BHP Billiton partner accused of bribery

CAFOD is concerned about mining company BHP Billiton's plans to build a huge nickel mine, here in Macambol, Philippines [CAFOD/Simon Rawles]

A controversial nickel project run by Anglo-Australian mining giant BHP Billiton has been imposed on a Philippine island community through bribery and poor information, a hard-hitting report from CAFOD says today

People living in Macambol on the island of Mindanao claim BHP Billiton’s joint venture partner, AMCOR, and Philippine government officials, have offered members of the community bribes in return for supporting the proposed mine and to silence opposition.

One community leader was allegedly offered as much as one million Philippine pesos (around £12,000) by an AMCOR representative and a government official to support the project, in an area where the average family income is around £1 a day.

Outstanding natural beauty

BHP Billiton’s £13billion project, which is in an area of outstanding natural beauty home to rare and endangered species including the Philippine eagle and sea cow, is not due to start production until 2014 but has already deeply divided this close-knit community.

Some people living in Macambol are in favour of the mine while others think the potential risks to their livelihoods and the environment are too great.

Many say they haven’t been properly consulted and some are afraid to speak out. At times, this tension has threatened to spill over into violent conflict.

CAFOD’s report, “Kept in the Dark”, launched today to coincide with BHP Billiton’s AGM in central London, reveals how the Macambol community has been kept in the dark about the proposed mine and how the process to secure indigenous people’s consent for it, as required under Filipino law, was seriously flawed.

It also highlights how the project - known as the Hallmark project - could lead to increased soil erosion, landslides and flash-floods and pollution from mine waste or chemicals could endanger the livelihoods of the 65,000 people living near Pujada Bay.

Calls for new consent process

CAFOD is calling for a new, independently-monitored consent process to be carried out and for the Macambol community to be given sufficient information about the mine and all its potential impacts so that they can make an informed decision about whether it should go ahead or not.

CAFOD, which has been supporting the Philippine people’s struggle for justice for nearly 40 years, also believes that if the risks to the environment are too great, the project should not continue.

CAFOD director Chris Bain said: “For generations, the people of Macambol, on the Philippine island of Mindanao, have earned a living fishing in the crystal waters of Pujada Bay and farming maize and mangoes in the shadow of Mount Hamiguitan.

"But their way of life is about to change forever. Throughout the world, poor communities are suffering the negative impacts of mining. We don’t want this to happen in Macambol.

“As the world’s biggest mining company, BHP Billiton has a great opportunity to lead the way in responsible mining by ensuring that the partners and contractors it chooses to work with are not involved in bribery or corruption.

“We are calling on BHP Billiton, its joint venture partner AMCOR and Philippine government officials to address the issues outlined in our report.

"Failure to do so could pose significant risks to the project and have lasting consequences for communities and the environment in Macambol and beyond.”

AGM vigil

Head of Campaigns Rashmi Mistry hands over a copy of CAFOD's report to Philippine Deputy Ambassador Reynaldo Catapang [CAFOD/Adrian White]

Campaigners, dressed in white and holding lanterns and banners, gathered outside the AGM to hold a vigil in solidarity with the people of Macambol.

The group then processed to the Philippine Embassy where CAFOD Head of Campaigns Rashmi Mistry handed over a copy of the "Kept in the dark" report to Deputy Ambassador Reynaldo Catapang.

Meanwhile, inside the AGM, CAFOD representatives questioned BHP Billiton management about the Hallmark project and read from a statement made by local community members in opposition to mining.

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