http://www.downtoearth-indonesia.org/story/indonesian-coal-company-london-stock-exchange


An Indonesian coal company on the London Stock Exchange


 
The KPC mine, East Kalimantan - one of the world’s biggest open-cast coal 
mines. (Photo: JATAM)
DTE 91-92, May 2012

Campaigners are calling for the UK government to tighten up the rules for 
companies listed on the London Stock Exchange. A new report, launched in 
February 2012, includes a case study by DTE on the newly created Bumi plc. This 
company, is jointly owned by Indonesia’s Bakrie brothers - powerful players in 
national politics as well as business – and the UK financier Nat Rothschild. 
Bumi operates one of the world’s biggest coal mines, Kaltim Prima Coal in East 
Kalimantan, a vast open pit project long associated with evictions, livelihood 
loss, pollution, strikes and dubious business deals.[1]

London Mining Network, an alliance of 27 human rights, development and 
environmental groups, is calling on the British government to firm up the rules 
for companies listing on London’s Stock Exchange (LSE) as part of the 
discussion on a new Financial Services Bill. Looking at eight case studies, 
UK-Listed Mining Companies & the Case for Stricter Oversight argues that:

  a.. Many mining companies listed in London have very poor records of 
complicity in human rights abuse, environmental pollution or destruction of 
people’s cultures and livelihoods around the world. 
  b.. Once listed in London, some mining companies have continued to flout the 
law in the countries where they operate, or engage in damaging tax avoidance, 
or break accepted international mining industry standards, with no move by the 
UK Listing Authority to discipline them.
The report follows on from dramatic developments at the end of February in 
which a proposed opencast coal mine in Bangladesh being developed by GCM, one 
of the eight case studies used in the report, was condemned as “threatening 
human rights” by an independent panel of UN experts.[2] At the launch, John 
McDonnell MP said “We cannot stand by and witness these global mining companies 
brutally impoverishing and destroying the lives and environments of whole 
communities. We need not only to expose this exploitation but also to demand 
that a firm system of international regulation, control and accountability is 
put in place that halts the destructive activities of these corporate pirates.”

In addition to Bumi, the seven London-listed mining companies looked at in the 
report are African Barrick, Brinkley Mining, African Minerals, London Mining, 
Vedanta Resources, Glencore and GCM Resources.

In April and September 2011, LMN submitted comments to the UK Treasury's 
consultations on the new proposals which include establishing a new body called 
Financial Conduct Authority (FCA). Based on knowledge of the social, 
environmental and human rights impacts of mining around the world, LMN 
considers that this new body needs to be equipped with the authority, 
expertise, personnel and funding to enable it to exercise vigilance over all 
UK-listed companies in a way that has been lacking in the past. Reform of 
securities regulation must result in much stricter oversight, particularly of 
companies involved in mining and trading in minerals.


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