IBon on Mining Plunder

1. Financing Mining Plunder and
Rights Violations: A Footnote
IBON Foundation | July 30, 2015

2. MINING
FIRM
GOVT
REVENUE
National
Local
PROFITS
Equity
Debt
Others
COMMUNITY
IMPACT
HRVs
Environment
MINERAL
PROCESSING
MINING
INPUTS
INDUSTRIAL
USES

3. $4.4Bgross production value (2014)
$1.9Bgross value-added (2014)
$43Bmineral exports (since 1970)
235K
mining & quarrying employment (2014)

4. PROFITS
Equity
Debt
Others
1) Mining firms and mining
investors gain
• Resource exploitation
• Undervalued minerals
* public/private equity
* public/private debt
* royalty/stream financing

5. $1.2Bnet income, mining Top 1000 firms (2013)
$560M
net income, mining & oil listed firms (2014)
$4.3B
total mining investment (2011-2014)

6. COMMUNITY
IMPACT
HRVs
Environment
2) At expense of communities
• Impact on health & livelihoods
• Human rights violations
• Damage to environment

7. 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

8. MINERAL
PROCESSING
MINING
INPUTS
INDUSTRIAL
USES
Quantitatively small share of
economy but qualitatively significant
across industrial, agricultural & service sectors
ESSENTIAL, NO SUBSTITUTES

9. 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

10. 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 trillioncontributiontoUSGDP
of industriesusingminerals

11. 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
750,000tonsamountof minerals
usedbyUSMILITARYannually

12. Source: NSCB (GDP data)

13. GOVT
REVENUE
National
Local
4) With collaboration of govt
• Promotes mining profits &
foreign industries...
• ... at expense of national devt

14. $504Mnational government mining revenues (2013)
$35M
local government mining revenues (2013)

15. MINING
FIRM
GOVT
REVENUE
National
Local
PROFITS
Equity
Debt
Others
COMMUNITY
IMPACT
HRVs
Environment
MINERAL
PROCESSING
MINING
INPUTS
INDUSTRIAL
USES

16. • 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

17. 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

18. Maraming salamat