Anglo American Plc is a British multinational mining company based in London, with a primary listing on the London Stock Exchange and in the FTSE 100 Index. It also has a secondary listing on the Johannesburg Stock Exchange, reflecting the company’s South African origins where it was formed in 1917. Anglo American is the fifth biggest mining company in the world, with a value of over $55 billion in 2020.
It has 56 operations in 15 different countries, mainly in Southern Africa, South America and Australia. The largest producer of platinum globally, Anglo American is also a major producer of diamonds as the majority owner of the De Beers group while its other commodities include copper, nickel, iron ore and metallurgical (low-ash, low-sulphur and low-phosphorus) coal.
The company’s motto is “Re-imagining mining to improve people’s lives,” yet its operations do the exact opposite by reducing water availability in water-scarce regions, infringing on indigenous people’s land rights and damaging ecosystems. This has resulted in much criticism and opposition from communities directly affected by its operations. Below we provide a brief summary of the main struggles that LMN is currently involved with.
The Cerrejón coal mine is jointly owned by Anglo American, BHP and Glencore. The giant open-pit mine is located in La Guajira, northern Colombia, where it has displaced and continues to displace indigenous Wayuu and African descent communities. Local communities have often been relocated and face multiple issues as a result, including loss of their livelihood. Meanwhile many of the alternative economic projects set up with Cerrejón funding have failed, leaving people without adequate incomes. The mining operations have also severely damaged the natural environment such that local people fear the land will never recover even after mining stops. This includes destruction of local watercourses which have exacerbated conflicts over water as local communities report not having enough water. Additionally, pollution and dust from the coal mine has caused the contamination of water supplies and the air.
With increasing pressure on companies to take climate action, Anglo American is divesting from coal and therefore selling its share in Cerrejón to Glencore. While a shift away from coal is desirable, Anglo American must not be allowed to simply sell on its responsibility for the damage already caused by the Cerrejón mine. This includes the consequences from the diversion of the Bruno river and the eviction of the Tabaco community in 2001 who are still waiting for redress.
Minas Rio, Brazil
Anglo American’s operations in Minas Rio in Minas Gerais state have been criticised for being imposed on local communities and for water pollution caused by mining waste spills. Additionally, the project includes a large tailings dam which poses a high risk to communities living downstream – a fact of which they are even more painfully aware after the 2015 Samarco dam disaster and the 2019 Brumadinho dam disaster, both in the same state of Minas Gerais. A recent request to heighten the dam has further raised concerns about the risk to people living nearby.
Anglo American’s exploration plans in Amazonia are in danger of infringing on indigenous people’s land rights, particularly as the Bolsonaro presidency has reduced the protection of the Amazon and indigenous rights. At multiple instances when the company was asked if it was committed to respect such rights, it only committed to seeking free, prior and informed consent (FPIC), not to actually obtaining it before starting operations.
Chile
Anglo American’s operations in Chile have seriously impacted water availability in a region which has been experiencing a megadrought for a decade. The Los Bronces Integrado project has contributed to the destruction of glaciers, thus impacting the most important water reserves for the life of the country and the region. Meanwhile, the El Soldado mine has greatly impeded the ability of the nearby El Melón community to access drinking water, being now dependent on truck tanks for their water supply as a consequence of Anglo American’s over-exploitation of the water basins. Additionally, there are reports of arsenic contamination in the Colina River. Nonetheless, on all these accounts Anglo American refuses to take responsibility for how its operations affect water availability, even outright denying its impact on glaciers despite independent studies.
Quellaveco, Peru
Similar to its operations in Chile, Anglo American’s Quellaveco project in Peru consumes a lot of water in a region already dealing with water scarcity. This is particularly concerning as the company’s responses to questions about water usage show a lack of understanding of hydrological cycles and how the mine’s operations could affect ecosystems. Of particular concern is the diversion of the Asana river which could have long-term consequences as in the case of the diversion of the Arroyo Bruno in Colombia.
Company Timeline
1917
1918
1928
1940
1929
1950
1960
1970
1973
1990
1995
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1999
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2003
2005-2007
2006-2008
2006-2010
2010
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2018
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2020
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Today
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1917
The Anglo American Corporation of South Africa
Originally the Anglo American Corporation of South Africa (AAC), Anglo American was founded at the climax of the First World War by Ernest Oppenheimer with financial and political support from Britain and the USA. Mining houses had become key players in expanding settler colonial power across southern Africa since the end of the 19th century with the discovery of Rand gold and Kimberley diamonds.
Busacca, Madeleine. “Corporate Social Responsibility in South Africa’s Mining Industry: Redressing the Legacy of Apartheid.” (2013).
Buying shares in consolidated companies, the Anglo American Group began to control the richest gold fields in South Africa, including four of the eleven mining companies of the Far East Rand. This strategy was enabled by taking over the Transvaal Coal Trust (TCT) which owned most of the region’s properties.
1928
The Rhokana Corporation and Zambia’s copperbelt
Anglo American takes control of Rhokana Corporation and its largest division, the Nkana mine in the Zambian Copperbelt (then Northern Rhodesia). Although copper had been discovered, exploited and traded by Africans for centuries, Anglo American’s dominance played a pivotal role in the industrialisation of the region at the cost of starvation wages and racial discrimination.
Parpart, Jane L. Labor and capital on the African Copperbelt. Temple University Press, 2018.
Munene, Hyden. “A History of Rhokana/Rokana Corporation and its Nkana Mine Division, 1928-1991.” PhD diss., University of the Free State, 2018.
1940
Copperbelt strikes and massacre
Anglo American refused to increase wages in Nkana, which was followed by several strikes across the Copperbelt involving about 3,000 protestors who fought with the police. The strike left 13 workers killed by the police and 71 more injured.
Munene, Hyden. “A History of Rhokana/Rokana Corporation and its Nkana Mine Division, 1928-1991.” PhD diss., University of the Free State, 2018.
1929
Anglo American takes control of world’s diamond resources
A key Oppenheimer strategy was to monopolise the mining industry by acquiring established mines. Such domination was performed in the diamond industry by taking advantage of the Great Depression to acquire majority ownership of Cecil Rhodes’ diamond empire De Beers, and Ernest Oppenheimer became its chairman.
Innes, Duncan. Anglo: Anglo American and the rise of modern South Africa. Raven Press, 1984.
1950
The world’s largest reserves of vanadium
Two years after the racial segregation of apartheid was formally legislated by the National Party in South Africa, Anglo American acquired the world´s largest reserves of vanadium by taking over the Transvaal Vanadium Company which became the Highveld Steel and Vanadium Corporation.
Munene, Hyden. “A History of Rhokana/Rokana Corporation and its Nkana Mine Division, 1928-1991.” PhD diss., University of the Free State, 2018.
1960
Expansion into urban property development
Anglo American expanded into urban property development through the creation of its subsidiary City Developments. This included South African Townships and a number of different properties, such as the Carlton Centre, the largest office, hotel and shopping complex in Africa.
1970
Anglo American extends into every sector of the South African economy
At the end of a decade that began with the Sharpeville Massacre in March 1960, the Anglo Group owned South Africa’s five biggest mining houses, as well as major shares in five of the top ten companies in the manufacturing industry. In terms of market capitalisation value, eight of South Africa’s ten largest companies belonged to Anglo American, and the company held interests in seven of the country´s top twenty banks.
Anglo American also played a key role in developing steel, iron, heavy engineering, vehicles, explosives, chemicals, food and beverages, paper and board, publishing and newspapers, among others. In response to international sanctions and boycotts, Anglo American multiplied into more than 150 companies that dominated the apartheid economy.
1973
First operations in South America
The Anglo American Corporation established an office in Brazil, the company’s first in South America. New interests in gold, nickel and iron began to proliferate across the country.
1990
Apartheid profiteers
By the fall of apartheid in 1994, Anglo American controlled more than half of all private industry in South Africa. The fall of white minority political rule in South Africa brought the threat of nationalisation. Using a subsidiary Minorco (Minerals and Resources Corporation), Anglo American attempted to downplay its connection with the apartheid regime, transfer assets, and intensify its global expansion into Europe, the Americas and Australia (LMN 2010).
1995
Expansions into South African platinum
Anglo American Corporation established a set of subsidiaries under Anglo American Platinum which controlled 38% of the world´s annual platinum supply.
1998
AAC forms Anglo American plc and establishes Anglo Gold
The Anglo American Corporation merged with Minorco to form Anglo American plc. AngloGold Limited is established as a strategic focus of Anglo American’s mining interests.
1999
Listing on the London Stock Exchange
A major change in Anglo American´s reorganization as the company listed on the London Stock Exchange (LSE) and entered the FTSE 100. Anglo American had a market capitalisation of £6.1 billion, which enabled it to trade shares on the LSE, Johannesburg Stock Exchange and Swiss Exchange SWX.
1999
Colombian subsidiary and paramilitaries
AngloGold has been operating in Colombia since 1999 through a subsidiary called Sociedad Kedahda, based in the British Virgin Islands, a Caribbean tax haven. Crimes against humanity by paramilitary groups such as extrajudicial executions, torture, disappearances and forced displacement have been documented in 336 municipalities where the subsidiary has operated.
Since 2003 police forces have been accused of human rights abuses against communities practicing artisanal gold mining in regions occupied by AngloGold Ashanti.
Colombian Solidarity Campaign (2013) La Colosa: A Death Foretold Alternative Report about the AngloGold Ashanti Gold Mining Project in Cajamarca, Tolima, Colombia
In the valley of the Rancheria River in La Guajira region, Cerrejon is one of the largest open-pit mines in the world: it occupies more than 69,000 hectares, extracts up to 33 million tonnes of coal a year, and holds an exploitation licence until 2034. This coal has mainly been exported for consumption in Europe, particularly to fuel power stations in Germany, the Netherlands and, until 2019, the UK.
Cerrejon was named after a mountain sacred to the Wayuu indigenous people. In 2000 a multinational consortium involving Anglo American, BHP and Xstrata bought 50% of the mine. In 2001, the entire Afro-Colombian community of Tabaco was forcibly displaced by the mine. Despite a Colombian Court ordering the reconstruction of the town, the company and local authorities have not yet fulfilled the court order. In 2002, the three-company consortium bought the remaining 50% of the mine. Xstrata’s share was subsequently bought by Glencore. Indigenous human rights abuses, from forced displacement and health disparities to environmental degradation, have occurred consistently during the mine’s operation. In January 2022, Glencore completed purchase of Anglo American’s and BHP’s shares in the mine.
Solly Richard (2021) “Tabaco: 20 years since eviction and still no justice” https://londonminingnetwork.org/2021/08/tabaco-20-years-since-eviction-and-still-no-justice/
2003
AngloGold Ashanti formed
AngloGold Ashanti (AGA) was formed in a merger between AngloGold and Ashanti Goldfields Ltd. 52% of its shares were controlled by Anglo American until 2009.
A report by a UN panel of experts named Ashanti Goldfields among 85 transnational companies operating in the Democratic Republic of Congo violating OECD Multinational Guidelines. Human Rights Watch documented that the company´s gold activities in Mongbwalu were linked to an armed militia who facilitated the gold exploration, which in turn funded weapons and human rights atrocities across the Ituri District.
Prosansky, Brandon. “Mining gold in a conflict zone: The context, ramifications, and lessons of Anglogold Ashanti’s activities in the Democratic Republic of the Congo.” Nw. Univ. J. Int’l Hum. Rts. 5 (2006): 236.
Indigenous resistance and repression in the Philippines
Indigenous communities of the Cordillera region of the Philippines vehemently opposed gold exploration activities led by Anglo American subsidiary, Cordillera Exploration Inc, asserting that the operation would damage the environment, and therefore their territorial integrity and cultural identity. After the consultation process took place many indigenous leaders were subject to intimidation and death threats, while others were bribed to support the operation. One of the leaders of the Save Apayao Peoples Organization appeared on a military black list, intended to intimidate civil society activists.
Community leaders attended the Anglo American AGM in 2007 in London to underscore the illegalities of the consultation process and the violations of human rights linked to it.
Curtis, Mark. “Fanning the Flames, the role of British Mining Companies in Conflict and the Violation of Human Rights.” War on Want, London (2007)
Daytec-Yañgot, C. “FPIC: a shield or threat to Indigenous Peoples Rights?.” Internet Available at http://www. thai-ips. org/Documents/FPIC_philippines. pdf (2012).
2006-2008
Anglo Platinum forces South African villagers off their land
Dozens of people in the South African province of Limpopo were injured by police as villagers protested against forced evictions and relocation due to a planned expansion to the Anglo Platinum mine. A report by ActionAid stressed that before the protests, basic services like water and electricity had been cut from the villages, while the company blamed local officials.
AngloGold Ashanti’s Colombian subsidiary AngloGold Ashanti Colombia SA was linked to state military groups who perpetrated systematic human rights violations and crimes against humanity in the Sur de Bolivar region. Thousands of people were displaced, while others were victims of threats and extrajudicial executions. After leading a peaceful campaign against AGA, Alejandro Uribe, a social leader was murdered by the Colombian army.
There are records of human rights abuses against communities practising ancestral mining in mining concessions held by AGA in the Afro-Colombian territory of La Toma. After AGA´s removal from la Toma due to community opposition, threats from paramilitary groups were reported and in 2010 six artisanal miner members of La Toma were murdered.
Curtis, Mark. “Fanning the Flames, the role of British Mining Companies in Conflict and the Violation of Human Rights.” War on Want, London (2007)
The consortium at Cerrejon has failed to fulfil resettlement obligations, including access to safe drinking water, employment and health facilities in communities that were forcibly evicted who later returned to their old villages near the mine. Furthermore, Wayuu communities have filed a legal demand against the Cerrejon mine and the Colombian state to stop the diversion of the Arroyo Bruno, a vital water source in one of the driest regions of Colombia.
Anglo American agreed to sell 33% of its Cerrejon shares to Glencore plc, which acquired full ownership of the mine in January 2022 (Anglo American 2021).
Environmental sanctions at El Soldado mine in Chile
The El Soldado copper mine is partly owned by Anglo American, alongside Chilean state-owned company Codelco and Japanese companies Mitsubishi and Mitsui. Chile´s environmental regulator has sanctioned the Anglo American subsidiary for breaching 16 environmental rules with regards to efficient management of reforestation, water supply, wildlife and rainwater. El Soldado’s operations have failed to provide an environmental monitoring plan and conducted mining in areas without permits, subject to local opposition.
Anglo American is the majority holder of the Quellaveco copper mining deposit beneath the Asana River, 37km from the Peruvian Andes region of Moquegua. With plans to begin extraction at Quellaveco in 2022, Anglo American is trying to divert the Asana River, one of the most important water supplies in this very arid region. Several protests have taken place, beginning in 2008, with concern about the destruction of water sources. More strikes occurred as Anglo American has failed to meet their obligations.
In 2013, the security forces of the company, accompanied by Peru’s National Police, violently attacked the peasants of the Alto Coscore pastures, prohibiting their free movement in the Samanape Torata area of Moquegua. The police “began firing into the air and throwing tear gas canisters attacking residents, including the elderly and pregnant women.”
In the Minas Gerais state of Brazil, Minas Rio is a large-scale Anglo American project seeking to increase its output to 26.5 million tonnes of iron ore. However, indigenous communities, social movements and environmental organisations have vocally denounced the negative impacts of the operations on their livelihoods and the Mata Atlântica rainforest, as well as the eviction of families from their lands. Community consultation processes have, at times, been surrounded by police forces attempting to undermine the right of peaceful protest and participation.
In 2018, the 529km Minas Rio pipeline transporting processed ore for shipping to China ruptured twice, spilling about 1,000 metric tons of iron ore, polluting water sources and farmlands in Conceição do Mato Dentro and Alvorada´s municipalities. Death threats were reported against the communities that challenged the operation.
Anglo American´s milestone project in Chile, Los Bronces Underground (LBU) has been highly controversial. Critics say that this operation and its expansion under the Yerba Loca nature sanctuary have damaged the continent’s glaciers, and with it the livelihoods of more than 45% of the Chilean population. This could also compromise the water supply for Santiago, as the Paloma glacier provides fresh water to seven million people in the Chilean capital, and could be polluted.
An investigation from DeSmog found that Anglo American’s project would generate 3.5 million tonnes of greenhouse gases from cement production alone, which accounts for 9.7% of Chile´s total emissions.
An Anglo American subsidiary has been taken to court by a group of Zambian women and children in a landmark class-action lawsuit for cases of lead poisoning in the city of Kabwe (BBC 2020). Mining in Kabwe began in 1906 under a Northern Rhodesian Anglo American subsidiary and closed after almost 90 years of operation. A lifespan of lead and zinc exploitation has resulted in the poisoning of around 100,000 people, affecting children and women most. The case is ongoing.
Anglo American takes ISDS case against the Colombian Government
Anglo American sued Colombia over a Colombian Constitutional Court decision that prevented Cerrejon Coal from mining under the course of the Bruno Stream, an important tributary of the Rio Rancheria, the only major river in the dry province of La Guajira. It used the Investor State Dispute Settlement (ISDS) provisions of the UK-Colombia Bilateral Investment Treaty. A further court decision in March 2022 allowed mining to go ahead and Anglo American said it was reviewing its ISDS case.
Communities protest about Anglo American’s Minas Rio iron ore operations
As part of the environmental licence process, clause 39 states that communities should receive funding for independent technical advice. However Anglo American and the State Secretariat of Environment and Sustainable Development (SEMAD) of the government of Minas Gerais did not want to renew this scheme.
Barrister asks for UN intervention to halt operations at the Cerrejón coal mine in Colombia on behalf of Wayuu indigenous people in Colombia
The community ‘filed an urgent request for the intervention of the UN Special Rapporteur on the issue of human rights obligations… In essence, the communities are seeking the suspension of all mining activities by Cerrejon in the current context’. There are concerns over levels of pollution, noise, dust as well as level of water use. Cerrejon rejects the allegations.
OECD investigation regarding human rights abuse and environmental pollution at the Cerrejón coal mine in Colombia
The complaints cover the following points: the forced displacement of indigenous communities; air and water pollution; existence of harmful metals in the blood of those living near the mines and the company’s refusal to comply with Colombia’s court judgements against it.
Dr Gearóid Ó Cuinn, Director of GLAN said: ‘These parallel complaints in four different countries point to a systematic failure to respect basic human rights standards from the extraction, to the marketing, to the purchasing of Cerrejon coal. The long-standing abuses at the mine have been so egregious that there is no way for enterprises to respect human rights law and do business with Cerrejón’
Opposition over proposal for a mining village in North Yorkshire
Anglo American plans to build a potash mine at Egton village near Whitby. The potash will be used as agriculture fertilisers. Currently the company uses holiday cottages, hotel rooms and a former care home to provide accommodation for its workers. It wants to turn a caravan park into temporary accommodation for its workers but objections have been raised to this. A respondent said that the ‘workers would ruin the equilibrium of a beautiful, peaceful village’.
Chile environmental regulator recommends that the Los Bronces copper project should not be granted an extension permit
The extension permit involves a planned $3.3 billion investment and would extend the life of the project through 2036. There are concerns over the potential impact of the region’s water supply and a local glacier.
Strikes at Quellaveco mine in Peru due to rise in covid cases
Workers at Quellaveco mine in Peru strike over the company’s lack of action in enforcing minimum health and safety standards, in the midst of covid surge. A worker said that ‘there are many with positive cases who have slept for days in the tents of healthy people. They must take measures like isolation and the evacuation of these cases to not spread the virus, but they don’t do it’. Strikers chanted ‘Antes que el dinero, nuestra salud es primero’ (Before money, our health comes first). It is alleged that workers have to sign statements that the company would not be held liable for covid illnesses and deaths at the site.
Global Legal Action complains about human rights and environmental concerns to UK NCP
It is alleged that Cerrejón failed to observe General Policies, Human Rights, Environmental and Disclosure clauses of the OECD Multinational Enterprises Guidelines. The remedy sought by the complainants was the initiation of a consultation process to achieve closure of the mine. In response Anglo American said ‘that they consider the Complaint ignores the fact that each of the Investors only has an indirect, one-third shareholding in Cerrejón, none of the current Shareholders is able to exercise independent management or control over Cerrejón’s activities’. UK NCP decided that further consideration of the complaint was required.
Los Bronces project approved by Chilean government
Chile’s Ministry of Environment approves environmental permit for a $3bn extension of Anglo American’s Los Bronces copper project, due to several ‘demanding’ environmental requirements met by the company.