August 18, 2000

Mr. Yoshiro Mori
Prime Minister of Japan

Dear Mr. Mori,

We are very much concerned with the possible extension of mining lease in the Kudremukh National Park and the involvement of Japanese corporations in importing iron ore from this area.

The Kudremukh National Park in Karnataka, India, is one of the most important world natural heritages. It forms an important area of the Western Ghats forests that are known for rich bio-diversity and invaluable ecosystems. Three major rivers that provide water and critical natural resources for local people also originate in this area.

However, the mining operations of the Kudremukh Iron Ore Company Ltd (KIOCL) has resulted in serious negative impacts on the natural habitats in the Park. Presently the KIOCL is seeking extension of the mining lease in this area for another 20 years and also planning expansion of mining areas. This will be a great threat to this area that is already seriously damaged.

For the past several years, Japanese major trading companies and steel companies have been importing and buying a million tons of iron ore produced in this area annually. Trading about one thirds of the total production of the KIOCL, these companies have supported KIOCL's destructive activities. Without recognising their environmental responsibilities, those companies are still interested in continuing to purchase iron ore from this area, if and when the mining lease is extended.

We are aware that without commitment of those Japanese companies to purchase the products, the KIOCL's environmentally irresponsible operations are not possible. We are also aware that support of Japanese public export credit agencies, namely, the Japan Bank of International Cooperation and the Ministry of International Trade and Industry, will be critical encouragement for trading decisions of the companies. Thus we strongly urge you not to provide public support to those Japanese companies that are going to trade natural resources exploited in environmentally destructive manner. As the two public export credit agencies now have environmental policies, we request you to implement them in responsible and meaningful manner.

Most respectfully,

Hisako Motoyama
Development Finance and Environment Programme
Friends of the Earth - Japan
3-17-24-2F, Mejiro, Toshima, Tokyo 71-0031, Japan
Tel: 03-3951-1081 Fax: 03-3951-1084
Email: motoyama@foejapan.org

Leo F. Saldanha
Environment Support Group
S-#, Rajashree Apartments, 18/57, 1st Main Road
S. R. K. Gardens, Jayanagar
Bannerghatta Road, Bangalore 560 004. INDIA
Telefax: 91-80-6341977
Fax: 91-80-6723926 (PP)
Email: esg@bgl.vsnl.net.in


Cc:
Mr. Kiichi Miyazawa
Minister of Finance

Mr. Takeo Hiranuma
Minister of International Trade and Investment

Mr. Hirodi Yasuda
Governor of Japan Bank of International Cooperation

ENDORSERS:

People's Forum 2001, Japan

Yoichi Kuroda
Coordinator, Japan Tropical Forest Action Network

Hiroyuki Tiba

Kimiko Mugishima

Philip Carter
Environmental Writer, Osaka, Japan

Bittu Sahgal
Mumbai, India

Debi Goenka
Bombay Environment Action Group

Pankaj Sekhsaria/Ashish Kothari
Kalpavriksh, Pune

Pandurang Hegde
Parisara Samrakshana Kendra, Sirsi

Suresh Bhat
Nellibeedu Samrakshana Samithi, Kudremukh

Nikhil Bajpai
Bangalore, India

Shammanna T. J. Benekal
Udaya, Mudiger Taluk, Chickamagalur District

Madhusudhan Kopparam
Rare Earth Foundation, Bangalore

Lyla Bavadam
Mumbai, India

Ms. Keya Acharya
Journalist,
B 122, Century Park
48, Richmond Road,
Bangalore 560 025.
India.