As long as it is 'not done right', there are bound to be wrangles. Even a natural system seeks a state of equilibrium. Otherwise, as you know, there will be disorder.
The problem is very simple, and that is why this decade-old project has been marred with "mara this" and "mara that". As a matter of fact, that in itself, should serve as a very clear indicator, that there is a bit more to te tale. Si "mwenye haja huenda choo"?
Meanwhile, let us hereby consider the following:
“We need a strategy to address the real problems faced by ordinary Canadians…This strategy must constitute a clear break with past and present economic policies. It must confront the serious structural economic problems we face in an honest and creative way. It must state what needs to be done, even if the remedies outlined are not popular…And it must challenge, directly, the prevailing arguments propounded by business interests that the only way to resolve the crisis is to give private investors a completely free hand to restructure the economy according to their priorities. The purpose of an alternate strategy must be to satisfy the basic social and economic needs of ordinary Canadians, rather than to maximize the profits of wealthy investors. It must create jobs, rather than use employment as a means of undermining the wages and job security of workers. It must promote socially useful arguments, rather than speculation in finance, banking, real estate and foreign currency, no matter how profitable the latter activities are. It must focus on raising real wages and living standards, rather than sacrificing these to provide a more favorable investment climate for private capital…Fundamental to the implementation of an alternate economic strategy is the recognition that it is a mistake to give more say over economic decision making to private investors. What we need is to establish genuine public control over economic policy. This will entail new forms of involvement by – and accountability to – ordinary citizens…The corporate sector has waged a remarkably successful campaign to discredit all forms of public ownership and control. This campaign has been immeasurably assisted by the actions of business-oriented governments, who have made no attempt to explore the very real possibilities which public ownership provides for democratic control by citizens” [Daniel Drache and Duncan Cameron (eds), 1985; The Other Macdonald Report: The Consensus On Canada’s Future That The Macdonald Commission Left Out, James Lorimar & Company, Publishers (Toronto)].
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Why has this controversial project, as we can justifiably call it, dragged on for so long? Why is the government unable to answer simple questions? Why is it all so 'mysterious'?
The answers to the above questions may have a lot to do with the fact that we have the largest unexploited reserves of titanium in the world (~10-14%) [Mineral Obsession: Inside The Canadian push to make a killing on Kenya’s titanium – Toward Freedom (online magazine), June / July 2001]. Other reports have referred to the project as being the country's largest foreign investment venture, to date. Larger than Magadi, which is 'another story' , that needs to be addressed separately:
06 February 2006
Acquisition Of Brunner Mond And Magadi Soda By Tata Chemicals Limited
Tata Chemicals Limited of India has now completed the acquisition of the Brunner Mond Group.
Tata Chemicals is part of the Tata Group, one of India's largest and most respected business conglomerates with an annual turnover of $17bn.
This new alliance brings together companies with long and proud histories to form the third largest soda ash producer in the world embracing both the major soda ash technologies - natural and synthetic. The combined output from the current Tata, Brunner Mond and Magadi plants stands at 2.6m tonnes, a figure that will rise to 3m tonnes when the project to double the capacity at Magadi Soda in Kenya comes on stream later this year.
For Tata Chemicals this transaction represents another step towards building a global soda ash business. The combined business - the third largest soda ash business in the world - will expand geographies across Europe, Asia and Africa besides strengthening the market leadership position in India. For Brunner Mond and Magadi Soda this move places us in the ownership of a committed, established industry player with a long term commitment to the development of the business. As a new combined entity we greatly welcome this move and believe that it is in the best interests of all our stakeholders be they our customers, suppliers, employees or members of the communities in which we operate.
We are now working to realise the benefits from our new ownership by maximising the mutual learning the companies can bring to each other. All three companies between them are established and expanding participants in both the soda ash and sodium bicarbonate markets with a wealth of technological and market expertise to share. They also have great experience and success in the management of change and the driving of business improvement initiatives. We have every confidence that by bringing all these strengths together in our new structure we will create an even better company with a bright and prosperous future.
Martin Keighley
MANAGING DIRECTOR (EUROPE)
www.brunnermond.com/---
Back to Kwale...
These reserves have a tremendous economic value, much more so, considering the "catch-up effect". But it all depends on one thing - value-added secondary processing. And this is where the problem lies. This is the 'pressure-point'. We are now at the heart of the matter - unfair trade practices by 'developed countries' (please see 'States may not meet deadline on WTO talks - Daily Nation, 15th April 2006' and 'WTO talks running out of time - Daily Nation, 17th April 2006' above). According to these recent reports, "the December 2006 deadline set for an agreement on the two most contentious issues of agricultural and industrial goods in the World Trade Organisation Talks may not be met". Why? Simply because of selfishness.
Regarding value-adding secondary processing:
"The ore has to go through several stages before it is ready for sale as metal to manufacturers. After mining, the ore is milled, which usually involves crushing the different-sized lumps of ore to a smaller and more uniform size. The ore is then gorund to a powder and the mineral-bearing particles in the powdered ore are concentrated by various chemical processes. This concentrate is then smelted to produce a matte, the metal content of which is steadily improved by further smelting to remove impurities and by-products. Then the final refining processes produce the metal in different grades for sale to the manufacturers.
"Each stage in the smelting and refing process increases the value of the product and thus also the profit accruing to the mining companies. The underdeveloped countries of Africa therefore want the smelting and refining processed to be carried out locally for it is these stages which produce the highest additional value to the raw mineral and hence also the highest profit to the mining companies...Apart from anything else, a high-value mineral export will produce correspondingly higher revenue from export duties. Once again the interets of the mining companies are completely different from those of the host government.
"The international mining comnaies locate the smelting and refining plant according to the needs of their global operations, not where Africa needs them. Low-value mineral export has the advantage for the company that it will attract relatively low taxes in Africa and will also escape tarrif penalties levied by the developed countries.
"The companies want the smelting and refining processes where they can achieve the highest economies of scale, and have most control of the marketing of the fimal product. They prefer, therefore, to refine and sometimes smelt the ore as far as possible in the metropolitan centres" (Lanning G. and Mueller M, 1979; Africa Undermined: A History Of The Mining Companies And The Underdevelopment Of Africa , Penguin Books Ltd (Harmondsworth, England).
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The following was posted by MiningWatch Canada, after the Kibaki administration 'took over':
New Kenyan Government Holds Tiomin to Account - 3rd June 2003.
The new government in Kenya is treating the Kwale titanium project with healthy suspicion.
In early March, the Kenyan High Court restrained the National Environment Management Authority (NEMA) from issuing an Environmental Impact Assessment (EIA) licence to Tiomin Resources Inc. of Canada for its titanium mining project, pursuant to section 63 of the Environmental Management and Co-ordination Act. The order remains in force until NEMA complies with section 59 of the Act which provides for public review of the Environmental Management Plan (EMP).
Mr Justice Andrew Hayanga issued the order based on a civil case filled by the Centre for Environmental Legal Research and Education (CREEL).
On April 10, 2003, Assistant Minister for Environment and Natural Resources Hon. Prof. Wangari Maathai – former chairperson of the Greenbelt Movement in Kenya – met with mine opponents, including the Coast Mining Rights Forum. This was the first meeting of its kind, indeed of any kind, between members of civil society and the Government over the issue of titanium mining in Kwale. According to Kenyan sources, “the mood during the meeting was upbeat and for the first time, we were able to explore the issues surrounding the titanium mining, highlighting what went wrong and what needs to be done.”
All the issues that the Coast Mining Rights Forum have been raising about the mine – groundwater exploitation, the development of a shipping facility at Shimoni, economic benefits, compensation and resettlement, and rehabilitation and radiation control – were addressed. The Coast Mining Rights Forum also learned that Tiomin intends to dredge the Wasini channel, which it had previously denied. This would be necessitated by the weight of the ore to be exported.
Tiomin has not received an Environmental Impact Assessment licence. What it has received is an approval letter of its EIA, issued by the former Director General of NEMA. This situation is a result of the failure of the former Moi government to promulgate the guidelines and regulations for EIA. The Commissioner of Mines and Geology cannot therefore issue a special mining lease until Tiomin presents an EIA License issued under the not-yet existent Guidelines. The Guidelines are supposed to be gazetted and possibly debated.
As well, the Environmental Management Plan (EMP) presented by Tiomin and approved by NEMA late last year was incomplete. The EMP is part of an EIA process; what was presented was merely an EMP Report. It did not include a comprehensive action plan specifying costs, time and responsible persons for the mitigation of identified impacts. A complete EMP must be submitted prior to approval of the mining lease. The EMP would then be subjected to public scrutiny.
The government early this year sent a fact finding team headed by Prof. Wangari to visit a titanium mine in South Africa to study the activity's effect on the environment. The team was to visit the Richard’s Bay mining area, and arrangements were made to meet NGOs in South Africa who have been challenging the titanium issue there. Environment Minister Kulundu said the government wanted the ore processed in Kenya and not exported raw as had been envisaged by Tiomin. The government has also indicated that the compensation offered to relocate farmers was completely inadequate.
Two public forums will be organised to develop consensus on the issues after the team reports.
www.miningwatch.ca/index.php?/Newsletter_12/New_Kenyan_Governmen---
These forums were never held. Why?
One month later…
Just before the July 2003 parliamentary recess (in preparation for the Bomas II conference), a ministerial delegation led by then National Security Minister Chris Murungaru, visited Kwale. This followed the Canadian ambassador’s remarks, that our country risked losing his country’s investment, if we did not accept the present terms and conditions [No end in sight yet to row over titanium mining / MP’s divided over titanium mining – Daily Nation, 9th October 2003]. It is also interesting to note that the then Minister for Environment and Natural Resources, Dr. Newton Kulundu, had already stated that the project would continue, before the aforementioned delegation had even left for Kwale [Disputed Titanium mining to go on – Daily Nation, 8th October 2003]. Such a stance only serves to confirm previous reports that “senior government officials will not allow anything to stand in the project’s way” [Titanium – G21; The World’s Magazine,
. This may be largely owing to the fact that “substantial progress has been made in marketing the expected production from Kwale, with letters of intent being executed for a significant portion of the future production of zircon and rutile” [Management’s Discussion and Analysis of Financial Condition and Results of Operations (for third quarter and nine months, ending September 30, 2004). See also Chinese Company Eyes Mineral Deal – Daily Nation, 18th October 2005].
Many months later…
In a revealing interview featuring the 2004 Nobel Peace Prize winner, Professor Wangari Maathai, the East African Standard reported that “according to the plan, the delegation was to compile and present…findings to the government, and these were to form the basis for a decision on whether to license the company or not. The findings were to be discussed before a national consultative forum. But…just days after the trip, the government announced…that it had issued Tiomin with a mining permit. Curiously, the announcement came the same day a national forum had been organized to discuss the delegation’s findings. Everyone was taken aback, with most questioning the logic behind sending a high powered delegation to South Africa in the first place” [East Africa hails Wangari Maathai’s Peace Prize – East African Standard, 11th October 2004].
Professor Maathai has previously alleged that “Tiomin presented a doctored Environmental Impact Assessment when applying for its license” [Troubles Mount for Canadian Titanium Mine in Kenya – Environment News Service (www.ens-newswire.com), 11th April 2001]. The World Conservation Union (IUCN) preceded Professor Maathai’s claim, calling Tiomin’s EIA “incomplete and unbiased” [Kenyan Farmers Battle Mining – San Francisco Chronicle, 11th April 2000].
Professor Maathai has also stated that:
"Kenyans are getting so little from the mining that it is going to be a rip-off…the slave labour will be provided by Kenyans…the Kenyan government should have been the one to invest in the production and processing of the minerals" [Nobel Laureate Professor Wangari Maathai, in Troubles Mount for Canadian Titanium Mine in Kenya – Environment News Service (www.ens-newswire.com), 11th April 2001].
And these were Kibaki's words, specifically in reference to Kwale:
“NARC will…take measures to improve and sustain economic fundamentals…and an investment climate that will translate into rapid economic growth and employment opportunities for Kenyans. For every investment proposal, NARC will ask one fundamental question: How many jobs will it create?” [2002 Presidential Candidate Mwai Kibaki, in How Kenyans can get back on track -
www.nationaudio.com, 27th November 2002].
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Let us call a spade a spade. The ruling class has failed the people. That is why we must demand a TOTAL OVERHAUL, before another election.
Regarding Sudan: Pardon the pun, but do you really want to go there?
On second thoughts, maybe it's a good thing you brought that up:
Oil companies in developing countries.
A large body of evidence suggests that rich oil resources obstruct democracy and equitable economic growth in developing countries because of a lack of transparency, and therefore accountability, in oil revenues paid by oil companies to governments.
The human rights implications of the activities of transnational corporations (TNCs) and other business enterprises in conflict zones, “failed states” and repressive regimes have drawn increased public attention, concern and scrutiny in recent years.
The increase in oil exploration in Africa by multinational oil companies has raised the profile of the debate, questioning the oil industry's contribution to development in the South.
In some countries of Latin America there is a long history of opposition to oil exploitation, because of its serious environmental and social impacts and human rights violations.
World Bank fossil fuel finance
Academic studies, personal testimonies, and governmental data were submitted to the EIR (The Extractive Industries Review), that establish a clear correlation between a country’s reliance on oil exports and its levels of poverty, child mortality, child malnutrition, civil war, corruption, and totalitarianism.
Bank staff was unable to provide a single example during the EIR of an oil project that had alleviated poverty. Outside of the Middle East there are no examples of successful oil-based economic devel-opment, and even those countries exhibit many of the other characteristics of oil export dependency (e.g. autocracy, human rights violations). From "The winners an losers of World Bank fossil fuel finance", data analysis by Jim Vallette & Steve Kretzmann, April 2004 See pdf.
However, in a Board meeting at August 3, 2004, World Bank Management and its Board failed to respond with concrete commitments to change the way the Bank operates and ensure poverty reduction results from its investments.
"The World Bank has ignored the EIR recommendations and endorsed business as usual", said Jon Sohn of Friends of the Earth US. "The EIR called for an 'extreme energy makeover,' and the World Bank opted for a cheap pedicure. It has missed a historic opportunity to bring its lending more in line with its mission to alleviate poverty."
The World Bank refers to the Chad-Cameroon Oil Pipeline as a model for poverty alleviation, although it is quickly becoming a model for misery. The Chadian government spent a portion of the first proceeds on military expenditures, worker's rights have been violated, people lost their livelihoods as a result of pollution, and impact mitigation plans lack proper implementation.
“Oil projects like the Chad-Cameroon pipeline generate more tears than smiles. The Bank's response to the EIR means they have not learned a single lesson from such tragedies”, added Mr Nguiffo, from Friends of the Earth.
www.choike.org/nuevo_eng/informes/1283.htmlSee also:
World Bank misses historic opportunity.
Washington DC, August 3, 2004 -- The World Bank Group today refused to improve the way it operates. The Bank's Board decided to act upon only very few among many concrete steps recommended by a key report.
The Extractive Industries Review (EIR), commissioned by World Bank President James Wolfensohn, recently concluded that financial support for projects in the oil, mining and gas sectors have not led to direct poverty alleviation. The EIR made specific recommendations to improve the World Bank's policies and practices.
However, in a Board meeting today, World Bank Management and its Board failed to respond with concrete commitments to change the way the Bank operates and ensure poverty reduction results from its investments.
"The World Bank has ignored the EIR recommendations and endorsed business as usual," said Jon Sohn of Friends of the Earth US. "The EIR called for an 'extreme energy makeover,' and the World Bank opted for a cheap pedicure. It has missed a historic opportunity to bring its lending more in line with its mission to alleviate poverty."
The EIR report is a result of three years of investigation paid for by the World Bank, and initiated after Friends of the Earth addressed Mr Wolfensohn at the institution's annual meetings in 2000.
The report made many recommendations which had the broad support of civil society organizations as well as many in industry. These included respecting human rights, establishing a consent mechanism for affected communities, protecting areas of high biodiversity and ending financing for oil and coal projects. The World Bank only took some small steps in response, such as requiring revenue transparency and disclosure of information.
“The World Bank's response is a deep insult for those affected by its projects.” said Samuel Nguiffo of Friends of the Earth Cameroon. “The Bank's Chad-Cameroon Oil Pipeline shows why the EIR recommendations are so fundamental. The project is pregnant with as many undisclosed scandals as there is sand on the beach”.
The World Bank refers to the Chad-Cameroon Oil Pipeline as a model for poverty alleviation, although it is quickly becoming a model for misery. The Chadian government spent a portion of the first proceeds on military expenditures, worker's rights have been violated, people lost their livelihoods as a result of pollution, and impact mitigation plans lack proper implementation.
“Oil projects like the Chad-Cameroon pipeline generate more tears than smiles. The Bank's response to the EIR means they have not learned a single lesson from such tragedies”, added Mr Nguiffo.
“The EIR provided a historic opportunity to do things better, but the World Bank dramatically failed to grab it,” said Janneke Bruil in Amsterdam .
“Billions of misspent public dollars and sixty years of outcries by people around the world have not been enough. What more does it take?” Friends of the Earth International --the world's largest grassroots environmental federation with 68 national member groups in as many countries and more than one million individual members-- is strongly committed to non-violence.
www.foei.org/media/2004/0803.htmlN.B: We must also be wary of the Chinese Communist Party...
“Another set of similarly alarming statements recently came to light, in this case attributed to China’s Minister of National Defense, Chi Haotian. Chi’s declarations even surpass scenarios described by U.S security hawks, giving new credibility to the ‘China threat’ theory, as it’s called. The statements, which appeared in a speech transcript that apparently was never supposed to leave China, described an eventual need to ‘depopulate’ the United States (even if it meant Chinese-Americans) with biological weapons so as to allow China to colonize North America. The takeover would solve China’s natural resource crisis and usher in ‘a Chinese century’, Chi claimed” [Seeing Red: China Threatens U.S with Nuclear War - The Epoch Times (Special Edition: Nine Commentaries on the Communist Party, 28th October - 3rd November 2005. See also Warning About Investment in China: Former senior diplomat cautions Western businesses – Ibid].
Incidentally, have you all heard of the torture and prosecution of Falun Gong adherents in China, whereby bodily organs are removed from live victims, and sold on the black market? The Chinese government is unable to defend itself against mounting evidence. Considering Hu Jintao's recent visit to Kenya, we must now insist on being informed on the specifics of the various agreements, that the Kibaki administration is getting us and our children into?
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“The real ‘domino effect’ that terrified Western planners during the Cold War, was not the threat of Communist expansion, but the threat of nationalism. Were the poor to throw off the dictatorship of the West and better themselves in one part of the world, then people might be inspired to follow this ‘threat of a good example’” [David Cromwell, 2002; Private Planet: Corporate Plunder and the Fight Back, Jon Carpenter Publishing (Charlbury)].