EXTRACTION AND EXPLOITATION

Mining is one of the most environmentally damaging of industries. It contributes to climate change, is resposible for the displacement of communities and has a 'long and dismal record of damaging protected natural resources'[1]. For the corporations involved in the industry it's a pretty lucrative business; enjoying money made at the expense of the planet. In terms of a pending energy crisis, nuclear is obviously not the answer: as well as contributing to climate change through construction of new buildings and transportation of spent fuel, uranium mining is one of the most CO2 intensive of industrial operations[2]. See below for the companies that gain from mining, the techniques used and the social and environmental consequences.
By Jennie Bailey and Loukas Christodolou.

The big players in the world of mining.

Rio Tinto has been described as the most powerful mining company in the world. In 2005 its profits were $7.7bn from a turnover of $20.7bn[3]. Rio Tinto in its present form was formed in 1995 and is run jointly from London and Melbourne. The group controls a host of mining companies involved in extracting aluminium, copper, diamonds and a range of other minerals from sites across Australia, the Americas, Europe and Africa. Rio Tinto's trademarks are major environmental destruction, evasion of taxes and ill treatment of mining workers and of local communities. Notable cases have been the Jabiluka uranium mine in Australia[4] and racist discrimination against black workers in Namibia[5]. UK operations include an aluminium smelter in Holyhead, Wales.

The world's biggest mining group; BHPBilliton is the product of a 2001 merger between an Australian and a British corporation. In 2005 the company posted profits of $14bn and a capitalisation of $95bn; growth of almost 300% since [20036]. This growth can be put down to BHP's extraction of resources such as iron, coal, copper, bauxite and petroleum, which are all enjoying historically high prices. It also controls one third of the world's known uranium resources[7]. BHP has been involved in evicting indigenous people in the Philippines and mining on protected forest land in Indonesia. It has also been the cause of violent industrial disputes in Chile and Australia[8].

With 2005 profits of $4.3bn, AngloAmerican is the third giant in the world's mining sector. Formed from a 1999 merger, it operates in Europe, Africa, Asia, Australia and the Americas[9]. Although their subsidiary AngloGold Ashanti has officially been spun off, it shares several directors with its parent and is still counted by AngloAmerican as one of 'theirs' when it suits them[10]. In June 2005 Human Rights Watch published a report accusing AngloGold Ashanti of collaborating with warlords in the Democratic republic of Congo[11]. The non-executive chair of AngloGold is Mark Moody-Stuart, formerly chair of Shell[12], and a main mover in 'sustainable' initiatives such as Business Action for Africa during the UK G8 Summit last year.

For more information on these companies and campaigns against them see the Mines and Communities website

Coupled with the pollution from the heavy machinery the mining industry also uses other environmentally damaging techniques.

Surface mining is one of the most popular methods of extraction and there are four methods of doing this (each with environmental implications):

Mining a seam of mineral (such as gold or copper) by removing earth above it. It is only practical when the mineral is near the surface. Strip mining is often among the largest such equipment ever constructed; drag line excavators and bucket-wheel excavators are common examples[13]. In many ways it is similar to open-pit mining.

Only used when minerals are deep in the earth. They are enlarged until resources are completely depleted. The mine is dug in steps so it will be like a massive quarry (small scale machinery would be used). A waste pile of rock (also known as a waste dump) is created and the ore is processed by cyanide (known as tailings). It seems this is the most likely method of extraction that will be used for the Andash project (see Fool's Gold article.

A drastic method, usually used for coal mining in which mountains are “restructured” in order to reach sediment.

Is basically underwater mineral extraction.

Metals mining has been accused of being highly polluting and the industry is the top polluter in the US[14]. According to the US Environmental Protection Agency, in 2004 metals mines in the US produced:

• 105,069,610 pounds of arsenic compounds2,294,240 of cyanide compounds (usually used for gold extraction this process is poisonous and controversial[15])
• 643,745 of sulphuric acid[16]

The Kárahnjúkar dam is already 68% complete. Once finished it will flood beautiful countryside and areas of scientific interest. The dam is designed purely to power an aluminium smelthing plant for US firm Alcoa[17], in the fjord of Reydarfjördur[18]. Dam builders Bechtel describe on their website the 'spectacular view of nearby-snow-capped mountains'[19] viable from the project site. Countryside that will, of course, be trashed by the development they are working on. That's not to mention the contribution to climate change the smelter will make. Despite assertions that the hydropowered smelter will be environmentally friendly, it is hardly a sustainable project. The bauxite is imported from Australia, smelted in Iceland, then transported to the USA. Even on their website Alcoa admit that they 'mine 85,800 tonnnes of bauxite and 27,300 tonnes of coal; refine 34,300 tons of alumina; smelt 9,550 tonnes of aluminum...and generate 96,000 MWH of electricity' every day[20]. For more information: www.savingiceland.org

Activists in Bangladesh have been resisting London based Asia Energy Corporation's plans to develop an open pit coal mine at Phulbari in Northwest Bangladesh[21]. This project will affect more than 100 villages[22], displacing communities and tribes. Demand for coal is low in Bangladesh[23] - there are worries that AEC was given the right to export an 'indefinite amount of coal abroad'[24]. During protests to defend their land[25], police opened fire and several people were killed[26].

As the world's number one export, no resources issue would be complete without a mention of oil. In August Carbon Web reported that 'Iraq is seen by many as the frontline battle in a global push for multinational companies to retake control of oil production, much of which they lost to nation states in the 1970s'[27]. Iraq's oil fields are the second largest in the world[28]. If the US and UK governments get their way and tie Iraq into deals with oil majors such as Esso and BP, Iraq's oil will contribute to even more global warming.

See: Carbon Web

References
[1]P14, 'Dirty Metals: Mining Communities and the Environment', No Dirty Gold Report, (2004), Earthworks
[2]Author Unknown, 'Nuclear Power: No Solution to Climate Change', Nuclear Information and Resource Service, www.nirs.org/factsheets/kyotonuc.htm
[3]www.riotinto.com/library/annualreview05/statements/group_income.aspx
[4]www.minesandcommunities.org/Company/rio16.htm
[5]www.icem.org/en/114-Rio-Tinto/1024-Rio-Tinto-Is-'Racist-'-Namibian-Union-Says
[6]http://annualreport.bhpbilliton.com/2005/ltd/
repository/financial/financialPerformance.asp
[7]www.minesandcommunities.org/Company/bhp5.htm
[8]http://www.icem.org/en/78-ICEM-InBrief/1916-Chile%E2%80%99sx-
Copper-Strike-Continues-as-Miners-Clash-with-Police, http://www.icem.org/en/77-All-ICEM-News-Releases/359-BHP's-Union-Busting:-
Australian-Pickets-Attacked
[9]www.angloamerican.co.uk/ourbusiness/thecompany/geographiclocations/
[10] www.angloamerican.co.uk/ourbusiness/thecompany/geographiclocations/africa/
[11] www.hrw.org/english/docs/2005/06/02/congo11041.htm
[12] http://www.angloamerican.co.uk/ourbusiness/
thecompany/management/nonexecutivedirectors/
[13] Surface Mining, Wikipedia, http://en.wikipedia.org/wiki/Surface_mining viewed 31/08/06
[14] P4, Author Unknow, (2004) 'Dirty Metals Mining Communities and the Environment', No Dirty Gold Report , Earthworks & Oxfam America
[15] Author Unknown, 'Gold cyanidation definition', http://en.wikipedia.org/wiki/Cyanide_process, viewed 08/08/06
[16] US Environmental Protection Agency,
[17] Author Unknown, 'Overview', Alcoa, www.alcoa.com/global/en/about_alcoa/overview.asp viewed 20/09/06
[18] Author Unknown, 'Update August 2006', Saving Iceland, www.savingiceland.org/ viewed 20/09/06
[19] David Einstein, 'Cold Country, Hot Metal', Bechtel Briefs, www.bechtel.com/Briefs/0506/Iceland.htm viewed 21/09/06
[20] Author Unknown, 'Overview', Alcoa, www.alcoa.com/global/en/about_alcoa/overview.asp viewed 20/09/06
[21] Asia Energy website, www.asia-energy.com viewed 19/09/06
[22] Author unknown, 'Deal to end Bangladesh mine row', BBC online, 30/08/06 http://news.bbc.co.uk/1/hi/world/south_asia/5298112.stm viewed 19/09/06
[23] Author Unknown, 'Speakers tell JU Roundtable: Open-pit mining for lifting coal in massive scale will be disastrous for the country', The Daily Star (Bangladesh) 26th June 2006 (can be viewed on: www.minesandcommunities.org/Action/press1136.htm)
[24] Staff Reporter, 'Renegotiation of Phulbari coalmine deal stressed', The New Nation: Bangladesh's Independent News Source, http://nation.ittefaq.com/artman/publish/article_30393.shtml viewed 19/09/06
[25] Shahidul Alam, 'Profits versus the Poor'. ShadihulNews, http://shahidul.wordpress.com viewed 19/09/06
[26] Author unknown, 'Deal to end Bangladesh mine row', BBC online, 30/08/06 http://news.bbc.co.uk/1/hi/world/south_asia/5298112.stm viewed 19/09/06
[27] P1, 'George's oil Dubya-speak', Carbon Web, Issue 5, 21st August 2006
[28] www.oilempire.us/iraqoil.html