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| Wednesday, 7 April 2004 |
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Eppawela Phosphate Mine netted Rs. 1.5 million last year by Shirajiv Sirimane The Eppawela Phosphate Mine earned over Rs. 1.5 million last year. This is mainly because of the introduction of a new by product 'prospo composite. The Peradeniya University introduced this product and it is mainly used for Agricultural purposes. According to the Eppawela Phosphate Mine Protection Committee Chairman, Ven. Mahamankadawela Piyaratane Thera more products could be introduced and the venture can earn better profits. However he said that they have received information that negotiations are going on again to lease the mine to a foreign company. Freeport McMoRan an American multi-national corporation which operates gold and copper mines in many countries was the first involved in bidding for the project. In an interview with the Daily News, the Thera said when the move of privatisation first came to light over 10,000 protested and finally a Court decision prevented the government from leasing the mine. The Eppawela Phosphate Project has been identified as one of the top ten mines in the world. Spread in an area of about 36 kilometres it has reserves for 800 years to meet Sri Lanka's demand. However, the proposal was to lease this land to the American company for 30 years. The company was to extract the deposits of the mine and ship raw rock phosphate unprocessed in raw form back to the United States. "This foreign firm was planning to exploit an estimated 800 years of phosphate resources at Eppawela within a 30-year period. We will lose this resource for good in 30 years if we allow the foreign mining companies to come," he said. One main argument was that Sri Lanka was in desperate need of foreign exchange and that this project would swell the country's coffers. Local scientists say it is safe to extract up to 350,000 tonnes per year without disturbing the ecology and future use. However they were against extracting the mine in 30 years. The mining of the rock phosphate would cause the displacement of up to 12,000 people of 2,500 families, living in 28 villages in a large extent of land stretching up to 56 square kilometres that has been designated as the 'exploration area.' Under the earlier deal, the Sri Lankan government was to be paid five dollars per tonne of phosphate extracted, while the mining companies will export it at world market prices currently at between 40 and 70 dollars per tonne. "In simple economic terms, Sri Lanka is the loser," the Thera said. A new factory was to be set up in Trincomalee to process part of the phosphate and ship it overseas. In the Indonesian province of Irian Jaya, where the company owns mining rights to the world's biggest known copper and gold deposits, Freeport McMoVan has been accused of causing major environmental damage and human rights abuses. Freeport pays directly to the Indonesian military, to guard their mine. South Jakarta District Court declared Freeport guilty of violating Indonesian environmental law. The company was ordered to reform its waste management systems. The court said that Freeport had deliberately concealed information and had given false and inaccurate explanations, thereby misleading the public. Following the events of September 11 and beyond, a wave of anti-US sentiment in Indonesia led by Muslim fundamentalist protests in Java, gave rise to rumours that all American investments in Indonesia would be withdrawn. |
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