by Deep Green Resistance News Service | Jul 12, 2012 | Mining & Drilling
By Dawn Paley / Vancouver Media Co-op
Paraguay’s major newspaper is reporting today that the government of Paraguay–which came to power after a coup on June 22–has agreed to resume negotiations with Montreal-based Rio Tinto Alcan for a $4 billion aluminum plant.
The announcement follows a coup that led to the deposition of President Fernando Lugo, who was replaced by Federico Franco, head of the right-wing Paraguayan Liberal Party. Corporate media have called the coup a “lightning-quick impeachment,” but Lugo himself has said his removal constitutes an “institutional coup.” He was deposed after a rapid political trial which took place over a total of 32 hours.
According to Lugo, the coup was the work of a handful of economic elites and members of the political old guard. It appears there are Canadians among those preparing to make good off of the political upheaval in Paraguay.
Prior to the coup, Montreal based Rio Tinto Alcan was in negotiations with the Lugo government regarding the company’s plans to build an aluminum smelter in Paraguay. Talks, however, had stalled because of a disagreement on the price Rio Tinto Alcan would pay for energy.
“Evidently there were negotiations between Lugo’s government and Rio Tinto [Alcan], not negotiations as to whether we would permit the arrival or Rio Tinto [Alcan] or not,” Abel Enrique Irala, a researcher with the Paraguay Peace and Justice Service (Serapaj) told the Media Co-op this morning from the capital, Asunción. “The arrival of the company was a given. The negotiations were about the use of energy and the price or subsidy that the company would be granted to the transnational.”
Irala noted that the negotiations were advancing slowly, and were becoming increasingly part of a national public debate. “Now, with Franco in power, the negotiations are closed, taking place behind four walls as we say here, and will certainly happen more quickly,” said Irala. “The government will certainly be more charitable towards Rio Tinto Alcan and their work in the country.”
Reuters reported last week that since the swearing in of the new finance minister following the coup, the government planned to sign a decree shortly to allow the resumption of negotiations regarding the smelter. That decree passed today, authorizing the coup government to negotiate with Rio Tinto Alcan.
Rio Tinto Alcan doesn’t appear to be the only corporation taking advantage of Lugo’s ouster. “One can deduce that [Franco] has already met with regional, national and international business people, who represent transnational power,” said Irala.
From Vancouver Media Co-op: http://www.mediacoop.ca/story/rio-tinto-alcan-talks-paraguay-coup-government/11625
by Deep Green Resistance News Service | Mar 27, 2012 | Mining & Drilling
By Jeremy Hance / Mongabay
The world’s third largest mining company, Rio Tinto, and a local financial and construction firm, Cahya Mata Sarawak (CMS), have cancelled plans for a $2 billion aluminum smelter to be constructed in the Malaysian state of Sarawak. The cancellation calls into question Sarawak’s plan to build a dozen massive dams—known as the Sarawak Corridor of Renewable Energy (SCORE) initiative—that were proposed, in part, to provide power to the massive aluminum smelter. However, the mega-dam proposal has been heavily criticized for its impact on Sarawak’s rivers, rainforest and indigenous people.
Rio Tinto and CMS stated that the project had been dropped because power supply terms could not be agreed on. The smelter would have produced 1.5 million tons of aluminum annually. According to Jacynthe Cote, chief executive of Rio Tinto’s Alcan aluminum division, there were no hard feelings over the cancellation.
“Looking into the future, we remain interested in development opportunities that may arise within the state and the country,” he said.
Beyond the internal decisions, the cancellation immediately puts Sarawak’s dam building plans under new scrutiny. After long delays and cost overruns, one of the dozen dams has already been completed, the 2,400 megawatt Bakun dam. The dam reportedly displaced around 10,000 indigenous people and flooded 70,000 hectares of rainforest (about the size of Singapore). By itself, the Bakun dam produces twice as much power as the entire state of Sarawak. Despite this, a second dam, the 900 megawatt Murum dam, is currently under construction.
Sarawak’s government, under Abdul Taib Mahmud or “Taib”, has been aggressively pushing implementation of the SCORE plan and fending off criticism, stating that the state would need the additional power for the Rio Tinto-CMS smelter.
“Rio Tinto’s decision [to cancel the smelter] proves that the Taib government’s irresponsible economic policies have completely failed. There is no need to build another twelve dams in the state as envisaged by the Taib government,” reads a statement from the Bruno Manser Fund, a group that works with indigenous people in Sarawak. “All these corruption-driven dam plans that would only benefit the Taib family’s construction companies must come tho a halt now.”
Local opposition against the dams has been fierce. Last fall indigenous groups, local people, and domestic NGOs established the Save Sarawak’s Rivers Network in order to fight the dams. In addition, hundreds of land lawsuits have been filed against the proposed dams.
The Bruno Manser Fund is calling on the Sarawak government to stop construction on the Murum dam and cancel all other dam projects.
by Deep Green Resistance News Service | Feb 14, 2012 | Biodiversity & Habitat Destruction, Indigenous Autonomy
By Jeremy Hance / Mongabay
Last October indigenous groups, local people, and domestic NGOs formed the Save Sarawak’s Rivers Network to fight the planned construction of a dozen dams in the Malaysian state on the island of Borneo. The coalition opposes the dam-building plans, known as the Sarawak Corridor of Renewable Energy (SCORE) initiative, due to its impacts on indigenous and river communities, the destruction of pristine rainforest, and the degradation of the state’s rivers.
“At the moment, there is no coordinated effort by the indigenous communities and civil societies to campaign against the construction of these destructive mega-dam projects. Therefore there is an urgent need to initiate a state, national and international campaign against these mega-dams,” Save Sarawak’s Rivers Network’s chairperson, Peter Kallang, said in a press conference this week as reported by Free Malaysia Today. He noted that of paramount importance was to reach out to those directly impacted by the dams.
Five foreign NGOs from the U.S. and EU have also announced support of the nascent coalition, including The Bruno Manser Fund, International Rivers, Borneo Project, Rainforest Action Network (US) and the Rainforest Foundation Norway.After long delays and cost overruns, one of the dozen dams has already been completed, the 2,400 megawatt Bakun dam. The dam displaced around 10,000 indigenous people and flooded 70,000 hectares of rainforest.
While the Sarawak government has argued that the dams are needed to power the state, the Bakun dam alone produces more than double the power used by Sarawak at peak times. The additional power is likely to go to a planned aluminum smelter run by Cahaya Mata Sarawak (CMS) and Anglo-Australian mining giant Rio Tinto. Another dam, the 900 megawatt Murum dam, is currently under construction.
“The construction of the dams will not bring development to the people directly affected but it does bring severe and permanent damages to the whole environment and to the community at large,” Kallang said. “Development for the people must be for the immediate and above all, long term good of all the people and not just a few, who own shares in power generation and big corporations.”
Proponents of dam building have argued that they are “green” energy sources. However dams built in the tropics have been shown to release massive amounts of the methane, a greenhouse gas more potent than carbon dioxide, due to rotting vegetation trapped in the reservoir. A study last year found that a dam in Laos was still a significant source of greenhouse gases a decade after being built, emitting between 1.2 and 3.2 gigagrams of carbon annually. Another dam, however, was no longer a source of emissions after 40 years.
Save Sarawak Rivers will be holding a conference this week in Miri, including the presentation of papers by eight key speakers.
