leaks. The DEQ approved Kennecott’s mine, groundwater and air quality permits on December 14, 2007. A final decision regarding the contested case is expected by January, 2009.

The DEQ recently admitted that Kennecott must legally apply for permit amendments for its plans to supply electric power to the mine site and construct a haul road. A surface use lease permit from the Michigan Department of Natural Resources (DNR) has yet to be finalized and a circuit court case regarding the decision has not yet begun. Additionally, the EPA has sent a letter of deficiency to the company regarding Kennecott’s application for an Underground Injection permit. The EPA requested further information and clarification on incorrect information in Kennecott’s mine plan, such as the correct direction of groundwater flow at the site.

Two and a half years after submitting its application, Kennecott still lacks any legally-complete state or federal approvals to open and operate its proposed mine.

Click HERE to read the Council on Ethics Rio Tinto report