BHP Billiton accused of green abuse: Report
Monday, October 27 2003 - 01:50 AM WIB
Shareholders questioned chairman Don Argus and chief executive Chip Goodyear over the mining giant's interests in Indonesia and Brazil at BHP Billiton plc's AGM in London.
One raised the issue of Gag Island in Indonesia which UNESCO has recommended be declared a protected area and which BHP Billiton was hoping to mine for nickel.
The Indonesian government is split over whether to amend its laws to allow mining on the island and shareholder Roger Moody asked Argus whether BHP Billiton had put any pressure on the government.
"To my knowledge no. And I certainly wouldn't believe we would apply any pressure anywhere," Argus replied via video link from Melbourne.
Argus said if the island was declared a protected area, BHP Billiton would not pursue its interests.
BHP Billiton has been trying to push for development of its huge nickel deposit in Gag island, in Papua province, which is stopped because the ministry of forestry declared the area protected forest. BHP, together with local partner PT. Aneka Tambang had obtained the licence to explore the area long before the island was declared protected forest.
Goodyear fended off accusations from another shareholder that the company was condoning illegal activity by the Alumar alumina smelter in Brazil which was refusing to abide by a court order to pay workers in a wage dispute and was pressuring leaders to leave the union.
"On the face of it, that appears illegal activity on the part of the company," shareholder Richard Solly said.
Goodyear said because BHP Billiton has between 36 percent and 46 percent stake in the smelter, labor issues were out of its hands.
"We do not operate that facility and issues in labor and labor relations would belong to the operators. Obviously if there were things illegal, we would look into that," he said.
Argus said BHP Billiton, the world's largest diversified miner, took pride in its relationship with its workforce around the world.(*)