Counter Proposals to
Shareholder Assembly
NORDDEUTSCHE
AFFINERIE AG
Hamburg, 4. April 2002
Affi neither reacted to the
withdrawal of main shareholder BHP
from Ok Tedi Mine, nor made any
notice about the promise to
build/operate a health aid post in
the Ok Tedi region. In addition,
according to Affi's business
report, a relation to Indonesian
suppliers of ore concentrate is
established, which operate even
worse with respect to ecological
and social issues and to human
rights, than it is known from Ok
Tedi.
Due to the regulations of
German shareholder assemblies,
counter proposals are split, where
"Save the Elbe" will
focus on Ok Tedi, and
"Critical Shareholders"
on the Indonesian matter.
Translation of statements of NA by
"Save the Elbe".
To
Norddeutsche
Affinerie AG
Legal Office
Hovestrasse
50
20539
HAMBURG
Hamburg,
26.02.02
Counter
Proposals to Shareholder Assembly
2002
by
ªSave the Elbe´
Counter
Proposal to agenda item 2
"Use of Profit":
NA will
cut off business relations to Ok
Tedi Mine. For the relief of
social consequences and
environmental damage, NA will
make a deposit of 1% of profit,
and will submit a plan to the
shareholders, how to use the
deposit.
Reason:
Independent
public studies lead to the
conclusion, that the ecological
impact of Ok Tedi Mine will only
be mitigated effectively by
premature closure. The board of
NA denies to have any influence
on mine closure. However, the
board declared to ease social
disadvantages for the people
there, but did not make any
attempt to do so. As a customer
of Ok Tedi oreconcentrate, NA
has to carry responsibility, and
its financial consequences.
Counter
Proposal to agenda item 3
"Exonoration of Executive
Board"
The
executive board shall not be
exonorated.
Reason:
In
2001, NA contracted 10% of its
ore concentrate from Ok Tedi
Mine, Papua Newguinea. This
relation to OTM is detrimental
to NA's reputation, and not
compatible with its conception
of environmental protection. The
board promised at the last
shareholder assembly, to promote
improvement of environmental
standards at OTM, and to
contribute to the relief of
social disadvantages. The board
did not answer yet to repeated
questions, how this contribution
shall look like.
Counter
Proposal to agenda item 4
"Exonoration of Supervisory
Board"
The
supervisory board shall not be
exonorated.
Reason:
see
item 3.
Statement
of NA Administration to counter
proposals
The
Administration regards the counter
proposals to agenda items 2, 3,
and 4 as not reasonable. It
proposes, to vote against them.
The Board will make a statement in
particular to the sharehoder
assembly.
Preliminary
reason:
As a lead
company of environmental
protection, NA promotes high
environmental standards
throughout the copper production
chain. Therefore, NA is
fostering improvements at Ok
Tedi Mine. We pointed out on
shareholder assembly on March
22, 2001, that mine closure
would bring rapid relief to
environment, however, would bear
considerable negative
consequences on the economic and
social side for Papua Newguinea.
Further we pointed out, that NA
alone has little influence on
the date of mine closure,
because of its relatively small
share of Ok Tedi's production.
If NA - as an environmentally
leading smelter - wold cease
processing Ok Tedi ore
concentrate, international
competitors would take over our
share , but process it under
much worse conditions, making an
additional impact to
environment.
Due to a
change of proprietor, 52% of Ok
Tedi shares are administrated by
"PNG Sustainable
Development Program Fund",
which shall spend its revenues
for social and environmental
goals in PNG. The state of PNG
still holds 30% of shares.
Independent
of business relations to OTML,
NA contributed to improve local
social structures. On January
21, 2002, a trainig building for
health workers, financed by NA,
was handed over to the health
center at Rumginae. Health
workers play an important role
medical care for people of the
prime forests of PNG, and form
the foundation of the local
health system.
Counter
Proposals to Shareholder Assembly
2002
by
"Critical Shareholders"
Counter
Proposal to agenda item 2
"Use of Profit":
NA will
make a deposit of 2% of profit,
for the relief of social and
environmental damages in those
mining areas, where ore
concentrate with destiny NA is
not produced in a sustainable
way. The executive board will
submit an analysis and a
proposal to the next shareholder
assembly, how to use the
deposit.
Reason:
NA is
contracting ore concentrate from
various countries, where,
comparable to Ok Tedi Mine in
Papua Newguinea, heavy damages
of environment and even
violation of human rights is
reported. E.g., since two years
increasing quantities of ore
concentrate from Indonesia are
imported (14% of NA consumption
in business year 2000/2001). To
reach the company's goal
"top position of
environmental protection"
at this end of the production
chain, NA has to take
resposibility, or cut relations
to suppliers, that do not work
sustainably.
Counter
Proposal to agenda item 3
"Exonoration of Executive
Board"
The
executive board shall not be
exonorated.
Reason:
The
executive board has tied NA to
suppliers, which are known for
extremly detrimental production
schemes. E.g., since two years
increasing quantities of ore
concentrate from Indonesia are
imported (14% in 2000/2001).
There, by both copper mines,
Grasberg (Freeport) and Hijau
(Newmont), environment is
massively destroyed. Protest of
people in those regions is
suppressed by state agencies,
which includes murder. The
executive board undergoes the
risk, to miss the company's
target "environmental
protection", and to share
the infamous reputation of its
suppliers.
Counter
Proposal to agenda item 4
"Exonoration of Supervisory
Board"
The
supervisory board shall not be
exonorated.
Reason:
The
supervisory board did not
thoroughly examine the executive
board's choice of suppliers with
respect to the company's goals,
as published in the business
reports and other releases of
NA.
Statement
of NA Administration to counter
proposals
The
Administration regards the
counter proposals to agenda
items 2, 3, and 4 as not
reasonable. It proposes, to vote
against them. The Board will
make a statement in particular
to the sharehoder assembly.
Preliminary
reason:
In the
statement to counter proposals
of "Save the Elbe"
we referred to our remarks on
copper mine Ok Tedi, Papua
Newguinea, at shareholder
assembly March 22, 2001. The
same are valid to coppermines
Grasberg and Batu Hijau,
Indonesia.
Norddeutsche
Affinerie AG
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