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Australia’s mining reforms have gone distinctly “down under”

Richard — Wed, 23 May 2012 16:36:53 +0000

The Labor-held federal Australian government recently presented its much-awaited 2012 budget. And what a mess of potage it turns out to be! According to Rob Burgess of the Business Spectator, the country’s mining sector “currently accounts for 30 per cent of ‘gross operating surplus’ – its basic approximation of who’s making all the money in this country.” Miners pay only 15 per cent of company tax at present, and they were expecting a further cut in the tax, ostensibly to promote more jobs. But this hasn’t materialised. For the cut was “to come out of the revenue that the government speculates can be raised from the minerals resource rent tax [MRRT].” Now, it seems, the MRRT itself has just about bombed. This affects, among others, Anglo American, BHP Billiton, Rio Tinto and Xstrata.

See http://www.minesandcommunities.org/article.php?a=11692.

Protests threaten energy-hungry miners in Chile

Richard — Wed, 23 May 2012 16:35:40 +0000

Residents close to a proposed new coal-fired power plant in Chile’s Atacama desert region claim its emissions will harm air quality. They also say the temperature of water, released back into the ocean, will impact fish and marine life. The plant is designed to provide power to major copper mining projects, and the proposal is “seen as a litmus test for a string of other potential flashpoints in Chile”.

This article mentions, among others, Anglo American, BHP Billiton and Xstrata.

See http://www.minesandcommunities.org/article.php?a=11695.

Protesters grab chance for a dig at mining giants

Richard — Wed, 25 Apr 2012 09:00:07 +0000

Protesters say Rio’s record makes a mockery of Lord Coe’s promise of the greenest Games ever

Two of the world’s biggest mining companies endured a barrage of protests last Thursday, as a broad coalition of unions, individuals, social and environmental groups from as far afield as South Africa and Mongolia travelled to London for Rio Tinto and Anglo American’s annual meetings.

See http://www.independent.co.uk/news/business/news/protesters-grab-chance-for-a-dig-at-mining-giants-7661701.html?origin=internalSearch.

Big Questions for Anglo American

Richard — Sun, 22 Apr 2012 13:56:24 +0000

Since Anglo American listed in London and moved its headquarters from South Africa to Britain, the company’s dealings with its critics have been characterised by a level of formal courtesy that sits awkwardly with its behaviour on the ground. At this year’s AGM on 19 April, Chairman Sir John Parker and CEO Cynthia Carroll continued the tradition, treating critics with delicate kid gloves that failed to disguise their unyielding iron fist.

Knowing that it would face heavy criticism for its treatment of former mine workers dying of silicosis, for its proposals to open a massive copper-gold mine near Bristol Bay, Alaska, and for continuing problems for communities affected by its 33% owned Cerrejon Coal mine in Colombia, Chairman Sir John Parker and CEO Cynthia Carroll got in first by welcoming all the company’s critics and telling them how much they sympathised with them.

Dying in South Africa

The company is so sympathetic to the plight of former mine workers in South Africa that it is funding the medical costs of the first sixteen such workers to sue it, on the grounds that their claims have taken so long to resolve.

Meanwhile, it is denying any legal liability and fighting both those sixteen cases and those of the other 1200 plus former workers suing them in the English courts (see http://www.guardian.co.uk/business/2012/apr/18/anglo-american-sued-miner-tuberculosis).

Professor Tony Davies, former Director of the National Institute for Occupational Health, Johannesburg, spoke about the impacts of dust on workers in deep gold mines. Sir John Parker attempted to curtail his contribution on the grounds that it was a statement rather than a question – despite having allowed nearly half an hour to deal with lengthy statements and multiple questions from the first two shareholders who spoke. Professor Davies finished his contribution and the Chairman asked whether there were any more issues to be raised on the same subject. Former mineworker Daniel Seabata Thakamakau then pointed out that, long after the paltry sum paid out in state compensation for losing his job on health grounds in 1991 has been exhausted, he cannot support his family. He asked for help from the company for himself and for all the former mineworkers suffering as he is. Peter Bailey from the South African National Union of Mineworkers appealed to the company to compensate the dying miners over and above the level of statutory compensation, which is clearly inadequate. He pointed out that this is a matter of simple justice for the people whose labour made the company so profitable.

Sir John Parker expressed his sympathy for all the workers dying of silicosis and then explained that the company does not believe it is liable and that the English courts are not the appopriate forum for the cases to be resolved. Company medical officer Dr Brink spoke at some length about everything Anglo American is doing to help workers suffering from tuberculosis, HIV and AIDS – carefully avoiding mentioning silicosis or the dust levels in company-owned gold mines which are believed to have caused it.

What part of “No” does the company not understand?

Sir John Parker welcomed representatives of Indigenous and fishing communities around Bristol Bay, Alaska, and their allies in US organisations Earthworks and the Natural Resources Defense Council, telling them how much he enjoyed their company.

They pointed out that CEO Cynthia Carroll had promised them that the company would leave if it was not wanted in a community; that opposition to the company’s proposed open pit copper and gold mine, the Pebble Mine, was overwhelming, documented and growing; and that Anglo American continues to deny the legitimacy of local opinion polls and is challenging some of its local opponents in court. (See http://ourbristolbay.com/ for background.)

CEO Cynthia Carroll responded by accusing the project’s opponents of providing people with inaccurate information and being emotional rather than scientific – a claim supported by Alaskans who had come to the AGM to oppose the company’s critics. Sir John Parker offered to visit the area if the company’s critics thought it would help. He insisted on the trustworthiness of local management and the integrity of the State and Federal permitting processes. He said that people could not judge the project until all the scientific studies were completed and all the information assembled.

So it is perfectly clear that, however massive the regional opposition to the project and whatever promises the company has made, Anglo American is determined to ram the project through, come what may.

Hot air

Questions were also asked about the company’s contribution to damaging climate change through its massive coal production.

Sir John Parker spoke of the need for long-term pricing of carbon in a manner which would not jeopardise jobs, economic development and shareholder value. Hasty action is to be avoided, because the company must not become uncompetitive.

In other words, the company will do as little as possible for as long as possible, while the world hastens towards ecological apocalypse.

Colombia again

So many were the critical questions fielded by the Board that the company’s involvement in the troubled Cerrejon mine in Colombia nearly escaped comment. But at the last moment, Colombia Solidarity Campaign representative Richard Solly was able to speak on behalf of communities displaced by the mine. His question concerned the level of competence of community relations officials at Cerrejon and went on to make the following points.

“The community of Roche, currently being removed for mine expansion, has been split by the company’s approach. The majority of families have moved, despite the inadequacy of the process, because they could not wait any longer. The families remaining are unwilling to move to the new site when they know full well that there is inadequate land in the new community for them to continue their traditional cattle-herding way of life. Now the community is being legally expropriated. They ask us to ask you: when will their houses be demolished? Where will the residents go if they have not been given houses in the new town site, houses constructed without these residents’ agreement? Why will the company not negotiate with them in good faith?

“The families still at Roche tell us they are willing to negotiate once the company recognises their right to continue, or to be compensated adequately for the loss of, a way of life which they have followed for seven generations. Can you not prevail on Cerrejon Coal to abandon this expropriation process? Everyone would lose out if it comes to another eviction like that at Tabaco in 2001.

“And speaking of Tabaco, it is now more than three years since Cerrejon coal signed an agreement with the community’s relocation committee to buy land and help reconstruct the village. This still has not happened. Why not?

“In addition to this, we are told that the company refuses to listen to or meet with former residents of the displaced community of Manantial and other such communities.

“Will Anglo American insist on a root and branch reform of community relations at Cerrejon to ensure that community members and workers negatively affected by the company’s activities are treated with justice and respect?”

Sir John Parker replied that there is no question that since the independent review of Cerrejon Coal’s operations in 2007 significant progress has been made – both at Roche and at Tabaco. He said that only eight families remained at Roche and that negotiations were continuing. Norman Mbazima, Head of Thermal Coal, added that the people of Roche had to be resettled as the mining footprint meant there was going to be coal dust on the community. All but nine families had moved after voluntarily signing an agreement (though he did not mention the massive pressure which those families had been placed under to encourage them to sign). The remaining families had held out for a long time. There had been frequent meetings. Cerrejon Coal officials had discussed a number of issues at these meetings and continued to do so. Anglo American thinks there has been some progress, that more families out of the nine have now agreed to move, and the company does not want to have to implement a forced relocation. International Government Relations Manager Hugh Elliot said that negotiations were continuing on the Tabaco resettlement. These were complicated as the community had been dispersed but the company working very hard to move things forward, believing that serious advances had been made since the 2007 review.

Communities facing relocation are unlikely to take much comfort from these responses, given the level of distrust they feel towards Cerrejon Coal.

For background, see http://londonminingnetwork.org/2011/08/creation-of-civic-committee-of-la-guajira-against-large-transnational-mining/. For a complete list of LMN’s articles on the Cerrejon mine, see http://londonminingnetwork.org/?s=cerrejon.

Question by John McDonnell MP

John McDonnell MP, who also wanted to question the Board about the Cerrejon Mine, had to return to the House of Commons before his question was called. London Mining Network undertook to post the question on its website and Norman Mbazima undertook to answer it in the near future. LMN will post the answer once its is received.

My question concerns the rerouting of the River Rancheria for the expansion of the Cerrejon Coal Mine in Colombia.

Last October I met in Westminster with a representative of a community federation in the area, who outlined the massive and growing opposition to the re-routing of this river, the only major river in the arid region of La Guajira.

Unionised mine workers are supporting communities in opposing this project.

Despite the existence of a consultation process, we are told that company officials are arrogant and show a grave lack of respect for communities.

One Wayuu Indigenous community at Provincial has apparently opted out of the company’s consultation process because they feel it was imposed on them. They plan their own internal consultation procedure. Communities along the river fear destruction of traditional livelihoods through serious disruption to river flow levels.

Colleagues at Colombia Solidarity Campaign have even received news that a general strike is being planned in the department if the company insists on pressing on with its plan.

Will Anglo American ensure that Cerrejon Coal abandons this ill-conceived project?

Anglo American urged to act over tuberculosis claims

Richard — Fri, 20 Apr 2012 12:41:03 +0000

FTSE100 company facing legal action as South African workers say inadequate safety measures in place in mining operations

http://www.guardian.co.uk/business/2012/apr/18/anglo-american-sued-miner-tuberculosis

Gold miners call British firm to account

Richard — Tue, 17 Apr 2012 00:22:02 +0000

Anglo American is being taken to court for not protecting its workers in South Africa from dangerous dust.

More than a thousand former miners from South Africa are bringing a case against Anglo American through the British courts after contracting the incurable lung disease silicosis. They say they were offered no masks, ventilation or proper protection from dust in mines part-owned by Anglo American, even though it was known that the dust could be harmful.

The All Party Parliamentary Group on International Corporate Responsibility is proposing to make it compulsory for companies to report back to shareholders on their human rights record. The group has tabled an amendment to the Financial Services Bill, which would mean that companies would be legally obliged to inform shareholders if others have questioned their corporate ethics.

See http://www.independent.co.uk/news/world/africa/gold-miners-call-british-firm-to-account-7645961.html.

Brazil historic site could trip up big Anglo mine

Richard — Sun, 15 Apr 2012 14:54:50 +0000

Anglo American’s plans to open its largest ever iron ore mine have stumbled over new rulings that will delay preparations to build the mine until it is deemed safe for an archaeological site within its perimeter.

See http://www.reuters.com/article/2012/04/13/anglo-brazil-ruling-idUSL2E8FDA5A20120413A.

Which are the world’s “most controversial” mining companies?

michaela — Thu, 05 Apr 2012 09:53:17 +0000

A new report on the world’s “most controversial” mining firms has named and shamed ten companies, after comparing their performance against the UN Global Compact and other environmental, social and governance principles. The report from Zurich-based RepRisk (a “dynamic business information firm” aimed at investors) emphasises that the risks relate to the companies “access to capital and licenses to operate”.

Top of the list is Alpha Natural Resources, followed by Newmont Mining and Glencore International. The other Top Ten companies evaluated by RepRisk were: BHP Billiton (4th); Freeport McMoran (5th); Rio Tinto (6th); Barrick Gold (7th equal); Anglo American and Vedanta Resources (ranked 9th equal).

See http://www.minesandcommunities.org/article.php?a=11599.

Mine rehabilitation is high risk

michaela — Wed, 21 Mar 2012 20:31:00 +0000

For residents of Johannesburg or Witbank, the most visible legacy of 100 years of mining is not the country’s well-developed engineering and financial services sectors. It is tainted water sources and dust blowing off old mine dumps. As time passes, the damage mining has caused to the environment becomes more apparent.

See http://www.fm.co.za/Article.aspx?id=167493.

[Among UK-listed mining companies historically active in South Africa are Anglo American and AngloGold Ashanti.]

Mining must not infringe on agriculture, minister says – Colombia

michaela — Fri, 16 Mar 2012 22:06:01 +0000

The Colombian government needs to develop responsible mining without infringing on the agricultural sector, agriculture minister Juan Camilo Restrepo told BNamericas. “We are going to begin to analyze the draft of the new mining code to verify that the state’s [mining] reserve areas do not clash with agricultural areas,” Restrepo said. The agriculture ministry has already made proposals for stricter standards in environmental remediation to be implemented in the areas where mining is carried out, according to Restrepo. “So that mining cannot arrive, carry out operations and leave the pit without any kind of remediation,” he said. [This will affect London-listed mining companies active in Colombia, including Anglo American, AngloGold Ashanti, BHP Billiton, Glencore, Greystar, Rio Tinto and Xstrata.]

See http://www.bnamericas.com/news/mining/mining-must-not-infringe-on-agriculture-minister-says

http://www.minesandcommunities.org/article.php?a=11545.

13 mining companies sign commitment to promote sustainable mining [Colombia]

michaela — Fri, 16 Mar 2012 20:48:57 +0000

The 13 member companies of Colombia’s large-scale mining sector association SMGE signed a commitment to reinforce responsible, fair and competitive mining in the country. ?The companies that signed the agreement were Vale, Anglo American, Colombia Exploration, AngloGold Ashanti, AUX Colombia, [Carbones del] Cerrejón, Colombian Natural Resources, Drummond, Eco Oro Minerals [Greystar Resources], Gran Colombia Gold, Minas Paz del Río, Mineros, MPX Colombia [part of EBX] and Prodeco [part of Glencore]. The agreement involves the continuing implementation of international best practices in industrial safety, occupational health, environmental management, community relations, human rights, ethics and transparency…

See http://www.business-humanrights.org/Links/Repository/1011499.

China gives miners another scare as $58 billion monthly swing hands it largest trade deficit in 12 years

michaela — Fri, 16 Mar 2012 20:00:23 +0000

Losses for mining and energy companies were almost across the board on Monday after trade data from China showed a deficit that was the largest in 12-years. Investors in world number one BHP Billiton and Anglo-American curbed losses to less than 1%, but Brazil’s Vale’s gave up 2.5% in New York. World number three miner Rio Tinto shed 1.4%.

See http://www.mining.com/2012/03/13/china-gives-miners-another-scare-as-58-billion-monthly-swing-hands-it-largest-trade-deficit-in-12-years/.

South Africa’s implacable labouring foes

michaela — Wed, 07 Mar 2012 23:12:51 +0000

Violent confrontations between two South African unions have so far cost three mineworker’s lives, and the situation shows little sign of being peacefully resolved. At the heart of the conflict are not just labour issues, but the political affiliations of the rival parties. The disturbances have been at operations of Impala Platinum (Implats) which is the second largest producer of platinum after Anglo American subsidiary Anglo Platinum. Implats is listed on the Johannesburg Stock Exchange but has a standard listing on the London Stock Exchange.

See http://www.minesandcommunities.org/article.php?a=11535.

Glencore/Xstrata make iron ore a priority

michaela — Wed, 07 Mar 2012 22:55:51 +0000

Glencore/Xstrata make iron ore a priority Glencore and Xstrata, set to create a $90 billion mining powerhouse, have put iron ore at the top of their post-merger to-do list, building up the one key commodity where they are all but absent. Yet industry sources caution that without a major deal, any hopes the two will swiftly repeat their coal success in iron ore — a lucrative markets which is mostly concentrated in a few companies’ hands — may be disappointed.

See http://www.mineweb.com/mineweb/view/mineweb/en/page39?oid=146790&sn=Detail&pid=92730.

South Africa: Three die in Impala mine violence

michaela — Fri, 02 Mar 2012 21:44:11 +0000

Production at Impala, the world’s second largest platinum mining company has been brought to a standstill. The officially “recognised” National Union of Mineworkers has been waging battle with a rival union that claims to support the interests of workers who face the greatest risks. Already, two employees have been killed in the ensuing violence. And, last Friday, a contract worker was reportedly beaten to death as he tried to attend work. Impala claims it has been re-hiring miners who were previously dismissed, blaming “unprecedented levels of intimidation” for the fact that hundreds of them have failed to do so. Impala Platinum (Implats) is the second largest producer of platinum after Anglo American subsidiary Anglo Platinum. Implats is listed on the Johannesburg Stock Exchange but has a standard listing on the London Stock Exchange.

See http://www.minesandcommunities.org/article.php?a=11516.