PUBLIC OWNERSHIP UNDER WORKERS CONTROL

Closing GKN plant 'difficult but necessary', says Melrose boss

Alan Tovey
Tue, February 23, 2021

GKN takeover protest

Melrose has defended its plan to close a Birmingham car parts plant with the loss of 500 jobs, saying it was “one of the difficult things we have to do to make GKN a better business”.

Simon Peckham, chief executive of the company that bought GKN three years ago after a bitter £8bn takeover battle, told MPs that shutting the Erdington site was necessary to improve the “troubled business”.

Giving evidence to the Business Select Committee on the impact of Britain leaving the EU and the industry’s readiness for it, Mr Peckham said Brexit was not a factor in the decision.

“Let's be entirely clear, Brexit has no influence over the decision," he said. "Erdington is one of the difficult decisions as well as the good stuff we do. We inherited GKN, which basically was a troubled business.”

During the takeover, unions raised fears about the new owners asset-stripping the business and closing down British factories.

Melrose gave a series of undertakings to the Government to protect the business, including not selling the sensitive aerospace business and maintaining investment in R&D.

Mr Peckham said his company had “complied with the spirit and the word of every undertaking we gave, but we also said we would make difficult decisions from time to time - unfortunately, Erdington is one of those”.

He added that “it might shock” MPs on the committee to learn the Birmingham drivetrain assembly plant “lost money every single year for the past 10 years, with losses now totalling £100m”.

Mr Peckham added that over the past decade executives “have tried to improve the business, but they've failed”.

He added that Erdington - one of only two GKN automotive plants in the UK - lost a quarter of its market between 2016 and 2019, and that 40pc of its sales would “disappear through electrification”.

This is thought to be partly due to Jaguar Land Rover, a major customer, taking its cars all electric.

Work at Erdington is expected to be sent to the company’s European plants, and Mr Peckham said this was a consequence of decisions by previous management regimes.

“Unfortunately, before we turned up, past management of GKN placed the manufacturing [elsewhere], Erdington's not a manufacturing site, it’s purely an assembly plant. It doesn't have manufacturing equipment," he said.

“They chose to put the manufacturing for EV manufacture in Italy, we didn't make that choice, they did. Now we have capacity in that plant. There's nothing we can do about it. It's a legacy we inherited.”

Unions have vowed to fight the closure, with Unite labelling pledges to protect the business as “at best misleading, or at worst a direct lie”.

GREEN CAPITALI$M

Lloyd's insurer Brit says it will not insure Adani coal mine

The Lloyd's of London building is lit by winter sun in the 

City of London financial district in London

LONDON (Reuters) - Major Lloyd's of London insurer Brit will not insure Adani Enterprises' Carmichael thermal coal mine, it said on Tuesday, adding to a growing list of Lloyd's insurers who have made similar pledges.

Carmichael has provoked controversy in Australia with its plan to open up a new thermal coal basin at a time of growing concern over global warming, in a region that is in need of jobs.

"Brit does not, has never, and will not write any policies relating directly to the Adani Carmichael coal mine itself," Brit said in an emailed statement.

"Brit also confirms that it does not plan to renew any risks involving any other works directly associated with the project."

Twenty-six Lloyd's syndicates have now said they will not insure the mine, according to action group Insure Our Future.

Adani has begun construction at Carmichael together with an associated rail project, with plans to start producing 10 million tonnes of coal per year from 2021.

The coal industry is in the spotlight for its higher levels of greenhouse gas emissions than crude oil.

Many insurers, particularly in Europe, have pulled back from insuring thermal coal, but Lloyd's of London insurers have continued to do so, industry sources say.

This is likely to change after Lloyd's issued its first climate strategy for its 100 syndicate members in December 2020, ending its previous hands-off approach to the issue.

(Reporting by Carolyn Cohn; Editing by Jan Harvey)

GREEN CAPITAL$M

UK
Local government pensions invest nearly £10bn in fossil fuels, data shows

Daisy Dunne
Tue, February 23, 2021, 

More than three-quarters of local authorities have made ‘climate emergency’ declarations(AP)

Nearly £10bn remains invested in fossil fuel companies through local government pensions, it has been revealed.

Figures obtained via freedom of information requests show that local authority pensions invested £9.9bn in fossil fuels in the financial year of 2019 to 2020.

That means that each of the 6.8 million people who depend on local government pension funds had at least £1,450 invested in fossil fuels.

The £9.9bn figure is a 40 per cent decrease on the amount invested in fossil fuels in 2017, the analysis finds. However, campaigners have urged councils to fully divest from fossil fuels and instead put money into renewable energy and other areas that benefit communities.

The three local authority pension funds with the largest investments in fossil fuels from 2019 to 2020 were Greater Manchester, Strathclyde and West Midlands, according to the data compiled by Friends of the Earth and Platform, a campaign group investigating the impacts of oil.

More than three-quarters of UK local authorities have made “climate emergency” declarations, and many have also pledged to reach net-zero emissions by 2030, ahead of the national target of 2050.

Rianna Gargiulo, a divestment campaigner at Friends of the Earth, said: “Declaring a climate emergency may garner good headlines but too often it seems to stop there.

“Councils can’t make a bold claim about saving the planet while continuing to invest in fossil fuels. Local authorities have the power and duty to ensure local workers not only have a pension for their retirement, but also a future worth retiring into.”

Friends of the Earth and Platform have created a dashboard to allow people to explore their local authority pension fund’s fossil fuel investments in more detail.

Some councils have already committed to fully divesting from fossil fuels, according to the campaign groups. These councils include Southwark, Islington, Lambeth, Waltham Forest and Cardiff.

Overall, the report shows that fossil fuels represent 3 per cent of the total value of the UK’s local government pension scheme.

Companies such as the oil majors BP and Shell and the mining firm BHP are among those to benefit most from local authority pension investments, according to the findings.

Green Party councillor Carla Denyer, who led a campaign that saw Bristol City Council become the first council to make a climate emergency declaration in 2018, said: “Divesting pension funds from fossil fuels is a simple and effective step that councils can take to reduce their own carbon emissions, protect their workers’ pensions, and send a message to the industry that it must change.

“The science is clear – to avoid catastrophic climate change, we must stop extracting fossil fuels. Councils across the country have acknowledged the ‘climate emergency’ but many, including Bristol, still fund fossil fuel extraction via their pension investments. This is not only environmentally irresponsible, it is also financially unwise.”

Experts have warned that the assets of fossil fuel companies could be left “stranded” – or economically unviable – as the world transitions to greener ways of producing electricity.

“Even if fund managers don’t care about climate change, they should still be divesting to protect the value of their investments,” said Ms Denyer.

Read More

Planning to build a new coal mine is like investing in a new fax machine – it takes us all backwards

GREEN CAPITAL$M

UK Budget 2021: Chancellor must

 'make finance green', say campaigners

Roger Harrabin - BBC environment analyst
Wed, February 24, 2021

City image overlaid with trees

Chancellor Rishi Sunak is being urged to use the Budget to change the financial system to better protect the environment.

One group wants him to impose a carbon tax and use the proceeds to protect the poor from high energy bills.

A second petition is calling for Bank of England rules to encourage banks not to invest in fossil fuels.

Mr Sunak is expected anyway to update the Bank’s mandate to include a greater focus on climate.

But campaigners want the new wording to stop the Bank from supporting fossil fuel firms through schemes such as its £20bn corporate bond purchase programme, which involves buying debt issued by firms such as Shell and BP.

The Bank responded to similar calls in January by saying that it has "an ambitious work programme on climate change, from the stress testing of the largest UK banks and insurers against climate-related financial risks through to working internationally with the central bank network for greening the financial system".

Bank of England criticised for financing carbon-intensive firms

£3bn UK climate finance to be spent on supporting nature

Some campaigners also want the Bank to work with the Treasury in funding a National Infrastructure Bank investing in sustainable industries.

The petition comes from Positive Money, a not-for-profit organisation claiming 65,000 supporters that was set up in the aftermath of the financial crisis and is funded by trusts and foundations.

One campaigner, Hannah Dewhirst, said: “The Bank and the financial system it regulates is currently funding catastrophic climate breakdown, which will again see ordinary people paying the price of bankers’ recklessness."

Anna Vickerstaff, another campaigner for the climate group 350.org, said: “British banks are the worst in Europe for funding fossil fuels.

“Banks operating in the UK are fuelling the climate crisis by financing fossil fuel projects from Argentina to Mozambique.”

The petition comes after MPs on the cross-party Environmental Audit Committee (EAC) last week called on the government to add climate and nature objectives to the Bank’s mandate.


Protests by Extinction Rebellion have previously taken place outside of the Bank of England.

They urged the chancellor to impose VAT reductions to encourage energy efficiency, the use of recycled materials and repair services.

The EAC also urged the government to begin scoping work on a carbon tax. That call was backed on Wednesday by a green organisation, the Zero Carbon Campaign.

The UK currently runs several taxes that affect carbon emissions, including Air Passenger Duty, the landfill tax and car tax.

The campaign asks the chancellor to simplify the “inconsistent” pricing system by placing a charge on every tonne of CO₂ emitted in the UK. Proceeds should be used to shield the poorest from the tax changes, it said.

The group believes this will trigger a transition to a clean economy by ensuring that individuals, businesses, manufacturers and policymakers choose less-polluting options.

The Treasury has been examining the relationship between tax and the environment, including a carbon tax. It has also been looking at a pay-as-you drive scheme for motorists to compensate for the loss of cash from petrol taxes as vehicles go electric.

Recent media reports suggest that officials may be moving away from the carbon tax proposal.

The Treasury will not discuss tax changes until the Budget, while the Bank of England declined to comment when it was approached by BBC News.

GREEN CAPITAL$M

UK

Chancellor urged to use upcoming Budget to stop banks from funding fossil fuels

Daisy Dunne
Wed, February 24, 2021

Campaigners have called on Rishi Sunak to use the upcoming Budget to stop banks from funding fossil fuels(REUTERS)

Campaigners have called on the chancellor Rishi Sunak to use the upcoming Budget to stop banks from funding the use of fossil fuels.

The call comes as a petition signed by nearly 65,000 members of the public urges the Bank of England to “cut off the money pipeline” for fossil fuel projects.

Mr Sunak is expected to make updates to the Bank of England’s mandate to include a greater focus on measures to tackle the climate crisis as part of announcements due next week.

However, campaign groups including 350.org, Positive Money and SumOfUs have said that any update should ensure that the Bank “gets its own house in order” by ending financial support for fossil fuels.

Anna Vickerstaff, from the climate campaign group 350.org, said: “British banks are the worst in Europe for funding fossil fuels, with Barclays and HSBC alone pouring more than £145bn into dirty energy projects since the UK signed the Paris Agreement in 2015.

“Banks operating in the UK are fuelling the climate crisis by financing fossil fuel projects from Argentina to Mozambique, projects that trample on indigenous rights, destroy livelihoods and irreparably damage communities.

“The Bank of England must cut the flow of finance to fossil fuels and channel funds towards rebuilding an economy that works for people, not polluters.”

The campaign groups urged the bank to stop supporting fossil fuels through programmes such as its £20bn corporate bond purchase scheme, which involves the bank buying debt issued by oil majors such as BP and Shell.

Campaigners also called on the Bank of England to do more to stop the banks it regulates from pouring money into fossil fuel projects.

Hannah Dewhirst, a campaigner at Positive Money, a group advocating for a more fair and sustainable banking system, said: “[Mr] Sunak has a huge opportunity in this Budget to make the Bank of England get its act together.

“By stopping billions flowing to dirty fossil fuels and investing in green job-creating projects instead, we can ensure Britain is leading by example ahead of the critical Cop26 climate summit in Glasgow this November.”

The call comes after a cross-party group of MPs last week said that the Bank’s remit should be updated to include “climate and nature objectives”.

The Environmental Audit Committee also recommended a range of measures that the government could take to put climate action at the heart of Covid-19 economic recovery plans.

These included VAT cuts on green home upgrade schemes and new incentives to encourage faster uptake of electric cars. The MPs also said the government should “begin scoping work on a carbon tax” as part of its drive to pursue a green recovery from the pandemic.

A spokesperson for the treasury said: “The UK has some of the most ambitious climate commitments in the world and we recently announced proposals to extend the UK’s global leadership in green finance.

“The government’s 10-point plan for a green industrial revolution also sets out £12bn in green investment, including for hydrogen and carbon capture technology, greener homes, electric vehicle charging infrastructure, walking and cycling infrastructure, flood defences and backing offshore wind to power every UK home by 2030.”

The Independent also approached the Bank of England for comment.

Read More

Climate crisis ‘biggest security threat humans have faced’, Sir David Attenborough tells UN

GREEN CAPITAL$M
HSBC, Barclays challenged over bond linked to Vietnamese coal project




HSBC, Barclays challenged over bond linked to Vietnamese coal project

 Man walks past a sign of Japan Bank for International Cooperation (JBIC)

 at it's headquarters in Tokyo

Simon Jessop, Melanie Burton and Aaron Sheldrick
Wed, February 24, 2021, 3:09 AM

LONDON (Reuters) - HSBC and Barclays, which have pledged to stop financing new coal projects, have been challenged by a legal group over a Japanese bond it says will contribute to the financing of coal-fired power in Vietnam.

Both banks have come under pressure from investors keen to see them do more to help the world shift to a low-carbon economy and HSBC faces a shareholder vote over its fossil fuel financing at its annual meeting in April.

While both have policies to refrain from financing new coal plants, the complaint focuses on their alleged role in helping to fund others who go on to finance such projects.

Legal experts say this could be just the first in a series of challenges to banks over indirect financing at odds with their climate commitments.

The bond, a 250 million pound ($354.35 million) issue by the Japan Bank for International Cooperation (JBIC) earlier this month, will support expansion of the Vung Ang 2 power project, the Australian-based Environmental Defenders Office (EDO) said in a letter to the banks seen by Reuters.

HSBC declined to comment when contacted by Reuters. Barclays and JBIC did not immediately return requests for comment.

Acting on behalf of climate-focused think-tank the Anthropocene Fixed Income Institute (AFII), the EDO said it was concerned that the promotion and issuance of the bond had "entailed possible breaches" of the banks' legal duties.

It highlighted reported comments from both banks that they would no longer finance the expansion of coal-fired power stations.

While the JBIC money was not raised specifically to fund Vung Ang 2, the EDO said previous statements from JBIC have made clear the money would go into the pot from which funding for the Vietnamese project would be drawn.

The complaint also highlighted concerns with the bond prospectus, including that it did not explicitly mention the funds could be used to fund Vung Ang 2.

In view of JBIC's significant investments in fossil fuel projects, it said the prospectus failed to highlight the potential risk that some of the assets could become uneconomic given the world's transition to a low-carbon economy.

DENIAL OF BREACH

AFII founder Ulf Erlandsson said he had received an initial reply from both banks denying a breach of their coal policy. HSBC declined to comment on the prospectus while Barclays said the prospectus had met all applicable rules.

Erlandsson said he would go back to the banks to clarify elements of their response before deciding on the next steps. Previous EDO complaints have resulted in formal court challenges, including with Woodside Petroleum and Santos.

Thom Wetzer, professor of law and finance and director of the Oxford Sustainable Law Programme at the University of Oxford, said the EDO's letter was unlikely to be the last challenge to banks over climate.

"Investors expect banks to make credible commitments to decarbonise their business and to stick to them. When they fail to do so, and non-legal challenges do not sufficiently change that outcome, investors appear increasingly willing to take legal action to expose and end such greenwashing."

Xavier Lerin, senior banking analyst at ShareAction, which co-filed the shareholder resolution against HSBC, said the potential use of fungible proceeds from the bond to finance Vung Ang 2 raised questions over HSBC’s coal policy.

"HSBC says it is committed to help its clients transition. But how credible is this commitment if the bank continues to provide financing to top coal financiers and coal developers with absolutely no string(s) attached?"

($1 = 0.7055 pounds)

(Additional reporting by Nupur Anand; Editing by Steve Orlofsky and Barbara Lewis)

Fukushima nuclear plant operator: Seismometers were broken



Japan Nuclear Fukushima

This aerial photo shows the Fukushima Dai-ichi nuclear power plant operated by Tokyo Electric Power Company (TEPCO) in Okuma town, Fukushima prefecture, northeastern Japan, on Feb. 14, 2021, a day after a strong earthquake. TEPCO says both of two seismometers at Unit 3, one of three melted reactors, had been out of order since last week and were not able to collect data when the powerful earthquake struck the area on Feb. 13, calling into question if the company's risk management has improved since the disaster. (Hironori Asakawa/Kyodo News via AP)

MARI YAMAGUCHI
Mon, February 22, 2021, 8:23 AM

TOKYO (AP) — The operator of the wrecked Fukushima nuclear power plant said Monday that two seismometers at one of its three melted reactors have been out of order since last year and did not collect data when a powerful earthquake struck the area earlier this month.

The acknowledgement raised new questions about whether the company's risk management has improved since a massive earthquake and tsunami in 2011 destroyed much of the plant.

The malfunctioning seismometers surfaced during a Nuclear Regulation Authority meeting on Monday to discuss new damage at the plant resulting from a magnitude 7.3 quake that struck the region on Feb. 13. Cooling water and pressure levels fell in the Unit 1 and 3 reactors, indicating additional damage to their primary containment chambers.

The operator, Tokyo Electric Power Co., has repeatedly been criticized for coverups and delayed disclosures of problems at the plant.

Regulatory officials asked TEPCO at the meeting why it did not have seismological data from the Unit 3 reactor for Saturday's quake, and utility officials acknowledged that both of its seismometers had failed — one in July and the other in October — and had never been repaired.

TEPCO also said that seismometers at all but two of the reactor buildings that survived the 2011 disaster were submerged by water from the tsunami and have never been replaced.

During Monday's meeting, regulatory officials said they were concerned about the declining water levels and pressure in the Unit 1 and 3 primary containment chambers because of the possibility that the quake had expanded the existing damage or opened new leakage paths, and urged the utility to closely check for any increased radiation levels in the ground water surrounding the reactor buildings.

TEPCO said no abnormality has been detected in water samples so far.

New damage could further complicate the plant's already difficult decommissioning process and add to the large amounts of contaminated water being stored at the plant.

Since the 2011 disaster, cooling water has been escaping constantly from the damaged primary containment vessels into the basements of reactor and turbine buildings, where the volume increases as groundwater seeps in. The water is pumped up and treated, then part of it is reused as cooling water, while the rest is stored in about 1,000 tanks.

TEPCO initially reported there was no abnormality at the plant from Saturday's earthquake. But on Monday, it said about 20 of the tanks had slid slightly due to the quake, a storage container carrying radioactive waste had tilted, and asphalt pavement at the plant was cracked.

GENTRIFICATION OF THE BADLANDS

Farmers chuckled when doctors bought this rural land for a racetrack — but they aren't laughing now

Kyle Bakx CBC

© Supplied by Badlands Motorsports Resort About 170 hectares of land near near Rosebud, Alta., about 100 kilometres east of Calgary, has been rezoned for development of a racetrack resort.

When a group of seven doctors bought a parcel of land in a remote river valley in Alberta more than 15 years ago to build a racetrack, farmers in the area could only chuckle in disbelief.

They found it impossible to imagine race cars skidding around multiple tracks on a plot of land in their secluded part of the Prairies, which rarely attracts visitors on the gravel roads that wind through the deep valley.

What may have seemed like a farfetched idea at the time is now much closer to reality, as those doctors hope to break ground on the $500-million racing resort this summer.

Badlands Motorsports Resorthas said it has all of its permits in place, but just needs to raise more investment before the first phase of the complex can be built near Rosebud, about 100 kilometres east of Calgary.

However, the process hasn't been easy and local opposition remains.

Dozens of farmers who were skeptical all those years ago have spent hundreds of thousands of dollars in legal fees and other expenses in their battle to stop the project from proceeding. Their latest salvo includes a Federal Court challenge asking for Ottawa to intervene and stop the development to protect a threatened bird species.
New racing venue

In 2005, Calgary radiologist Dr. Jay Zelazo and some of his colleagues in the medical field came up with the idea to build a track to race street-legal vehicles, since they enjoyed driving at high speeds and the only track near the city was struggling to stay afloat. Race City Speedway eventually closed in 2011.

They chose the property near Rosebud since there were few other parcels of land on the market that were the appropriate size.

The early concept grew over time to include four tracks, a hotel, residential development, go-kart track and other facilities. The Badlands Motorsports Resort could employ as many as 200 people.

"There's so many vehicles and people with vehicles, they just cannot use them for their potential. I mean ... that's what this idea is, is safe track driving," said James Zelazo, Jay's father, who is the project's chief financial officer.

© Kyle Bakx/CBC A few natural gas wells are located on the property, which has been used in the past to grow crops and raise cattle.

The first phase would involve constructing one track and temporary buildings. The cost would be about $30 million, said Zelazo. The developers also have to pave the road leading to the site, which would cost about $15 million. Zelazo is hopeful the provincial government may cover that cost.

So far, the group has raised about $5 million, he said.

About 250 people, mostly locals, have each already made a $1,000 deposit toward a potential membership, he said.

The racetrack could provide a boost for tourism in the area, which includes the Royal Tyrrell Museum, home to one of the world's largest displays of dinosaurs.

"I think this is an opportunity for a different segment of the population to come and enjoy this area and, if it gets built like the picture that I'm looking at indicates, I think it'll be a real jewel in Alberta," said Darryl Drohomerski, chief administrative officer of the town of Drumheller, which is located about 35 kilometres northeast of Rosebud.

The Alberta government did not respond to requests for comment about the proposed project.© Kyle Bakx/CBC The racetrack developer is required to widen and pave this road, which is estimated to cost about $15 million.

Entrenched opposition

The local opposition is easy to see as many "No race track" signs are visible on fence posts throughout the area.

Wendy Clark is one of the farmers spearheading the effort to halt the development. She has about 800 hectares of grain fields in the region.

"If you live here," she said, "you kind of instinctively come to the realization that it's your job to take care of this river valley."

She said she's worried about the impact on the land, the water and the wildlife.

"We're all just so angry," she said, calling the project an "intrusive development."© Kyle Bakx/CBC These signs can be seen throughout the Rosebud area.

She and other landowners have objected to the racetrack to every level of government. So far, they have only been able to slow down the process, not stop it.

At the provincial Environmental Appeals Board, Clark and others argue the racetrack will cause irreparable damage to the environment, since the developer plans to infill two wetlands and modify three others. The appeal process is ongoing.

The farmers also want the federal government to take action to halt the development to protect the bank swallow population. The small, brown and white songbirds were designated as a threatened species in 2013 under the federal Species at Risk Act (SARA).

The bank swallow has suffered a "severe long-term decline amounting to a loss of 98% of its Canadian population over the last 40 years," the SARA website says.

As a threatened species, the bank swallow is protected by the federal government.

The landowners filed an application to the Federal Court of Canada last year to force Ottawa to prepare a recovery plan for the birds and designate critical habitat areas. A date for a virtual hearing has been set for late April.

"You're putting a racetrack in between the nesting sites of these bank swallows and their foraging territory. So, what do you think is going to happen to the bank swallows?" said Clark.

In a statement to CBC News, Environment Canada said the development of a recovery strategy for the bank swallow is ongoing. That strategy will identify the threats to the species and critical habitat. However, the government said the land-use authorization for the proposed racetrack is a provincial matter.

Badlands Motorsports Resort maintains it has the right to move ahead with the project because the property is private land. The river valley will be protected and the wetlands are often dry, said JamesZelazo.

The bank swallows have nests across the road from the racetrack development, but Zelazo said he hasn't seen any of the birds himself, so he doesn't know if they still inhabit the area.

The landowners who oppose the project made an offer to purchase the land from the racetrack developer in 2013, but Zelazo said his group wasn't interested.

If the farmers continue to oppose the project and cause further financial costs and delays, he may consider launching legal action to recover those expenses, he said.

A separate $25-million racetrack development north of Calgary was supposed to open last year, but has also faced delays.

© Kyle Bakx/CBC Bank swallows dig nesting burrows in eroding vertical banks. This photo is taken across the road from the Badlands Motorsports property.

BHP and Aboriginal group probe fallen rock shelter in Western Australia

MELBOURNE (Reuters) - BHP Group has launched a joint investigation with an Indigenous group into what caused a rock fall at a culturally significant rock shelter at its iron ore operations in Western Australia, both groups said.

© Reuters/MELANIE BURTON A tonne of nickel powder made by BHP Group sits in a warehouse at its Nickel West division, south of Perth

BHP discovered the damage to the site of significance to the Banjima people on Jan. 29, as part of monitoring at its Mining Area C operations. It informed its Banjima partners and the groups agreed to set up a probe into the incident, BHP President Minerals Australia, Edgar Basto said in a statement.

“This site is not part of current mining operations. The cause of this rock fall is not known," Basto said in a statement late on Tuesday.

Mining Area C is part of BHP's $3.4 billion South Flank replacement project in the state's Pilbara region.

Miners are facing closer scrutiny over what they do to protect sacred Indigenous sites in the wake of Rio Tinto's destruction of two ancient, sacred rock shelters at Juukan Gorge last May. The mining company had obtained a permit to destroy the sites.

Basto and Brandon Craig, head of BHP's Western Australian iron ore operations, met with Banjima Elders as part of the Banjima Heritage Advisory Council that BHP set up last year following the Juukan Gorge incident.

"We will continue to work with the Banjima in a spirit of respect and cooperation,” BHP said.

The Banjima Native Title Aboriginal Corporation said that it had met with BHP executives on Feb. 11 to clarify details in an initial report, and carry the investigation forward.

(Reporting by Melanie Burton; Editing by Simon Cameron-Moore)

Fortescue apologises for clearing land on Aboriginal sacred site

MELBOURNE (Reuters) - Australia's Fortescue Metals Group has apologised to an Aboriginal group for clearing land on a heritage site while flouting a government condition for representatives of the community to be present when the damage took place.

© Reuters/David Gray FILE PHOTO: File picture of a giant 

excavator loading a mining truck at the Fortescue Solomon iron

 ore mine south of Port Hedland

It is the week's second such incident, despite pressure on Australian iron ore miners to show they have improved practices to manage important sites after Rio Tinto destroyed two sacred rock shelters for a mine expansion last May.

Fortescue had state government permission to clear the land in the Weelamurra Creek area registered as sacred to the Wintawari Guruma people, on condition that community elders were present to perform salvage and cultural rites, four documents reviewed by Reuters showed.

But an administrative error led to land clearing works earlier than scheduled on Feb. 1 in the absence of the representatives, Fortescue Chief Executive Elizabeth Gaines said in a statement.

"I have spoken to Wintawari Gurama Aboriginal Corporation (WGAC) Chairman Glen Camille regarding this incident to personally express my regret and sincere apology on behalf of Fortescue," she said.

"We have carried out a full investigation into the matter which has shown that this unfortunately occurred as a result of an administrative error...We have paused all clearing works at this site as we work with WGAC on the matter."

Gaines did not provide detail on the nature of the administrative error.

In a statement, the community corporation said, "WGAC members are disappointed by FMG’s actions, particularly after investing so much time negotiating an outcome with them that included elders being present during the destruction.

It added, "WGAC is concerned by yet another example of poor conduct by a mining company and the apparent disregard for Aboriginal cultural heritage."

WGAC chairman Glenn Camille requested that the Western Australian government prosecute Fortescue, in a letter to Minster for Aboriginal Affairs Ben Wyatt, reviewed by Reuters.

"We sincerely hope that you and the next Minister for Aboriginal Affairs decide to send a message to the mining industry about the importance of protecting our Indigenous heritage."

In a statement, Wyatt said that he had been advised that an alleged breach was under official investigation.

"The matter is being treated very seriously and with utmost priority by the Department. I trust that the investigation will be managed expeditiously and concluded swiftly."

Earlier this week, BHP Group said it was investigating how a rock fall damaged a registered site at its South Flank operations that was not part of active mining operations.

Last year's Rio Tinto destruction cost its chief executive and two senior leaders their jobs, and sparked a parliamentary inquiry.

(Reporting by Melanie Burton; Editing by Clarence Fernandez and Louise Heavens)