Law in India would allow corporations to obtain mining permits without indigenous consultation

By Brinda Karat, for The Hindu

The proposed liberalisation of the mining and minerals sector is an assault on the rightful owners of the land and its resources.

Tribal and indigenous communities across the world have been asserting their rights to the mineral wealth often found under the land they own or possess or have traditional rights to. They have been historically denied even a share of that huge wealth, leave alone legal rights of ownership. Under the contemporary deregulated neo-liberal policy framework, the exploitation and plunder of natural resources, including minerals, by domestic corporates and multinational mining companies has intensified. But the resistance by affected communities across the world has also grown and is reflected, over the years, in the establishment of an international framework through ILO and U.N. Conventions, which recognise in varying degrees the rights of indigenous and tribal communities to ownership, control and management of land and resources traditionally held by them either individually or as a community; the right to a decisive role in decision making for development needs in their areas; and the right to prior, free and informed consent to any projects in their areas. While these are encouraging advances won by the struggles and immense sacrifices of tribal communities, what is important is their translation into legal instruments in member countries. The issue has immediate relevance for India, as the UPA government has introduced a Mining and Minerals (Development and Regulation) Amendment Bill, 2011 (MMDRA), which is presently before the Parliamentary Standing Committee.

Promoting privatisation

In India, ownership of minerals lies with the State. However, the Central government which has control over all major minerals like iron ore, bauxite, copper, coal and most State governments which have control over minor minerals like sand, stone, granite, etc., have promoted privatisation through leasing mines to private companies apart from handing over captive mines of iron ore and bauxite to steel and aluminium corporates like the Tatas and Birlas. According to a recent report compiled for the industry by Ernst and Young, of the 4.9 lakh hectares of land given out in mining leases in 23 States by the end of 2009, 95 per cent of the leases comprising 70 per cent of the land were given to private companies.

The MMRDA Bill aims to further deregularise and liberalise the mining sector and encourage privatisation based on the recommendations of the Hoda Committee. It introduces the concept of high technology reconnaissance, prospecting and exploration licences, and easy terms of conversion to mining leases to encourage the entry of FDI and foreign companies. It also gives weightage, in the allocation of leases, to a set of criteria which favour such companies and also allows them activity on much larger tracts of land than previously. This has adverse implications for equity, the environment and growth.

While these aspects need comprehensive analysis, here we focus on those provisions, which claim to address the rights of tribal communities. There is a provision that makes it mandatory for coal mining companies to give funds amounting to 26 per cent of the profits. For other major minerals, an annual amount, which is the equivalent of the royalty paid in the financial year, must be given. While the principle of mandatory payment by companies is necessary, the problem in the MMRDA is that these funds are to be under the control of a district mineral foundation dominated by mine owners and the bureaucracy with a nominal representation of local communities. Interestingly, in the U.S. where the Federal Government had set up trusts to manage funds paid by companies using the land on reserves owned by Native Indians, the government was recently forced to pay a compensation of $1.2 billion to 41 Native American communities for “mismanagement of the assets” of the trust and is expected to have to pay another $3.4 billion in a similar case. When the affected people do not have a decisive say in the management of such funds, as in the case of the proposed district mineral foundation in the MMRDA Bill, “mismanagement” is inevitable. Also, rates of royalties in India are notoriously low. Until recently, for example, the royalty for one tonne of iron ore fixed by the Central government for Orissa was just Rs. 26. With a low extraction cost of only Rs. 250 to 300 per tonne and a high market price around Rs. 7,000 a tonne, mining companies made huge profits. While royalty rates have been recently increased, it is still a pittance compared to the profits companies make.

Patron-client relationship

The very premise of the scheme replicates the patron-client relationship, which has reduced tribal communities into recipients of charity, instead of recognition as owners of the land and its resources. The related provisions of the Bill constitute an outright assault on the constitutional rights given to the tribal communities, in particular in Fifth Schedule areas.

The Bill gives legal sanction to the arbitrary rights of governments, both at the Centre and the States, to give different types of licences and leases from reconnaissance to exploration, prospecting and finally extraction without any procedure for even consulting, leave alone taking the consent of tribal communities. The only reference to “consultation” (not consent), is for the grant of licences for minor minerals (but not major) in Fifth and Sixth Schedule areas where “the gram sabha or the District council, as the case may be shall be consulted.” Thus even the provisions under other laws such as the Panchayat Extension (to Schedule Areas) Act (PESAA), which mandates consultation with the gram sabhas, are violated by the complete absence of any consultative process prior to the granting of lease for major minerals, which are the main sites of tribal deprivation. In another provision for notification of giving leases in forest areas and wildlife areas, the State government has to “take all necessary permissions from the owners of the land and those having occupation rights.” Thus an unwarranted differentiation is made between the rights of tribal communities in Fifth Schedule non-forest areas and forest areas. However even in the case of forest areas there is no provision for what would happen in case the owner does not give permission.

In Fifth Schedule areas, the law prohibits transfer of tribal held land to non-tribals. Different States have also enacted such laws like 70/1 in Andhra Pradesh, the Chotanagpur Tenancy Act and the Santhal Parganas Tenancy Act in Jharkhand. None of the mining companies that gets leases is owned by adivasis. Presumably this was the reason why in the Samata case, the Supreme Court held that sale, transfers and even leases of tribal land to non-tribals are illegal. It directed that governments should consider a mechanism to include cooperative societies of tribal communities for mining operations. The Bill overrides the Samata judgment. Tribal cooperatives have been disqualified in the list of those eligible to get a lease for mining of major minerals, which can only be companies registered under the relevant laws. It is only for minor minerals and small deposits in the Fifth and Sixth Schedule areas that the State government “may” (not “shall”) consider tribal cooperatives for getting the lease. An earlier draft of the Bill in 2010 had included a provision for a guaranteed stake of tribal communities in mining companies. The provision had said “the company”… “will allot free shares equal to 26 per cent through the promoters quota.” South African law under the Broadbased Black Economic Empowerment Act has a provision of mandatory sale of 26 per cent shares in all mining companies to “historically socially disadvantaged sections.” But in India, caving in to pressure from mining lobbies, the earlier provision has been replaced with a token allotment of “one share per member of the affected family.”

There are other issues such as compensation and compensatory jobs in lieu of lost livelihood which are inadequate and also ambiguous. With cuts in permanent jobs and widespread contractual and casual work in the mining sector, the promise of employment to land losers cannot be taken at its face value. Seen together with the pending Land Acquisition Bill which specifically excludes the issue of leasing tribal land, this Bill not only buries the ownership rights of tribal communities but facilitates the easy entry of international and domestic corporates to Fifth Schedule and tribal-dominated mineral-rich areas to plunder the natural resources of our country. India, which is a signatory to many international conventions on the protection of tribal rights, is violating these conventions and adding to the burden of historical injustice. The Bill, in its present form, should and must be opposed and resisted. Concerned movements should work together for an alternative model which will recognise the ownership and other rights of tribal communities in mining in Fifth Schedule and tribal areas through effective legal mechanisms.

From The Hindu: http://www.thehindu.com/opinion/lead/article3419034.ece

While media focuses on Keystone XL, Canadian energy companies make a killing in Latin America

By Dawn Paley / The Dominion

The hard fought battle against the Keystone XL pipeline, which was slated to carry tar sands crude across Canada and the United States to port in Texas, kicked struggles against Canadian-owned oil and gas companies up to a new level. Resistance dominated headlines in Canada, while rural folk, Indigenous people, celebrities, and climate activists in the US took direct action to block Calgary-based TransCanada’s plans. In northern BC, Indigenous-led resistance to the proposed Enbridge pipeline, along with a host of other US-owned infrastructure projects, have become front and centre issues for environmentalists and activists across Canada.

The role of Canadian oil, gas and pipeline companies in other parts of the world is, however, less discussed. Many activists have focused on the behavior of the Canadian mining sector, a natural choice given the size of that sector compared to the oil and gas industries in Canada. “In Canada, a major difference between the oil and gas and mining sectors is that while many of Canada’s largest companies are oil and gas producers, some with integrated operations, they are not particularly prominent in the global arena just now,” reads a 2008 report by the Economic Commission on Latin America.

It’s been four years since that report was released, and it might be time to revisit the idea that the Canadian oil and gas sector hasn’t gained prominence on a global scale. Take the case of Latin America, where a host of oil and gas companies based in Calgary and Toronto have been increasing their holdings throughout the hemisphere, taking advantage of the same lax legal standards Canadian mining companies enjoy.

A study by Blake, Cassels & Graydon LLP found that in 2010, Canadian oil and gas companies made over $35 billion in mergers and acquisitions in Central and Latin America, and the region is the second most attractive place (after the United States) for Canadian oil companies to invest outside of Canada. Colombia in particular has quickly become a favourite destination for this new surge of Canadian oil and gas investment.

At the same time as the Canadian Senate approved a free trade agreement between Canada and Colombia in June of 2010, a government-hosted bidding fair on oil and gas properties was taking place in Cartagena, Colombia. “I have some good news for our Canadian friends. The Senate has just approved a free trade agreement…so that opens the way for a lot of opportunities and our government is very happy about that,” said then-Colombian Energy and Mining Minister Hernan Martinez to corporate representatives bidding on oil and gas concessions in Cartagena that day.

Canadian oil companies were among the chief supporters of the agreement, which was roundly criticized because of the continued killings, kidnapping and displacement of Indigenous people, trade unionists, peasants, dissenters and the poor in Colombia. A free trade agreement with Peru was approved by the Canadian Senate a little later, on the heels of a massacre in the Amazon province of Bagua where an estimated 100 people were killed during protests in defense of their lands.

Pacific Rubiales and Talisman, two of the most important Canadian oil companies in Colombia, have already come under intense criticism linked to the high environmental and social cost of their operations.

Read more from The Dominion: http://www.dominionpaper.ca/articles/4439

Greedy mining corporations seeking okay to destroy pristine Peel River watershed in the Yukon

By Paul Watson / The Toronto Star

A mining boom that has turned Canada’s North into the country’s fastest growing economy is threatening a vast stretch of the Yukon that is one of the continent’s last unspoiled wildernesses.

Central Yukon’s Peel River watershed, a pristine region almost as big as New Brunswick, is just one of the natural treasures coveted by mining and oil and natural gas companies riding surging global commodity prices.

Demand for the mineral resources of the Yukon, the Northwest Territories and Nunavut is so strong, the Conference Board of Canada expects their economies to grow by an average 7 per cent in 2012 and 2013, “easily outpacing the Canadian average.”

The hunger for resources from rapidly developing countries such as China and India are combining with a warming climate and new technology to draw mining, oil and natural gas companies farther north.

That trend isn’t going to be short-lived, predicts the Conference Board, a privately funded economic and policy research agency.

“Over the past two years, new mines have reached the production stage in both territories, and more are scheduled to start up over the next decade. From 2012 to 2025, mining’s share of the Yukon and Nunavut economies will double.”

After decades of struggling to thrive, the territories’ governments, and many of their people, are eager to cash in on the resource bonanza.

But opponents insist the environment is too fragile, and the economic benefits too limited, to justify the inevitable damage to nature.

A major front line in their escalating battle over Canada’s North is the Peel watershed, a rare North American gem, most of which aboriginal leaders and conservationists are determined to keep away from miners and drillers.

The Peel watershed is drained by seven major rivers that run untamed through mountain ranges and lush valleys where nature has been left largely to her own since the dawn of time.

For some 67,000 stunning square kilometres, there are no parks or marked trails, no campgrounds or RV hookups, only isolated hunting camps, and the wild plants and animals that live in one of Canada’s most diverse ecosystems.

Human visitors number only in the hundreds each year, mainly paddlers and hunters who venture into the remote region in canoes or on horseback and float planes.

The region is rich in iron ore, gold, uranium, zinc and other minerals as well as oil and natural gas.

Mining companies have several camps on the edge of the watershed, waiting for the green light from the Yukon’s government to rush in, clear roads and start digging.

Last summer, a six-member planning commission appointed by the government and First Nations, proposed a compromise that would permanently protect only 55 per cent of the Peel watershed.

Another 25 per cent would be conserved, with periodic reviews to decide if it should be opened up to development. Various land uses, including mining, would be allowed in the remaining 20 per cent.

It was less than what First Nations and conservationists had fought for, but they accepted the compromise. The Yukon government reserved judgment as it went into an election last fall.

In February, the Yukon’s new premier, Darrell Pasloski, a former Conservative Party candidate for the federal Parliament, announced what he called eight core principles to guide decisions on how to regulate land use in the Peel.

They include a call for “special protection for key areas,” while pledging to “manage intensity of use” and “respect the importance of all areas of the economy.”

Pasloski’s government also said it would respect private interests and final agreements with First Nations.

Along with conservation groups, leaders of the First Nations accuse the government of dumping the planning commission’s widely supported plan, forged through some seven years of study and often bitter debate.

Pasloski’s promise of more consultations is actually cover for an effort to gut the commission’s compromise, said Karen Baltgailis, executive director of the Yukon Conservation Society.

“They are proposing to completely change the plan and open up the Peel watershed to roads and industrial development,” Baltgailis said from Whitehorse, the federal territory’s capital.

Leaders of the Tr’ondek Hwech’in, Na-Cho Nyak Dun, Vuntut Gwitchin, and the Gwich’in Tribal Council accused the Yukon government of violating the Umbrella Final Agreement, a framework for settling land claims.

Read more from The Toronto Star: http://www.thestar.com/news/canada/article/1162051–hungry-miners-covet-yukon-s-pristine-peel-watershed-wilderness

March Against Copper Mining In Amazon

March Against Copper Mining In Amazon

By Environment News Service

Several hundred members of the largest Ecuadorian indigenous organization today began marching to the capital, Quito, to protest new mining in their territory. They expect to arrive in Quito on March 22.

The indigenous march started from Yantzaza in Zamora Chinchipe province southern Ecuador, where a Canadian company has been authorized to develop a large open-pit copper mine – the first large-scale mine under a new government mining policy.

The Confederation of Indigenous Nationalities of Ecuador, CONAIE, says that at the heart of the current discontent is not only this particular mine but also President Rafael Correa’s plans to allow international companies to carry out large-scale mining projects.

They are demanding that the government pass legislation to regulate water management and land redistribution.

On March 5, the Correa government signed an agreement with Ecuacorriente, the local unit of British Columbia-based Corriente Resources Inc., that allows the company to mine the Mirador copper project, according to Wilson Pastor, minister of nonrenewable natural resources.

Pastor said the company intends to invest about $1.4 billion over the next five years in the Mirador project. Ecuacorriente will pay $100 million in advance royalties to fund social projects in areas around the mine.

But as people gathered today in Zamora Chinchipe to start the march, provincial prefect and indigenous leader Salvador Quishpe reiterated their concerns for aboriginal communities where mining pollutes formerly pristine lands and rivers.

Read more from Environment News Service:

  1. First and foremost we must recognize that non-indigenous people are occupying stolen land in an ongoing genocide that has lasted for centuries. We must affirm our responsibility to stand with indigenous communities who want support and give everything we can to protect their land and culture from further devastation; they have been on the frontlines of biocide and genocide for centuries, and as allies, we need to step up and join them.
  2. You are doing Indigenous solidarity work not out of guilt, but out of a fierce desire to confront oppressive colonial systems of power.
  3. You are not helping Indigenous people, you are there to: join with, struggle with, and fight with indigenous peoples against these systems of power. You must be willing to put your body on the line.
  4. Recognize your privilege as a member of settler culture.
  5. You are not here to engage in any type of cultural, spiritual or religious needs you think you might have, you are here to engage in political action. Also, remember your political message is secondary to the cause at hand.
  6. Never use drugs or alcohol when engaging in Indigenous solidarity work. Never.
  7. Do more listening than talking, you will be surprised what you can learn.
  8. Recognize that there will be Indigenous people that will not want you to participate in ceremonies. Humbly refrain from participating in ceremonies.
  9. Recognize that you and your Indigenous allies may be in the minority on a cause that is worth fighting for.
  10. Work with integrity and respect, be trustworthy and do what you say you are going to do.
Photo by Victor on Unsplash

Mining corporations sweeping globe in search of profits, devastating landbases and communities

By John Vidal / The Guardian

The global mining, oil and gas industries have expanded so fast in the last decade they are now leading to large-scale “landgrabbing” and threatening farming and water supplies, according to a report by environment and development groups in Europe, Africa and India.

“The catalogue of devastation is growing. We are no longer talking about isolated pockets of destruction and pollution. In just 10 years, iron ore production has more than doubled, coal has risen 45% and metals like lithium by 125%. Across Africa, Latin America and Asia, more and more lands, rivers and aquifers are being devoured by mining activities.

“Industrial wastelands are being formed by vast open-pit mines and mountain top removal, and the poisoning of water systems, deforestation, and the contamination of topsoil,” says the report by the Gaia foundation and groups including Friends of the Earth International, Grain, Oilwatch and Navdanya in India.

The dramatic increase in large-scale mining, clearly seen in places such as the Amazon for gold and oil, India’s tribal forest lands for bauxite, South Africa for coal and Ghana for gold, is being fuelled by the rising price of metals and oil. These have acted as an incentive to exploit new areas and less pure deposits, says the report.

“Technologies are becoming more sophisticated to extract materials from areas which were previously inaccessible, uneconomic or designated of ‘lower’ quality,” it says. “That means more removal of soil, sand and rock and the gouging out of much larger areas of land, as seen with the Alberta tar sands in Canada.”

Economies are getting better at reducing the intensity of the use of raw materials but the sheer increase in their absolute consumption is now staggering, say the authors. According to the US Mineral Information Institute, the average American will use close to 1,300 tonnes of minerals in a lifetime. Global energy demand, which is based largely on fossil fuels, is expected to increase 35% by 2030, according to oil firm Exxon.

Africa is the epicentre of the mining industry’s search for minerals. Of the 10 biggest mining deals to be completed last year, seven were in Africa, according to Ernst & Young. Mining group Anglo American has earmarked $8bn (£5bn) for new platinum, diamond, iron ore and coal projects on the continent, and Brazil’s Vale has said it plans to spend more than $12bn over the next five years in Africa.

According to the Economist magazine, Ernst & Young recently suggested that southern African countries such as Botswana, Mozambique and Namibia were becoming increasingly attractive mining destinations.

China, which has invested heavily in African mines, now sucks up much of the world’s mineral resources. According to the report, it uses 53% of the world’s cement, 47% of its iron ore, 46% of its coal and more than 40% of the world’s steel, lead, zinc and aluminium. However, it re-exports much of this in the form of finished products for world markets.

The loss of enormous quantities of soil, and the eviction of people to make way for large-scale extraction now threaten to make millions of people landless and hungry, a recipe for social problems, says the report.

Water could well be a factor in limiting the extraction of minerals in future. Most mining companies have said they are already experiencing shortages. If demand continues to grow at the same rate that it has in the last decade, industry demands for fresh water are expected to grow from 4,500bn cubic metres today to 6,900bn cubic metres in 2030.

“Humans have almost cleared the surface of the earth. Now all efforts are geared towards going beneath the surface. Large-scale mining is now targeting all parts of the planet,” said Gathuri Mburu, co-ordinator of the African Biodiversity Network.

From The Guardian: http://www.guardian.co.uk/environment/2012/mar/01/global-mining-boom-landgrab-africa