Thursday 28 February 2013

...I would not exploit natural resources at the expense of others


This past summer, I visited Madagascar for 7 weeks in a region in the southeast of the country. While I was there, I got talking to a local man about the economy in the area and he talked about how Rio Tinto had started working in the area and all the negative effects that had occurred as a result. Near the end of the trip, tensions were high in Fort Dauphin (the main city in the south) due to rising prices and inequality. Apparently, things have only escalated since and last month, there were protests in Fort Dauphin. Hundreds of locals, armed with slingshots and spears were protesting against Rio Tinto, and the negative impacts the mining operations in the area have caused for local people. The protesters trapped 200 of the mine’s workers in buildings for days until the protests were broken up by the Malagasy military, who sprayed tear gas into the crowd.

Mining Operations in Fort Dauphin
Rio Tinto first started exploring the mining potential of Fort Dauphin in the 1980s. The area around Fort Dauphin is rich in ilmenite, which is used for titanium dioxide production. Titanium dioxide is used in several common products such as toothpaste, sunscreen, or white paint. QIT Madagascar Minerals (QMM) was created and is 80% owned by QIT- a subsidiary of Rio Tinto, based out of Quebec and 20% owned by the Government of Madagascar. The minerals mined in Madagascar are shipped to the company in Quebec where they are processed. The mine was constructed in January 2006, but seven years later, the local people are not seeing the benefits they were promised.

When the mine first started constructing, thousands of subsistence farmers in the area were relocated to the city. The company purchased 400 hectares of land, which was sold for between 100 and 6000 Malagasy ariary (CAN $0.05- $2.82) per square kilometer. Since 92% of people in the Fort Dauphin area live on less than $1/day, this seemed like quite a bit of money at the time. However, now the money has run out and those displaced cannot afford the rising prices of goods and services in Fort Dauphin. Many protesters who were displaced are now demanding more money, with a minimum price of 3000 ariary per square meter.

A number of environmental impacts have occurred from the mine. In the area where the mine works is the littoral forest, one of the most biologically diverse areas in the world. 90% of the species in the area are endemic to Madagascar and QMM has cut down a vast amount of forest in the area. Fishermen also complain that chemicals released by the mining operations are killing fish off the coast, and they are now struggling to maintain their livelihoods.

Check out this video about impacts of mining in Fort Dauphin:


Beautiful Saint Luce
Part of the protesting was regarding the lack of locals employed at the mine. Although Rio Tinto says 70% of the workers are locals, Zatinandro Perle Fourquet, who led the protest, says that only 10% of the workers are actually locals.

QMM also talks of possibly starting a new mine in St. Luce, an oceanfront community slightly northeast of Fort Dauphin. I visited this village and building a mine would have huge impacts in this area. Much of the forest there is still untouched and the main income for the area is fishing. I feel that this project would have a similar impact to what has happened in Fort Dauphin.

So who should be responsible for the negative aspects of the mining project? Should Canada take responsibility for the part QIT plays in the mining production, or should it be up to Madagascar to set up regulations for mining production in their country? What is clear though is that people are not happy with how things are happening now and something will need to be changed.

6 comments:

  1. All three parties you mentioned (Madagascar and Canadian government and Rio Tinto) should be held accountable. Rio Tinto receives the most benefit from this project. I assume that Canada would be second in profitability from this project, as the raw material is brought to Canada and processed here. Thus, it creates jobs for Canadians in secondary production. The government also taxes the company, generating more revenue for Canada. Madagascar's government is also receiving benefits because of its 20% share. All three of these participants need to be held responsible.

    Mahmoud,

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    1. I agree Mahmoud. Madagascar's government should be setting the regulations for themselves and foreign companies like Rio Tinto to protect their citizens and environment. I'm unsure about what regulations Canada currently has for mining in foreign countries but I'll have to do some digging into it.

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  2. Collaboration! Sorry to throw out an INDEV buzz word... but I agree with what Mahmoud says. To be more specific, if all three parties need to be held accountable, specific criteria should be established and agreed to that describes the role each of the players has and the actions they need to take. Because I think that is often where one of the problem lies. If we agree that collaboration is a good thing, but don't set out any parameters, it is probably just the same as doing nothing at all.

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  3. I believe that there was an INDEV placement (during the first round) with exactly these types of goals in Ghana. He was also one of the most interesting presenters at the end of the year since he was arguing quite hard for the point that resource exploitation can create jobs for people in the community. An Environmental Impact Assessment would have predicted the effects of the fishermen slowly losing their livelihoods which could have, at the very least, have provided them with some compensation or mitigation. Effective EA legislation would help hold the international agencies exploiting the lands, and the Canadian and Malagasy Governments accountable for these people's well-being. This will not happen overnight though.

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  4. The question of responsibility for the negative impacts of the mine shouldn't be a blame game I think, it should be a learning opportunity. The government of Madagascar should take it as an opportunity to learn how to strengthen their environmental policies and restrictions on mining activities. The proponent company can see it as a way to improve their relationship with the community, and as an opportunity to engage them in both this project and in the future. I guess to answer the question directly, I agree with Mahmoud, all 3 parties should be accountable and work together to deal with those negative impacts and prevent further impacts.

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  5. So it seems that pretty much everybody agrees that all three parties should be accountable and collaborate to define roles and regulations. Yet what do you think would be the best way to go about doing this? And if this was to make a difference in Fort Dauphin, it would have to be done quickly to make a difference because the mine is estimated to be depleted in 20 years. The limited time also brings up the idea of sustainability. Clearly, with such a short-term mine life, this mine was not created for long-term local economic benefits in mind and there will likely be huge impacts on the economy when Rio Tinto does leave.

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