Rio Tinto Hypocrisy in New York City - Rio Tinto to Present, Sponsor Plumb Club Forum on Ethical Jewellery

Rio Tinto Diamonds will be the presenting sponsor of the upcoming Plumb Club Forum at New York's Fashion Institute of Technology on March 2-3, 2008. The event is by invitation only.

Rebecca Foerster, vice president of Rio Tinto Diamonds in the United States, said the forum will focus upon hot topics in the pipeline such as ethical practices and consumer confidence. Rio Tinto Diamonds is one of several founding members of the Council for Responsible Jewellery Practices, whose CEO Michael Rae will speak at the Forum on how to ensure an ethical jewelry supply chain.

(Meanwhile, on the other side of the world: BHP Billiton's interest in Rio Tinto raises environmental dilemma , Rio Tinto: Global Compact Violator , Rio Tinto to be Prosecuted for Uranium Disaster , Rio Tinto Litigation- Bougainville , Rio Tinto - Labor, Human Rights, Environment & Treatment of Indigenous Peoples )

The Plumb Club Forum is also sponsored by JCK, Gemological Institute of America, ABN AMRO Bank, HSBC Bank, American Gem Society, Antwerp Diamond Bank, Gem Certification and Appraisal Lab, GemEx Systems, Gemological Science International, IGI, Malca-Amit, Natural Colored Diamond Association, World Gemological Institute, and the World Gold Council.

Even speakers include Carly Fiorina (former CEO of HP,) the Diamond Commissioner of Namibia, Kennedy Hamutenya, and book authors Seth Godin (Permission Marketing and Purple Cow) and Don Tapscott (Wikinomics: How Mass Collaboration Changes Everything.)

(One of the missing: Al Gore Dumps Barrick Gold Sponsorship for Chile Visit - Mining sponsorship risked "contaminating" and making a mockery of Gore's campaign. )

Here is the full article.

What's next? Adolf Eichmann at the Yad Veshem?

BHP Billiton's interest in Rio Tinto raises environmental dilemma

MELBOURNE (MarketWatch) -- BHP Billiton Ltd.'s (BHP.AU) strict (??? see below) environmental guidelines mean it could decide to sell Rio Tinto Ltd.'s stake in the Grasberg copper and gold mine if its bid for Rio is successful, analysts say.

BHP has since 2001 opposed (retreated from?) the dumping of waste materials from the processing of ore, known as tailings, directly into rivers, something that occurs at the Grasberg mine.

BHP wouldn't comment directly on Grasberg and appears to be leaving the door (pipe?) open for the merged entity to maintain a stake in the rich mine, despite its waste disposal practices (naturally).

The possible dilemma for BHP indicates that, along with many synergies from a merger with Rio, there would be some bumps (tailings?) in the road (river?) along the way.

BHP has proposed an all-equity offer for Rio Tinto, but Rio has dismissed the proposal as significantly undervaluing the firm.

Analysts say any sale of Rio Tinto's 40% stake in Grasberg could fetch up to US$4 billion and there would be no shortage of willing buyers. Grasberg is one of the world's most profitable mines and also one of the biggest copper deposits, with reserves of 2.8 billion metric tons of ore containing 54.8 billion pounds of copper and 54.3 million ounces of gold as at Dec. 31, 2006.

Tailings from the mine in the province of West Papua, which is majority owned by Freeport-McMoran Copper & Gold Inc. are discharged directly into the local river system and then deposited on a floodplain.

The tailings disposal methods at the mine have been attacked by environmentalists and the operation has also been caught up in controversies relating to the local independence movement.

BHP's long-standing (since 2001?) policy not to dump unprocessed tailings from any of its operations into rivers dates back to its ignominious exit from the environmentally (economically?) disastrous Ok Tedi mine in Papua New Guinea. (More here ) The company completed its withdrawal from the mine in 2002, writing off its 52% stake. (QED) But it still faces legal action from locals affected by dumping of tailings into the Fly River. (More: here)

BHP declined to comment on Grasberg Tuesday but appeared to leave the door open to keeping the Rio Tinto stake, pointing out its environmental policy applied to existing projects (loophole #1).

"We have publicly committed not to pursue deep sea (so the mid-oceanic trenches are protected?) tailings placement as a potential tailings disposal option for any of our current operations," a spokeswoman told Dow Jones Newswires.

BHP also pointed to its sustainability report (2006), in which it vows, "not to commit to any new mining project that disposes of rock or tailings into a river". (sounds fabulous) But the report goes on to say this does not apply to material in conventional tailings dams (loophole #2), which may be constructed within river systems where the structures are designed to retain and store materials.

Nor does it apply (loophole #3) to the discharge of water from tailings dams or waste rock dumps that is of a quality acceptable for downstream beneficial (mine tailings waste?) uses according to the report.

These caveats look to give BHP some room to maneuver (goes without saying) if it wants to keep Rio Tinto's Grasberg stake.

Here is the full article.

Futaleufu Gold Miner, Geocom Resources Inc., is a Joint Venture Partner with BHP Billiton in Alaska for those keeping track: Iliamna Project

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More mining industry propaganda here: Mine Your Own Business - The Darkside of the Environmental Movement? - watch the groundbreaking video trailer below

UK mining companies complicit in abuse of poor - Xstrata, BHP Billiton, Rio Tinto, Vedanta Resources accused.

[Tuesday 20 November 2007] British mining corporations supported by the UK government, such as Vedanta Resources, Rio Tinto and BHP Billiton, are complicit in human rights abuse while making huge profits in developing countries.

This charge is made today by the anti-poverty charity War on Want in a report which attacks these and other UK companies for fuelling conflict and violence against vulnerable people. War on Want launched the report, Fanning the Flames, as the Mines and Money World Congress for the booming industry opens in London today.

Ruth Tanner, senior campaigns officer at War on Want, said: "The British government has championed the cause of UK mining firms across the world. Yet the industry is complicit in a range of human rights abuses and is profiting at the expense of the poor. It is time for the British government to take action to stop these abuses."

The report is launched in the wake of the Norwegian government's decision to drop Vedanta from its global pension fund due to "systematic" environmental and human rights failures. Vedanta's bid for mining rights in the Indian state of Orissa faces mounting opposition from thousands of Dongaria Kandha tribal people who fear the company's plans will damage the fragile ecosystem of the Niyamgiri mountain forest, on which they depend for their livelihoods. According to the report, the Indian Supreme Court heard evidence that people forced to leave their villages to make way for the refinery were beaten.

Dandu Sikaka, a Dongaria tribal woman, said: "How will we survive without Niyamgiri, the mountain? Our streams will dry up. If they mine, it will become a disaster. We will all die if you dig out our forest."

The report pinpoints other Vedanta involvement in abuse in India. At Mettur in Tamil Nadu, the company is accused of seizing land, with discharge from its aluminium plant poisoning farm soil, contaminating water and killing animals, and emissions from the plant and coal-fired power station causing severe health problems for local people. One non-governmental investigation found that male bauxite workers at Mainpat in Chhattisgarh state earned just over 60 rupees, about 80p, for delivering one tonne of ore, with women paid even less. The workers live in small thatched hovels perched over the quarry, denied electricity and adequate water.

Last year Rio Tinto earned $122 million from its stake in the Grasberg gold and copper mine in West Papua, Indonesia, where local people have suffered years of serious human rights and environmental abuse.

BHP Billiton is pressing for new mining opportunities in the Philippines, despite a wave of murders and other human rights violations linked to the extractive industry.

In addition the report cites abuse surrounding operations by UK mining companies Anglo American, Oxus Gold, Global Coal Management, Monterrico Metals and Xstrata in countries such as South Africa, Papua New Guinea, Bangladesh, Peru, Zambia and Colombia.

Here is the full article.

If Mongolia wants to get rich, it's now or never says Rio Tinto and Ivanhoe Mines

Mongolia's dilemma: democracy or wealth?

OYU TOLGOI, Mongolia, Nov 15 (Reuters) - If Mongolia wants to get rich, it's now or never.

That's what mining firms are telling Mongolia's parliament, which is in a position to unlock the country's mining sector by taking a landmark decision on a multi-billion dollar copper deal.

"If that happens, the floodgates will open," said Evan Jones, director of exploration firm Altan Rio. "These guys could create some serious wealth if they get their act together. Seeing as there's only 2.7 million people, they could really fix the place if they use it wisely. It's a huge deal for them."

The alternative, foreign miners warn, would mean Mongolia missing out on a China-driven boom in minerals prices and being consigned to impoverished obscurity for decades.

"If the deal doesn't go through, other major companies won't invest here," said Dogsom Ganbold, head of the National Mining Association. "There's a risk of them pulling out."

Mongolia's future hinges on parliament ratifying, or not, an agreement the government struck in June with miners Rio Tinto and Ivanhoe Mines, which plan to produce copper and gold from the colossal Oyu Tolgoi deposit in the Gobi desert.

Oyu Tolgoi's potential was enough to make geologists' eyes bulge on a recent tour of the site, where traditional Mongolian white tents stand alongside thousands of crates containing 720 km of drill core -- rock drilled out during the exploration phase.

If it goes ahead, the headframe for the main mineshaft, at 95 metres, would be Mongolia's tallest building. But Ivanhoe says it won't sink the shaft until the investment agreement is ratified.

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PARLIAMENTARY PRESSURES

The deal is on the agenda for parliament's current session but members face re-election in July and are nervous that approving it could lose them votes, as it would mean the project would escape a 68 percent windfall profits tax that parliament introduced last year. "The windfall profits tax was seen as a way of clawing back money going to Russia," said the head of one foreign mining firm, referring to Mongolia's biggest existing mine, Erdenet, which is 49 percent-owned by the Russian government.

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THE GOLDEN EGG

Although the windfall tax applies only to copper and gold, miners say the deal with Rio Tinto and Ivanhoe would set a standard for deals across the industry, effectively abolishing the windfall tax before it has yielded any benefit.

On the flipside, the two firms are offering the government 34 percent in the project, which could also set a precedent. But they say they can't wait forever as they are spending $30-40 million a month while equipment gathers dust in the Gobi.

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"The sooner this deal gets approved, the sooner people start to get the benefits," said Ganbold, a young carpenter, rubbing his eyes in the dawn coal smog that cloaks the capital. "With all its minerals, this should be a really rich country." The extent of Mongolia's mineral wealth is unknown, but geologists say comparisons with Chile or Indonesia are realistic.

Here is the full article.

Why China fears the BHP Billiton / Rio Tinto Merger

BANGKOK -- BHP Billiton's bid for rival resources giant Rio Tinto shows how Western mining companies are increasing their clout as the world's commodity boom marches on, a trend that is in stark contrast to developments in the global oil business and one that could put China -- Asia's biggest and fastest-growing minerals consumer -- in a bind.

For all of their big profits, Western oil companies have seen their long-term prospects dim in recent years. That's because much of the world's remaining oil is controlled by foreign governments, which are tightening their grip on supplies even as it gets harder to find new deposits. The national oil companies and governments of countries such as Saudi Arabia and Venezuela have seen their influence grow, often at the expense of the West, as oil prices soar.

The opposite is true in mining, which increasingly is dominated by a handful of Western, publicly traded companies that are consolidating to create global supply juggernauts. BHP Billiton, Rio Tinto, Companhia Vale do Rio Doce of Brazil and Anglo American PLC of the U.K. control many of the world's biggest mines -- notably in Australia, Chile and Canada. And Western capital is funding much of the exploration needed to add supplies in the years ahead.

The trend enhances the earnings potential of Western mining companies. But it also complicates the economic outlook for resource-hungry economies, particularly China's, where high demand has helped drive the global commodity boom.

"A BHP-Rio Tinto merger could cause commodity prices to remain stronger through greater supply discipline and reduced competition for market share amongst the major mining houses," John Meyer, a resources analyst at investment bank Fairfax IS in London, wrote in a note to clients on Friday. If these Western companies move slowly to expand output -- as they have to date during the current commodity boom -- it could put China and other big metals consumers at a disadvantage.

Western market dominance is most pronounced in iron ore, with three companies -- BHP, Rio and CVRD -- controlling roughly 75% of international trade. The companies are also strong players in copper, coal and some other commodities. BHP and Rio already own more than 85% of the world's largest copper mine, the Escondida deposit in Chile, and Western companies are behind the development of many of the largest new sources of nickel, copper and iron ore.

(This is the driving force behind China's hydroelectric project in Gabon, Africa: Chinese 3.5 Billion “Hydroelectric – Iron Mine” complex slated for Africa’s Gabon National Park )

China is especially vulnerable in the case of coal. Although domestic mining companies produce enormous quantities of the commodity, they haven't always kept pace with China's rocketing demand. Earlier this year, the country became a net coal importer, helping push prices to record highs. Unlike oil supplies, much of the coal that China could tap is produced by Western outfits, including BHP.

Here is the full article.

Chinese National Bank buys shares in Rio Tinto Group after BHP Billiton bid

Sunday Telegraph, a London newspaper, reported the CDB had bought less than 1% in Rio Tinto, a tiny stake but significant owing to BHP Billiton's earlier three for one shares offer. The Sunday Telegraph did not name its source.

And in a report by The Times, BHP Billiton is said to be preparing the sale of its petroleum arm to either Chinese or other buyers for at least $40bn, funds that would be used to finance the takeover of Rio Tinto.

"It is the first time a Chinese state-backed group has taken a direct stake in a global miner and will fuel speculation that China may intervene in the bid battle," the Sunday Telegraph said.

Tom Albanese, Rio Tinto's CEO, was on a trip to China, arranged before BHP Billiton's bid was made public.

Rio Tinto's share price rocketed up by a third on November 8 after BHP Billiton confirmed market speculation it had approached Rio to combine their assets worth an estimated $350bn.

A combined company would have iron output similar to that of world number one CVRD and would be in a similar position with copper, rivalling Chile's Codelco for the number one spot. This would be negative for China, which consumes about half of the world's iron ore, because it would given the combined company huge pricing power.
Already, iron ore prices have increased by double digits every year for the last four years and are tipped to increase by 20% plus in current contract negotiations effective from April.

Quoting an Investec report from earlier this year, Miningmx said one possible takeover scenario for Rio Tinto would see the Japanese and Chinese participate in the business. The diversified mining business would retain overall management control, Investec said.

China's efforts to secure its own sources of raw materials are well known with some $5bn in trade surplus earmarked for African investment.

Standard Bank and Industrial & Commercial Bank of China Limited (ICBC), China’s biggest bank by market capitalisation, were planning to set up a global resource fund to target investment in mining, metals, oil and gas, projects, and associated industries anywhere in the world.

Here is the full article.

BHP Billiton's Rio Tinto offer will give BHP a 90% share of Chile's Escondita copper mine, the world's largest

Nov. 8 (Bloomberg) -- BHP Billiton Ltd., the world's biggest mining company, plans to pursue a takeover of Rio Tinto Group after an earlier approach was rejected, in what may become the largest acquisition in history.

A purchase of Rio Tinto, which has a market value of $165 billion, would create a company that controls more than a third of the iron-ore market, supplies the most energy coal and copper, and owns mines and oilfields in six continents. Rio is the third-largest miner behind BHP and Anglo American Plc.

``If the name of the game at the moment is resources in the ground, then why pussyfoot with junior or medium-size miners when you can go to the top?'' said Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe in London. ``This deal will happen, it's just a question of time.''

Rio stock jumped as much as 32 percent in London trading as the company rejected BHP's offer of three shares for each one in Rio. BHP, based in Melbourne and led by Chief Executive Officer Marius Kloppers, said in a statement to the Regulatory News Service it ``recently'' wrote to Rio's board with the outline plan. BHP shares in London slipped as much as 4 percent.

``It significantly undervalues Rio Tinto and its prospects,'' Rio, which has a dual listing in London and Sydney, said in a separate statement. ``The boards have unanimously rejected the proposal as not being in the best interests of shareholders.''

Stock Climbs

Rio Tinto shares rose as high as 5,740 pence, a record, and traded up 23 percent at 5,372 pence as of 2:40 p.m. in London.

A successful bid may eclipse the two biggest takeovers -- America Online Inc.'s purchase of Time Warner Inc., and Vodafone AirTouch Plc's acquisition of Mannesmann AG. For all of 2006, there were 1,145 deals in the mining industry, valued at $176.5 billion.

The combination would raise antitrust issues, particularly in the iron-ore market, said Charles Bailey, an analyst at Brewin Dolphin Securities in London. BHP, Rio and Brazil's Cia. Vale do Rio Doce control about 80 percent of the seaborne trade in the ore.

Rio, the world's second-largest iron-ore exporter after Vale, may now decide it's better to try to combine with its Brazilian rival, according to Ian Henderson at JP Morgan Asset Management in London.

Vale Partner?

``I can't conceive a competing bid from another company coming through,'' Henderson, who manages $7 billion in natural- resource assets, said in a phone interview. ``Rio and Cia. Vale do Rio Doce may throw their arms around one another instead.''

Vale spokesman Fernando Thompson declined to comment.

The offer sparked a rally in mining shares. The only stock in the nine-member Bloomberg Europe Metals and Mining Index to decline so far today is BHP. Anglo American rose 12 percent, Xstrata Plc climbed 11 percent and Lonmin Plc added 8 percent.

``The bid proves that the consolidation in the mining industry is far from over,'' Christer Fredriksson, an analyst at ABG Sundal Collier in Stockholm, said in a note to investors.

A combination of BHP and Rio would include assets such as a stake in Chile's Escondida, the world's largest copper mine(Rio Tinto owns 30%), and the world's second-biggest uranium producer in Australia. The company also would have assets in aluminum, diamonds, silver, lead and nickel.

Here is the full story.