7 March 2007
The use of public money by the European Investment Bank and the African Development Bank to extract uranium poses a serious cause for concern, not only because of threat of contamination of local water sources, but because of the precedent it would set.
Equinox Minerals has announced that it will undertake a study of the potential for uranium treatment at its Lumwana copper mine in Zambia. One of Africa’s largest copper mines, the €700m ($933m) Lumwana project is financed in part by both the European Investment Bank (EIB) and the African Development Bank (AfDB). The use of public money to extract or treat minerals such as uranium is a serious cause for concern, not only because of the potential end-uses of the resource and the threat of radiation contamination of local water sources, but because of the precedent it would set.
EIB investment in Zambia’s mining industry has been very problematic in the past. Last week, another of the copper projects it supports in the country, the Mopani mine, was the scene of a general strike by the mine’s workers who demanded a 40 percent pay increase.
Meanwhile, an article in the Times of Zambia reported that the European Parliament refused to push the EU to support a marginal increase in mineral royalty taxes proposed by the Zambian government and promoted by Zambian civil society advocates Citizens for a Better Environment (CBE). CBE’s executive director Peter Sinkamba criticized the exploitation of Zambia’s minerals by multinational corporations with backing from the European Investment Bank. The modest increase of the royalty rate to 2.5 percent, he argued, would go a long way toward supporting environmental protection and providing benefits for affected communities.
Since the year 2000, the EIB has invested over €200 million in Zambia’s copper mining industry, comprising over 80 percent its entire portfolio to the country.
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