Tag Archives: mining

The real Chilean miracle.

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The rescue of the 33 trapped miners in Chile is an epic feat. It is a testament to Chilean tenacity, discipline and ingenuity that the rescue operation was a sterling success. Bien hecho y felicitaciones, companeros!

There are some less covered aspects to the incident that are worth highlighting.

First, contrary to what US TV coverage may lead one to believe, the US did not spearhead the rescue efforts. A total of four US private contractors were sent to supervise the rescue bore drilling, and the derrick for that bore was US-made. There were also Canadian, Austrian and Kiwi experts on scene, but the majority of those involved in planning and carrying out the operation were Chilenos. Of course that should obviously be so: mining is the foundation of Chile’s export economy so it has a long history of expertise in that field. However, the accident itself has origins in policies that obviated any expertise. And in that regard it had a direct US connection: the Chicago School (as translated by Arnold Harberger) and the so-called “Washington Consensus.”

Under the market-driven edicts imposed by the Pinochet dictatorship and followed by the democratic Concertacion governments that ruled from 1990 until March of this year (the last two under Socialist presidents), the mining industry was deregulated and partially privatised. Although the Chilean state retains a majority interest in the largest copper mining ventures because copper is Chile’s hard income export earner (40 percent of the world’s copper comes from Chile), many smaller mining outfits proliferated under successive resource extraction plans developed by each of the democratic governments. That included allowing non-union workers into the mines and the proliferation of non-union “bargaining agents” at the shop level, all of which decreased worker input into the management of the deregulated and privatised mines (the larger state-owned mines are almost completely unionised). The mine in question is owned by one of these smaller private operators and has a long history of equipment failures, accidents, regulatory violations (such as the disarming of tunnel alarm systems) and maintenance problems. Plus, it was going broke (one of the ironies of the accident was that many of the rescued miners were about to be laid off due to the company’s financial difficulties). Thus the accident was a direct result of privatisation and deregulation leading to a lax workplace safety environment on the part of the mine’s owners.

Confronted by the mine owner’s inability to cope with the disaster the state-owned mining corporation, CODELCO, assumed control of the operation and brought its experts in. It was these people, effectively state employees, who directed, planned, staffed and executed the rescue (in fact, several of the six man rescue team were military personnel trained in advanced search and rescue operations). Or to put it very bluntly: it was the consequences of free market capitalism that caused the accident, and it was state capitalism that fixed it.

One thing that may not have been apparent to non-Spanish speaking viewers but which was quite clearly audible to those who do understand the language, was that several of the rescued miners, including the shift foreman who came out last as well as several of the rescuers sent underground to retrieve them, specifically said to Chilean president Sebastian Pinera that the accident was preventable and that measures must be taken to avoid a repetition of the event. Some of these remarks were quite pointed given that Pinera is of the centre-right and has benefited personally and professionally from Pinochet’s policies because he is the son of Pinochet’s Labour Minister and started his fortune by capitalising on the deregulation of the health insurance and private credit markets in the 1980s. To his benefit, president Pinera announced to the nation that he has ordered a review of the entire occupational safety framework, not just in mining but across the spectrum of economic activity, saying that it was clear that there was “gaps” and “failures” in the workplace protection of Chilean workers that needed tighter regulatory controls.  If he is true to his word and the review is genuine, that could result in a very positive outcome stemming from this near-tragedy.

As for Pinera’s role, he has acquitted himself very well. He monitored the operation from day 1 and did not just show up at the end to bask in the glory of the rescue. For a Righty, he came off as remarkably clued into the needs of his working class charges.  The same can be said for the Minsters for Health and Mining as well as the senior management team brought into supervise the rescue operation. From the erection of “Camp Hope” on the mining site (where relatives of the trapped miners held a vigil), to the flow of communication to the press and supply of necessities to the miners themselves, the pressed-into-service bosses performed admirably. And they all are public sector employees, even if the Ministers originated from the dark side of the political spectrum. Whatever the case, credit is deserved where it is due, and the president and the management team he sent to the rescue deserve gratitude and respect for their handling of the crisis.

One element of farce in the rescue was the arrival of Bolivian president Evo Morales on the scene. Morales was there because one of the rescued miners is a Bolivian. Morales promised him a house and a job if he returned home with him on the specially charted plane Morales arrived in. Trouble is, the miner left Bolivia at the age of 14 (he is now 24) to seek better economic fortune in Chile, has a Chilean partner and a network of friends, and for all outward appearances seems disinclined to return to his native country. So that left Morales to grandstand in his public speech in an effort to pressure the miner to return with him. To his credit, president Pinera noted that a medical evaluation would have to take place first, at which time the miner could make up his mind about what to do. Morales left a few hours later, alone.

There are of course many other sub-plots to this remarkable story of survival. But as someone who has lived and worked in Chile as a youth and adult, has several Chilean friends and who has written professionally on aspects of its political and economic development, it reminds me of how quietly and humbly efficient they are as a nation. They have suffered hardship and  disaster, both human and nature-made, yet they display a measure of stoicism, discipline and tenacity that is truly remarkable. The last 68 days has offered proof of that above and below ground. Viva Chile y sus mineros!

Who knew solving our economic problems was so easy?

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Missed opportunity:

$176.4 trillion = estimated value of water in Lake Taupo

(Assuming 59 cubic kilometres of water at $2.99 per litre.)

Well, this sort of reasoning is good enough for the NZ Herald, why shouldn’t it be good enough for anyone else?

Hat-tip: Berend de Boer, Libertarian-Nut-Job-in-residence at the Dim-Post. Thanks Berend. Always good for a laugh.

L

Organic protest, and reframing the mineral debate

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political-pictures-mimes-million-march

Like many others, I was amazed at the turnout for the anti-mining protest in Auckland on Saturday. That 50,000 people would turn out for such an event is remarkable in itself — the NZRU’s financial problems would be solved if they could attract so many people to half a dozen rugby matches each year, and we’re currently rebuilding Eden Park so they can seat that many a dozen or so times next year, and then maybe once or twice a year thereafter.

But the more remarkable thing about this march was its apparently organic nature. From my read — based only on the media coverage, mind — this was not a visually and ideologically cohesive, “branded” demonstration such as “enough is enough” and the more recent child discipline march, which were more or less Boobs On Bikes without the boobs or the bikes, advocating the wholesale adoption of a political product. It was not a heavily stage-managed piece of public theatre as the Foreshore and Seabed hÄ«koi was, and it was not a set-piece undertaken with a specific tactical purpose such as the most memorable marches of the Springbok Tour were. There were t-shirts and banners and so on, but these were not issued like uniforms with marching orders and approved wording for slogans, imagery and talking points. These were not rented crowds, seas of mime-like bodies serving as a vehicle for someone else’s words and sentiments. This was a genuine all-comers march, and if its almost unprecedented turnout did not bring genuine authority, then its authenticity surely must.

The response from the usual authoritarians has been a heady blend of confusion, disbelief and denial — the same sorts of delusions I normally accuse Labour partisans of falling prey to, when the observable data fails to conform to ideological modelling. This is bad for them, and good for those who oppose the government’s mining plans: if the government persists in believing the models instead of the data, it will go the way of the last government which did so.

But I don’t think this government will do that. I think it will see the writing on the wall, and reframe the mineral debate. Key and Brownlee have surely now seen their error: addressing mining in Schedule 4 as a national economic development issue rather than as a set of regional development issues. Going for it all in one bite was greedy, and as Danyl says, reflects the sort of complacency which creeps in when your opposition isn’t up to the task of opposing. But as strong and authentic as the Auckland march was, it has a weakness, and that’s that it’s composed of Aucklanders. Mining schedule 4 as a national strategy has failed, and likely at the cost of the opportunity to mine in the Coromandel and on Great Barrier Island, but it has thrown into sharp relief those areas where local views are less opposed — such as Paparoa, and possibly Mt Aspiring. As I commented on The Standard earlier, West Coasters are overwhelmingly in support of extended mining, a solid turnout in Nelson notwithstanding. Portraying Nelsonites as latte-sipping greeny liberal lifestylers begrudging their honest hard-working brethren on the other side of the hill a chance at the riches of the land will turn this into a classic town/country divide of the sort National and its mining allies are very skilled at exploiting. So watch for a few hundred — or maybe a thousand — Coasters marching in Westport to support the mining proposal being equated to this weekend’s demonstration in Auckland, and watch for well-meaning Aucklanders, Wellingtonians, Nelsonites and those from elsewhere being told in fairly certain terms to butt out of their regional business.

The government will be taking a risk if it proceeds with this plan, even in a regional form, because it has already permitted the debate to be established as a national issue about national parks in which everyone from the Cape to the Bluff has a stake — but it has amassed plenty of political capital, and now is the time in the electoral cycle to use it. Particularly with the Australian federal government unveiling a new resource tax, New Zealand just got more attractive for mining interests, and the imperative to dig, baby, dig will be stronger than ever.

L

Consider the birds

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In the USA, the Spotted Owl evokes the spectre of trivial busybody environmentalism. This species has been extremely well propagandised by the forestry lobby and other anti-environmentalists as a symbol for “putting other species ahead of humanity”. But it is not so in New Zealand (although there is Powelliphanta augusta). For a hint of what the public response to Gerry Brownlee’s plan to mine Schedule 4 of the conservation estate could be like, look no further than the firestorm which has erupted over the YouTube video showing Norwegians shooting protected native birds, among other things.

kererū

This has been a pretty persistent story. It’s been at or close to the top of the Stuff “most read” list for going on three days now; at the time of writing, it’s #1. It’s third on the NZ Herald website’s NZ section. It was in almost every dead-trees paper with a national news focus in the country on Friday. It’s featured prominently on One and 3 News (and consequently RadioLIVE), Radio NZ National, Newstalk ZB, and is at present the third-placed story on English-language Norwegian news website News and Views from Norway and has made Norwegian-language mainstream news there too, as well as action from Norway’s own environmental agencies. It’s drawn outraged official comment from DoC and the Conservation Minister; but notably not (as far as I can see) from the Minister of Tourism. There are 400-plus infuriated comments on the original YouTube clip, and 300-plus on the Fish’n’Hunt Forum, the oldest and most popular NZ internet site for discussion of hunting and fishing topics. Stuff.co.nz has a poll up, and the results are quite clear, for what they’re worth:
stuffkererupoll

This outpouring of righteous fury has not come about because of the death of a few birds. None of the species shot by these hunters are so close to extinction that the loss of an isolated handful of individuals will critically harm the population. The reason for the response is that this sort of thing offends us deeply and personally. It is antithetical to who we are as New Zealanders, and it is as if a little part of each of us dies with those birds.

I wrote a few days ago that the task for the opposition, for conservationists and those who love the land and its wildlife was to relegate mining Schedule 4 to the “political too-hard basket”. More specifically, that task for those people — and for the 74% of (notoriously reactionary) Stuff respondents for whom these events are a grave injury — is to see the proposal to mine Schedule 4 as the same thing on a much greater scale, which it ultimately is, and to respond in kind.

Update 30 March: A vivid event like the one discussed above often primes the media and public to pay closer attention to similar events which previously might not have been newsworthy. Dog attacks are a case in point. So it is with this case: the release and eventual death of a weka, hardly endangered but well-loved, from Hagley Park, is now news.

L

Yours, not mines

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Labour’s campaign against mining Schedule 4 land looks strong, especially at the iconographic level.

The slogan and to an extent the photo frames the issue as a matter of identity, echoing Phil Goff’s “the many, not the few” and Phil Twyford’s “not yours to sell” (though the visual style has come a long way since that campaign, and there’s some subject-object confusion). It also echoes Iwi/Kiwi, undoubtedly the most effective campaign of this sort in recent memory. The hard economic matters — the cost-benefit analysis between mining and tourism and so on — are there, as they should be, but backgrounded to the symbolic concerns.

Goff is clear that he’s not anti-mining, but wants to focus on the 60% of mineral resources outside the DOC estate. That’s the crucial point to make because it draws a bright line between acceptable and unacceptable which is still well north of Schedule 4 — to cross that line the government must first gain electoral consent to mine DOC land, and having done that must gain consent to mine the most precious areas of that estate. The point isn’t that mining is all bad; the point is that mining conservation land is worse than the alternatives. The job of the opposition, environmentalists and anyone who loves the fact that NZ still has wild places which are sacrosanct, or who thinks of those places as a part of them, is to relegate the idea of mining them to the political too-hard basket.

Labour and the Greens are also well-coordinated on this, with Metiria Turei pointing out the government’s duplicity in not revealing its intent to mine areas on Great Barrier Island which are under Treaty negotiations. The māori party should get in on this, as well. It looks good.

L

Unmix these metaphors

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ace_of_spades

In the last couple of weeks the government’s pistons have started pumping. After a year’s worth of blue-boiler-suited (non-unionised) engineers making sure the sleek machine is primed and fuelled and oiled and ready for action, the engine has roared into life and is beginning to blow out a cloud of smoke in preparation for a screaming burnout. As it proceeds, the party has dealt its Labour opposition a decent hand of cards; you could say they’ve built a house of them, which the mighty engine is in danger of knocking down. After campaigning on a platform of returning integrity and effectiveness to the Beehive, the public are beginning to get an inkling that the emperor may lack a couple of vital articles of clothing.

hughes12

Returning to cards: the strongest card is the decision to mine the conservation estate, announced last year. Classic crony capitalism is shaping up to be the trump suit. The other cards: Hide‘s junket timed to coincide with a wedding; Harawira‘s trivial but more spectacularly mismanaged junket; Key‘s and McCully‘s mining shares; revelations that Brownlee lied about being lobbied by mining interests which would stand to benefit from his actions as a minister; attacks against Radio NZ which benefit Joyce‘s former business partners; attacks against ACC which benefit the insurance industry to which the party has well-known ties; and ministers Heatley, Brownlee and Groser who were pinged pinching from the public purse for their own private pleasure.

corporate_crooks

Mining the conservation estate is the keystone of all this, the central peg on which the whole thing hangs — because the allegations cannot be denied outright, only explained. Particularly in the cases of Key and McCully’s shares, the value of the conflict of interest is irrelevant. It probably should be relevant, but it isn’t really: either there is a conflict of interest, or there isn’t. While there would be (much) more hay to be made from a large shareholding, that isn’t necessary to plant the seed of doubt in the rich loam of the electorate’s and the media establishment’s collective consciousness.

plant-a-tree

Likewise the other issues: trivial, but they ring true and all riff on the same themes. Hide’s transgression was much more significant in actual material terms than was Harawira’s, but Harawira was punished much more harshly because he failed to recognise the symbolic matter in play: both required abject, cringing apologies. Key’s “sloppy” uranium shares, which he was “too busy running the country” to recall owning is reminiscent of John McCain‘s failure to remember how many houses he owned, for which he was rightly crucified by a country staring down the barrel of an economic crisis which would cost many people their only home. The smiling visages of the three ministers on the front page of the Dominion Post: the Minister of Economic Development who can’t be trusted with a credit card; the Fisheries Minister who likes to splash out on feeds of kaimoana for his mates and party hangers-on; the Minister for Climate Change Negotiations wining and dining the former National minister who was an integral part of the Copenhagen negotiation, and now heads the environmental branch of the OECD apparatus. And so on. These are symbolic issues, not matters of real actual wrongdoing. But the government can’t just dismiss them outright, it needs to argue the merits, and by the time you have to argue the merits on this kind of thing, you’ve probably already lost the symbolic battle. This sort of behaviour passes the public’s sniff-test about how they think about the National Muldoon gave us. And it fits the narrative of the modern Key/Brash-era Nats as wheeler-dealers, well-heeled fat-cats with a finger in every pie, feathering the nest for their secretive plutocrat mates. It brings to mind an iceberg, with the tiny, trivial transgressions peeking above a glassy surface which hides the monstrous mass below.

iceberg

The job of the opposition is to tie all this into a coherent story which people can understand and feel in their guts: a myth that trips off the tongue at the pub or in the line at the football, in the front seat of a taxi, sitting on the bus, standing around the water-cooler or in the smoko room — in as many variations as there are poets of the NZ electorate.

This post cannot end without a mention of the good work the folks at The Standard — particularly Eddie — have done toward assembling the blocks for this narrative pyramid. I am often critical of them, and their tendency toward partisan hackery frustrates me, but they do a lot of good work, and it shouldn’t go unrecognised. They’ve covered all the main aspects listed here, but they can only go part of the way: now is for the opposition parties and their allies to lurch into action. All the cards have not yet been dealt; the ace of spades may yet be seen. Although the raw material is all there, it won’t be easy writing this story — just ask Lockwood Smith, who only by dogged repetition and worrying away at the Taito Phillip Field bone managed to raise the electorate and media’s awareness of that actual and manifest case of political corruption. But this is the opposition’s job, and if they can untangle the metaphors and lay them out for people in simple, appealing, resonant terms, they will gain some traction. Then perhaps, they too will begin to belch smoke and fire, and roar down the road to victory.

L

The glow of the furniture, piled high for firewood

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There’s been much analysis, wisdom, whimsy, and snark about Gerry Brownlee’s plans to mine the conservation estate. But rather than talk about it, I’m going to repair to a rather dubious poll from stuff.co.nz:

stuffminingpoll

Two things are interesting about this poll. First, for an internet poll, the options are uncharacteristically nuanced. This leads to the second interesting thing: these results are deeply incoherent.

I’m going to work from two assumptions (both of which are pretty arguable). First, I’m going to go out on a limb and assume that stuff.co.nz poll respondents are pretty similar to NZ Herald poll respondents and the commenters on “Your Views” and Stuff’s equivalent — putting it very charitably, let’s just suppose that they’re somewhat further economically to the right, less environmentally conscious and with stronger authoritarian tendencies than Gerry Brownlee. Second, I’m going to assume that a poll like this should break roughly along partisan lines, since it’s a government policy opposed by the opposition, part of an overall strategy to mimic Australia, a complex topic of national significance with which people generally have little first-hand experience (the sort of thing they tend to entrust to their representatives), and the poll answers are heavily propagandised using the government and opposition’s own sorts of terms.

The poll result is incoherent because it doesn’t break along (rightward-slanted) partisan lines, although it initially looks like it does. A total of about 56% of respondents approve of mining in principle, and this is roughly what I would expect given this framing, the current government position on the topic, and the demographic characteristics of this type of poll. It’s what the government is banking on in terms of support with this policy: if it drops much lower, they’ll probably back down. But where it gets incoherent is in the other two options. The third option (“too damaging to NZ’s green image”) is about what the Green party is polling, and the fourth (“National Parks are treasures”) is about what the Labour party wishes it was polling. That’s bass-ackwards, because the third option is the Labour party’s actual position on many environmental matters (even Carol Beaumont’s passionately-titled post falls back on NZ Inc. reasoning), while the fourth position is the Green party’s actual deeply-held position of principle. A second source of incoherence is the political framing of the second (most popular) question. By definition, if conservation land is mined it’s not being conserved any more.

Both Labour and the Greens have huge opportunities here, but they need to position themselves to properly take advantage of them. Labour, for its part, needs to tone back the NZ Inc. reasoning which plays into all the assumptions of the second question: that it is a simple trade-off of one type of economic value against another type and come out looking good on the margin. This is classic trickle-up politics, rationale which appeals to the brain instead of the gut. The people who are picking options one and two probably think they’re doing so on solid rational bases: more money, more efficient use of resources, etc. — but the real reasons are probably more to do with ideology (mastery of the environment) and nationalism (catching up with Australia). Labour’s best move here is to appeal to peoples’ identity: New Zealanders think of themselves as people who live in a wild and pristine country, and they like having that country to go and ramble about in (even if they hardly ever do it). The Greens could also adopt such a position, abandoning the wonkery for things which matter to people. Russel Norman tried with his speech in reply yesterday, but I swear, whoever wrote it needs the ‘G’, ‘D’ and ‘P’ keys removed from their keyboard. He needs to take a few hints from the team who got an organic farmer elected to the Senate in Montana on an environmentalist platform by telling him to stop talking about environmentalism and start talking about how much he loved the land. The Greens also need to rethink their deeply confused firearm policy, but that’s a minor thing. In a country with such a strong constituency of outdoorsfolk and wilderness sportspeople it’s an absolute travesty that the MP who represents the hunting lobby is the urbane Peter Dunne, and the only party who genuinely values wild places is represented by earnest city-dwelling vegetarians.

But Labour and the Greens can’t divide this constituency between them; they need to make this appeal positive-sum, and steal back some of those who voted option two. The way to do this is to attack the implicit logic of option two, the idea that you can mine something and still be conserving it, and to remove the idea that this sort of thing is for a government to decide, that it’s somehow too complex or technical for ordinary people to understand. This shouldn’t be hard to do — it’s a plain old political education campaign. But it requires framing and a narrative whereby reasonable people can really only bring themselves to choose the wilderness; causing them to lose faith in the assurances of the government’s “strict environmental criteria”. The narrative needs to be about who we are in New Zealand, and it needs to be one which appeals to socially-conservative rural and suburban folk who would never think of voting for earnest city-dwelling vegetarians even though they share many of the same bedrock values. It needs to be like the lyric in the title: we are burning our furniture, and that’s not what civilised people do. New Zealand is not a nation of environmental degenerates, except when insufferable environmentalist smugness forces them to choose degeneracy as the less-bad identity position.

This is an issue on which the left can win, because it’s already a pretty marginal issue for the government. It cuts against a long-standing bipartisan reverence for National Parks, and it cuts against New Zealand identity as New Zealanders see it. Even on what should be a pretty reactionary online poll, the government only wins by 6%. Turn one in six of those people around and the issue gets put on ice for good.

L