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Foundation slates Kumba over ‘social licence’ performance

3rd July 2015

By: Anine Kilian

Contributing Editor Online

  

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Nonprofit organisation the Bench Marks Foundation released its ‘Policy Gap 10’ report last month, which examines the efforts of mining company Kumba Iron Ore, a business unit of Anglo American to maintain a social licence to operate.

The report states that neither the rights of the environment nor the human rights of individuals are protected by mining legislation at Kumba’s Sishen mine, in the Northern Cape.

“Although current legislation requires that mining operations be located a minimum of 500 m away from community housing, research conducted by the foundation shows that this distance is still too close,” says Bench Marks Foundation director Professor Freek Cronjé, adding that housing within this distance clearly affects the health and wellbeing of residents.
He notes that, although the mine has installed a dust monitor which indicates that the dust is not harmful, the community is convinced that the dust levels are too high, as some members are consistently ill. The foundation’s research also found that residents would like the mine to install a siren that must be activated prior to blasting procedures, he says.
In addition, Cronjé states that community members have reported severe adverse impacts on trees, wildlife and the water in the area because of mining operations.
“Researchers noted that trees close to communities surrounding the mining operations had developed a reddish tint, but that trees further away from the mining operations have retained their natural green tint,” he states.

The report does commend Kumba Iron Ore for its commitment to invest in the local communities and notes that the company’s social and labour plans and policies are mainly structured around the stipulations and demands of the Mineral and Petroleum Resources Development Act and the Mining Charter.

Kumba Iron Ore tells Mining Weekly that it is reviewing the report and the recommendations made by the Bench Marks Foundation.

Anglo American acting manager of corporate communication Ghrethna Kruger says Kumba Iron Ore is aware that the resources it mines are finite and that sustainability is, therefore, integral to the way in which the mine operates to ensure that it leaves a positive legacy when it closes.

“We ensure that our footprint is managed in a responsible way and always do our best in dealing with stakeholder concerns. “We also acknowledge that we can get a social licence to operate only when all stakeholders can harmoniously co-exist,” Kruger states, adding that this is a tall order for any business, since stakeholder needs are diverse.

She notes that Kumba Iron Ore has mechanisms in place to report and address any activities or abuses that undermine the principles it is committed to upholding.

Through the implementation of codes, principles and policies, the miner is able to prevent and mitigate social and environmental impacts presented by mining, Kruger adds.

She adds that the benefits of this approach is that it drives Kumba Iron Ore’s momentum to remain determined to reduce risk to its employees, suppliers and the communities within which it operates, promoting sustainable development awareness, implementation and monitoring performance throughout the value chain.

Given the nature of mining, Kruger says, challenges are bound to arise; however, Kumba Iron Ore’s steadfast engagement with all relevant stakeholders will continue as it maintains open lines of dialogue.

“Our initiatives, policies and programmes reinforce Kumba Iron Ore’s commitment to creating and leaving a positive legacy in our operating areas by supporting the national development agenda broadly and locally based socioeconomic opportunities,” Kruger concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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