Grasberg gold and copper mine Indonesia pdf

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Destruction of the natural landscape by Grasberg mine, Papua, New Guinea
description

The Grasberg mine, located in the indonesian province of Papua, on the island New Guinea, just north of Australia, is being run by the mining company Freeport McMoran. The Grasberg mine is the biggest goldmine and the third biggest coppermine in the world.

New Guinea is known for its biologically diverse ecosystems and endemic species but it also has great cultural value. In the western part of the island, in the Indonesian province Papua, 1.5 million of the 2.5 million people are indigenous peoples speaking more than 250 different languages.

But the area is not only known for its cultural and natural wonders. It is also one of the last places on earth where companies still use a very controversial mining technique; the 'riverine tailings disposal'.  This technique, which involves dumping toxic rubble in riversystems, is used by Freeport McMoran at the Grasberg mine.


what must happen

Friends of the earth Indonesia (Wahli) recommends in its latest report 'The environmental impacts of Freeport-Rio Tinto's Copper and Gold Mining Operation in Papua' the following to the Indonesian government:

"Immediately enforce national environmental law. This should be done by halting Freeport-Rio Tinto operations until breaches are remedied, and prosecuting legal breaches which continue today despite warnings in the early 2000s. In particular:

  • Dissolved copper and suspended solids (TSS) entering the Ajkwa Estuary must not breach water quality limits for class II of the Water Quality Regulations (2001).
  • Acid Rock Drainage must be immediately prevented from entering into surface and ground waters at levels which breach water quality limits for heavy metals and acidity class II of the Water Quality Regulations (2001).
  • Undertake its own thorough and regular sampling, instead of relying on company reports, and make all environmental information public according to the Environment Law (1997).
  • Re-examine tax and royalty arrangements to improve benefits for affected communities, Papua province, and compensate for environmental damage created so far.
  • Establish an Independent Panel to define several scenarios for the future of the Freeport mine, including closure date, processing, and waste management, then to commission a detailed, independent, social and technical review of these scenarios. The review should be used as the basis of an informed discussion by local people and other stakeholders on the future of the mine."

 
For more detailed information see also the report 'bank secrets' by Netwerk Vlaanderen.


location
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on record
last update: Jan 29, 2015

sectors
mining - non coal

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Leen Schmücker FairFin, Belgium


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social impact

 


environment

"The rivers running through the lowlands that constitute the deposition area have been described as one of the most biodiverse habitats in the world. This ecosystem is now completely destroyed”, writes the Indonesian environment ministry.

The Grasberg mine is one of the most polluting mines in the world. Every day, Freeport dumps 230,000 tonnes of polluted rubble in the Aghawagon river. This is equivalent to 3.25 billion tonnes over the total lifetime of the mine. The waste contains heavy metals such as copper, arsenic, cadmium and mercury, killing off life in the river. It is now almost impossible for the local population to use the river for fishing or drinking water.

The large quantities of sediment that remain on the river banks are also affecting the rainforests. 230 km2 of rainforest will be destroyed over the lifetime of the mine.


human rights

Freeport has also been criticised for the murder and torture of indigenous people living in the vicinity of the mine at the hands of soldiers and police bribed by the company.

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on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


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May 22, 2008
Freeport McMorRan is expanding its operations in Peru, Chile, Arizona (USA), the DR Congo and Indonesia. Last year, the company merged with Phelps Dodge.
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on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


member groups involved

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financial institutions involved
banks
  • ANZ Australia - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Bank Negara Indonesia Indonesia
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Bank of America United States - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Bank of Tokyo Mitsubishi UFJ Japan - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Bank Rakyat Indonesia - BRI Malaysia - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Barclays United Kingdom - profile
  • BNP Paribas France - profile
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 65 million (March 2007)
      Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
  • Citigroup United States - profile
    • corporate loan: $ 26 million (July 2006)
  • Crédit Agricole France - profile
    • bonds issue: $ 65 million (March 2007)
      Through Crédit Agricole CIB Securities; Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
    • Through Crédit Agricole CIB: Loan in March 2007 for acquisition of other mining group (Phelps Dodge): $ 45 million
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • corporate loan
  • Deutsche Bank Germany - profile
    • corporate loan: $ 26 million (july 2006)
  • HSBC United Kingdom - profile
    • corporate loan: $ 26 million (July 2006)
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • shares issue: $ 43 million (March 2007)
      Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 130 million (March 2007)
      Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
    • corporate loan: £27 million corporate loan and contributed £185 million to a £6.1 billion syndicated loan to the company by a number of banks (2007)
      source: www.theecologist.org
  • ICICI Bank India - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • ING Group Netherlands - profile
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 65 million (march 2007)
      Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
  • JPMorgan Chase United States - profile
    • Issuing of bonds: (March 2007)
    • General corporate finance: (July 2006)
    • shares issue: $ 750 million (February 2009)
      As a sales agent for Freeport McMoRan. Proceeds of this issue can be used for general corporate purposes.
  • Mizuho Japan - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Morgan Stanley United States - profile
    • General corporate finance: (July 2006)
  • Natixis France - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Royal Bank of Canada Canada - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • Royal Bank of Scotland United Kingdom - profile
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 65 million (march 2007)
      Through Greenwich Captial Markets; Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
    • corporate loan: £27 million (March 2007)
      RBS participated in a £27 million corporate loan in March 2007 when Freeport acquired competitor Phelps Dodge for almost £16 billion.
      source: www.theecologist.org
  • Santander Spain - profile
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
  • Scotia Bank Canada - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
    • General corporate finance: (July 2006)
  • Société Générale France - profile
    • corporate loan: $ 26 million (July 2006)
    • corporate loan: $ 45 million (March 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 65 million (march 2007)
      Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
  • Standard Chartered United Kingdom - profile
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • State Bank of India India - profile
    • General corporate finance: (July 2006)
  • Sumitomo Mitsui Banking Corporation Japan - profile
    • General corporate finance: (July 2006)
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • UBS Switzerland - profile
    • General corporate finance: (July 2006)
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • UniCredit Group (2) Italy
    • corporate loan: $ 45 million (march 2007)
      for acquisition of other mining group (Phelps Dodge)
    • corporate loan: $ 303 million (March 2007)
      Participation in a $ 10 billion syndicated loan arranged by JP Morgan Chase and Merril Lynch
    • bonds issue: $ 65 million (March 2007)
      Through HVB Capital; Participation in issuing syndicate led by JP Morgan Chase and Merril Lynch.
  • US Bank United States
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
  • WestLB AG Germany
    • Loan in March 2007 for acquisition of other mining group (Phelps Dodge)
investment banks
  • Merrill Lynch United States
    • General corporate finance: (July 2006)
    • Issuing of bonds: (March 2007)

On October 1st, 2008 Deutsche Bank downgraded Freeport-McMoRan from Buy to Hold.

 

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on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


member groups involved

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The following companies are involved in Grasberg gold and copper mine:

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on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


member groups involved

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2010
image
on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


member groups involved

share this dodgy deal
image
on record
last update: Jan 29, 2015

sectors
mining - non coal

banktrack contact

Leen Schmücker FairFin, Belgium


member groups involved

share this dodgy deal
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