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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
$4.4Bgross production value (2014)
$1.9Bgross value-added (2014)
$43Bmineral 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
$1.2Bnet 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 trillioncontributiontoUSGDP
of industriesusingminerals
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
Source: NSCB (GDP data)
GOVT
REVENUE
National
Local
4) With collaboration of govt
•  Promotes mining profits &
foreign industries...
•  ... at expense of national devt
$504Mnational 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

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