IFC supports mine waste dumping while police order polluting mine shut

Jakarta: Friends of the Earth welcomed Friday’s decision by Indonesian police to suspend operations at a US-owned mine which dumps mine waste into the ocean, while condemning International Finance Corporation (IFC) support for the destructive practice of riverine and ocean dumping of mine waste.

Indonesian police decided to suspend operations at the Newmont Minahasa Raya gold mine after tests at the police forensic laboratory confirmed scientific studies showing heavy metal pollution attributable to ocean dumping of mine waste into Buyat Bay, North Sulawesi. Indonesia has been gripped by news of an epidemic of health problems ranging from skin ailments, lumps and nervous system complaints suffered by dozens of Buyat Bay residents. Since 1996, Newmont has been dumping 2,000 tons of mercury and arsenic-laced mine waste (tailings) into the bay daily through the use of Submarine Tailings Disposal (STD).

"The Buyat Bay pollution disaster shows that instead of benefiting poor communities, mining operations destroy livelihoods and health. So, we do not need the World Bank Group to speak on behalf of developing countries to justify supporting the multinational mining industry." said Longgena Ginting, Director of WALHI-FoE Indonesia.

Mine waste disposal is also in the news in Papua New Guinea this week for causing fish kills at Canadian mining company Placer Dome’s Misima gold mine. Earlier this week, Misima Islanders were shocked to witness the sea filled with dead fish where the STD mine waste pipe enters the ocean. Mr. Frazer Bourchier, Misima mine manager, confirmed that cyanide was being discharged down the tailings pipe. PNG’s The National newspaper reported that "the fish killed showed hemorrhaging in the liver, diaphragms broken, eyeballs bulging from socket, and their insides inverted into the mouth".

Against this disastrous backdrop, the IFC has ignored recommendations in a report on mining and oil investments commissioned by its parent organisation, the World Bank Group. The rigorous Extractive Industries Review(1) is critical of riverine and ocean disposal of mine waste, however this and other recommendations are ignored in the new IFC guidelines. The draft IFC guidelines state that "deep marine tailings disposal may be considered as a preferred alternative" in certain circumstances, and also refuses to rule out riverine or shallow marine tailings disposal.

The IFC position even ignores the repudiation of destructive dumping practices by mining industry majors such as BHP Billiton. BHP Billiton walked away from the Ok Tedi mine in PNG after destroying a river system, fisheries and landowners’ gardens through riverine disposal of 80,000 tons/day of mine waste.

"BHP Billiton was considering using Submarine Tailings Disposal of mine waste at their Gag Island Nickel project in Indonesia. However, Chairman Don Argus recently wrote and declared BHP-B would not use STD in any of their projects", said Igor O’Neill of the Mineral Policy Institute. "Ok Tedi proved that you can’t trade the environment to alleviate poverty. The IFC is out of step with mining industry majors who now reject mine waste dumping," he concluded.

IFC guidelines are important not just because they guide the IFC’s lending operations, but because they are treated as a de facto standard by other public and private financiers and export credit agencies. The new guideline is the first step in a major overhaul of all of IFC’s standards.

"This is not a promising start", said Janneke Bruil of Friends of the Earth International. "IFC seems out of touch with reality. Reckless dumping of toxic waste in our rivers and seas is irresponsible, outdated, unacceptable and worlds away from its mission to alleviate poverty through sustainable development." [end]

Contact
In Indonesia: Longgena Ginting, WALHI-FoE Indonesia: +62 811 927 038 and Igor O’Neill, +62 81 286 12 286
In Australia: Techa Beaumont, Mineral Policy Institute (FoE Affiliate): +61 409 318 406
In Amsterdam: Janneke Bruil, FoE International: +31 6 52 118 998

(1) The World Bank Extractive Industries Review was a three-year multi-stakeholder process chaired by eminent person Dr. Emil Salim, which included mining industry participation and numerous regional meetings around the world.

For more information, please contact:

Igor O'Neill


Workphone: +62 21 794 1672
Mobile: +62 81 286 12 286

Created: 14 Aug 2004 | Last updated: 14 Aug 2004

This page: http://www.mpi.org.au/ campaigns/financing/std_ifc/

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