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Arabica Robusta

Coal versus Communities in Mozambique: Exposing poor practices by VALE and Rio Tinto - 0 views

www.sarwatch.org/...ces-by-vale-and-rio-tinto.html

adjustment neoliberalism industries neoclassical extractive social stabilization structural mozambique coal

shared by Arabica Robusta on 11 Nov 12 - No Cached
  • This paper by Dr. Claude Kabemba and Camilo Nhancale for the Southern Africa Resource Watch (SARW), entitled Coal versus Communities in Mozambique: Exposing poor practices by VALE and Rio Tinto, details many of the problems associated with the massive new coal mines from lack of contractual transparency to preference for expatriate workers and foreign suppliers to the unjust resettlement programme, which sparked protests in early January.
  • Vale reportedly paid US$123 million dollars for the mining rights but the money has never been registered with state agents. If this is correct, Vale’s presence in Mozambique – far from benefiting citizens – is undermining revenue transparency and accountability.
  • Vertical integration is undermining local entrepreneurshipThe two investments have provided a new lease of life to Tete Province. There are new economic activities opening up and an influx of people descending on the town. But beneficial links between the extractive companies and local communities do not really exist.
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  • A Southern Africa Resource Watch (SARW) research team visited three communities resettled by Vale and Rio Tinto – Mualadzi, a Rio Tinto resettlement compound located about 40km from the original Capanga village; Cateme village, a Vale resettlement compound with 720 families from the villages of Chipanga, Mitete, Malabue-Gombe and Bagamoyo; and 25 de Setembro, another Vale resettlement compound housing people from the same four villages. Vale deliberately divided the communities in two with employed villagers moving to 25 de Setembro since it is closer to Moatize and the mine. The unemployed were sent to Cateme, 40 km from the town.
  • Vale has also used the resettlement process to divide communities into those with formal and those with no formal work. The impression that this model gives is that uneducated and unemployed members of a community can be dumped anywhere.
  • Communities fear that if they continue to be relocated in small groups before all the construction work is done, their legitimate demands will never be met. As they have learned from the people who have already been resettled in Cateme and Mualadzi, the companies are reluctant to complete projects once communities have been relocated.  Rio Tinto moved people to Mualadzi before it had finished building key infrastructure such as school and clinics – and they have still not been built.
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