SEN MONOROM: BHP Billiton, the world's largest mining company [and sixth largest producer of primary aluminium] is prospecting in Mondulkiri - a remote province in Cambodia, eight hours drive along poor roads. Yet, it is home to the Buong people, WWF's flagship conservation project Mondulkiri Protected Forest as well as some of the poorest people in Cambodia. Plus, little of the province's 1.2 million hectares outside of protected areas are titled, remaining the ownership of the state. With aluminium prices set to quadruple during the next four years - see excellent Herald Tribune article - what does this mean for conservationists. WWF have already lost 75,000 hectares of their conservation forest concession to BHP - a company with a reasonably transparent CSR wing - see their Corporate Sustainability Report here.
Throughout the developing world, will higher prices mean deeper digging, more widespread speculative prospecting, greater scullduggery in the industry or more competition, more openness to joint ventures with indigenous peoples and a new greener coat of paint for the aluminium extraction industry?
Climate change is an indirect driver here too ... China's drive to cut power consumption [of which aluminium smelting is a huge contributor] and reduce aluminum overcapacity [China produces over 60% of the world's aluminium] may slow growth enough that the nation becomes a net importer of the metal in the fourth quarter of 2008, said Chris Ding, a Beijing-based analyst at China International Capital, the nation's biggest investment bank [from HT article]
From the Phnom Penh Post:
Bauxite under the ground in Mondulkiri where exploratory drilling began a few months ago could result in an investment worth "billions of U.S. dollars," Deputy Prime Minister Sok An announced to 600 business people attending a two-day investment conference November 9.
Prime Minister Hun Sen told the investment conference that he also had high hopes for BHP Billiton efforts. "Cambodia has significant potential in iron, bauxite, precious stones, gold," he said. But regarding oil, he said, "much of the speculation is premature."
Australian mining giant BHP Billiton over the summer began what it expects to be five years of exploratory drilling for bauxite in Mondulkiri. The company has a concession signed a year ago by Sok An to explore 1,000 square kilometers, some still dotted with unexploded ordinance and land mines from 40 years ago. Billiton said it is using land mine clearance teams in the risky areas.
From Oxfam:
"The rapid pace of the development means that we might not have a say about if it happens, but more how it happens,” said Warwick Browne, a program officer in Oxfam America’s East Asia office.
From NGO Forum:
"Now they’re just exploring, but it’s important to get people involved early on. By participating, we want to avoid environmental, social, and cultural impacts,” said Chhith Sam Ath, executive director of The NGO Forum on Cambodia, an Oxfam partner. “We also want to empower communities to have some decision-making power.”
From the United Nations office in PP:
In late 2006, a licence was granted to BHP Billiton and Mitsubishi Corporation to explore for bauxite over 100,000 hectares of land in Mondulkiri province, overlapping with the Wuzhishan concession and encompassing indigenous traditional lands. Other mining concessions affect indigenous land in Veal Veng district, Pursat and Roveang district, Preah Vihear. The growing number of mining concessions gives rise to concerns about the potential impacts on indigenous
communities, their rights and their livelihoods.
communities, their rights and their livelihoods.
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