Case: Policy coherence in general

26-10-2009 Ehrenhauser asks critical questions concerning raw materials & development (funds)

MEP Martin Ehrenhauser (NI) asks the Commission for clarification of the use of European Development Funds in investment projects of the European Investment Bank in developing countries mining sector.

He takes up the example of an Australian mining company that is financed in its mining operations in nickel mines in Zambia. Often these raw materials mining projects are environmentally damaging and it is to be questioned whether such investments are in line with the European Consensus on Development in terms of environment, equity and gains for the local Zambian population.

For this first critical question in relation to raw materials and PCD, which Fair Politics has launched a new case study on, we would like to monitor Martin Ehrenhauser as Fair Politician.

Monitor fair: NI
 

Parliamentary questions
26 October 2009 
E-5257/09
WRITTEN QUESTION by Martin Ehrenhauser (NI) to the Commission

 Subject: Financing of mining activities by the European Development Fund 

The Commission has one representative on the Board of Directors of the European Investment Bank (EIB). The EIBs investment facility, most of whose development aid budget comes from the European Development Fund (EDF) financed by the EU Member States, has a 19 % share (EUR 11 million) making it one of the largest shareholders in the African Lion III fund, which mostly invests in mining activities in Africa. African Lion invests in the Australian mining company Albidon Ltd., which operates a nickel mine in Zambia as well as a project prospecting for uranium deposits. African Lion also invests in the Australian company Mineral Deposits Ltd., which operates a gold mine in Senegal.

On the basis of its participation in EIB activities, can the Commission answer the following questions:
1.  Do the EUR 11 million of EDF funds that were invested in the African Lion III fund appear as development aid in statistics?
2.  What is the real value of the investment in the African Lion III fund? Is the investment worth more or less than the initial investment of EUR 11 million?
3.  How can the fact that the EIBs investment facility, with the Commission's knowledge, invests in mining projects in Africa which use environmentally damaging agents to extract gold be reconciled with the European Consensus on Development?
4.  Does the Commission consider that investments in the mining of raw materials, such as gold, nickel and uranium, are equitable and environmentally sustainable investments, in accordance with the European Consensus on Development?
5.  What percentage of the profits of Albidon Ltd.s Zambian operations is reinvested in Zambia?
6.  What is the proportion of Zambian employees at Albidon Ltd in Zambia?
7.  What percentage of the profits of Mineral Deposits Ltd.s Senegalese operations is reinvested in Senegal?
8.  What is the proportion of Senegalese employees at Mineral Deposits Ltd in Senegal?

 

26-10-2009 Ehrenhauser asks critical questions concerning raw materials & development (funds)

26-10-2009 Ehrenhauser asks critical questions concerning raw materials & development (funds)