Subject: [cwj 45] UPDATE on Tomen Corp. Involvement in Destructive Sri Lanka Project
From: Corporate Watch in Japanese <cwj@corpwatch.org>
Date: Wed, 28 Jun 2000 11:16:52 -0700
Seq: 45
Thursday, June 29, 2000 Tomen reviewing Sri Lanka mine deal Tomen Corp. is reconsidering its planned investment in a huge phosphate mine in Eppawala, an ancient village in central Sri Lanka, according to members of a Japanese nongovernmental organization supporting residents who oppose the project. Japanese Citizens for Eppawala has received replies from Tomen after sending letters in May and June urging the company to halt investment in the project because it will destroy the environment and threaten residents' lives. As part of a project with U.S. fertilizer firm IMC Agrico Co., Tomen and the Sri Lankan government-owned body Lanka Phosphate Ltd. are to explore and mine for phosphate around 56 sq. km of ancestral lands, destroying 26 villages and 23 major irrigation tanks, the NGO said. Tomen planned to put up 25 percent of the estimated $500 million needed for the project, while IMC Agrico intends to put up 65 percent. Tomen replied in a letter dated June 21 that the firm is currently reviewing the plan in compliance with Sri Lankan law and a top court decision on a suit filed by seven Eppawala residents demanding that the project be halted. On June 2, the Sri Lankan Supreme Court decided that the defendants cannot take any further action until the geology and mineral department conclude a comprehensive investigation into phosphate in Eppawala. The investigation should include the amount of phosphate and the mines' effect on the environment, and its results should be made public, the court said. Tomen told a member of the NGO in an October letter that it was conducting a feasibility study of the area. The project could destroy the area, which includes the ancient 54-km Jaya Ganga canal, listed by the U.N. Educational, Scientific and Cultural Organization as a World Heritage site, and will threaten more than 12,000 residents with forced relocation. Tomen currently holds 25 percent of the shares in Sarabhoomi Resources Ltd., which was set up to mine for phosphate in Eppawala. The Japan Times: June 29, 2000 =============================== Here is an action alert from October 1999 on the project ACTION ALERT: Stop Tomen Corp. Involvement in Destructive Sri Lanka Project Urgent Japanese Assistance Requested to Save the Eppawala Community This information is provided by Dr. Jonathan Walters, the elected International Representative of the local grassroots protest movement called The Committee to Protect Eppawala Phosphate. (Dr. Walters has done extensive fieldwork in the Eppawala region since 1984 and currently serves as Chair of the Department of Religion at Whitman College in Washington State). PROJECT OVERVIEW The Government of Sri Lanka reportedly soon will grant final approval to a $495 million phosphate mining project in Eppawala, Sri Lanka. Japan's Tomen Corporation will provide 25% financing for this project, which consists of an enormous strip mine, processing facilities and waste dumps. The phosphate (in both its mineral form, apatite, and as processed phosphate fertilizer) would be exported for the international market in fertilizers. In addition to Tomen, the project is supported by the US corporation IMC-Agrico (65%) and the Sri Lanka National Phosphate Corporation (10%). Some $1 billion in profits would reportedly accrue to the foreign corporations, without major benefit to the Sri Lankan economy. The Sri Lanka government will receive no payments for the first 12 years. The phosphate supply would be exhausted in 30 years, although it could meet local needs for hundreds of years. This project is being approved without a proper environmental impact assessment, without proper consultation with citizens, and despite the recommendations of numerous experts and in the face of strong local protests. PROJECT IMPACTS The project would strip-mine 56 square miles (145 square km.) surrounding Eppawala's "Phosphate Hill." At least 12,000 people from dozens of villages would be displaced -- and perhaps as many as 500,000 people would be displaced in the planned 675 square mile (1750 square km.) buffer zone. The area, a candidate for World Heritage status, would lose uncounted archaeological sites and ruin 6 miles (10 km.) of an historic canal that has brought rainwater to the area for 2000 years -- making it the world's oldest planned and continually occupied "water and soil conservation ecosystem." Habitat for elephants and other wildlife, a pristine dry forest, and resources such as rare medicinal herbs would also be lost. Toxic waste by-products, including sulphuric acid, would be dumped on the sea coast at the port of Trincomalee. IMC-Agrico's similar phosphate mine in Florida, USA, and dumping facility in Louisiana, USA have been severely criticized for the environmental pollution caused. The mine and factories would disrupt the local culture and sustainable communities. LOCAL OPPOSITION Motivated by their love for their native land, the local community is united against the project. Led by a respected local monk vowing opposition to the death, the local community has staged numerous protests against the project and the foreign companies involved, including several 5000-person protest marches. Their slogans have included "Don't destroy our Buddhist heritage," "Don't destroy our fields and gardens," and "Don't sacrifice the villages and jungles." Local people have charged that there has been a lack of proper consultation with the local community. Numerous Sri Lankan government officials, scientists, economists, environmentalists, Buddhist monks and newspapers have likewise expressed opposition to this project. THE ROLE OF JAPAN The US corporation IMC-Agrico is affiliated with Freeport McMoRan, a company that has been unresponsive and hostile to environmental and human rights issues at its notorious Grasberg mine in Irian Jaya, Indonesia. There is hope that if Tomen withdraws, the project could be stopped. Unfortunately, there is no further information available as to the involvement of Tomen or other Japanese organizations in financing the project; for instance, which Japanese bank is providing loan guarantees? Has there been any coverage of this in Japanese press? Tomen is saying that it is an environmentally friendly company, such as by pointing out that it is the largest producer of wind power equipment. Their web-site states that "Tomen is fully committed to operating its businesses with the highest level of protection of the global environment and regard for sustainable development." But Tomen's support for the Eppawala project is proof that they do not take seriously a commitment to sustainable development, as sustainable development is inconsistent with the destruction of communities and the environment. We must make it clear to Tomen that continued support for the Eppawala project will demonstrate that they are hostile to environmental considerations and will lead to a loss of trust from the public. ACTION NEEDED Japanese citizens and NGOs have a chance to prevent a Japanese corporation from undertaking a destructive project opposed by local people. --Please contact Tomen to request that they withdraw from this project. --Please report on this issue, and consider in-depth reporting from the site. --Please take any other action that can help convince Tomen to abandon this project. --Please send information on your activities, or suggestions of others to contact for assistance in Japan. For more information on the situation, please contact: Mr. Nihal Fernando, #18 Skelton Road, Colombo 05, Sri Lanka. Telephone: 94-1-582043 (h); 94-1-595569, 94-1-589062 (o) Fax 94-1-597176. Email <studio.times@lanka.ccom.lk> Visual images and other documentation of the local protest movement can be found at http://people.whitman.edu/~walterjs/ ("Americans for Eppawala website"). FAIR USE NOTICE. This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. Corporate Watch in Japanese is making this article available in our efforts to advance understanding of ecological sustainability, human rights, economic democracy and social justice issues. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the US Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. ------------------------------------- Corporate Watch in Japanese Transnational Resource and Action Center (TRAC) P.O. Box 29344 San Francisco, CA 94129 USA Tel: 1-415-561-6472 Fax: 1-415-561-6493 Email: cwj@corpwatch.org URL: http://www.corpwatch-jp.org ------------------------------------- ______________________ The Corporate Watch in Japanese http://www.corpwatch.org/japan (CWJ) mailing list is a moderated email list in English designed to connect activists campaigning against Japanese corporations and investments around the world. * To unsubscribe from the CWJ mailing list, send an email to majordomo@jca.apc.org with text "unsubscribe cwj". To subscribe to the CWJ mailing list, send a message to majordomo@jca.apc.org with the text "subscribe cwj" * The CWJ mailing list is NOT intended for wide distribution. 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