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PR Or Progress? Glencore's Corporate Responsibility in the Democratic

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PR or Progress? Glencore’s Corporate Responsibility in the Democratic Republic of the Congo June 2014 Authors Chantal Peyer, Patricia Feeney, François Mercier PR or Progress? Glencore’s Corporate Responsibility in the Democratic Republic of the Congo. June 2014. Impressum Authors: Chantal Peyer, Patricia Feeney, François Mercier Report written in collaboration with our Congolese partners: Action against impunity for human rights (ACIDH), AFREWATCH and the Episcopal Commission on Natural Resources (CERN). We would also like to express our thanks to Emmanuel UMPULA, Jean-Pierre OKENDA, Prof. Célestin BANZA and Carolyn NORRIS for their invaluable contribution. Layout: Andrea Müller Bread for All, Fastenopfer and RAID, June 2014 RAID RAID is a non-governmental, not-for-profit organisation promoting responsible conduct and respect for human rights by companies abroad. RAID works closely with affected communities, helping vic- tims of corporate human rights abuse to seek justice through complaints mechanisms and legal ac- tion. Through research, education and international advocacy, RAID raises awareness on human rights issues among governments, corporations and the public. Contact: RAID, 1 Bladon Close, Oxford, OX2 8AD, United Kingdom Phone: +44 1865 436 245. E-mail: [email protected]. Internet: www.raid-uk.org Bread for All Bread for All is the development organisation of the Swiss Protestant Churches. We support commu- nities in their struggle to live in freedom from exploitation and injustice. Together with our partners we fund over 350 projects in the countries of the South (Latin America, Africa and Asia) which foster sustainability, self-sufficiency and independence. In Switzerland, we speak about development poli- cy, the need for an ethical economy and promote respect for the right to food. Main office: Bread for All, Bürenstrasse 12, P. O. Box 1015, CH-3007 Bern Phone: +41 31 380 65 65. E-mail: [email protected]. Internet: www.brotfueralle.ch Regional office: Av. du Grammont 9, CH-1007 Lausanne Phone + 41 21 614 77 17. E-mail [email protected]. Internet: www.ppp.ch Fastenopfer Fastenopfer, the Catholic Lenten Fund, is the Swiss Catholic relief agency. We work in the North and in the South to promote a fairer world. We call for a sharing of resources so that everyone can enjoy a life of dignity. Fastenopfer supports 400 projects in Africa, Latin America and Asia, and, with our partners, we are committed to fighting poverty and defending human rights – irrespective of origin, religion or political affiliation. Main office: Fastenopfer, Alpenquai 4, Postfach 2856, CH-6002 Lucerne Phone: +41 41 227 59 59. E-mail: [email protected]. Internet: www.fastenopfer.ch Regional office: Av. du Grammont 7, CH-1007 Lausanne Phone +41 21 617 88 81. E-mail: [email protected]. Internet: www.actiondecareme.ch 2 PR or Progress? Glencore’s Corporate Responsibility in the Democratic Republic of the Congo. June 2014. Table of contents A. Executive summary .....................................................................................................7 A.1. Introduction .............................................................................................................................. 7 A.2. Glencore’s corporate social responsibility: improved policies ................................................. 8 A.3. Environmental issues ................................................................................................................ 8 A.4. Security and Human Rights: New Policies, Old Problems ...................................................... 10 A.5. Glencore and the communities .............................................................................................. 12 A.6. Taxation – Substantial profit transfers to tax havens ............................................................ 13 B. Preliminary remarks: methodology used to investigate Glencore’s operations in the DRC ........................................................................................................................... 15 1. Introduction to Glencore ........................................................................................... 18 1.1. From Glencore to Glencore Xstrata to… Glencore .............................................................. 18 1.2. CEO Remuneration: US$ 182 million tax free ..................................................................... 18 1.3. Scandals: Glencore’s charm offensive ................................................................................. 19 1.4. The Democratic Republic of Congo: a geological scandal ................................................... 20 1.5. The DRC is responsible for four-fifths of the cobalt produced by Glencore ....................... 22 1.6. Guaranteed rights for another ten years ............................................................................ 23 2. Glencore’s approach to corporate responsibility: What has changed? ........................ 24 2.1. Rudimentary Beginnings ..................................................................................................... 24 2.2. Post-Merger Catch-Up ......................................................................................................... 25 2.3. Performance Targets and Problem Areas ........................................................................... 25 3. Environment ............................................................................................................. 27 3.1. Management of mining effluent: pollution of water courses and broken promises .......... 27 3.1.1. Water in Katanga .................................................................................................... 27 3.1.2. KCC and water pollution in Kolwezi: the situation in April 2012 ............................ 28 3.1.3. KCC and water pollution in Kolwezi: the situation in October 2013 ...................... 29 3.1.4. KCC and water pollution in Kolwezi: the situation in Januar-March 2014 ............. 33 3.1.5. Glencore’s response ............................................................................................... 34 3.1.6. Contamination of water courses by copper, cobalt and arsenic – consequences for the population .................................................................................................. 35 3.1.7. Glencore and pollution of water courses – some concluding remarks .................. 36 3.2. MUMI: a concession in a game reserve .............................................................................. 37 3.2.1. Game reserves in the DRC ...................................................................................... 37 3.2.2. MUMI: a concession in a game reserve ................................................................. 38 3.2.3. Glencore’s response ............................................................................................... 40 3.2.4. MUMI: a policy based on fait accompli rather than dialogue to clarify the situation ................................................................................................................................ 41 3.2.5. The lack of special mitigation measures in the reserve ......................................... 43 3.2.6. Pollution in the reserve? ........................................................................................ 45 4. Security and Human Rights ........................................................................................ 47 4.1. Human Rights and Security: international standards and company policy in the DRC context ................................................................................................................................. 47 4.1.1. International recognition of the responsibility of companies to respect human rights ....................................................................................................................... 47 4.1.2. Glencore ’s policy on human rights ........................................................................ 48 4.1.3. Code of Conduct for Private Security Providers ..................................................... 48 4.1.4. Human rights, security and realities at the local level ........................................... 49 3 PR or Progress? Glencore’s Corporate Responsibility in the Democratic Republic of the Congo. June 2014. 4.2. Violent deaths on KCC concessions and the ongoing conflict with artisanal miners .......... 51 4.2.1. The death of Kalala Mbenga ................................................................................... 51 4.2.2. The death of Eric Mutombo Kasuyi ........................................................................ 53 4.3. Use of excessive force by mine police guarding KCC’s concession ..................................... 59 4.3.1. Public Security and Glencore’s responsibility ......................................................... 61 4.4. Arbitrary Arrests .................................................................................................................. 62 4.5. Detention of Minors ............................................................................................................ 62 4.6. Freedom of movement........................................................................................................ 64 4.7. Mutanda Mining .................................................................................................................. 65 4.8. Tilwezembe – continuing human rights abuses .................................................................
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