LOS ANGELES – The 9th Circuit Court of Appeals today reinstated the massive human rights claim brought by the people of the island of Bougainville against London-based Rio Tinto [NYSE:RTP], one of the world's largest mining companies.

The suit claims that Rio Tinto conspired with the government of Papua New Guinea (PNG) to savagely quell civil resistance to an environmentally devastating mining operation, actions that led to the deaths of thousands.

The ruling remands the case to U.S. District Court in Los Angeles, and could have broad implications for other groups seeking redress from crimes committed during wartime by private companies acting in concert with local governments. It also states that Rio Tinto could be held liable for actions by the PNG government if the company's involvement is proven.

A US District Court dismissed the suit, siding with the U.S. State Department's opinion that the case could not be heard in U.S. courts, a decision that was appealed by the plaintiffs.

In today's ruling, Court of Appeals dismissed Rio Tinto's arguments that the case should not be heard in the U.S. Court System, and the U.S. State Department, which argued the case could interfere with the ongoing peace process on the island.

The case was filed in 2000 and seeks to represent Bougainvilleans who continue to be exposed to toxins resulting from the Panguna mine, individuals who lost property due to ongoing environmental contamination, and people injured or killed during the Bougainville conflict between 1989 and 1999.

Under the Alien Tort Claims Act, foreign nationals can bring suit in the United States against companies that violate international law. Rio Tinto is the parent company of subsidiary U.S. Borax Inc., headquartered in Los Angeles. The court also ruled that war crimes, crimes against humanity and racial discrimination are such universally recognized norms that they can be heard under the Alien Tort Claims Act.

Steve Berman, the managing partner of Hagens Berman Sobol Shapiro HBSS, who argued the case before the 9th Circuit, said he was "deeply gratified the Court had seen fit to allow the people of Bougainville their day in court in the United States."

According to Berman, the plaintiffs are now free to seek redress for loss of life and injuries from the war, and to pursue claims to force Rio Tinto to clean up the island from the massive environmental destruction caused by the mining operations.

Environmental Events Leading to the Lawsuit

The Panguna copper mine and the political events that erupted since the mine was established are at the core of the case. Bougainville Island, located northeast of Australia, is part of the Independent State of Papua New Guinea.

Between 1969 and 1972, the Australian Colonial Administration leased land on the island to Bougainville Copper Limited (BCL), a mining subsidiary of Rio Tinto. The suit claims that landowners unsuccessfully resisted intrusion onto their land, and many Bougainvilleans were forced to relocate or flee the island. Three principal villages were relocated.

According to the suit, Rio Tinto then destroyed entire villages, razed the rain forest, sluiced off a hillside and established the world's largest open-cut mine, spanning two kilometers wide and half a kilometer deep. The mine excavated 300,000 tons of ore and water every day during its operation between 1972 and 1988.

The suit alleges that Rio Tinto improperly dumped waste rock and tailings, emitting chemical and air pollutants without regard for the villagers. Those tailings destroyed local fish stock, a major food source for the islanders.

The Bougainville people -- especially children -- began dying more frequently from upper respiratory infections, asthma and tuberculosis, the suit states.

The Panguna mine, located on the Island of Bougainville just off Papua New Guinea, was once the world's largest copper mine during the 1980s.

Rio Tinto's actions on Bougainville were so egregious that they sparked an uprising designed to close the mine in 1990.

According to the complaint, in 1990, villagers started an uprising which closed the mine, and in response, Rio Tinto and the Papua New Guinea (PNG) government brought troops in to reopen the mine.

The complaint alleges that Rio Tinto provided transport for these troops and played a role in instituting a military blockade of the island that lasted for almost 10 years, created to coerce the Bougainville people into surrendering so that the mine could be reopened.

The blockade prevented medicine, clothing and other essential items from reaching the people of Bougainville, closing hospitals and other vital services.

According to the Red Cross, the blockade killed more than 2,000 children in its first two years of operation. By the time the war ended in 1999, 10 percent of the population of Bougainville, approximately 15,000 civilians, were killed.

The court case alleges that Rio Tinto's conduct violated customary international law, including prohibitions against destruction of the right to life and health, and prohibitions against racial discrimination and war crimes.

In a two-to-one majority opinion, the 9th Circuit stated "we conclude that most of the plaintiffs' claims may be tried in the United States," rejecting arguments by Rio Tinto that the U.S. was not the most appropriate venue to hear the case.

The court also rejected arguments by the U.S. State Department, which filed a Statement of Interest, saying that "continued adjudication of the claims would risk a potentially serious impact on the peace process."

The Court concluded "we cannot uphold the dismissal of the lawsuit solely on the basis of the Statement of Interest."

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in 10 cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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