Displaying items by tag: Legal
France: The French government has confirmed that it is investigating Lafarge over alleged illegal activities in Syria following European Union (EU) sanctions that were imposed in 2012. The Paris prosecutor's office said that a probe was opened in October 2016 after the French Ministry of Economy and Finance filed a complaint against the cement producer, according to the Associated Press. LafargeHolcim, the company formed from a merger between Lafarge and Holcim in 2015, said that it was, “in the process of establishing the facts concerning our activities in Syria.”
A group led by the non-government organisation (NGO) Sherpa filed a complaint in Paris against Lafarge for allegedly ‘financing terrorism’ in November 2016. The complaint accused it of maintaining commercial relations with the Islamic State group in Syria in 2013 and 2014 so it could continue operating a cement plant in the country.
At the time, Lafarge denied ‘financing so-called terrorist groups.’ The company said it had launched a ‘thorough and independent investigation’ into the allegations to determine whether its internal code of conduct had been properly followed and if procedures needed to be adapted. It said it would implement ‘any remediation measures required.’
Labour ministry comments on Greek cement worker ruling by European Court of Justice
22 December 2016Greece: The Labour Ministry has said that a European Court of Justice (ECJ) ruling on a group dismissal of workers by the Heracles General Cement Company in 2013 has supported the government’s position on the issue. The ministry has defended its current legislation on mass layoffs, saying that it should be modified not abolished, according to the Athens News Agency.
"We must first clarify that the court's decision does not concern the existing restrictions on mass dismissals, which are absolutely compatible with community law. The court's ruling is confined to the issue of the administrative advance approval of dismissals and the criteria taken into account by Greek authorities to make these decisions," said the labour ministry in a statement. It added that the ruling found that the Greek government was allowed to block mass layoffs under European Union law in certain circumstances.
Export tariff expected to hit Saudi Arabian cement profits
21 December 2016Saudi Arabia: New legislation requiring cement exporters to pay tariffs of up to US$35/t is expected to reduce profits. The new import tax is also expected to compound problems for exporters created by restrictions linked to the gradual lifting of a ban on exports, according to Mubasher financial website. Cement producers are expected to be encouraged to focus on domestic sales instead. Financial analyst Jasim Al-Joubran of Al-Jazirah Capital has forecast low profits for the industry in 2016 due to low government spending. However, he added that sales are expected to recover in the fourth quarter of 2016 followed by a recovery in 2018.
Java governor willing to shut Rembang cement plant
21 December 2016Indonesia: Ganjar Pranowo, the governor of Central Java, is willing to shut down Semen Indonesia’s Rembang cement plant if the central government approves it. Ganjar made a statement in response to a protest staged by Rembang residents against the cement plant following a Supreme Court ruling in favour of the residents, according to Tempo magazine. He added that he has sought advice from the government including the presidential office, the Environmental Affairs Ministry and the Ministry of State Owned Enterprises. Ganjar has established a team to conduct a study and he has until 17 January 2017 to respond to the ruling.
Ministry issues cause orders to cement projects in Philippines
16 December 2016Philippines: The Department of Environment and Natural Resources has issued show cause orders against two cement projects. Orders were issued to the Mindanao Portland Cement Corporation and the Pozzolan and the Associate Minerals Cement Plant, as well as to nine other mining companies, according to the Philippine Star newspaper. Environment Secretary Gina Lopez said that these companies should explain within seven days why fines should not be issued and environmental compliance certificates cancelled. The initiative is part of a review of environmental certificates issues by previous administrations.
India: LafargeHolcim has received environment clearance to raise the production capacity of its Nongtrai limestone mine in Meghalaya to 5Mt/yr from 2Mt/yr for US$28m. The mine is operated by Lafarge Umiam Mining, a subsidiary of Lafarge Surma Cement, according to the Press Trust of India. Limestone from the mine is transported across the border to Lafarge Surma Cement’s plant in Bangladesh. The increased limestone is expected to increase the production capacity at the plant to 5.5Mt/yr from 2.2Mt/yr.
The mine expansion project is subject to final outcomes of cases pending before Supreme Court, High Court and National Green Tribunal. LafargeHolcim’s subsidiaries have also been asked to obtain clearance from the National Board of Wildlife and the State Pollution Control Board.
East African Portland Cement chief accused of sexual harassment
24 November 2016Kenya: Simon Peter Ole Nkeri, the chief executive officer of East African Portland Cement Company (EAPCC), has been accused of sexual harassment in a legal case by a manager at the company. Lucy Rimanto Molonket, the head of Sales and Marketing, alleges that Nkeri harassed her on 31 August 2016, according to the Business Daily newspaper. She then alleges that he texted her to apologise for his behaviour. Subsequently she says that she was transferred to a low profile job in September 2016. EAPCC chairman Bill Lay has defended Nkeri, saying that the company has transferred 11 of its managers to different positions following financial problems.
Sherpa and European Centre for Constitutional and Human Rights take legal action against Lafarge over operations in Syria
16 November 2016France: Sherpa and the ECCHR (European Centre for Constitutional and Human Rights), as well as 11 complainants who are former Syrian employees of Lafarge, are taking legal action against Lafarge and its subsidiary Lafarge Cement Syria (LCS) for its actions in Syria. The non-government organisations have accused the cement producer of conducting business with the Islamic State of Iraq and Syria (ISIS), a terrorist group, via its Jalabiya cement plant.
“The Lafarge case highlights once again how multinationals doing business in conflict zones can directly fuel armed conflicts and contribute to grave human rights violations committed therein. Companies like Lafarge must be held accountable,” said Miriam Saage-Maaß, Vice Legal Director at ECCHR.
Sherpa and the ECCHR have accused LCS of entering into arrangements with ISIS in order to maintain production, by paying for passes issued by the jihadist organisation and buying raw materials necessary for cement production such as oil and pozzolana in areas under ISIS’s control. They have also accused Lafarge of reckless endangerment given that the plant continued to operate in the conflict zone. LCS repatriated its expatriate staff in 2012 but it kept its Syrian employees working at the site. Subsequently, when the plant was attacked, Sherpa and the ECCHR say that the local employees were forced to escape on their own.
Eugenio Correa defends role in Cemex Maceo project
26 October 2016Colombia: The broker named in an internal probe by Cemex Latam has defended his involvement with relation to the purchase of land and mining rights for a cement plant project in Maceo, Antioquia in comments to the La Republica newspaper. Eugenio Correa, representing Calizas y Minerales, says that he has only received US$6.85m from Cemex despite claims by Cemex that he is holding US$20.5m in funds for the project. He adds that Cemex conducted at least 25 visits from its engineers, lawyers and accountants at the Maceo site between July 2011 and December 2015 keeping it up to date on the project’s progress.
Correa says that he originally signed a memorandum of understanding with Cemex for the sale of 340 hectares, economic free zone and the mining rights for US$22.20m in August 2012. He adds that the contract was extended in April 2016 to June 2019. In late September 2016 Cemex dismissed several senior staff members in relation to the project and the subsidiary’s chief executive resigned.
Pakistan: Fecto Cement has appealed to the Islamabad High Court to allow it to continue mining in the Margalla Hills. In August 2016 it had its mining lease cancelled by the Capital Development Authority (CDA) and a fine was issued. This followed an order by the Supreme Court in March 2015 to stop all development and stone crushing activities, according to the Dawn newspaper. In 2013 the Islamabad Capital Territory issued a mining lease that allowed Fecto Cement to carry out stone crushing activities in the area until 2030.