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Ivanhoe Gets the Ol' Heave-Ho!
From Canadian Friends of Burma's
Burma Links March/April 2002
"Heave-Ho Ivanhoe!" CFOB is gearing up its campaign to push
Canadian company, Ivanhoe Mines, out of Burma. The Monywa copper mine,
located in Sagaing Division, is a 50/50 partnership between Ivanhoe
Mines and Burma's dictatorship - on par with the Taliban in terms of
brutality and repression. It is the biggest foreign mining enterprise
in the country.
The international campaign to oust companies from Burma gained
momentum when the International Labour Organization (ILO) issued its
unprecedented call for sanctions against Burma in Nov.2000 -
calling on its constituents to "review...the relations that they may
have with Burma and take appropriate measures to ensure that [Burma]
cannot take advantage of such relations to perpetuate or extend the
system of forced or compulsory labour."
Research done by labour and human rights groups proved without a
doubt that Burma's military regime has been systematically using
forced labour country_wide on infrastructure projects -- many of which
are then utilized by foreign companies.
In response to the ILO, the Canadian Labour Congress (CLC) and the
International Federation of Chemical, Energy, Mines and General
Worker's Union (ICEM) called on Ivanhoe to clear out of Burma last
June, citing examples which they say prove the Monywa mine is
connected to forced labour. For example, their joint statement of
June 14 states, "According to the ILO, 921,753 people were forced
to build the railway connecting Monywa to the town of Pakokku. The
Thazi dam hydroelectric plant which is the mine's power source was
built using 3,000_5,000 forced labourers."
Forced labour is so prevalent in Burma, it is no wonder that
Burma's regime is reviled at home. Despite the extreme repression of
opposition parties in advance of the 1990 national elections, the
people - including most military personnel - voted overwhelmingly for
Aung San Suu Kyi's, National League for Democracy (NLD). But the
regime, then called the State Law and Order Restoration Council,
refused to relinquish power.
Since then, the NLD has been calling for a halt to foreign business in
Burma because of the support it provides the generals. In a
video-taped message to Canada smuggled out in 1999, Aung San Suu Kyi
tated "We are not against investment per se...We do not think that
investment in our country at this time can do our country any good."
The global community, as stated in the ILO resolution, backs this call.
But Ivanhoe claims its business operations in Burma are not
political and refutes all accusations that its Monywa mine fosters
forced labour or other human rights violations. However, in
contravening the NLD, they have clearly showed where their allegiance
lies. And in partnering with the military junta, Ivanhoe has become
an accessory to its crimes.
Ivanhoe's Monywa project provides Burma's military regime, the
State Peace and Development Council (SPDC), the foreign currency it
so desperately needs to stay afloat. While health care is virtually
non_existent in Burma, ranking second to last by the World Health
Organization in 2000, the SPDC spends over 40% of its budget on
weaponry. Guns are the prime tool that keep this unloved, unelected
regime in control. CFOB's Director, Corinne Baumgarten sums up the
debate, "Ivanhoe's denials that it is an accomplice to the SPDC's
system of forced labour is paramount to a company, in business with
the Taliban, claiming that their operations don't contribute to the
oppression of women in Afghanistan."
The Monywa copper project is poised to become a massive income
generator for the junta. It is trying to raise $390 million to expand
the mine by excavating a new deposit in Letpadaung. Meanwhile, the
junta earns royalties and rent from Ivanhoe amounting to US$885,000
in 2000.
Most Burma experts believe that the ILO's call for sanctions was
the
major factor in prompting the regime to enter into talks with Aung San
Suu Kyi in October 2000. While the possibility for these talks to
develop into meaningful dialogue appear increasingly dismal, letting
up on pressure now will topple any chances for political reform.
"We urge you to re_evaluate your direct business relations with the
Burmese military junta in light of this global consensus," wrote Ken
Georgetti, the President of the CLC to Ivanhoe Mines last June.
"It is the position of the global labour movement that it is
impossible to do business with the Burmese government or in Burma
without subsidizing forced labour and other human rights violations.
Certainly in the case of Ivanhoe's partnership with the military
junta, foreign investment is directly propping up the regime."
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