(06-03-2012, 12:39 AM)Musicwhiz Wrote: [ -> ]Thanks for your views, Qiaofeng. I am a person who accepts alternative views backed by evidence and objective reasoning, and I will not label you a "heretic" just because you mention something which puts Boustead in a bad light. In fact, it is people like you whom I admire because you are able to go against the flow to speak up against something which most people would be nodding their heads to, and that takes courage and conviction. So, please continue the sharing.
Based on the articles you posted and the facts about environmental pollution and poisoning, I can conclude that manganese smelting is definitely neither the safest nor more environmentally friendly activity out there. However, to put things in perspective, there are also many other industries out there (chemical, etc) which spew out equal amounts, if not more toxic chemicals and dump waste into rivers and jungles etc. I am not condoning OM Holdings or the Sarawak smelting plant for pollution, but just making a point to say that at least this is a legal process and the Government is backing the project up using a hydro-electric dam, rather than in China where illegal manganese activities have poisoned many human beings.
If we balance the fact that manganese is needed for steel production and construction of buildings, highways etc, which will benefit the human population; against the activities of errant and corrupted people who carry out such activities illegally, I think we cannot simply label ALL manganese mining as being harmful.
FF Wong is simply looking at the commercial aspect of the deal. I doubt he is fully aware of the environmental implications as you stated; but I also do not think it will become a full-blown crisis which Boustead may be saddled with. They are a partner to OM Holdings and will provide EPC and Engineering support, but should have no legal liability when it comes to the actual smelting and pollution (if any).
Just my views. Thanks.
If U read "the Guardian" article carefully, the word
"unapproved" was in inverted commas----meaning the local authorities in Hunan were aware of the activities .
China has approx. 37% of the world's
rare earth resources yet it produces 97% of the current world supply.
Ever wonder why there is such a high level of production in China and not in the US and Australia (see the Graph)?
Bingo!---Lax environmental regulations in China and strict ones in the other two!!
Thanks to articles like the Guardian's that embarrass the local Hunan authorities so that they are distancing themselves; Beijing is taking many strong measures lately to clean up and limit such production thereby reducing supply and implemented export quotas etc----- but the same western nations and even Japan have protested when their supply chain were affected by these cuts.
Many are happy that the Chinese local authorities are allowing such toxic activities so long as it does not happen in their own backyards. Such hypocrisy is prevalent in the name of capitalism---- so they will happily buy or transport their raw material to such countries to smelt / process.
They are not illegal---just that environmental-wise--- the awareness, laws and standards are weak and will only change and evolve as underdeveloped portions (Hunan/ Sarawak) gets exploited then exposed in developing countries like China/Malaysia.
This is why I say it is a timebomb---- becos as awareness rise what was approved and acceptable can and do become illegal at some point.
I have looked at the Chemistry of the process and I understand the huge energy requirements in the smelting process to convert to ferromanganese or siliconmanganese or even bare managenese. I can understand the reason why a cheap source like the power from the Bakun hydroelectric dam can help in reducing costs. Costs however may not be the overriding factor as events in China (rare earth saga) or the Malaysian Lynas saga illustrate.
Look at the toxicity profiles----- U can google the medical studies of toxicity on communities near manganese mines in other parts of the world such as S Africa---and U will realise that legal or ilegal is just a label in name and time--- eventually, the communities will suffer and the timebomb will explode. The health consequences to human communities living and working nearby--- from too much manganese are just too horrific to ignore!!
To put it very bluntly--- this is called
arbitraging---- seeking where the costs are lower; due to the less developed status of the political, legal and environmental knowhow in the countries where the smelting takes place.
