Ivanhoe Mines claims stake in Monywa not sold, refuses to show any proof

By Canadian Friends of Burma • July 8, 2010

In a tersely worded statement posted on the firm’s website, Ivanhoe Mines claimed its 50% stake in the Myanmar Ivanhoe Copper Company (MICCL), a joint venture it created with the Burmese regime to run the Monywa Copper project, was not sold.

Ivanhoe’s statement claimed that a CFOB press release which reported that the MICCL stake was sold to junta cronies in collaboration with Chinese weapons firms Norinco was “part of a discredited, long-running disinformation campaign by the Canadian Friends of Burma non-governmental organization, assisted once again by the India-based Mizzima News Agency”. Although the statement was dated June 30th, it wasn’t posted on the firm’s website till July 6th.

Ivanhoe’s statement also said that the “independent trust” the firm established in February 2007 to divest its Burmese assists still holds Ivanhoe’s 50% stake in MICCL. Despite repeated requests Ivanhoe has refused to say who is behind the trust.
CFOB executive director Tin Maung Htoo believes that Ivanhoe Mines is using the allegedly “independent trust” to hide the fact that a sale of Ivanhoe’s Burmese assets have taken place, “I find it truly disturbing that Ivanhoe has been allowed to get away with the sale of its Burmese assets to cronies of General Than Shwe acting as middle men for a Chinese weapons firm, we need an investigation from the Canadian government immediately”.

Both CFOB’s press release and Mizzima’s articles about the sale of the MICCL stake were preceded by a press release on the website of Chinese Weapon’s maker Nornico’s announcing that it had struck a deal with the Burmese regime to secure copper from Monywa. The Wall Street Journal first broke news of the Norinco press release and the firm’s Monywa copper deal with Burma’s generals.

CFOB executive director Tin Maung Htoo disputes Ivanhoe’s claim that his organization is part of a “disinformation campaign” responding that “CFOB had nothing to do with Nornico’s press release announcing their Monywa copper deal with the junta, nor did we have anything to do with the Wall Street Journal reporting on it. Ivanhoe’s assertion that we’re running a disinformation campaign is totally ridiculous.”

That Ivanhoe chose to title its statement “Attempts by anti-Myanmar activists to link Ivanhoe Mines with reported Monywa Copper Mine developments are dishonest and nonsensical” is yet more evidence of the extremely belligerent attitude that Ivanhoe has towards anyone who stands in the way of the firm’s drive to make profit.

CFOB’s executive director Tin Maung Htoo finds the anti Burmese smear particularly hurtful, “Burma’s armed forces have long sought to portray those who favor democracy, transparency and human rights as anti-Burmese, that Ivanhoe resorts to using this kind of language for the headline of their press release is a clear sign of their hate filled mentality.”

Background on Ivanhoe’s so called “Independent Trust”

In October 2006 Ivanhoe’s partner in the controversial Oyu Tolgoi Mongolia copper and gold mine, Rio Tinto acquired a stake in Ivanhoe Mines that eventually became 30%. Rio Tinto publicly stated at the time that it was buying into Ivanhoe on the condition the firm would withdraw from Burma.

In February 2007, Ivanhoe announced that it had “sold” its 50% stake in MICCL operator of Burma’s largest mine to an “independent third party trust” in return for a guarantee that when the trust sells the stake Ivanhoe will then be paid. After more than three and half years Ivanhoe continues to refuse to disclose the identity of the members of the blind trust, its structure or its activities. The Burmese military regime continues to own the other 50% of MICCL.

In May of 2009 Burma’s pro-military business weekly the Myanmar Times, reported MICCL managing director Glenn Ford boasting that the Monywa mine was “one of the lowest-cost production mines in the world”.

Despite the fact the mine was functioning at the end of 2007 Ivanhoe, citing a lack of knowledge about what was occurring at the Monywa copper mine, claimed that it was “prudent to record a $134.3 million write-down” in the value of their 50% holding in MICCL thus reducing its value to zero. How a mine that is officially valued at zero by Ivanhoe’s accountants could still continue to produce highly valued copper remains a question that Ivanhoe refuses to explain.

Media contact: 613-297-6835

Tags: Canadian Friends of Burma, Ivanhoe Mines, Letpadaung Copper Mine, Monywa

This post is in: Press Release

Ivanhoe Mines claims stake in Monywa not sold, refuses to show any proof

About Burma Partnership

Spotlight

Campaigns