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BHP Billiton Chairman lost in the woods over Indonesian Protected Forests
Media Release: 5th November 2003
BHP Billiton Chairman lost in the woods over Indonesian Protected Forests. BHP is expected to come under fire from shareholders at its AGM in Melbourne later this month, for saying one thing and doing another in its minesites overseas.
Questions have been raised as to whether the chairman of BHP, speaking at their London AGM, deceived shareholders intentionally, or was actually ignorant of the company’s concerted pressuring of the Indonesian government to gain permission to mine in a protected forest on Gag Island.
Despite evidence in the public domain to the contrary, Don Argus, the chairman of BHP claimed that he had no knowledge of BHP’s involvement in lobbying to overturn laws banning mining in protected forests in the country. Mr Argus responded to questions at the London AGM of the company by stating that to his knowledge BHP had not done so, and that he did not believe BHP would be applying pressure anywhere to lobby for changes to laws.
“It is of grave concern that the chairman of BHP Billiton is ignorant of concerted efforts by the company to influence the legal processes of the Indonesian government. Either he is deliberately misleading shareholders or he really has no idea of the conduct of BHP in other countries. If this is the case, BHBP is a loose cannon.”
“ If the chairman of BHPB cannot believe the reality of what the company is doing in other countries, this leads us to the conclusion that BHP can not be trusted. It is a warning sign to look carefully behind their other claims, both financial and to responsible conduct.” stated Techa Beaumont of the Mineral Policy Institute.
Parliamentary questions answered by Minister Downer in late 2002 revealed extensive lobbying of Indonesian officials by Australian Embassy staff in Jakarta at the behest of Australian mining companies. Downer's answers revealed that BHP Billiton specifically requested, and received, lobbying assistance from the Australian Embassy to alter laws keeping these companies out of protected forests.
Downers answers revealed that Australian embassy officials on nine occasions, with companies present at a number of these meetings pressed the Indonesian parliamentarians, officials, including the Ministers and Departments for Economic Affairs, Mining, Forestry and Environment to drop the ban on open cut mining in protected areas where these companies had mining leases.
BHP Billiton will hold its Australian AGM in Melbourne on November the 13th, and it is expected that there will be further questioning by concerned shareholders over BHPB’s activities. A number of other issues regarding BHPB’s claims to corporate responsibility are expected to arise, including new information on Ok Tedi, BHPB’s proposal to dump wastes in World Heritage value coral reefs, and labour conflicts.For more details or for a Press Kit “BHP: the quiet deceiver” from the Mineral Policy Institute: call Techa Beaumont on 02 9557 9019 or 0409 318 406.
For more information, please contact:
Techa Beaumont
Executive Director
Workphone: +61 2 9557 9019
Mobile: +61 (0) 409 318 406
Created: 05 Nov 2003 | Last updated: 05 Nov 2003
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