Capitalists amping up destruction of Congo rainforests for palm oil plantations

By Jeremy Hance / Mongabay

Industrial oil palm plantations are spreading from Malaysia and Indonesia to the Congo raising fears about deforestation and social conflict.

A new report by The Rainforest Foundation UK (RFUK), dramatically entitled The Seeds of Destruction, announces that new palm oil plantations in the Congo rainforest will soon increase fivefold to half a million hectares, an area nearly the size of Delaware. But conservationists warn that by ignoring the lessons of palm oil in Southeast Asia, this trend could be disastrous for the region’s forests, wildlife, and people.

“Governments of Congo Basin countries have handed out vast tracts of rainforest for the development of palm oil with apparently little or no attention to the likely impacts on the environment or on people dependent on the forest,” Simon Counsell, Executive Director of the Rainforest Foundation UK, said.

The palm tree used to produce palm oil originated in Africa, so production in the Congo Basin isn’t new. But industrial palm oil production involving massive plantations is a recent development for the region. The approach, modeled after operations in Southeast Asia, raises concerns among environmentalists who argue that palm oil has been a disaster for the forests of Malaysia and Indonesia. Indeed, scientific research has found that between 1990 and 2000, 86 percent of all deforestation in Malaysia was for palm oil.

The largest palm oil developer in the Congo Basin is currently Malaysian-owned Atama Plantations SARL, which is working to establish a 180,000-hectare (450,000-acre) plantation in the Republic of Congo. But the entire enterprise is masked by a complete lack of transparency, says the report.

“No publicly available maps of the concession are available, but evidence suggests that the forests designated for clearance mostly appear to be virgin rainforest that is habitat for numerous endangered species, including chimpanzees and gorillas. The area borders, and some of it may fall inside, a planned National Park and Ramsar site,” according to the RFUK report, which notes that logging has already begun on the concession.

The RFUK report further questions whether the plantation development is simply an excuse to log what it calls “primary forests with significant timber stocks.”

Another controversial concession, this time in Cameroon, has received considerable pushback from international NGOs as well as local groups. U.S.-based Herakles Farms is working to develop a 60,000 hectare palm oil plantation in forest bordering four protected areas, but the company’s reputation has been tarnished by local protests, as well as condemnation from international groups such as Greenpeace. Last year, 11 top tropical biologists sent an open letter to Herakles condemning the project.

But Herakles and other companies say they are bringing economic development to a notoriously poor part of the world.

The RFUK report notes that in many cases governments appear unwilling even to take advantage of the economic benefits of palm oil plantations, by overly-sweetening deals to foreign corporations.

“The contracts signed between governments and oil palm developers are being kept secret, reducing transparency and democratic accountability. Those contracts that have come to light show that governments have already signed away some of the potential economic benefits, by granting developers extremely generous tax breaks of 10 to 16 years and land for ‘free’ or at highly discounted rates,” the report reads.

In addition, the palm oil plantations are sparking local conflict with traditional landowners, much as they have done in Malaysia and Indonesia. Locals often have little input on the project and in some cases leases are extraordinarily long, for example Herakles Farms’ lease is 99 years.

“New large-scale oil palm developments are a major threat for communities, livelihoods and biodiversity in the Congo Basin,” Samuel Nguiffo, Director of the Center for Environment and Development (CED), Cameroon, said. “It is absolutely not the appropriate answer to the food security and job creation challenges the countries are facing. Supporting small-scale family agriculture is a better solution.”

Mining firm Glencore accused of child mine labor and dumping raw acid into a river

By John Sweeney / The Guardian

Glencore, the commodity and mining firm worth £27bn, stands accused in the Democratic Republic of Congo of dumping raw acid and profiting from children working 150ft underground.

The revelations come as the notoriously secretive Swiss-based company, which floated on the London Stock Exchange last year, seeks to merge with mining firm Xstrata in a £50bn-plus deal. When Glencore floated in London, five of its partners became billionaires, but the biggest winner was Glencore’s chief executive, Ivan Glasenberg, whose stake is worth £4bn. The company was founded in 1974 by Marc Rich, once one of the FBI’s 10 most wanted fugitives, but now pardoned and outside Glencore.

In his first television interview, Glasenberg said that Glencore took corporate responsibility seriously, saying: “We care about the environment. We care about the local communities.”

But an investigation by the BBC’s Panorama has found Glencore dumping acid into a river and it discovered children as young as 10 working in the Tilwezembe mine, which was officially closed by Glencore in 2008. International law prohibits anyone under 18 working in a mine. Undercover researchers at Tilwezembe found under-18s who climbed down hand-dug mineshafts 150ft deep without safety or breathing equipment to dig copper and cobalt.

Glencore’s flotation prospectus says it stopped operating at the mine in 2008 because of a fall in the price of copper. The metal has since bounced back to record highs. In the meantime, the mine has been taken over by a local firm that pays artisanal or freelance miners, including under-18s, fixed prices for copper-ore nuggets. Glencore still owns the concession and plans to restart mining.

The number of accidents at Tilwezembe is extraordinarily high: Panorama was told that 60 miners died there last year, making the mine one of the most dangerous in the world.

Glasenberg said: “We definitely do not profit from child labour in any part of the world. This is adhered to strictly.” The child miners were part of a group of artisanal miners whom Glasenberg said “raided our land in 2010 against all of our authorisation. We are pleading with the government to remove the artisanal miners from our concession”.

But there is strong evidence that Glencore receives copper indirectly from the child labour mine. Panorama tracked a lorry laden with copper from Tilwezembe for 27 hours to a plant run by a major Glencore partner in Congo, Groupe Bazano. Copper from the Bazano plant has then been sent to Glencore’s smelter in Zambia, according to documents obtained by the programme.

Glencore denies buying the metal from Bazano. On the issue of whether copper from Tilwezembe goes to the Bazano plant, Glasenberg said: “I don’t know what the Bazano plant does. We don’t buy copper from Groupe Bazano.”

Asked if Glencore had taken copper in the past from Groupe Bazano, Glasenberg replied: “No, we don’t buy copper from Groupe Bazano.” Told by Panorama there was documentary evidence to the contrary, he said: “It cannot be.” Glasenberg said the company operated a strict policy whereby all copper was mined correctly, placed in bags with numbered seals and then sent to the smelter.

For its part, Groupe Bazano said it did not profit from child labour and had not taken copper ore from Tilwezembe since the mine was closed by Glencore.

Glencore is also facing criticism for damaging the environment in Congo. For three years it has run a large copper refinery at Luilu in Katanga province. Ore containing minerals is burnt with acid to free up the copper but the heavily polluted waste has been pumped straight into the Luilu river.

Glencore’s acid waterfall stank of toxic fumes when I visited it a few weeks ago. Upstream, the river used by local people to wash and fish was clear; downstream of the Glencore pipe, there was brown sludge. One local complained: “Fish can’t survive the acid. Glencore lacks any respect for people. No one would do that to another human being. It’s shocking.”

A Swiss NGO tested the acidity of the wastewater and found a pH value of 1.9, where 1 is pure acid and 7 neutral.

Read more from The Guardian: http://www.guardian.co.uk/business/2012/apr/14/glencore-child-labour-acid-dumping-row