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Realities and Perceptions of Human Rights and the Mining Industry— a Case Study

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Realities and Perceptions of Human Rights and the Mining Industry— a Case Study REALITIES AND PERCEPTIONS OF HUMAN RIGHTS AND THE MINING INDUSTRY— A CASE STUDY by SIMON DAVID HANDELSMAN B. Sc., The University of Nottingham, 1967 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in THE FACULTY OF GRADUATE STUDIES (Mining Engineering) THE UNIVERSITY OF BRITISH COLUMBIA March 2009 © Simon David Handelsman, 2009 Abstract Dealing with realities and perceptions of human rights in the mining industry context is important. Significant socio-economic risks to existing and potential mining operations arise when mining companies are believed responsible for or complicit in human rights abuses. Mining engineers responsible for projects need adequate awareness and sufficient capacity to manage these risks effectively. This research proceeded in two ways after reviewing the history of the evolution of human rights: It studied important examples of alleged human rights violations associated with mining companies, large and small. Historical data and the evolution of attitudes and perceptions within and about the Rio Tinto mining company’s operations worldwide were also examined. Qualitative research based on interviews with former and current executives and staff in Rio Tinto, other companies, government and civil society provided original data and captured perceptions, awareness, attitudes and practices. A categorized database developed with 178 cases of allegations of human rights abuses shows the breadth of the human rights challenges. Principal reasons why the question of human rights and the mining industry is important, including identified points of conflict between mining and society, were explored. Case studies were organized by point of conflict (use of security forces, indigenous peoples, labour rights, “pariah” or failing states, and national and regional jurisdiction conflict). Existing industry safeguard policies, practices, monitoring, verification and reporting were examined. The research determined, from recent evidence and allegations of complicity in human rights abuses, that voluntary initiatives alone are inadequate. Failures of host governments and companies to protect human rights necessitate effective mechanisms to investigate, and hold accountable, companies complicit in human rights abuses. A method was recommended for the industry to engage positively with all stakeholders in the mineral development cycle. Policies, codes, principles, checklists, voluntary initiatives, best practices, monitoring, verification and compliance reporting are recommended to exploration and mining companies serious about making commitments to respect human rights. ii Table of Contents Abstract ..................................................................................................................................................ii Table of Contents ..................................................................................................................................iii List of Tables.........................................................................................................................................vi List of Figures ......................................................................................................................................vii Acknowledgements ..............................................................................................................................xii Dedication ...........................................................................................................................................xiv CHAPTER 1: Introduction....................................................................................................................1 1.1 Statement of the Problem ..........................................................................................................1 1.2 Significance of the Work...........................................................................................................4 1.3 Objectives..................................................................................................................................6 1.4 Thesis Organization...................................................................................................................7 CHAPTER 2: Methodology ................................................................................................................11 2.1 Company Archives Review.....................................................................................................12 2.2 Cases Database Development .................................................................................................12 2.3 Qualitative Research................................................................................................................12 2.3.1 Interviews...................................................................................................................12 2.3.2 Data Analysis .............................................................................................................15 2.3.3 Validation/Reliability .................................................................................................15 CHAPTER 3: Issues of Human Rights and Mining – Literature Review ...........................................17 3.1 What Are Human Rights? .......................................................................................................17 3.2 Evolution and Expansion of Human Rights Concepts and Why They Are Important to Mining Companies ..................................................................................................................20 3.3 Rights and Sustainable Development......................................................................................27 3.4 Mine Life Cycle Questions......................................................................................................28 3.5 Roles and Responsibilities for Human Rights.........................................................................29 3.5.1 Role and Responsibilities of Companies....................................................................29 3.5.2 Role and Responsibilities of NGOs............................................................................31 3.5.3 Role and Responsibilities of Governments, Legal Instruments and Decision Making Processes.......................................................................................................33 3.5.4 Roles and Responsibilities of Others..........................................................................40 3.6 Formal Codes of Practice, Guidelines, Voluntary Initiatives, Monitoring..............................45 3.6.1 Establishing Benchmarks ...........................................................................................50 3.6.2 How to Make Standards, Codes and Voluntary Principles Applicable......................51 3.6.3 Skills Challenges........................................................................................................52 3.6.4 Social Audits, Status in Other Sectors, Developments in Mining Industry ...............52 3.6.5 Standards to Protect Vulnerable Groups ....................................................................54 CHAPTER 4: Points of Conflict (Problems of Human Rights and Mining)...................................................64 iii 4.1 Use of Security Forces ............................................................................................................69 4.1.1 Riots of 1888, Rio Tinto, Spain..................................................................................71 4.1.2 Bougainville Copper, Papua New Guinea..................................................................77 4.1.3 Grasberg, Indonesia....................................................................................................81 4.1.4 Amayapampa, Llallagua and Capasirca, Bolivia .......................................................89 4.1.5 Morro do Ouro, Brazil................................................................................................96 4.2 Respect of Cultures (Land, Environment, Social Development, and Indigenous Peoples).....99 4.2.1 Bougainville, Papua New Guinea ............................................................................101 4.2.2 Grasberg, Indonesia..................................................................................................102 4.2.3 Other Examples of Land Rights Problems ...............................................................103 4.2.4 Diavik, Canada.........................................................................................................106 4.2.5 Fort-Dauphin, Madagascar.......................................................................................108 4.2.6 Junior Companies and Canadian First Nations ........................................................110 4.3 Labour Rights........................................................................................................................112 4.3.1 Forced Labour ..........................................................................................................115 4.3.2 Child Labour ............................................................................................................116 4.3.3 Labour Relations ......................................................................................................117 4.3.4 Health & Safety........................................................................................................127
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