by Alison Benjamin Madagascar is home to some 200,000 known species of animals and plants, many of which, like the lemur, are not found anywhere else in the world. Photograph: Wolfgang Kaehler/Corbis
A project in Madagascar that has been billed as a future model for responsible mining in the developing world is threatening biodiversity, increasing poverty and damaging the local economy, conservationists say.
The Rio Tinto project at Fort Dauphin in the island's south, which has the backing of the World Bank, is threatening unique coastal forests and displacing local people to make way for a port, infrastructure and artificial lakes for the mine, according to independent research carried out by Friends of the Earth (FoE).
The lakes will be dredged to extract ilmenite – a mineral used as a whitener in products such as paint and toothpaste – and then drained and restored.
Rio Tinto has said that the Madagascar project is a "model" for future mines in Africa and the developing world, but Friends of the Earth (FoE) accuses the British-based company of failing on its commitments to deliver environmentally and socially responsible mining. It says urgent action is needed to mitigate the project's damaging effects.
The research highlights the threat the mine poses to the preservation of remaining tracts of Madagascar's coastal forest. The island is home to some 200,000 known species of animals and plants, many of which like the lemur, are not found anywhere else in the world.
Experts warn that the conservation areas that are being created may not be big enough to support the level of wildlife and there are fears that plans for forest restoration will include introduce exotic species which will alter the local ecology and water systems.
Local people also told researchers that Rio Tinto had failed to recognise traditional land rights and the compensation payments they received from the company were not enough to buy replacements land locally, which has risen in value following the influx of workers to the area. They were also angry that promises of employment and training had not materialised.
"Local people are losing their land and livelihood whilst receiving negligible benefits from the project in return," said FoE corporate campaigner, Sarah-Jayne Clifton.
"This is yet another example of why we cannot rely on voluntary action by companies to operate in a responsible manner overseas. Stronger, binding rules are needed to guarantee that companies adhere to basic minimum standards concerning environmental protection and accountability to affected communities."
FoE has urged Rio Tinto to investigate practice on the ground in Madagascar and has called on the company to live up to its social and environmental commitments laid out in its documents.
It also urges the World Bank, which oversees the compensation scheme, to ensure that standards are being implemented in Madagascar, and for the bank to halt investment in future mining projects if evidence shows that they are failing to deliver sustainable development.
Rio Tinto said it was disappointed by the criticisms made by FoE about its ilmenite project. It said that it believes it is meeting the extremely high standards it has set and aims to set new benchmarks in responsible mining practices.
"We are aware of the visit and research carried out … in February of this year and do not agree with many of their findings. We are taking note of all of their findings and will review and make the necessary adjustments to ensure that communication with the local communities and stakeholders continues to improve and be effective," said a Rio Tinto spokesman.
"Rio Tinto has identified a range of environmental factors (initially detailed in the social and environmental impact assessment) for which we have careful planned," he added.
A team of 200 employees is working on environmental matters, including tree nurseries, seed storage and propagation facilities, non-invasive fuel wood plantations, non-timber forest products research, aquaculture research and monitoring and management of mammal, reptile and bird populations.
The company pointed out that an independent biodiversity committee was formed in 2001, composed of biodiversity experts in various fields of longstanding experience and globally renowned research credentials in Madagascar.
The Rio Tinto spokesman added that the terms of any compulsory land acquisitions were the subject of a resettlement action plan which is agreed and monitored by the World Bank.
