Financing Mining Plunder and Rights Violations: A Footnote

IBON Foundation | July 30, 2015

MINING FIRM

GOVT REVENUE

National

Local

PROFITS

Equity

Debt

Others

COMMUNITY IMPACT

HRVs

Environment

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

$4.4B

gross production value (2014) $1.9B gross value-added (2014)

$43B mineral exports (since 1970)

235K

mining & quarrying employment (2014)

PROFITS

Equity

Debt

Others

1) Mining firms and mining investors gain • Resource exploitation • Undervalued minerals

* public/private equity * public/private debt * royalty/stream financing

$1.2B net income, mining Top 1000 firms (2013)

$560M

net income, mining & oil listed firms (2014)

$4.3B

total mining investment (2011-2014)

COMMUNITY IMPACT

HRVs

Environment

2) At expense of communities •  Impact on health & livelihoods • Human rights violations • Damage to environment

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

3) Advanced industrial economies gain – amid overall economic offensive • Backward linkages – ex. mining equipment • Forward linkages – ex. manufacturing, utilities,

military • Horizontal linkages – ex. transport

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

Quantitatively small share of economy but qualitatively significant across industrial, agricultural & service sectors

ESSENTIAL, NO SUBSTITUTES

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

 

Metals  input  in  $1  of  final  output  (2012)  

 

($)  

Electrical  equipment,  appliances  &  components  

0.45  

Machinery   0.42  Motor  vehicles   0.34  Other  transport  equipment   0.26  ConstrucCon   0.14  Computers  and  electronic  products  

0.12  

UCliCes   0.04  

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

 

US  mining  to  manufacturing  

(2013)  

Value-­‐added  

($  billion)  

Direct  employment  

(‘000)  Manufacturing   2,100   12,161  

Fabricated    metals  

137   1,456  

Primary    metals  

66   401  

Support  acCviCes  

67   436  

Mining   96   212  

$2.5 trillion contribution to US GDP

of industries using minerals

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

Top  10  materials   Tons  (‘000)  

Aluminum   275  

Copper   106  

Lead   88  

Fluorspar   57  

Zinc   51  

Rubber   30  

Manganese  ore   25  

Nickel   17  

Chromium  ferro   9.7  

Chromite   9.6  

750,000 tons amount of minerals

used by US MILITARY annually

Source: NSCB (GDP data)

GOVT REVENUE

National

Local

4) With collaboration of govt • Promotes mining profits &

foreign industries... •  ... at expense of national devt

$504M national government mining revenues (2013)

$35M

local government mining revenues (2013)

MINING FIRM

GOVT REVENUE

National

Local

PROFITS

Equity

Debt

Others

COMMUNITY IMPACT

HRVs

Environment

MINERAL PROCESSING

MINING INPUTS

INDUSTRIAL

USES

• Locate mining industry issues in overall national development framework

• Responsible intervention by a democratic state, especially after 3 decades of globalization policies

• Challenge hegemony of neoliberalism

www.invesCgaCvedashboard.org

strategiccorporateresearch.org

opencorporates.com

invesCng.businessweek.com    

www.bloomberg.com/research/company/overview/overview.asp

offshoreleaks.icij.org

sedar.com  

edgar.com

taxjusCce.net

archive.org

Maraming salamat