The London Metal Exchange (LME) faces a lawsuit brought by campaigners on Thursday over the trading of “dirty metals,” whose mining they claim sparks environmental disasters in Indonesia.
The LME denies the allegations.
London Mining Network, comprising green and human rights campaigners, is filing the “landmark” legal action at the High Court along with NGO grouping Global Legal Action Network, a statement said.
Photo: Reuters
The pair “argue that, by enabling the global sale of ‘dirty metals,’ the exchange is in breach of UK anti-money laundering and proceeds of crime legislation.”
“If successful, this case will force the LME to revisit the rules under which it lists metal for trading on its exchange, the statement said.
“This in turn will force metal producers to adapt their mining practices if they want to keep being able to access this platform which is essential for them to reach customers and to sell their products,” it said.
The lawsuit highlights the LME’s trade in metals from the Grasberg mine in Papua, eastern Indonesia, which has had “environmentally devastating” consequences and harmed “indigenous communities.”
West Papuan community leader Adolfina Kuum said the “case is about our fight against those who profit from the destruction of our people’s rivers, our forests and way of life. Our communities are experiencing the life-threatening effects of mining, we have no choice but to take up this fight because if we remain silent who will speak for us?”
The lawsuit said forests and rivers were disappearing as a result of mining of “dirty metals.”
It said “sedimentation resulting from toxic mining waste is causing widespread health problems for the community,” and that heavy metal pollution was causing “skin diseases and other health conditions” in the community.
The global mining industry faces regular criticism over its environmental and social impact.
“The environmental harms in West Papua highlighted in this case are symptomatic of a deeper systemic problem across the world,” the statement said.
Global Legal Action Network said it has “identified similar problematic patterns with mining corporations operating in Brazil, Peru, Guinea and the Russian Federation to name only a few.”
The LME said that it would rebut what it describes as a “misconceived” lawsuit.
“Over and above its existing regulatory requirements, the LME’s brand-listing requirements reflect the international consensus on best practice in respect of ethical and sustainability issues,” it said.
The exchange added that it has “undertaken extensive discussion” with the industry regarding the inclusion of “further environmental requirements” in its listing regulations.
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