Response to FoE and Panos reports
(October 2007)

Rio Tinto is disappointed about criticisms made by the Friends of the Earth and the Panos reports regarding its mining project in Madagascar. While we face enormous challenges to get it right, we are satisfied that our management of the project is setting new benchmarks in responsible mining practices.

Communication with local communities as well as other stakeholders involved and affected is a very high priority. As development ramps up, so has communication – in many forms between various project departments and communities. During 2007, we significantly increased our Communications and Community Development team members and resources.


3,300 Malagasy employed

It is suggested we have not created the 600 jobs we intended. In fact we are employing 3,300 Malagasy of which 1,800 are local people. This is well above original estimates in terms of the proportion that could be hired locally. A significant number of them are in skilled and semi-skilled positions.

The project has contributed an estimated 1,500 indirect jobs in the Fort-Dauphin area – in the areas of services, business support, NGO admin, materials and equipment supply. Up to mid-2007, we spent US$38 million in the local area.


Biodiversity and environmental factors

We identified a range of environmental factors (initially detailed in the Social and Environmental Impact Assessment) for which careful planning was carried out to ensure that certain impacts were avoided, minimised or compensated for. These include:

  • Deforestation.
  • Land use changes.
  • Impacts of the port.
  • Water resources for mining.
  • Effects of human migration and the results of infrastructure development such as roads and access to remote areas.

We have met all the pre-construction Environmental Management Plan obligations. There is a robust environmental monitoring and management programme in place, with no significant incidents and an up-to-date register of remedial actions.


Environmental programmes

A team of 60 employees are working on environmental matters under the guidance of Manon Vincelette, head of Environmental Programmes. These include:

  • Tree nurseries and reforestation.
  • Seed conservation storage and propagation facilities for ecological restoration.
  • Non-invasive fuelwood plantations.
  • Non-timber forest products research.
  • New protected area on our sites and outside (offsets).
  • Endemic flora species programme.
  • Monitoring and management of mammals, primates, reptiles, amphibians, birds, fishes, and invertebrates populations.

Independent biodiversity committee

An independent biodiversity committee was formed in 2001, comprising biodiversity experts in various fields with longstanding experience and globally renowned research credentials. The committee remains independent of
Rio Tinto. Committee members are:

  • Dr Pete Lowry, Missouri Botanical Garden.
  • Prof Joerg Ganzhorn, Hamburg University.
  • Prof Alison Jolly, Sussex University.
  • Dr Helen Crowley, Wildlife Conservation Society.
  • Dr Rob Brett, Fauna & Flora International.
  • Dr Paul Smith, Royal Botanic Gardens Kew.
  • David Hillyard, Durrell Wildlife Conservation Trust.
  • Representatives from Rio Tinto global biodiversity partners BirdLife International, the Earthwatch Institute, Royal Botanic Gardens Kew and Fauna & Flora International.

World Bank standards

In addition to this voluntary capture of leading practice, Rio Tinto’s conduct is subject to World Bank standards which are rigorously monitored by competent regulatory agencies.


Always room for improvement

We are aware that there is always room for improvement. We have noted the concerns expressed and in a spirit of continuous improvement we will undertake any adjustments that may be necessary to ensure that communications and transparency with communities are improved and other matters within our control are effective and accountable.