Australia spied on Japanese companies for BHP Billiton

bhpkloppersAs more information comes to light about the global snooping being conducted by the NSA and GCHQ, it is becoming clearer that much of it had little to do with combating terrorism, as a recent EFF article makes plain. But most damaging to the idea that massive surveillance was justified, because it was to protect people from extreme threats, is the revelation that commercial espionage was also being conducted. So far, the chief example of that is in Brazil, but The Sydney Morning Herald (SMH) now has information about large-scale industrial spying on Japanese companies carried out by Australian secret services:

BHP [BHP Billiton — the world’s largest mining company] was among the companies helped by Australian spy agencies as they negotiated trade deals with Japan, a former Australian Secret Intelligence Service officer says.

A former diplomat has also confirmed Australian intelligence agencies have long targeted Japanese companies. Writing in The Japan Times, Professor Gregory Clark said Australian companies were beneficiaries of intelligence operations.

“In Australia, favoured firms getting spy material on Japanese contract policies and other business negotiations used to joke how [it had] ‘fallen off the back of a truck’,” Professor Clark wrote.

The article has more details, but doesn’t reveal how the materials were obtained. However, since Australia is part of the “Five Eyes” inner circle of snooping countries that also includes the US, UK, Canada and New Zealand, it seems likely that information of interest from those partners also found its way to Australian companies. SMH quotes Clark as saying:

Business information is a main target for [intelligence] agencies

It will be interesting to see if later releases from Snowden’s hoard of documents show any evidence of this Australian use of NSA materials for industrial espionage. – techdirt.com

Why SA pays more for power

The reason why theSouth African consumer has to pay more for electricity, lies with the corrupt dealings between the Chamber of Mines and BHP Billiton.

About BHP Biliton’s power contracts with Eskom, Xolani Mkhwanazi warnes that BHP Biliton “expects  contracts to be honoured”. Mkhwanazi also happens to be chairman of BHP Biliton SA.

The same Mkhwanazi was CEO of the National Energy Regulator.

Mr Chris Yelland has pointed out that some of the BHP power contracts had to be approved by this National Energy Regulator as required by law. The NER was established in 1995. The NER was the legal predecessor of the 2004 NERSA.

Xolani Mkhwanazi was the CEO of NER from 1999 till 2004. During this time period the NER would have approved the extensions from 2020 to 2028 of the Hillside 1 and II power contracts. At the time 2020-2028 was so far into the future, that the extensions were irrational. Would Mkhwanazi in his honest mind claim that by 2020, South-Africa would still not be utilising Eskom’s surplus capacity of 2000?

Also during same time period Mozal I and Mozal II smelters in Mozambique were approved by the NER. By then there was already a huge surplus capacity of primary aluminium ingot smelting for off-take by the local industry. Thus the long term Mozal power contracts were irrational too.

Readers must not forget: all of BHP Biliton’s aluminium smelters at Southern African ports import all of their ore from BHP-bauxite mines in Australia on the other side of the globe. South-Africa has the bulk of the worlds chrome ore, none of its aluminium ore. South-Africa also produces its own reducdant for ferrochrome smelting. All reductant for all of BHP’s import aluminium ore is imported, mostly from the USA.

How come then Mkhwanazi, former CEO of the NER, approving unique power contracts between Eskom en BHP Biliton, later CEO of BHP Billiton Aluminium South-Africa, now chairman of BHP Billiton SA, is also chairman of the South-African Chamber of Mines? With the hundreds of thousands of tons of imported aluminum ore per annum, Mkhwanazi should have been chairman of Australia’s Chamber of Mines.

Eskom has asked NERSA to review the BHP Biliton power contracts. Within 2 months, NERSA will hold public hearings in this regard. The NER as legal predecessor of NERSA, who had approved these controversial contracts will come into the spotlight. So will the chairman of BHP Biliton SA, Xolani Mkhwanazi’s former position as CEO of the NER, during the time period when most of these controversial contracts and their irrational extensions were approved by the NER.

Jacob Mouw