'Mining' Tag Archive

Mar 15 2014

Tom Albanese – Blood on Your Hands


On 6th March Tom Albanese, the former Rio Tinto CEO, was appointed CEO of Vedanta Resources, replacing M S Mehta. The newspapers are billing his appointment as an attempt to ‘polish the rough edges off [Anil] Agarwal’s Vedanta’ and to save the company from its current crisis of share price slumps, regulatory delays and widespread community resistance to their operations. This article looks at Albanese’s checkered history and the blood remaining on his hands as CEO of Rio Tinto – one of the most infamously abusive mining companies.

The Financial Times notes the importance of his ‘fixer’ role, noting that:

The quietly spoken and affable geologist is seen as someone willing to throw himself into engaging with governments and communities in some of the “difficult” countries where miners increasingly operate. That is something that Vedanta is seen as desperately needing – not least in India itself. Mr Albanese may lack experience in the country but one analyst says that can give him the opportunity to present himself as a clean pair of hands who will run mines to global standards…“There’s a big hill to climb there” Mr Albanese said.(1)

In fact Albanese has already been hard at work for Vedanta since he discreetly joined the company as Chairman of the little known holding company Vedanta Resources Holdings Ltd on Sept 16th 2013, billed as an ‘advisory’ role to Anil Agarwal (Vedanta’s 68% owner and infamously hot headed Chairman).

Vedanta Resources Holdings Ltd (VRH Ltd) (previously Angelrapid Ltd) are a private quoted holding company with $2 billion assets at present, and none at all until 2009. VRH Ltd own significant shares in another company called Konkola Resources Plc – a subsidiary of Konkola Copper Mines (KCM) – Vedanta’s Zambian copper producing unit. This is an example of the complex financial structure of Vedanta – with holding companies like this one serving to move funds, avoid taxation and facilitate pricing scams like ‘transfer mispricing’.

Shortly after becoming CEO of Vedanta Resources Holdings Albanese helped Agarwal by buying 30,500 shares in Vedanta Resources in November 2013 as their share price plummeted and Agarwal himself bought a total of 3.5 million shares to keep the company afloat. In December Albanese bought another 25,163 shares.

By February 2014 he was being sent out to Zambia to manage a crisis over Vedanta’s attempt to fire 2000 workers, which Agarwal himself had failed to fix during an earlier trip in November, and further damage caused by revelations about the company’s tax evasion, externalising of profits and environmental devastation in Foil Vedanta’s report Copper Colonialism: Vedanta KCM and the copper loot of Zambia

In a taste of things to come newspapers referred to Tom Albanese as the Chairman of Vedanta Resources, and Labour minister Fackson Shamenda alluded to a ‘change of management’ giving them new confidence in Vedanta. Albanese appeared to have done some fine sweet talking, promising that workers would not be fired as part of a ‘new business plan’ and claiming that all of KCMs reports are transparent – an outright lie as their annual reports, profits and accounts are as good as top secret in Zambia and the UK.

However, scandals and unrest continued to blight Vedanta in Zambia and the Financial Times reported that Albanese had flown out a total of four times in February alone.

Albanese’s role as a ‘fixer’ and sweet-talker is nothing new. His appointment as CEO of Rio Tinto in 2006 was on very similar terms, as an article in The Independent newspaper noted his role to ‘green tint’ Rio, and ‘scrub its image clean’. The article mentions that, in an exclusive interview with the paper Albanese declared unprompted that the company is a “good corporate citizen”, and describes him showing no emotion and choosing his words carefully, focusing on safety and environmental and social responsibility.

But Albanese could not play dumb about the reasons a new image was needed for Rio. Since he joined the company in 1993 Rio had been accused and found guilty of a number of major human right violations

In the early nineties they forcibly displaced thousands of villagers in Indonesia for their Kelian gold mine. They, and partner Freeport McMoran caused ‘massive environmental devastation’ at the Grasberg mine in West Papua, and when people rioted over conditions in 1996, began funding the Indonesian military to protect the mine. $55 million was donated by Freeport McMoran to the Indonesian military and police between 1998 and 2004, resulting in many murders and accusations of torture. In 2010 they locked 570 miners out of their borates mine in California without paycheques leaving them in poverty. In 2008 Rio threatened to shut their Tiwai point aluminium smelter, firing 3,500 if the government imposed carbon taxes. In Wisconsin, Michigan and California the are accused of toxic waste dumping and poisoning of rivers, and in Madagascar and Cameroon they have displaced tens of thousands of people without compensation or customary rights at their QMM mine, and the giant Lom Pangar Dam – built to power an aluminium smelter.

In 2011 a US federal court action accused Rio Tinto of involvement in genocide in Bouganville, Papua New Guinea, where the government allegedly acted under instruction from Rio Tinto in the late eighties and nineties when it killed thousands of local people trying to stop their Panguna copper and gold mine. 10,000 people were eventually killed in the class uprising that resulted from the conflict over the mine. Rio Tinto were accused of providing vehicles and helicopters to transport troops, using chemicals to defoliate the rainforests and dumping toxic waste as well as keeping workers in ‘slave like conditions‘.

Yet, Albanese is being seen as a respectable CEO with a more diplomatic and clean approach than his new Vedanta counterpart Anil Agarwal. There is great irony in Albanese’s promises to improve workers conditions in Zambia when Rio Tinto are famed for their ‘company wide de-unionisation policy’, with 200 people marching against the ill treatment of mineworkers outside the international Mining Indaba in Cape Town in February, calling them ‘one of the most aggressive anti union companies in the sector’.

Perhaps Albanese will feel at home in another company with a dubious human rights and environmental record. Both Rio and Vedanta have been removed from the Norwegian Government Pension Fund’s Global Investments for ‘severe environmental damages’ and unethical behaviour following investigations. The Norwegian government divested its shares in Rio Tinto in 2008, while it divested from Vedanta Resources in 2007, and also excluded Vedanta’s new major subsidiary Sesa Sterlite from its portfolio just a few weeks ago in January 2014.

Albanese was previously famed for being one of the highest paid CEOs on the FTSE 100, earning £11.6 million in 2011. However he refused his 2012 bonus in a last ditch attempt to save his career at Rio before he was fired in January 2013 amid a total of $14 billion in write-downs caused by his poor decision to acquire Alcan’s aluminium business just before prices crashed, and a $3 billion loss on the Riversdale coal assets he bought in Mozambique, making him in effect a ‘junk’ CEO today.

Other commentators have noted that this is not the first time Vedanta have recruited a junked mining heavyweight to save their bacon, but point out that the appointments have previously been short-lived, possibly due to frustrations about the dominance of majority owner Agarwal and his family. The infamous mining financier Brian Gilbertson, who merged BHP and Billiton, was another scrap heap executive who helped Vedanta launch on the London Stock Exchange in 2003 in the largest initial share flotation that year. However, he quit after only seven months after falling out with Agarwal.

Albanese is diplomatic when faced with questions about potential conflicts between himself and 68% owner and Chairman Anil Agarwal claiming Agarwal “will be in[the] executive chairman role when it comes to M&A and strategy”. However, commentators point out that, ‘the British Financial Services and Markets Act of 2000 stipulated that the posts of CEO and Chairman of companies should be separated – a principle which was backed in October 2013 by the UK’s Financial Conduct Authority’, potentially posing another corporate governance issue for Vedanta, who are already accused of violating governance norms in London by people as unlikely as the former head of the Confederation of British Industry – Richard Lambert.

But Albanese is positive about his re-emergence as a major mining executive. In fact the man with so much blood on his hands may be alluding to his experience in making great profit from others’ misery, when he says to the Financial Times, on the occasion of his appointment as Vedanta CEO, that:

Sometimes the best opportunities are when the times are darkest”.

Read More

Feb 05 2014

People’s Victory Costs Vedanta $10 Billion at Niyamgiri!


On Saturday 11th January the Ministry of Environment and Forests finally gave its statement formally rejecting permission for Vedanta’s Niyamgiri mine. This move brings a conclusive end to the ten year struggle of the Dongria Kond tribe, alongside local farmers and dalits, to prevent the mining of this sacred mountain range which is their livelihood. Saving Iceland has followed the struggle and supported our comrades at Foil Vedanta as part of the global solidarity campaign which helped win this unique victory. Read More

Feb 05 2014

Copper Colonialism – Vedanta KCM and the Copper Loot of Zambia


Saving Iceland associates Samarendra Das and Miriam Rose of Foil Vedanta have recently authored a report exposing Vedanta’s dirty dealings in Zambia. The report has already caused a stir and the Mineworkers Union of Zambia have launched an investigation into the report’s findings.

Daily Nation, a leading independent Zambian daily newspaper, reports: Copper gate scandal deepens

The report by Das and Rose can be downloaded here: Copper Colonialism – Vedanta KCM and the copper loot of Zambia report or you can read the full report (35 page) online below.

21st January 2014. 

In December Foil Vedanta activists made a trip to Zambia to investigate the operations of Vedanta subsidiary Konkola Copper Mines (KCM), Zambia’s biggest copper miner, and to make links with grassroots movements, academics, journalists and those in the political system who may be questioning the unjust terms of copper mining in their country.

We were shocked to discover the environmental and social devastation wrought by Vedanta’s operations, and the lack of information held by policy makers and regulators in Zambia on this multinational as well as on wider issues with copper market manipulations, material flows and the real interests controlling their country. This report is a comprehensive account of the origins of, and interests behind the rapid loot of Zambia’s copper resources which is currently taking place. Read More

Jan 30 2014

Skouries – A Story of Political Emancipation


How a mining conflict led to the political emancipation of a community in Northern Greece.

By Evi Papada

Occupied London – From the Greek Streets

Mining conflicts are increasingly surfacing globally due to complains over mines and pollution of water, soil and land occupied as well as over transport and waste disposal. The Skouries forest in Halkidiki has been at the center of a hot dispute between the mining company, Hellas Gold, a subsidiary of the Canadian mining giant Eldorado Gold and local communities. The company claims that an ambitious plan for mining of gold and copper in the area- including deforestation and open pit mining with excavation and everyday use of explosives- will benefit the region through the creation of some 5,000 direct and indirect jobs, while local residents argue that the planned investment will cause considerable damage to the environment  and livelihoods, resulting to many more jobs losses in the existing sectors of the local economy (farming, pasture land, fisheries, beekeeping, food processing and tourism).  The residents’ claims are supported by research conducted by various independent scientific institutions including the Aristotle University of Thessaloniki and the Technical Chamber of Macedonia. In addition to legitimacy questions underpinning the transfer of mining rights from the Greek state to the aforementioned company[1],  the Environmental Impact Assessment produced by El Dorado has been found to contain gross methodological discrepancies and whilst the public consultation process could be at best described as cosmetic[2]. Read More

Oct 03 2013
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The Age of Aluminium – A Documentary


Aluminium has found its way into every facet of our lives: deodorants, sun lotions, vaccines or filtered drinking water. But what do we actually know about the side effects of our daily consuming of aluminium products? The light metal comes with heavy consequences. Latest research links it to the increase in Alzheimer’s, breast cancer and food allergies. Hand in hand with the large scale environmental destruction and routine cultural genocide, deemed necessary to generate electricity for smelters, come the often disastrous ecological impacts of bauxite mining.

Saving Iceland would like to recommend this recent and informative film by Bert Ehgartner. Below is a short trailer for the film. You can stream or download the whole film, in either English or German here.

See also: Is Aluminium Really a Silent Killer?

Jamaica Bauxite Mining Videos

Dec 16 2012

Call Out for Action: Kick Vedanta Out of London! 1pm, 11th Jan 2013


From our friends at Foil Vedanta.

Declare solidarity with grassroots movements fighting Vedanta in India, Africa and elsewhere!

Kick Vedanta out of London for it’s corporate crimes, murder and destruction. Noise demonstration and picket at Vedanta headquarters, 16 Berkeley Street. Read More

May 21 2012
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Glencore: Reaping Huge Profits From Life’s Essentials


This video by Patrick Clair tells the story of commodity broker Glencore International, the biggest shareholder of Century Aluminum, and the company’s dangerously powerful position on the world’s markets.

Click here to read Saving Iceland’s dossier on Glencore, Century and the incestuous world of mining.

Nov 09 2011
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From Siberia to Iceland: Century Aluminum, Glencore and the Incestuous World of Mining


A special report for Saving Iceland by Dónal O’Driscoll

Preface

Glencore are the majority shareholder of Century, the owner of one operational and one half-built smelter in Iceland, it’s key operations for aluminium smelting. But who are Glencore and what are the implications for Iceland? This comprehensive article profiles the world’s biggest commodity broker, who’s only comparable predecessor was Enron. The profile covers the reach and grip of Glencore’s domination of metal, grain, coal and bio-oils markets, allowing it to set prices which profit very few and are detrimental to many. It shows the tight web of connections between the major mining companies and Glencore through shared board history and shared ownership of assets, cataloguing key shareholders (and board members) who’s stakes make them larger shareholders than institutional investors in ownership of Glencore. These connections include Rusal’s co chair Nathaniel Rothschild, a financier with a $40m investment in Glencore, and a personal friend of Peter Mandelson (former EU trade commissioner and British politician) and George Osborne (UK Chancellor).

The article details the human rights and environmental abuses of Glencore at it’s many operations, including the 2009 killing of Mayan indigenous leader Adolfo Ich Chamán who spoke out about Century’s activities in Guatemala under CEO-ship of Peter Jones (still a Century board member). It claims that Glencore is higher than most in the running for most abusive and environmentally detrimental mining company, going where lesser devils fear to tread – trading with Congo, Central Asia and embargoed countries such as Saddam Hussein’s Iraq and apartheid South Africa. Glencore founder Marc Rich was involved in trading embargoed Iranian oil, and fled the United States in 1983 accused of insider dealing and tax dodging over Iranian deals, becoming one of the 10 fugitives most wanted by the FBI, until he was pardoned by Bill Clinton. Glencore is still run by two of his main men. Read More

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Oct 14 2011
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Kandhamal 2008 – New Documentary by Samarendra Das about Mining-Driven Hindu Supremacist Violence


During 2007 and 2008, Kandhamal, a district of the eastern Indian state of Odisha, witnessed organised attacks on Christians in some of the worst communal violence in India’s history.

Through survivors’ testimonies, Kandhamal 2008 examines how Hindu supremacist groups turned two communities – Adivasi (indigenous) Konds and Pano Dalit Christians – against each other, with the tacit support of the State Government and local administration. More than 50,000 people became refugees, 5,000 houses were burnt and destroyed, at least 400 churches, prayer halls and institutions were desecrated, demolished or burnt down. This region is extremely poor, but rich in mineral resources which have attracted multinational mining companies including British firm Vedanta. The Odisha Government has ruthlessly pursued neo-liberal land acquisition policies formulated by the UK’s (Department for International Development (DfID) and the World Bank. The Konds have consistently fought this corporate land grab and the film highlights how Hindu supremacist groups and the State Government have sought to undermine that struggle.

Kandhamal 2008 will be premiered on Tuesday, 1 November, in Rm CLM.6.02 Clement House, London School of Economics at 7.15 pm. Director and researcher Samarendra Das, who was born in Odisha and has lived most of his life in Kandhamal, will discuss the background to and making of the film. Samarendra’s book, Out of this Earth: East India Adivasis and the Aluminium Cartel (Orient Black Swan, 2010), which was co-written by anthropologist Felix Padel, is a thorough study of the aluminium industry and its global impacts. For more information about the documentary screening contact:  sasg at southasiasolidarity.org.

Aug 18 2011

Protest at the Cairn Energy Headquarters in Edinburgh: “No Oil for Vedanta!”


At 2.30pm today 10 people arrived unannounced at the offices of Cairn Energy at the Clydesdale Plaza in central Edinburgh. They installed themselves at the grand entrance to the building, blowing whistles and shouting: “No oil for Vedanta! Stop, stop, stop the deal!” and “Vedanta out of Sri Lanka”, attracting the attention of the floods of passers-by attending the Edinburgh theatre festival. Three of the demonstrators gave out leaflets in the street from the campaign group Foil Vedanta and explained that the demonstration was timed with Cairn India’s AGM in Mumbai, where the Vedanta-Cairn deal would be discussed. The leaflets describe the protest as in solidarity with Indian people’s movements in communities affected by Vedanta’s atrocities including Niyamgiri and Puri in Orissa, Advalpal in Goa, and Thoothkudi in Tamil Nadu. They stress Vedanta’s poor environmental track record and demand that the company should not be allowed to take over Cairn India, an oil company drilling in pristine ocean off Sri Lanka.

Protesters claim this is a British issue as both Cairn and Vedanta are British companies, and have been aided by David Cameron and the British Ambassador to India in pushing the deal through. The leaflets highlight Vedanta CEO Anil Agarwal’s position as the 17th richest man in Britain and claim the British government has allowed him to evade millions of pounds worth of tax using Jersey and Bahamas based tax havens. One of the placards showed Cairn CEO Bill Gammell and Vedanta CEO Anil Agarwal in bed with David Cameron and read ‘Bill Gammell, Anil Agarwal, David Cameron in bed for oil’ while another slogan accused all three of having ‘blood on their hands’. A stack of leaflets was handed in to the building to distribute to Cairn Energy staff and a security guard warned those gathered that the police would be called if they remained at the building. This warning was taken seriously in the light of Cairn Energy’s zero tolerance policy on protests at the same offices by Greenpeace a month earlier, at which the company took out injunctions against Greenpeace preventing them from publishing any pictures of the event. The protesters left after an hour.

Below is a press release that followed the protest. Download the leaflet that was distributed at the protest here: Cairn India AGM leaflet. Read More