[stop-imf] Urgent Alert: Tell Newmont - Stop Blocking Debt Cancellation
robert weissman
rob@essential.org
Wed, 01 Jun 2005 14:57:13 -0400
50 Years is Enough =95 Essential Action =95 Global AIDS Alliance Global
Exchange =95 Health GAP =95 Jubilee USA
Action Alert: Gold Industry Blocking Debt Cancellation Plan
Call on Newmont Mining to Reverse Opposition to IMF Gold Sales;
Lives are at Stake!
International debt payments are draining poor countries of resources
desperately needed to address health, education and many other pressing
needs.
After years of offering nothing more than half-hearted measures and
worse, the rich countries have agreed to cancel the debts of the poorest
nations to the International Monetary Fund (IMF) and World Bank. But
they continue to differ over how to do it.
It is now clear a compromise agreement among the rich countries over
cancellation of IMF debt can only be reached if sale of IMF gold is a
component of the financing package for debt cancellation.
But a decision to sell some of the IMF's stock of gold is being blocked
by the gold industry, led by the world's largest gold producing
corporation, Newmont Mining Co. Newmont and the industry say that IMF
gold sales will lower the world gold price, but they ignore a proposal
from the IMF itself that would ensure IMF gold sales have no net impact
on the world gold market.
Newmont's misguided opposition is on the brink of sabotaging IMF debt
cancellation -- thus ensuring millions of poor people will be deprived
the benefit of IMF debt cancellation. This is a life-and-death matter.
TAKE ACTION: Call and fax Newmont's office and Board Members, demanding
they reverse their position and publicly state and communicate to
Congress and the White House their revised position.
KEY TALKING POINTS:
=95 Ensuring debt cancellation is a humanitarian imperative;
=95 There's no reason for Newmont to oppose IMF gold sales, since they can
be accomplished with no impact on the world gold price;
=95 Newmont must retract its opposition to IMF gold sales, and publicly
state that it is open to IMF gold sales;
=95 Action now is imperative, before the G8 (the rich countries) meet in Ju=
ly;
=95 Newmont's failure to retract its opposition to IMF gold sales will
mean poor countries waste billions of dollars on debt payments to the
IMF, and will consign millions of people to needless suffering, as they
are deprived of health, education, clean drinking water and other
services that could be made available with debt cancellation.
SEND A FREE FAX VIA GLOBAL EXCHANGE:
http://www.globalexchange.org/campaigns/wbimf/goldindustryaction.html
CONTACT: Newmont Mining Corporation, 1700 Lincoln Street, Denver,
Colorado, USA 80203. FAX (303) 837-6034. Investor Relations Contacts:
Randy Engel, Telephone: (303) 837-6033 Email: randy.engel@newmont.com
Wendy Yang Telephone: (303) 837-6141 Email: wendy.yang@newmont.com
Contact Board Members, listed here:
http://www.newmont.com/en/investor/governance/board.asp
More details follow below.
---------------------------
Impoverished countries are impoverished in part because of the huge debt
repayments global creditors like the International Monetary Fund and
World Bank collect from them. Every year, sub-Saharan African pays
about $13 billion to those institutions and others in wealthy countries
=96 a figure that is roughly equal to the amount the United Nations
estimates is required to combat the AIDS pandemic in Africa. Developing
countries, in fact, send more money to the wealthy countries than they
get in grants, loans, and other forms of aid. It=92s a deadly, backward ga=
me.
High-level talks among the G8 governments* have been going on for nearly
a year in response to U.S. and U.K. proposals for more substantial debt
cancellation plans. The proposals could be the most substantial debt
plans in decades. The target for agreement has been the summit of G8
heads of government in early July in Scotland.
The plan is now in grave danger. That=92s because the major actors cannot
agree on how to =93finance=94 the debt cancellation. The IMF has been
sitting on an endowment of about $40 billion worth of gold since its
founding. The massive gold stock is used for nothing other than
ensuring =93confidence=94 in its financial stability. It earns no interest
and makes no resources available to anyone.
The U.K. and other governments are in favor of selling some of the gold
in order to =93finance=94 cancellation of debt owed to the IMF. Those are
often the biggest debt problems for impoverished countries, because the
IMF is a =93preferred creditor,=94 which means it must be paid back before
all other creditors. And as long as a country is indebted to the IMF,
it must accept harsh economic policy conditions that enrich corporations
while depriving the most vulnerable people of opportunities. If the
world=92s poorest countries are to recover and thrive, freeing them from
IMF debt is imperative.
So what=92s stopping them? The U.S. government.
It=92s not that there is any compelling economic reason to oppose the
sales. Nor does the Bush Administration put a particularly high
priority on gold markets. But at least one politically powerful company
in the Western states has decided to use its muscle to oppose any IMF
gold sales. And because any sale of IMF gold requires, for complex
reasons, the approval of the U.S. Congress, it has been able -- by
getting 12 Senators from Western states to send a letter to Treasury
Secretary John Snow =96 to convince the Administration it cannot support
gold sales.
That company is Newmont Mining, the biggest gold mining concern in the
U.S. They say they do not want to risk a drop in the price of gold that
might result from the introduction of a large quantity in world markets.
Newmont executives have seen presentations demonstrating that the sale
of IMF gold would be accomplished in a way that would have no impact on
world markets --through an agreement with European central banks that
regularly sell gold -- and the IMF itself has made it clear that IMF
gold sales done through the so-called Central Bank Gold Agreement would
result in no net impact on the world gold market. Yet Newmont continues
to refuse to remove its opposition to IMF gold sales.
The misguided assertion of interest by this gold multinational stands
against a chance to emancipate impoverished peoples and countries =96 to
provide healthcare, shelter, food, economic development.
We must fight to reverse this absurd and outrageous situation quickly.
July is approaching, and solutions to the IMF debt problem are rapidly
falling off the G8 agenda.
TAKE ACTION: Call and fax the Company=92s office and Board Members,
demanding they reverse their position and publicly state and communicate
to Congress and the White House their revised position. Urge current and
potential investors in the company to complain about the position of the
company. Say you have decided to not purchase Newmont stock because of
this issue. Submit opinion pieces and letters to the editor exposing the
company=92s misguided opposition. Call radio call-in shows to express your
view. Circulate a joint letter to Newmont, asking religious and
community groups in the state to sign. Remind people that stopping AIDS
and poverty is a matter of compassion and justice, and it also is
critical to global security.
CONTACT: Newmont Mining Corporation, 1700 Lincoln Street, Denver,
Colorado, USA 80203. FAX (303) 837-6034. Investor Relations Contacts:
Randy Engel, Telephone: (303) 837-6033 Email: randy.engel@newmont.com
Wendy Yang Telephone: (303) 837-6141 Email: wendy.yang@newmont.com
Contact Board Members, listed here:
http://www.newmont.com/en/investor/governance/board.asp
SEND A FREE FAX VIA GLOBAL EXCHANGE:
http://www.globalexchange.org/campaigns/wbimf/goldindustryaction.html
Note that Newmont=92s policy states: =93Newmont's future is dependent on it=
s
ability to develop, operate and close mines consistent with our
commitment to sustainable development, protection of human life, health,
the environment, and to adding value to the communities in which we
operate. We understand the actions and conduct of every Newmont employee
and contractor are the basis on which our stakeholders will evaluate our
commitment to achieving the highest standards of social responsibility.=94
For more information on Newmont and IMF gold sales, see:
http://www.essentialaction.org/imfgold/
Sponsoring organization websites:
http://www.50years.org
http://www.essentialaction.org
http://www.globalaidsalliance.org
http://www.globalexchange.org
http://www.healthgap.org
http://www.jubileeusa.org