Glencore Xstrata: cases and controversies

In Bolivia, the pollution of water and air threatens the health and livelihood of local
communities. In Argentina, three legal proceedings are being brought against Glencore
Xstrata for environmental pollution and the infringement of laws. At the same time, 200
people who protested publicly against the company are facing charges. In Colombia, the
company is facing nine disciplinary proceedings before the National Authority of
nvironmental !icenses"
In the Philippines, 5,000 members of the indigenous community of the Blaan have seen their
right to free, prior and informed consent violated ! a right guaranteed by the "# $eclaration on
the %ights of Indigenous Peoples. In many places, resistance to &lencore 'stratas business
activities by local communities is common. (owever, those who fight bac) are often intimidated,
threatened or criminali*ed. +re,uently, -tate police forces are employed to suppress
demonstrations.
In #eru in $%&$, three people died and '( were wounded in the course of the crac)*down of
protests against the Xstrata +intaya mine"
#eru , -anctions against mining company Glencore Xstrata
are ratified in #eru
.n /0 1uly 20/0, the %egional 2anagement of 3abour and Promotion of 4mployment of the
(igh Andean Provinces of the %egional &overnment of 5usco ratified the sanctions imposed on
the mining company Antapaccay, a subsidiary of Glencore Xstrata 6'strata 7intaya -.A.8, in
4spinar, 5usco.
7hrough %esolution #900:;20/0;&%;5"-5.<$%7P4;.=7P4PAA, the company incurred
sanctions following the dismissal of .( wor)ers soon after they founded an independent
trade union, the -indicato de 7raba>adores +uncionarios de la 5ompa?ia 2inera Antapaccay !
6Public @or)ersA "nion of Antapaccay 2ining 5ompany8.
+he /esolution of &' 0uly $%&' declared that Xstrata +intaya -"A" had not complied with
its obligations relating to trade union freedom or the use of direct or indirect means to
hinder affiliation to trade unions or trade union organisations"
1ith the ratification of the /esolution, the mining company will be fined for &.,.23 soles
4around 5 .,(%%6 because of infractions to the wor)ers7 social and labour rights" 7he
submission presented by the deputy lawyer from the mining company was declared inadmissible
by the %egional 2anagement of 3abour and Promotion of 4mployment of the (igh Andean
Provinces of the %egional &overnment of 5usco. 7he >udiciary from PerB have yet to ratify,
which would give the %esolution legal effect. 7he -indicato has declared that the process is
being delayed in light of the length of time it is ta)ing for them to act.
Peru is one of the largest producer of silver and copper in the world and the 5th largest producer
of gold. 7he government has granted mining licences for huge areas of the national territory
eCtending to 05D of the territory of 5a>amarca province and 2/D of the territory of 5usco
province. 7hese pro>ects have brought the authorities and mining companies into conflict with
indigenous and campesino communities who eCist on the basis of subsistence farming and whose
way of life and well;being have been undermined.
Xstrata: the sad reality
On closer examination of Xstratas actions, another picture emerges. To take one example, the
Xstrata McArthur River mine in Australia, local communities feel that the company has
not listened to them and their concerns over environmental damage, despite one group
being able to claim traditional land ownership. The CFME Union there has raised concerns
aout reaches of OEC! guidelines " Xstrata #hile operating in their territories, and claims
that Xstrata has een $er" ostructi$e to talks #ith the union and other organisations o$er these
issues. In Colombia, also, Xstrata has been involved in disputes over attempts to cut back
worker rights such as pay, health and pensions. %s far ack as &''(, representatives from
Xstrata unions across the world met and announced the forming of an International
olidarity !und, due to their belief that Xstrata was having a negative impact on workers
and communities across the world, and failing to act according to the high labour and
environmental standards the company claims on its website
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)n #ovember $%"$, there was a demonstration outside Xstrata&s A'M in protest against
alleged human rights infringements and pollution of the environment in (eru and
Colombia. *rotestors #ere +oined " the go$ernor of *erus Espinar pro$ince in the %ndes, #ho
#as in the process of ringing charges against the compan" of en$ironmental pollution and
endangering the health of local people. Xstrata ga$e the go$ernor and representati$es of the
protesting ,-Os seats at the %-M, and allo#ed the governor to deliver his message that his
province would no longer allow Xstrata to operate if they continued to pollute the
environment and show lack of respect for local people&s rights. Xstrata CEO Mike !a$is
ans#ered that the compan" adhered to all the regulations in the area, including setting
themsel$es higher standards for en$ironmental protection than local regulations called for . and
that their in$ol$ement rought in$estment to the area, impro$ing the li$es of the local
population
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The local population, including go$ernor Oscar Mollohuanca, sa" that #hen Tinta"a #as sold to
Xstrata /in &''01 the compan" promised to follo# the Oxfam2mediated agreement signed in
&''3 " then2o#ners 45*24illiton. 5o#e$er, under Xstrata the stipulated three percent of
Tinta"as profits, #orth millions, ha$e een paid into the Tinta"a Foundation, a non2profit
organi6ation founded and controlled " the compan" itself. The go$ernor claims this arm of the
compan" is using its resources to create a patronage net#ork across the pro$ince, and it
certainl" does not seem to ha$e een ale to make a significant dent in Espinars 078 po$ert"
rate. Furthermore, Xstrata has al#a"s claimed that Tinta"a #as full" compliant #ith *eru$ian
en$ironmental regulations, ut an independent stud" in &'99 found hea$" metal contamination
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ao$e e$en *erus limits for human consumption in &: of ;' #ater sources, and hea$" metal
contamination ao$e the Canadian limit . *eru, as it turns out, does not ha$e soil contamination
regulations . in all &< soil test locations.
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In the (hilippines, at the Tampakan copper and gold pro+ect in =outh Cotaato on the island of
Mindanao . a >;.: illion in$estment in potentiall" the largest copper and gold prospect in
=outheast %sia . Xstratas part2o#ned local pro+ect partner =agittarius Mines )nc /=M)1 #as
recentl" granted an En$ironmental Compliance Certificate /ECC1 " the *hilippines national
go$ernment. This follo#s a &'9' an on open2pit mining " the pro$incial go$ernment of =outh
Cotaato, #hich #as put in place shortl" after Xstratas first application for an ECC for the
Tampakan pro+ect
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. This #ould e the same pro+ect that Xstrata itself argued against in &''(,
#hen attempting to u" out a stake in =M) held " another compan", on the grounds that the
pro+ect #as ?a pulic target for $arious armed terrorist organisations.
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The proposed mine has een opposed " local people on Mindanao for t#o decades, and
esides the pro$incial go$ernments an on open2pit mining, the indigenous 4laan communit"
in the area /of #hom 3',''' #ould e displaced " the pro+ect1 has declared a state of trial
#ar against the compan". @ocal en$ironmental acti$ists expected in Feruar" this "ear that the
granting of the ECC #ould result in e$en more intensified militari6ation in the surrounding area,
alread" seeing $iolence and human rights $iolations, in an attempt to dissuade people from
opposing the pro+ect
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This is not a difficult forecast to make. )n a congressional enAuir" into the existing militari6ation
and $iolence in the area, the ma"or of Bila#an, Mari$ic !iamante, ga$e testimon" that in three
to#ns co$ered " the mining permit, namel" Bila#an, Tampacan and Columio, militar" and
paramilitar" groups #ere eing gi$en funds for their allo#ance and operations " =agittarius
Mines )nc. =he explained that a memorandum of agreement signed in Cul" &''0 " the three
to#ns, and =M), #as the asis of the deplo"ment of 9&' paramilitaries in the area, along #ith
the creation of the militar"2led Task Force B)T%CO. The *hilippine %rm" identified 9&( securit"
threats against =M) from &''< to &'9&, #hich the" see as +ustif"ing their presence in the area to
pro$ide securit" for the compan". )n turn, the compan" pro$ides mone" for operations, for
gasoline, and for the allo#ance of the communit"2ased C%F-U paramilitaries deplo"ed in the
area.
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)t is this same Task Force B)T%CO #hich has een implicated in a spate of killings in the area.
)n Octoer &'9&, an indigenous 4laan #oman, Cu$" Capeon, and her t#o children, aged < and
93, #ere gunned do#n. 5er husand !aguil Capeon #as kno#n to e leading a 4laan struggle
to defend their ancestral lands against =M) de$elopment, and a re#ard #as posted " Ma"or
!iamante for the capture of !aguil Capeon, #ho, Ma"or !iamante explained to the
congressional enAuir", is considered a andit. =ur$i$ors and #itnesses of the attack #ere
Auestioned, and the pulic hearing found serious faults #ith the #a" that the attack #as
in$estigated " the militar" and the police.
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)n Canuar" &'93, !aguil Capeons rother Bitari died
in hospital after suffering a gunshot #ound during an alleged attack on go$ernment forces.
Ditnesses, ho#e$er, claim that the militar" strafed the house #here Bitari #as sta"ing, and he
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#as unarmed during the incident and unale to fight ack.
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)n %ugust &'9&, 4Elaan chieftain
%nting Frea" /0'1, and his 90 "ear old son Fictor, #ere murdered, allegedl" " memers of Task
Force B)T%CO.
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The Goman Catholic !iocese of Marel has since gi$en shelter to man" 4laan
people, mostl" #omen and children, #ho ha$e fled their homes from fear at the increasing
militar" acti$it" in their area . in mid2Canuar", fi$e additional truckloads of soldiers #ere rought
in to the area " night.
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Xstrata +intaya, subsidiary of the Anglo*-wiss commodities giant Glencore Xstrata, has
been fined 8-9:',%%% for polluting pastureland around its copper mine in spinar, Cusco.
Xstrata +intaya was found responsible for elevated levels of copper in the soil in an area of
pasture covering some &%%%m$" +he company had also failed to report the incident to
;<A and to provide a report on an investigation" =cessive levels of copper can harm
biodiversity and poison livestoc)"
'strata 7intaya argued that the copper was naturally occurring and not the result of pollution, but
.4+A concluded that the metal had spread from water being pumped through a channel by the
miner. 7he tribunal found that the levels of copper had reached nearly /E00D of the naturally
occurring concentration in the area and more than F000D of the maCimum set by international
standards.
7he dialogue between the company and local communities, established after fatal clashes in 20/2
over the mines social funding and alleged environmental impact, is due to conclude in 2arch.
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