Giant Mining Firm's Social Responsibility Claims: Rhetoric or Reality?

The recent decision by the U.S. Supreme Court to slash the damage
award in the Exxon Valdez oil spill case and the indictment of Sen. Ted
Stevens on corruption charges are not the only controversies roiling
Alaska these days. The Last Frontier is also witnessing a dispute over
a proposal to open a giant copper and gold mine by Bristol Bay, the
headwaters of the world's largest wild sockeye salmon fishery. Given
the popularity of salmon among the health-conscious, even non-Alaskans
may want to pay attention to the issue.

The Pebble mine project
has been developed by Vancouver-based Northern Dynasty Ltd., but the
real work would be carried out by its joint venture partner Anglo
American PLC, one of the world's largest mining companies. Concerned
about the project and unfamiliar with Anglo American, two Alaska
organizations-the Renewable Resources Coalition
and Nunamta Aulukestai (Caretakers of the Land)-commissioned a
background report on the company, which has just been released and is
available for download on a website called Eye on Pebble Mine (or at this direct PDF link). I wrote the report as a freelance project.

Anglo American-which is best known as the company that long
dominated gold mining in apartheid South Africa as well as diamond
mining/marketing through its affiliate DeBeers-has assured Alaskans it
will take care to protect the environment and otherwise act responsibly
in the course of constructing and operating the Pebble mine. The
purpose of the report is to put that promise in the context of the
company's track record in mining operations elsewhere in the world.

The report concludes that Alaskans have reason to be concerned about
Anglo American. Reviewing the company's own worldwide operations and
those of its spinoff AngloGold in the sectors most relevant to the
Pebble project-gold, base metals and platinum-the report finds a
troubling series of problems in three areas: adverse environmental
impacts, allegations of human rights abuses and a high level of
workplace accidents and fatalities.

The environmental problems include numerous spills and accidental
discharges at Anglo American's platinum operations in South Africa and
AngloGold's mines in Ghana. Waterway degradation occurred at Anglo
American's Lisheen lead and zinc mine in Ireland, while children living
near the company's Black Mountain zinc/lead/copper mine in South Africa
were found to be struggling in school because of elevated levels of
lead in their blood.

The main human rights controversies have taken place in Ghana, where
subsistence farmers have been displaced by AngloGold's operations and
have not been given new land, and in the Limpopo area of South Africa,
where villagers were similarly displaced by Anglo American's platinum

High levels of fatalities in the mines of Anglo American and
AngloGold-more than 200 in the last five years-have become a major
scandal in South Africa, where miners staged a national strike over the
issue late last year.

Overall, the report finds that Anglo American's claims of social
responsibility appear to be more rhetoric than reality.  Salmon eaters

Dirt Diggers Digest is written by Philip Mattera, director of the Corporate Research Project, an affiliate of Good Jobs First.

AMP Section Name:Natural Resources
  • 104 Globalization
  • 116 Human Rights
  • 182 Health
  • 183 Environment
  • 184 Labor
  • 185 Corruption
  • 208 Regulation

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