Indonesian lawsuit against global mining company draws attention to record of environmental abuse Commentary
Indonesian lawsuit against global mining company draws attention to record of environmental abuse
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Christina Hill [Mining Advocacy Coordinator, Oxfam Australia]: "It has been reported that local communities in the Indonesian province of West Papua have filed a $30 billion lawsuit against the local subsidiary of US mining company Freeport-McRoRan Copper & Gold – operator of the giant Grasberg mine. The company is being sued for environmental and human rights violations. As reported by the JURIST, Freeport has been a frequent target of environmental and human rights groups who allege human rights abuse and environmental damage.

Back in 2006, Freeport was excluded from the $300 billion Norwegian Government Pension Fund's investment portfolio on ethical grounds. Freeport's mining activities at Grasberg were found [PDF file] to "involve an unacceptable risk of complicity in severe and irreversible damage to the natural environment" while the "company's practice of riverine [tailings] disposal is in breach of international standards." Freeport is not the only mining company to be blacklisted by the Pension Fund for causing severe environmental damage due to the practice of dumping mine waste into rivers. Barrick Gold and Rio Tinto — which has a stake in the Grasberg mine — have also been excluded from the Fund's investment portfolio for this reason.

More recently, a coalition of other pension fund investors has lobbied Freeport shareholders to push the company to improve its poor environmental performance by appointing an environmental expert to its board.

This all serves to demonstrate that mining companies can face reputational, financial and legal risks if they do not operate in accordance with internationally accepted best practice. These risks can be avoided if mining companies commit to engaging in genuine dialogue with local communities, put an end to environmentally destructive practices such as riverine tailings disposal, and demonstrate a commitment to respecting the human rights of local people."

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