Newmont responces well

The world’s second-largest gold producer Newmont, is facing community oppositions at several mining sites in the US, Peru, Indonesia and Ghana because of causing pollution in the areas, degradation of habitats and for community resettlement concern.

In Peru, a non-governmental organization named GRUFIDES opposed Newmont’s Yanacocha gold mine, claiming the company has “not fulfilling its commitments to respect the human rights of communities affected by its projects.” In 2006, Yanacocha was the target of Peruvian protesters, who battled police with rocks while demanding jobs. The clash eventually ended with one protester dead and two Newmont workers kidnapped. In Indonesia, despite the recent exoneration of President Director Richard Ness, the country’s largest environmental NGO Wahana Lingkungan Hidup Indonesia has launched a civil suit against Newmont over alleged pollution at Buyat Bay. This is the forth such lawsuit to hit the company in Indonesia. In Ghana, more than 10,000 poor farmers had been displaced to make way for Newmont’s Ahafo gold mine, and another 10,000 were likely to be displaced when the mine expanded to the north. The construction of the company’s Akyem gold mine in Ghana’s Ajenjua Bepo Forest Reserve is currently on hold because Newmont has been unable to secure an environmental permit.

Greenpeace is also very vocal about Newmont’s operations. At the New York Hard Assets Investment Conference, Dr. Patrick Moore, co-founder of, Chairman and Chief Scientist at Greenspirit Strategies Ltd. and life-long environmentalist, spoke about the environmental and social impact Newmont’s operations are having on local communities in Peru, Indonesia and Ghana. “Since my entry into the global environmental movement in 1971, mining has contributed significantly to a more sustainable world economy, and key beneficiaries of this progress are mining workers, families and communities,” said Moore. Moore also said, a key challenge facing mining companies in third world countries is corruption among environmental groups and local governments compounded by yellow journalism. Greenspirit Strategies partnered with Newmont as a leader in mining sustainability to dispel such false reports.

Newmont in his history reacts quickly on such issues. In April 2007, Newmont asked its shareholders for approval of a resolution that would require the firm to report on its social and environmental issues – the first time a U.S. mining company called on its shareholders to vote for a social resolution. About 92% of shareholders voted in favour of the resolution. The shareholder resolution requests Newmont appoint a team of independent directors to prepare a report outlining opposition to its mining operations and steps to reduce the opposition. The vote was hailed by the Christian Brothers Investment Services, Inc. and other religious investors. In Peru, Newmont has allocated approximately $1.5m under a community development program agreement with the Combayo community. The company has built aqueducts, commenced reforestation and brought in cattle to better the breading in the area. The company expects equity gold sales of between 775,000 and 825,000 ounces from Yanacocha this year. In Indonesia, Newmont has enacted numerous social programs for the community that include, support for schools where students can learn computer science, and support for the fishing industry where fishermen are offered aid and equipment. Ongoing reclamation is in place at the now defunct Mesel Gold Mine on Sulawesi Island and at the 45%-owned Batu Hijau on the remote island of Sumbawa in the West Sumbawa province. Equity gold and copper sales at Batu Hijau are expected to remain stable in 2007 at 230,000-250,000 ounces of gold and 210-230 million pounds of copper and remain at these levels through 2009. Under the current mine plan, the mine life is predicted to last until 2034. In Ghana, Newmont is building new homes for the displaced communities, which include running water and electricity if requested. Ghana is suffering from ongoing power shortages due to seasonal effects on hydroelectric power. The company has also developed a liaison program to here complaints and issues from the community, as well as requests for jobs at its Ahafo, Ntotoroso and Akyem mines. Ahafo is currently mining 120,000 tonnes per day, and processing 22,000 tonnes per day. About 203,000 ounces were produced in 2006, with 500,000 ounces expected this year.

Globalization and the dominance on Multinationals

Globalization has been catching eyes of everyone for much of the last 20 years or so though it has a considerable amount of history behind. The export and investment booms of the 1860s and in the early twentieth century in Europe are just two of many examples.  At the beginning of the nineteenth century, there were only a few multinationals; nowadays, there are close to 70,000 of these companies worldwide, and they oversee more than 1,000,000 branches. This clearly means that businesses overcame the disadvantages of distance and the difficulties posed by political, geographic, economic, and cultural differences.

In the past, relations between nations were limited to diplomacy, wars or their rulers’ conquests – this however does not focus on globalization. It is the extensive exports and imports in history, which began the stream of globalization. Individuals moving to different cultures, identities, languages and countries for trading purpose started the first steps to be precise. Immigrant workers and merchants are the classic examples of this movement. European era of discovery which can be described as starting in the last years of the fifteenth century and advanced maritime navigation at that very time boosted the process.  Both were a result of the outward looking tendencies of Europe as the rulers of the more powerful nations; Spain and Portugal especially competed with each other for power and territory; British joined in later. Christopher Columbus and other explorers wanted to reach the East for spices, trade and power, and for Christendom to become more dominant than Islam.

By the seventeenth century, the Dutch were the key European nation in promoting trade and beginning the proto-globalization of Europe. And the idea of industrialization that may be of particular relevance for today’s scenario began around 1770 that was truly a period of economic expansions. Trading companies, joint-stock companies, public banks, were taking places all around. Private corporations like the French, Dutch, English, and Swedish East India Company played a decisive role in globalization as well. They extended their markets to different lands and to deferent cultures. Adam Smith wrote in the Wealth of Nations about the difficulties faced by nations “who have attempted to tax the revenue arising from stock may wander about from place to place, according as it can either buy cheap or sell dear.” The challenge of constructing political relationships with strangers and new nations is of continuing importance to modern democracies till now. Without political ties, it is difficult if not impossible for business firms to grow in other territories.

The process of globalization is now more associated with new and unprecedented technologies such as international capital markets, supersonic travel, cable news, and the internet and just in time deliveries across a very large distance.  On the eve of World War I, a remarkably integrated global economy had materialized, driven by entrepreneurs and firms of that time. But in the subsequent thirty years, political and economic shocks progressively dismantled this first global economy. Multinationals started to focus more on national markets and they formed cartels as a way of controlling fluctuations. Reconstruction of the global economy began between the 1950s and the 1970s, but this development was slowed by the huge presence of the Communist bloc. By the 1980s, multinationals had become the driving force behind the global integration of capital and commodity markets. And now, two-fifths of world trade is intrafirm.

Over the course of the long history, multinationals have played a critical role in almost every economic endeavor, that is in the global search for raw materials and foodstuffs; in the international diffusion of manufacturing know-how, processes, and products; in the services (trading and shipping companies, banks, and utilities), where they facilitated the expansion of world trade and constructed the infrastructure of the global economy. The process will remain as long as market incentives will be there. It is now not much to dream that in near future, multinationals will dominate over people who try to lead the world by sitting in the parliaments, senates and in the Security Councils.
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Battle of the brands: Viacom and YouTube

For the second time in last four months, Viacom has demanded that YouTube, the video-sharing site, should remove all content from its networks, including MTV, Comedy Central, Nickelodeon, VH1, CMT, Spike TV and BET; an estimated 100,000 clips; after licensing talks between them broke down.

Viacom previously accused YouTube and Google of experiencing advertising revenue from the website and that Google compounded the issue recently by including video from YouTube in results from the Google Video search engine. Viacom said it insisted YouTube that clips from its programmes such as MTV, Comedy Central and Nickelodeon be “removed immediately” as “It has become clear that YouTube is unwilling to come to a fair market agreement that would make Viacom content available to YouTube users,” – Viacom said in a written statement. “Filtering tools promised repeatedly by YouTube and Google have not been put in place, and they continue to host and stream vast amounts of unauthorised video”, it added.

Viacom is an American media conglomerate with various worldwide interests in cable and satellite television networks including MTV Networks and BET, and movie production and distribution such as the Paramount Pictures movie studio and DreamWorks. The company is now taking a hard stance against the Internet’s most popular video service, which is renowned for its quirky, viewer-contributed video clips as much as for being a repository for unauthorized television shows.

“We take copyright issues very seriously,” YouTube; Google’s sister concern said in a statement. Google bought YouTube in November in a 1.65-billion-dollar stock deal. The company has historically removed clips at the request of copyright owners within hours. “It’s unfortunate that Viacom will no longer be able to benefit from YouTube’s passionate audience, which has helped to promote many of Viacom’s shows” it added. YouTube also said that it would comply with the request from Viacom and said it cooperates “with all copyright holders to identify and promptly remove infringing content as soon as we are officially notified. In November 2006, YouTube agreed to delete nearly 30,000 files after the Japan Society for Rights of Authors, Composers and Publishers complained of copyright infringement.

Video content on YouTube is provided by users and ranges from amateurish, homemade vignettes to clips from professional films, television programmes and music videos. YouTube has gone on record saying it follows US law by removing copyrighted works when the owners complain and is developing “fingerprinting” technology to better defend video ownership. Under federal copyright law, online services such as YouTube are generally immune from liability as long as it responds to takedown requests such as these, which YouTube often does. Less clear legally is what happens when another user posts the same video, something commonly done on the free video-sharing site.

Some media companies such as CBS Corp. and General Electric Co.’s NBC Universal have made deals to allow YouTube to use video clips from their programming, but others have yet to agree with the site over ways to get compensated for the use of their copyrighted material. Even as some media companies have decided to experiment with YouTube, other companies including News Corp., NBC and Viacom have held discussions to create its own online video business, sources have said. Viacom executives said the company wasn’t trying to block new forms of online distribution. It offers downloads through Apple Inc.’s iTunes store and partners with mobile phone carriers. Viacom, Newscorp’s Fox and General Electric’s NBC Universal have reportedly explored the idea of forming a YouTube competitor. At least three of the companies have also talked about filing a joint lawsuit against the video-sharing site

It’s a battle of the brands. Although Viacom is bickering with Google and YouTube, it hasn’t entirely cut business ties. MTV Networks has a revenue-sharing arrangement with Google Video to showcase clips from its channels. Viacom’s move also runs counter to the strategies employed by other media companies, such as the Warner Music Group, Vivendi-owned Universal Music Group, and General Electric controlled NBC Universal, which have all landed deals with YouTube to test the service. The move highlights the growing tension and interdependence between online video sites and traditional media companies. The latter dislike having their copyrighted material posted without permission, but they do like the extra promotion it brings.
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