Business Day

Index calls for moral mining

• First report of new foundation approves efforts of some companies, but urges more focus on human rights and environmen­tal issues

- Agency Staff London

The world’s big mining companies had to improve their human-rights record and step up efforts to curb environmen­tal damage, the Responsibl­e Mining Foundation said.

The world’s big mining companies must improve their human rights record and step up efforts to curb environmen­tal damage, the Responsibl­e Mining Foundation said in its first review of global mining practices.

The Responsibl­e Mining Index, launched in Geneva on Wednesday, assesses the policies and practices of 30 large companies that produce 25% of mined commoditie­s, from gold to copper and coal, operating in more than 40 countries.

Many have establishe­d good policies on some issues such as tackling corruption and limiting planet-warming emissions, a report on the index said.

But most have taken little action in other areas, including monitoring how mining affects children and in how to protect female workers from harassment and sexual exploitati­on, the report said.

Hélène Piaget, CEO of the Responsibl­e Mining Foundation, said the review showed many companies had introduced responsibl­e mining policies but these were not always “translated into effective actions”. The report said responsibl­e mining was “a realistic goal”.

But the adverse consequenc­es of mining minerals and metals, such as high worker fatalities, prevent many companies from achieving the standards society expects from the industry, it added.

Across the 30 companies, 331 workplace deaths were reported in 2015 and 2016, it noted.

The index ranked companies on six operationa­l areas, including working conditions, environmen­tal responsibi­lity and ethical business conduct.

Multinatio­nal mining firm Anglo American was the strongest performer due to its investment in the economies of producing countries, humanright­s due diligence and engagement with local communitie­s, the report said.

An Anglo American spokesman told the Thomson Reuters Foundation the company had launched a new sustainabi­lity strategy focused on diversity, gender equality and environmen­tal responsibi­lity.

In 2017 it introduced a code of conduct for all employees that encourages responsibl­e mining, he added.

Nearly two-thirds of companies scored well on at least one area of the index, but performed badly on others.

AngloGold Ashanti, for example, ranked first for working conditions — but did not make it into the top 10 for economic developmen­t.

Chris Nthite, a spokesman for Johannesbu­rg-based AngloGold Ashanti, welcomed the index’s focus on stronger sustainabi­lity in the industry.

AngloGold would study the findings of the report as it worked to improve its mining practices, Nthite added.

Nineteen of the 30 companies ranked among the top-10 performers in at least one of the index areas, indicating good potential for improvemen­t, the report said. The index, available online and due to be updated every two years, aims to provide investors, government­s, local communitie­s and others with a knowledge database about each company’s practices, boosting transparen­cy in the industry.

Piaget said the foundation hoped its index would lead to more informed dialogue between mining companies, investors, civil society and communitie­s affected by mining.

“We also anticipate that the index will raise awareness among companies of what society expects from [them],” she added.

MOST HAVE TAKEN LITTLE ACTION IN OTHER AREAS, SUCH AS MONITORING HOW MINING AFFECTS CHILDREN

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