Two of Australia's richest people, Andrew Forrest and Gina Rinehart, led a protest demonstration on Wednesday against Prime Minister Kevin Rudd. The big end of town took to the streets in Perth. There is a major political battle raging between the government and the Mining companies over a proposed Resources Rent Tax, popularly known as the Resources Super Profits Tax. There were even accusations of creeping communism:

FORTESCUE'S Andrew Forrest yesterday held up China as an exemplar economy that was turning its back on communism by lowering its resource taxes. However, analysts in China were perplexed by Mr Forrest's comments, as China is in fact taking steps towards imposing a resource tax for the first time. Capitalist backs communists, but communists back tax

At the same time the role of mining and oil companies, and their relationship to governments in the developing world, continues to cause controversy.

Jubilee Australia, who help to coordinate the Robin Hood Tax campaign, have been pursuing their anti-poverty agenda. Policy Coordinator Luke Fletcher wrote recently at New Matilda about implications of the Exxon's natural gas project in PNG for Australian taxpayers:

So, what are the concerns about the project? The first relates to the complications that can occur when the sudden introduction of large extractive industry projects in undeveloped regions brings a cash economy into traditional societies.

He drew parallels with the situation in Mekamui (Bougainville):

The resulting civil conflict can be devastating, especially in PNG, where conflict associated with the Panguna copper mine resulted in a decade-long civil war in Bougainville. Over the last year, there have been a series of violent incidents in the PNG LNG project areas (including this one), both during and after the officially required landowner negotiations, which have resulted in injuries and deaths.

His other concerns include:

Second, there has been a lack of due process regarding social and environmental impacts. ... Finally, there is a very real risk that PNG LNG revenues may not find their way to the people who need them, and that rather than benefiting the country the project could actually further entrench the culture of corruption that has held up real improvements for Papua New Guineans. PNG Gas Could Blow Up In Our Faces

The London Mining Network styles itself as 'Holding the mining industry to account'. They reported some good news from the Rio Tinto London AGM:

Tom Albanese said that the company respects the long-term peace process and the actions of the Government of Bougainville, the landholders and the Government of Papua New Guinea. Report on the London AGM of Rio Tinto, 15 April 2010

But they expressed strong concerns about another project in Mongolia:

The decision by the government of Mongolia to allow Rio Tinto and Ivanhoe Mines Ltd to develop the Oyu Tolgoi mine has caused civil unrest in the country because of a number of claimed legal irregularities in the agreement (not least the lack of a full Environmental Impact Assessment and a detailed water study). Update on Rio Tinto at Oyu Tolgoi

Rio Tino issued a response to criticism:

Similarly at Oyu Tolgoi there has been a high level of consistent, genuine engagement with local communities, herders and the government. Projects of this nature will attract objections, and we expect them as a sign of a healthy civil society.

The full text is available here. Their promotional video from 2009 shows what's at stake:

Earlier in the year Rising Voices and Nomad Green blogger Otgonsuren Jargal reported on protests and a hunger strike against the mining agreement:

The protestors judged that Oyutolgoi agreement was unjust and demanded to bring this agreement for discussion in the Parliament for appropriate amendments since the winter of previous year.
Seven protesters representing citizen’s movements are (in the picture below) at their 119th hours of hunger strike.
Harsh Spring Days With Thriving Tough Political Protest 

Nomad Green and other locals were concerned not only about environmental issues. They also claim that the agreement between their government and Rio Tinto/Ivanhoe Mines will not provide a fair return to the Mongolian people:

On 4 April 2010 NGOs and 200 representatives from 18 'aimags' (provinces) gathered in Sukhbaatar Square, the main square in Ulaanbaatar, Mongolia's capital, calling on the Government to respect its election promises and accusing it of selling out the country to foreign mining interests. ... The NGOs are also asking Professor Ruggie to review the fairness of the benefit sharing arrangements of the Investment Agreement so as to ensure that the project helps eradicate poverty in Mongolia. Mongolian NGOs appeal to UN over Oyu Tolgoi

It seems that a windfall tax was sticking point last year:

An investment agreement for the first major mining project in the country is expected to act as a blueprint for billions of dollars worth of future investments in other resources projects. ... the parliament agreed to scrap the windfall profits tax on copper and gold, setting the stage for an agreement, miners Rio Tinto and Ivanhoe said in separate statements. The windfall tax, introduced in 2006, and a demand for greater government ownership in strategic projects, have been key sticking points between the government and investors, delaying the progress of several investment proposals despite a mining boom in recent years. Mongolia clears way for Oyu Tolgoi mine

These days everything seems connected. It must be galloping globalisation. There has been a lot of talk about resource taxes creating a sovereign risk. That's the risk that government actions pose for mining ventures. The real risk may well be to sovereign States and their ability to stand up for their long-term national interests.