Sarei v. Rio Tinto PLC.

221 F. Supp. 2d 1116, 156 Oil & Gas Rep. 403, 2002 U.S. Dist. LEXIS 16235, 2002 WL 1906814
CourtDistrict Court, C.D. California
DecidedJuly 9, 2002
DocketCIV.00-11695 MMM
StatusPublished
Cited by45 cases

This text of 221 F. Supp. 2d 1116 (Sarei v. Rio Tinto PLC.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sarei v. Rio Tinto PLC., 221 F. Supp. 2d 1116, 156 Oil & Gas Rep. 403, 2002 U.S. Dist. LEXIS 16235, 2002 WL 1906814 (C.D. Cal. 2002).

Opinion

AMENDED ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

MORROW, District Judge.

Plaintiffs, who are current and former residents of the island of Bougainville in Papua New Guinea, filed this putative class action against defendants Rio Tinto pic and Rio Tinto Limited under the Alien Tort Claims Act, 28 U.S.C. § 1350. Plaintiffs allege that defendants’ mining operations on Bougainville destroyed the island’s environment, harmed the health of its people, and incited a ten-year civil war, during which thousands of civilians died or were injured. They assert that defendants are guilty of war crimes and crimes against humanity, as well as racial discrimination and environmental harm that violates international law. Defendants have moved to dismiss the complaint, arguing that the court lacks subject matter jurisdiction and that plaintiffs have failed to state a claim upon which relief can be granted. Defendants contend alternatively that the action should be dismissed on forum non conveniens grounds, because its raises questions that are nonjusticiable under the act of state or political question doctrines, and because the court should *1121 abstain under the doctrine of international comity.

I. FACTUAL AND PROCEDURAL BACKGROUND 1

Bougainville is an island in the South Pacific located just off the main island of Papua New Guinea (“PNG”). 2 Like other regions of PNG, Bougainville is rich in natural resources, including minerals such as copper and gold. 3 Bougainville’s rivers are also a key natural resource. 4 Plaintiffs allege that, for many years, one of these— the Jaba River — “was a major source of food for many residents of Bougainville, and use of the riches of the Jaba River was an integral part of the way of life of many.” 5

Defendants Rio Tinto pic, 6 a British corporation, and Rio Tinto Limited, 7 an Australian corporation (collectively “Rio Tinto Group” or “Rio Tinto”), are part of an international mining group headquartered in London, which operates over sixty mines and processing plants in forty countries worldwide, including the United States. 8 During the 1960’s, the Rio Tinto Group decided to build a mine in the village of Panguna on Bougain-ville. 9 Plaintiffs allege that Rio Tinto needed the cooperation and assistance of PNG’s government to do so, because constructing the mine necessitated displacing villages and destroying massive portions of the rain forest. 10 To obtain the required assistance, Rio Tinto allegedly offered the government 19.1% of the mine’s profits. 11 PNG accepted, and plaintiffs allege that thereafter, the mine became “a major source of income for PNG and provided [an] incentive for the PNG government to overlook any environmental damage or other atrocities Rio committed.” They also assert that “[t]he financial stake of the PNG government effectively turned the copper mine into a joint venture between PNG and Rio [Tin-to] and allowed Rio [Tinto] to operate under color of state law.” 12

To hold its interest in and operate the Panguna Mine, Rio Tinto established Bou-gainville Copper Limited (“BCL”), a Pa-pua New Guinea company and a majority-owned subsidiary of Rio Tinto Limited. 13 So that it could operate the mine, the Australian Colonial Administration 14 granted BCL leases over 12,500 hectares *1122 of Bougainvillean land. 15 In 1967, BCL and the PNG government entered into a formal agreement “concerning the development of certain mineral deposits in Bou-gainville,” which was ultimately codified as the “Mining (Bougainville Copper Agreement) Act of 1974” (“the Copper Act”). 16 Among other things, the Copper Act regulated the disposal of waste from mining operations, and vested in PNG’s Department of Minerals and Energy the power to control and monitor pollution generated by the mine. 17

A. Impact Of The Mine On The People And Environment Of Bou-gainville

Plaintiffs assert that, from the inception of the project, Bougainville residents resisted Rio Tinto’s efforts to build the mine. When a Rio Tinto exploration team set up camp on Bougainville in 1965, islanders allegedly destroyed the camp and expelled the team. 18 The Australian government purportedly responded by imprisoning approximately two hundred Bougainville-ans. 19 Islanders also refused to surrender land to Rio Tinto. A group of Bougainvil-leans — the Rorovana — were allegedly told that if they did not accept Rio Tinto’s offer of $105 per acre and $2 per coconut tree, their land would be taken without compensation. 20 When the Rorovana refused, plaintiffs assert that

“[o]ne hundred riot police, especially trained and equipped by the Australian government, were flown to Bougainville to help the surveyors mark out the areas of land owned by the Rorovana people that [BGL] wanted. On August 1, 1969, surveyors, supported by police wearing gas masks and carrying truncheons, drove in the first concrete peg.... On August 5, 1969, riot police carrying batons, shields, rifles and respirators attacked a group of about 65 unarmed villagers, men, woman and children. The police fired a barrage of 150 tear gas cannisters at them, yet the people stood firm. Then the police charged them with their batons, clubbing both men and women who were forced off their land.” 21

In addition to forcing many villagers off their land, Rio Tinto allegedly destroyed huge portions of the rain forest while constructing the mine. 22

By 1972, construction was complete, and operations at the Panguna Mine commenced. 23 The mine pit was approximately one-half kilometer deep and seven kilometers wide. 24 Plaintiffs allege that each day, approximately 300,000 tons of ore and waste rock were blasted, excavated, and removed from the pit, 25 producing 180,000 *1123

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Bluebook (online)
221 F. Supp. 2d 1116, 156 Oil & Gas Rep. 403, 2002 U.S. Dist. LEXIS 16235, 2002 WL 1906814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sarei-v-rio-tinto-plc-cacd-2002.