Anglo American Plc

Anglo American plc

nglo American is a global and diversified relocation of workers in Dingleton, Northern Cape. Loans: HSBC 178.57 mining company whose operations extend Workers are living in conditions with shortage of Crédit Agricole 178.57 across Southern Africa, South America, water, filthy and broken toilets and rubbish not BNP Paribas 178.57 A 1 6 Australia, North America, Asia and Europe. In being collected for weeks . A further report Commerzbank 178.57 2014 approx. 39% of revenues were from iron ore, shows a discrepancy between the CSR commit- Estimated value of 24% from copper, 27% from diamonds and 9.3% ments of the company and the perceptions of the 7 underwritten bonds: from coal with the remaining amount made up of surrounding communities. Anglo American’s Crédit Agricole 450.00 platinum, niobium, nickel, and phosphates.2 Twickenham mine in Limpopo province has also HSBC 420.00 Anglo American is protecting its limited coal caused suffering to the communities by relocating BNP Paribas 356.50 market by lobbying in Europe. Anglo American has them from ancestral land, allegedly without free, Commerzbank 300.00 been exposed for having a damaging influence on prior and informed consent.8 Estimated value of European climate policy, through its membership In Colombia, the Cerrejón coal mine has for managed shares and bonds: of European lobby groups working against years been surrounded by protests in relation to BlackRock 604.98 renewables and energy efficiency targets.3 land and water exploitation and its inability to Deutsche Bank 338.77 Anglo American was included in the Dirty positively impact communities. While Anglo Amer- Vanguard 255.90 Profits 2 report due to violations at its mines in ican has made some progress in addressing these State Street 232.83 BNP Paribas 191.51 Brazil, Chile, Colombia, Peru and South Africa. issues it has not gone far enough and as yet there This report follows up additional/continuing have been no reductions in carbon emissions at Revenues: 22,270.79 abuses in South Africa, Colombia and Chile. the mine, and very limited compensation to Profit after tax: -1,253.67 In South Africa Anglo American mines a indigenous communities for their land.9 number of commodities, including coal (Anglo Two of Anglo American’s five Chilean mines ISIN: GB00B1XZS820 Coal), iron ore (Kumba Iron Ore), platinum and have over the past 2 years received fines from the All figures in € mln. diamonds. According to the South African Bench Chilean regulator for environmental damage. In Date and currency of company report: 31.12.2014, US Dollar (exchange rate Marks Foundation Anglo American is not deliver- September 2014 a fine of $4.5 million was levied as of 31.12.2014, www.oanda.com) ing on its commitments to communities in South on a subsidiary of Anglo American for water Africa, for example despite communities com- pollution and for not following through on plaints about houses being damaged from environmental rehabilitation at the El Soldado blasting, and health issues from living near the mine.10 In May 2015 the Los Broncos Copper mine mine, little has been done to address these issues. received a fine of $6.2 million for the mismanage- Anglo American’s much lauded SEAT grievance ment of a dump resulting in acid leaching into the mechanism4 is proving to deliver very little in the landscape and irreparably damaging the area. way of changes. Anglo American has also shown This was occurring for nine years without being disregard for the importance of environmental addressed by Anglo American.11 impact assessments and water licences by beginning mine construction before undertaking consultation with affected communities.5 Kumba 6 Bench Marks Foundation (2015): Press Release Policy Gap 10: Dingleton relocation severely affecting community. 3 June. Iron Ore has also been in the spotlight recently for www.bench-marks.org.za (Accessed 20.10.2015) []

not delivering on its promises with regard to the 7 Bench Marks Foundation (2015): Floating or Sinking : Social License to operate (SLO) Kumba Iron ore Limited. www.bench-marks.org.za (Accessed 20.10.2015) 1 Anglo American (2015): International Operations. 8 Bench Marks Foundation (2015): Communities being stripped of www.angloamerican.com (Accessed 20.10.2015) their heritage by mining, 24 September. Yes to Life, No to Mining 2 Percentages derived from figures on pg 4 and 5 of Anglo American (2015): www.yestolifenotomining.org Annual Report 2015, www.angloamerican.com (Accessed 20.10.2015) 9 Cariboni, D (2014):Anglo American Coal firm undermining crucial climate 3 Friends of the Earth International (2014): How corporations rule: Anglo policies, say NGOs. 8 December, The Guardian. www.theguardian.com American Dirty Energy lobby and its false climate solutions, November. (Accessed 20.10.2010) www.foei.org 10 Jamasmie, C (2014): Anglo American to pay $4.5 million for environ 4 Anglo American (2012): SEAT Tool Box. Socio-Economic Assessment mental breaches in Chile, 3 September, www.mining.com (Accessed Toolbox www.angloamerican.com (accessed 20.10.2015) 20.10.2015)

5 Bench Marks Foundation (2014): South African Coal Mining: Corporate 11 O’Brien, R and Esposito, A (2014): Anglo’s Los Bronco’s mine fined $6.2m Grievance mechanisms, Community engagement concerns and Mining for Chile environmental breaches. 5 May, Reuters. www.reuters.com Impacts. www.bench-marks.org.za (Accessed 20.10.2015) (accessed 20.10.2015)

“Coal plays a necessary role to support the developing world to access affordable energy.”

12 | FACING FINANCE | Dirty Profits | 2016 Anglo American’s media manager, Emily Blyth18 ◀ Anglo American’s Shishen Iron Ore mine, Northern Cape South Africa © Rogiro, flickr.

Canadian mining company Nautilus Minerals Environmental Impact Statement (EIS) as part of Inc. (Nautilus) is set to embark on the unprec- gaining their license for the project, but the EIS edented extraction of metals from the sea floor. fails to address many pressing environmental The mining project, known as the Solwara 1 concerns, including the possible exposure of project, will extract gold and copper from the marine food chains and coastal and island floor of the Bismarck Sea in Papua New Guinea.12 communities to heavy metals and the destruction Anglo American owns a 5.95 % share in Nautilus of unique deep sea ecosystems.16 Despite clear Minerals. Nautilus and Anglo American have also flaws and gaps in its science, Nautilus has been signed a technical agreement, which means that issued with all the necessary permits by the Anglo American will assist with the development government of Papua New Guinea to proceed with of the Solwara 1 project. This includes using Anglo Solwara 1. While Nautilus Minerals is not a American staff where specialist skills are required. signatory to the UN Global Compact, Anglo Through this technical agreement Anglo American American is and therefore as a minority share- is an active participant in the project.13 Sched- holder should assert the principles onto Nautilus uled to begin commercial production in 201814, Minerals. Anglo American and other investors in the Solwara 1 project is being closely watched by the project can be held accountable for commu- companies and governments around the world as nity and environmental issues that Nautilus a test case, before they too begin this new type of encounters.17 extraction. Nautilus Minerals, however, has set a →→Dr Helen Rosenbaum, Deep Sea Mining Campaign very poor example in relation to identification of →→Facing Finance environmental impacts, engaging with local communities, and transparency of information. Nautilus has gained its operating license without the free, prior and informed consent of communities in Papua New Guinea15 and in the face of 16 Luick, J (2012): Physical Oceanographic Assessment of the Nautilus strong opposition to the project from a broad Environmental Impact Statement for the Solwara 1 Project, Papua New Guinea, 6 November. www.deepseaminingoutofourdepth.org range of groups, including NGOs, churches, and Rosenbaum, H (2011): Out of our Depth: Mining the ocean Floor students, and academics. Nautilus completed an in Papua New Guinea. (Accessed 20.10.2015) www.deepseaminingoutofourdepth.org “This is the norm in South Af- 17 Ruggie, J and Nelson, T (2015): Human Rights and the OECD Guidelines rica. There are many examples 12 Nautilus Minerals (2015): About Nautilus. www.nautilus.com for Multinational Enterprises: Normative Innovations and Implementa- of communities moved to make (Accessed 20.10.2015) tion Challenges. Corporate Social Responsibility Initiative Working way for mining. We have no real 13 Nautilus Minerals (2006): Annual Report 2006. Paper No. 66. Cambridge, MA: John F. Kennedy School of Government, choice.” 19 www.nautilusminerals.com (accessed 10.11.2015) Harvard University. http://shiftproject.org pg18 Trevor Malope, one of 14 Nautilus Minerals (2015): Annual General Meeting, 16 June. 18 Cariboni, D (2014): Anglo American coal firm undermining crucial Bench Marks Foundation’s many www.nautilusminerals.com (Accessed 20.10.2015) climate policies, say NGOs, 8 December. www.theguardian.com community monitors. (Accessed 20.10.2015) 15 Deep Sea Mining Campaign (2015): Resources: Community Testimonies, www.deepseaminingoutofourdepth.org (Accessed 20.10.2015) 19 See Supra Note 8

FACING FINANCE | Dirty Profits | 2016 | 13