EarthWINS Daily #3.114
3/15/98
Date: Sat, 14 Mar 1998 21:29:47 -0800 (PST)
From: Alice McCombs <amccombs@igc.apc.org>
Contents
1. CANADA: National News: Inco/Voisey's Bay
2. Excerpt, GREENLines Issue #582: Arizona DEQ Issues
Draft Permits for
Cyanide Heap-Leach Gold Mine
3. NAMIBIA: Rio Tinto vs. Unions
a. Rio Tinto Tries To Bust Namibian Union
b. Rio Tinto Mine Struggle Continues
4. AUSTRALIA: Jabiluka campaign heats up
5. BHP versus Green Left Weekly
6. Montana: Mining: Blackfoot River updates
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
1. CANADA: National News: Inco/Voisey's Bay
DEBRA
hrnet.indigenous
11:00 PM Mar 12, 1998
(at OLN.comlink.apc.org)
(From News system)
Edited/Distributed by HURINet - The Human Rights Information Network
---------------------------------------------------------------------
## author : innuenv@web.net
## date : 23.02.98
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MACLEAN'S MAGAZINE
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
February 16, 1998
PAGE: 48
BYLINE : Peter C. Newman
COLUMN : The Nation's Business
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
** REVEALED: A DESPERATE
SURVIVAL PLAN FOR INCO: Faced **
** by the possibility
of a takeover or a huge sell-off **
** of shares,
CEO Michael Sopko has opted for drastic **
** action **
Inco is one of Canada's defining institutions. Founded in
1902, the company has written much of the history of
Canadian mining, with its large base-metal deposits in
Sudbury, Ont., Thompson, Man., and, of course, the mega ore
body at*Voisey's*Bay*in Labrador.
The world's largest nickel producer, Inco has some 16,000
employees and operates in 22 countries, including
Indonesia, Japan, Taiwan and South Korea. Historically, the
company has been big and successful, operating almost in a
world of its own, not paying much attention to its critics,
because it considered itself too big to fail. But in the
past decade, uninspired management and lower nickel prices
have driven Inco to the wall. Share prices have plummeted
to $24.70 at the end of last week from a 1997 high of
$51.25. Faced by the possibility of a takeover or a massive
sell-off by frustrated shareholders, CEO Michael Sopko has
opted for drastic action.
Due to be announced this week is a series of monumental
cost-cutting measures that will dramatically transform the
company. They include:
- Closing Inco's posh New York City office, which employs
about 100 people.
- Major slashes in overhead both at the Toronto head office
and on the operational end in Sudbury and other operating
mines. A recent survey revealed that at its Sudbury
underground operations, Inco has one manager for every
three miners, way above the industry standard.
- Most significant, Inco will begin talks with its chief
competitor, Falconbridge Ltd. of Toronto, to rationalize
its Canadian operations, particularly in Sudbury, where the
two companies each have processing plants, although one
unit could handle the output of both.
This is a startling development, because it could lead to
further operational mergers and eventually to a takeover by
Falconbridge - the world's second-largest nickel producer.
Falconbridge in 1989 was taken over by Noranda Inc., which
in turn is controlled by Jack Cockwell and his group of
financial wizards at EdperBrascan Corp. They have for some
time had their beady eyes on Inco, dreaming about all the
economies of scale that a merger of the two mining giants
would produce. Falconbridge is not doing too well either,
with its 1997 profit of $137 million half of the previous
year's earnings. (Inco's 1997 profit was $108 million, down
from $260 million the year before.) Unlike Inco,
Falconbridge, which is bringing two large developments
onstream - in northern Chile and northern Quebec - has
already completed most of the capital spending involved,
and does not have to try and finance a mammoth project like
*Voisey's*Bay*at a time when nickel prices are at a
four-year low. The metal is now selling for about $2.37
(U.S.) a pound, down from $3.50 a year ago.
The most touchy issue in any merger would be the location
of the smelter to handle the 270 million pounds of nickel a
year that will be mined at *Voisey's*Bay.*Sopko has pledged
to build a new $1-billion smelter and refinery at the
former U.S. military base at Argentia, about 100 km west of
St. John's, Nfld. Last week, however, Sopko said he wanted
to discuss the 'scope and timing' of the promised refinery
in light of low nickel prices. But Newfoundland's mines
minister, Charles Furey, said the refinery was not
negotiable, except for details about power rates and taxes.
He wasn't kidding. 'If that's not acceptable, they can pack
their bags and leave,' he announced, meaning 'leave'
without a shovelful of the rich*Voisey's*Bay*ore.
Newfoundland Premier Brian Tobin adds that construction of
the expensive processing facilities is not only a condition
of mining at*Voisey's*Bay,* but that every pound of ore
must be refined in his province. Were a merged
Falconbridge-Inco entity renegotiating the deal, it might
insist on relocating the Labrador mine's output to
Nikkelverk in Norway, where Falconbridge operates one of
the world's largest refinery smelters.
Despite its treasure house,*Voisey's*Bay*has become a
double-edged sword. At full capacity, the open-pit
operation would grant Inco a long and prosperous run. But
even if the impasse over building the Argentia smelter is
resolved, deep and complex negotiations are continuing with
the local population. At the moment, these talks have
become a bit of a three-ring circus. Tobin is negotiating
with Labrador's natives and Inco is negotiating with Tobin,
while the natives are negotiating land-claims issues with
Ottawa.
The root of the problem is that when it paid $4.3 billion
for the *Voisey's*Bay*deposit in 1996, Inco based its plans
on the price of nickel at the time - $4 a pound. Start-up
for mining the Labrador deposit has already been delayed
from 1999 to 2001, mainly for environmental reasons - yet
another problem in an area covered by impenetrable ice for
part of the year. Most observers agree that even with its
new cost-cutting, Inco will have to write down the value on
its books of the*Voisey's*Bay*deposit. A decrease of as
much as $1.5 billion is being suggested.
Critics of Inco management, which include just about every
analyst on Bay Street, are puzzled why the company has
achieved so little - basically nothing - during the two
years it has owned*Voisey's*Bay.*At stake is the fate of
one of Canada's rare megaprojects. If Inco goes ahead as
planned, it will spend close to $1.5 billion to bring the
project to market, creating thousands of construction and
permanent jobs in a part of the country that desperately
needs them. But if the various parties, whether it includes
Inco or its successor, can't agree on development terms,
they will be killing the goose that lays the nickel egg.
Back to top
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
2. Excerpt, GREENLines Issue #582: Arizona DEQ Issues
Draft Permits for
Cyanide Heap-Leach Gold Mine
rfeather
list.actgreen
10:17 PM Mar 12, 1998
(at defenders.org)
GREENLines, Friday, March 13, 1998 from GREEN,
the GrassRoots Environmental Effectiveness Network,
A project of Defenders of Wildlife
(505) 277-8302 or email rfeather@defenders.org
SPITTING DISTANCE: A 3/11 Mineral Policy Center action alert reported
the Arizona Department of Environmental Quality recently issued draft
air quality and aquifer permits allowing an open pit cyanide heap-leach
gold mine to be sited "within spitting distance" of the citizens of
Yarnell, AZ. The proposed mine is on BLM land and a draft EIS
has yet
to be issued. The alert says the issuance of draft permits is
"premature in the extreme...."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Roger Featherstone, GREEN Director
PO Box 40046, Albuquerque, NM 87196-0046
(505) 277-8302 fax, (505) 277-5483 rfeather@defenders.org
http://www.defenders.org/grnhome.html
GREEN DC Office
1101 14th St., NW, Ste. 1400, Washington, DC 20005 (202) 682-9400
Back to top
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
3. NAMIBIA: Rio Tinto vs. Unions
a. Rio Tinto Tries To Bust Namibian Union
labornews
labr.global
12:35 PM Mar 13, 1998
ICEM UPDATE
No. 13/1998
5 March 1998
The following is from the International Federation of Chemical, Energy,
Mine and General Workers' Unions (ICEM):
RIO TINTO TRIES TO BUST NAMIBIAN UNION
Global mining giant Rio Tinto is out to bust the union at its Rossing
uranium mine in Namibia. Now under attack by the world's biggest mining
company is the Rossing Branch of the Mineworkers Union of Namibia (MUN).
Rossing management's anti-union campaign has been strongly condemned
by
the 20-million-strong International Federation of Chemical, Energy,
Mine
and General Workers' Unions (ICEM), to which the MUN is affiliated.
Rio
Tinto's anti-union stance in many part s of the world has made it a
priority target for ICEM action. At a world conference in Johannesburg
last month, the ICEM launched a worldwide network of unions organising
in Rio Tinto (see ICEM UPDATE 8/1998).
Rio Tinto is the biggest global minerals company. It employs some 51,000
people directly worldwide, and many more through subcontractors. The
Rossing mine has long been one of its big money-spinners. During the
illegal South African occupation of Namibia in the apartheid era,
Rossing supplied uranium to the world, including to British civil and
military nuclear programmes.
The current dispute centres on the MUN's Rossing Branch Executive
Committee chairperson, Petrus Tjipute. The union says Rossing management
has deliberately singled him out for victimisation. Notably, he has
been
banned from using the phone - a move that m akes it virtually impossible
for him to do his union work effectively. His job supervisors have
also
told him that his union activities are damaging his promotion prospects.
The company currently assigns Tjipute to tasks that do not match his
qualificatio ns, and has ensured that nobody else takes on his workload
while he is attending to union business.
Rio Tinto have "stepped up their dirty tactics to erode and eventually
kill the Union," said the MUN in a statement issued this Tuesday 3
March. Management had been informed that if the victimisation did not
cease, the union's local branch would have to " inform their members
that they have been rendered incapable to represent them."
Despite great reluctance on the management side, one union-management
meeting on the victimisation issue was finally held, but ended in
deadlock. The branch has suspended all official dealings with the
management and is taking the company to court.
"We know that the MUN has the strength and the determination to resist
these attacks," commented ICEM General Secretary Vic Thorpe today.
"The
ICEM and its affiliated unions worldwide will give full support to
the
Namibian miners. We are determined to mak e Rio Tinto a good global
citizen. Rio Tinto's job is to mine the world's resources - not
undermine the world's unions."
In fact, this is not the first recent union-management conflict at
Rossing. When the MUN tried to hold an ICEM-backed health and safety
workshop there last month, management suddenly refused special leave
for
22 workers to attend the safety event.
The official reason? According to a note circulated by General Manager
Werner Haymann, the health and safety workshop was an ICEM bid to
involve Rossing workers in an "Australian-led" campaign to discredit
Rio
Tinto, thereby putting Rossing jobs at risk.
As the MUN points out, Haymann "happens to have joined the Company about
a year ago from Australia." Rio Tinto is engaged in a major
union-busting drive in Australia, where another of its company
executives helped to frame anti-union legislation brought i n by the
Australian federal government.
MUN officers at Rossing angrily rejected the claims in Haymann's memo,
and exposed the many inaccuracies that it contains. ICEM Mines Officer
Damien Roland, who happened to be in Namibia at the time, was in fact
asked to give the workshop a brief overview
of the Johannesburg conference. But, as MUN branch executive
Alphens
Muhuea told The Namibian newspaper, "the health and safety workshop
was
planned long before the Johannesburg meeting and dealt with legitimate
issues."
To be fair, the Rossing management did later meet with the MUN to clear
up the whole mess. Quizzed by the media, embarrassed managers issued
a
statement regretting the "misunderstandings" caused by the original
memo. And in a bid to salvage relations with
the union, the statement went on to emphasise the need for "good
employee relations and constructive dialogue with the MUN."
What price "constructive dialogue" now?
This sorry tale sheds some interesting light on the Rio Tinto hierarchy.
Like many global operators, Rio Tinto often hides behind "local
management's right to manage." Labour issues, its argument goes, are
local issues. On industrial relations, global cor porate headquarters
conveniently has "no right" to second-guess local managers.
Why, then, were the Rossing managers fed misinformation from London
about the health and safety workshop? Why did they get their marching
orders from Rio Tinto headquarters? And why, when things went so
drastically wrong, was local management left to pick
up the pieces?
_________________
Individual ICEM UPDATE items can be supplied in other languages on request.
Our print magazines ICEM INFO and ICEM GLOBAL are available in Arabic,
English,
French, German, Russian, Scandinavian and Spanish.
Visit us on the Web at http://www.icem.org
ICEM
avenue Emile de Beco 109, B-1050 Brussels, Belgium.
tel.+32.2.6262020 fax +32.2.6484316
Internet: icem@geo2.poptel.org.uk
Editor: Ian Graham, Information Officer
Publisher: Vic Thorpe, General Secretary.
Back to top
--------------------------------------------
b. Rio Tinto Mine Struggle Continues
labornews
labr.global
9:56 PM Mar 2, 1998
> Rio Tinto
> the struggle continues
> By Robyn Hohl
>
> As we go to press, nearly 400 striking mineworkers from Rio Tinto's
> Hunter Valley No 1 mine near Singleton in NSW remain locked in a
> long-running dispute, the outcome of which could affect workers from
> all industries throughout the country. A Womens' Support Group has
> been set up and a Christmas tree has even been planted at the main
> picket camp as the miners settle in for what they are sure will be
a
> long haul.
>
> Despite the fact that the miners are still in the bargaining period
> during which they are legally entitled to picket under 'protected
> action', anti-union legislation is being used by the company in an
> attempt to stop the pickets from having any real effect. Members
of
> the Public Transport Union have consistently refused to endanger
lives
> by driving trains through the picket lines to pick up scab coal.
The
> court injunctions currently being sought to stop picketers from
> blocking the rail lines mean union officials could face contempt
of
> court proceedings, and possibly jail, if members defy them.
>
> Reith gloating
>
> Meanwhile Federal Industrial Relations Minister Peter Reith has been
> gloating about the curtailing of a support strike by thousands of
> other Hunter Valley miners at the beginning of October. He claimed
the
> early return to work as a victory for his government's revamped
> Workplace Relations Act secondary boycott provisions.
>
> United fight needed
>
> These provisions were put in place to prevent workers taking
> solidarity action by making unions liable to millions of dollars
in
> damages claims and even sequestration of union assets for
> 'unauthorised industrial action'.
>
> At some stage soon these laws, which were designed to break the power
> of organised workers to protect our rights, jobs and conditions,
will
> have to be taken on and defeated. This cannot be the struggle of
any
> one union alone. It will require the combined strength of the labour
> movement; from miners and wharfies to office workers and shop
> assistants. Unions throughout the country need to start preparing
> their members (and in some cases, members need to start preparing
> their union officials) for the battles that inevitably loom ahead.
> ----------------------------------------------------------------------
>
> Striking miners talk to Militant
>
> An interview with Brian Sproule, Jim Cassidy, Steve Diesel and Ray
> Lambert
>
> Militant: What's the background to the dispute?
>
> Their plan is just to bust the union
and that's all there is
> to it. We've all signed a document,
twice now, that we want
> the union to represent us in the collective
bargaining for
> an enterprise agreement but the company
wants us to sign
> these individual contracts - workplace
agreements. We've got
> no access to them, can't get a legal
opinion on them - when
> we do have access to them, we've got
to sign them. They say
> they'll give us a $170 rise, but the
money was never an
> issue, it was the giving away of our
collective bargaining.
>
> Job security is the other thing. With
these contracts, we
> can sign a contract tomorrow, but how
about the younger
> blokes with young families who want
to go and buy a house.
> The bank would say, 'Where do you work?'
and they'd answer,
> 'Rio Tinto in the Hunter Valley, we're
on a contract.' When
> they ask about the conditions of the
contract, you'd have to
> tell them it could be terminated with
two weeks notice from
> either party - that's straight termination,
no debate at
> all, straight termination. Well the
answer would be, 'Sorry
> son, that isn't good enough for a house
loan.'
>
> Militant: Has the company been planning for this dispute?
>
> They've had this planned for two years
at least here. They
> came into this mine and destroyed it
for the sole reason of
> getting this implemented -to give them
an excuse. They
> orchestrated it that way and run it
down and we've had to
> stand by and watch it happen.
>
> They go on about work practices, but
the truth is you can
> only drive a truck so fast, you can
only load a truck so
> fast, you can't perform miracles, you
know. We already
> changed work practices here and gave
them virtually
> everything they wanted about twelve
or eighteen months ago,
> and that's still not good enough. Weimproved
our
> productivity at least 60% and that's
still not good enough.
>
> They don't want arbitration because
they might not get the
> things they want - like taking away
seniority. If they got
> rid of seniority they could get rid
of anybody that doesn't
> fit in with their type of thinking.
So they don't want to
> take the risk on arbitration, they'd
rather try and starve
> everyone out.
>
> This 'level playing field' they want,
instead of workers in
> Asia or anywhere else coming up to
our level, these
> multinationals want our wages and conditions
to be the same
> as what they've got in Third World
countries.
>
> Rio Tinto's agenda has always been
to go in and rape any
> country they've ever been in. Of the
$12.9 billion Rio Tinto
> make worldwide in a year, 4.9% comes
from Australia. The
> only money that stays in this country
from this company is
> the wages that we get here and the
tax we pay here.
>
> Militant: How are the laws aimed at preventing solidarity action
> affecting you?
>
> Presently they're making the thing
go longer aren't they,
> because if they weren't there, this
dispute would be over,
> it would've been over in the first
fortnight. The government
> is trying to make things like in America
- there's been a
> dispute over there been going for five
years. In my opinion,
> quite honestly, I think when push comes
to shove, the laws
> just won't exist as far as the people
of Australia are
> concerned because we are just about
pissed off with all
> this. Reith is supposed to be an Australian
member of
> parliament yet he's making these laws
to suit the multi
> nationals so they can sue Australian
workers and at the same
> time dig up our resources and take
the money out of
> Australia. Some people might be doing
OK out of it but it
> certainly isn't the workers - the working
man is the loser
> all around.
>
> Militant: Are you individually facing fines over all this?
>
> Not at this stage we're not 'cause
we're under protected
> action. Some of our delegates and the
union executive are
> because of the picketing - $5 million
each I think they're
> facing.
>
> Militant: Has it been officially decided if these or other fines
will
> be paid, if it comes to that?
>
> No that hasn't been officially decided
yet not officially
> unofficially I'd say it's been well
and truly decided! They
> can shove it. Where would we get it
[laughter] we might have
> to apply for a bank loan and on our
present pay, I don't
> think we'd get a real big one!!
>
> The whole of the union movement is
behind us. I don't think
> at this stage that any union will be
prepared to pay fines
> or anything to anybody and I can't
see any reason why we
> should. The law is not right, the law
is wrong, it's an
> unjust law, so why should we pay fines?
The law won't be
> changed unless people say, 'No we don't
agree with it'.
>
> Militant: So how long are you prepared to sit it out?
>
> As long as it takes! (in unison). We've
got a yard stick to
> Christmas and we go from there. Put
it this way, I haven't
> put in for Christmas holidays!
http://werple.net.au/~militant/oct97/4miners.htm
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+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
4. AUSTRALIA: Jabiluka campaign heats up
Topic 23
Green Left #309 March 11, 1998 Response 16 of 50
peg:greenleft
Green Left Weekly
9:55 AM Mar 10, 1998
By Wendy Robertson
The campaign by the Mirrar traditional owners and other land
rights and environmental activists nationwide to stop Energy
Resources Australia from opening the Jabiluka uranium mine in the
World Heritage-listed Kakadu National Park is hotting up.
A blockade of the mine is to begin on March 23, and a national
day of action incorporating meetings, rallies and films is
planned for April 5.
Strategies for the campaign were discussed at a meeting in
Melbourne on February 23-24. Participants included Dave Sweeney
from the Australian Conservation Foundation, Chris Doran from the
Wilderness Society, Jayne Weepers from the NT Environment Centre,
Wendy Robertson from Resistance and a number members of Friends
of the Earth in Melbourne.
Resistance proposed the April 5 actions. While the blockade will
help delay the construction of the mine, and will give the
campaign more time to organise against the mine, it will only be
successful if it is supported by popular opinion around the
country. That requires a strong public campaign in the major
cities.
In Sydney, the campaign is planning a rally and concert on April
5 (venue to be announced). Support has come from the Sydney
University Student Representative Council and Koori Department,
the NSW Greens, Resistance and the Democratic Socialist Party.
The National Union of Students is donating funds for posters,
leaflets, music and media publicity.
Speakers confirmed include Jacqui Katona, spokesperson for the
Mirrar people; Robert Stringer, national coordinator of the
Uniting Church's peace and social justice network; and Bob Brown
from the Australian Greens. Other speakers will highlight the
health and safety aspects of mining uranium, trade union support
for the campaign and the stand of various political parties on
the Jabiluka mine.
Jabiluka Action Group meetings are held on Wednesdays, 6pm, at
the University of Technology, Sydney. Everyone is welcome.
[Wendy Robertson is a convener of the Jabiluka Alliance and a
Sydney organiser of Resistance.]
First posted on the Pegasus conference greenleft.news by
Green Left Weekly. Correspondence and hard copy subsciption
inquiries: greenleft@peg.apc.org
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+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
5. BHP versus Green Left Weekly
Topic 23
Green Left #309 March 11, 1998 Response 19 of 50
peg:greenleft
Green Left Weekly
9:55 AM Mar 10, 1998
Title:
News broke last week of the resignation of John Prescott, chief
executive officer and managing director of BHP. Between his
multi-million dollar package and his large shareholdings in the
company, Prescott is leaving BHP even wealthier than when he
commenced there on an annual salary of $2.24 million.
Perhaps Prescott has had a change of heart and is regretting the
bloodshed and environmental devastation surrounding BHP's Ok Tedi
gold mine in PNG.
Perhaps he now regrets the thousands of lay-offs at BHP plants in
Newcastle and Wollongong, leaving many in despair and poverty.
Perhaps he will make a substantial, ongoing donation to Green
Left Weekly to relieve the immense pressure of trying to operate
in today's economic conditions and help it to continue reporting
on the profits before people activities of the corporate giants.
The day Prescott resigned the BHP share price shot up 8%, with
the share movements resulting in a 21 point rise on the All
Ordinaries Index. Perhaps he will celebrate his ``good fortune''
by buying a subscription to Green Left Weekly for all his mates.
But perhaps not.
Green Left Weekly still has to rely on the thousands of
supporters who contribute in many ways to the paper each week,
not least of all financially. Each of those generous people are
an essential part of the process of getting the news and
progressive analysis out to the paper's many readers every week.
You too probably didn't benefit from BHP share price rises this
week. And you too can play a crucial role in challenging the
system that enables companies like BHP to not only get away with
but benefit from environmental and social atrocities. Please make
a donation to the Green Left Weekly Fighting Fund. Green Left
Weekly - it's your paper.
First posted on the Pegasus conference greenleft.news by
Green Left Weekly. Correspondence and hard copy subsciption
inquiries: greenleft@peg.apc.org
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+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
6. Montana: Mining: Blackfoot River updates
Date: Thu, 12 Mar 98 23:40:19 CST
From: Bill Leachman <leachman@crosslink.net>
Organization: CrossLink Internet Services
With the Montana Land Board meeting next week about the proposed
McDonald Mine on the Blackfoot river....The Bull Trout Foundation
has posted the history of the mine controversy on their web page.
http://www.bulltrout.org/pages/black.html
Interesting reading !
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