Open Collections

UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

Realities and perceptions of human rights and the mining industry : a case study Handelsman, Simon David 2009

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
24-ubc_2009_spring_handelsman_simon.pdf [ 4.92MB ]
Metadata
JSON: 24-1.0067072.json
JSON-LD: 24-1.0067072-ld.json
RDF/XML (Pretty): 24-1.0067072-rdf.xml
RDF/JSON: 24-1.0067072-rdf.json
Turtle: 24-1.0067072-turtle.txt
N-Triples: 24-1.0067072-rdf-ntriples.txt
Original Record: 24-1.0067072-source.json
Full Text
24-1.0067072-fulltext.txt
Citation
24-1.0067072.ris

Full Text

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 4.3.5 Gender ..................................................................................................................... 133 4.4 Pariah or Failing States.......................................................................................................... 134 4.4.1 Burma ....................................................................................................................... 137 4.4.2. Mongbwalu, DRC .................................................................................................... 141 4.4.3 Other Countries ........................................................................................................ 145 4.4.4 Dilemmas ................................................................................................................. 146 4.5 National and Regional Jurisdiction Conflict ......................................................................... 149 4.6 Corruption ............................................................................................................................. 152 4.6.1 Rio Tinto, Spain ....................................................................................................... 153 4.6.2 Other Companies...................................................................................................... 155 4.7 Development of Safeguard Policies ...................................................................................... 156 4.7.1 Rio Tinto .................................................................................................................. 156 4.7.2 Other Major Companies ........................................................................................... 164 4.7.3 Junior Companies ..................................................................................................... 170 4.7.4 Rio Tinto and the Voluntary Principles.................................................................... 171 4.7.5 Advocacy NGOs Views of the Voluntary Principles ............................................... 172 4.7.6 Voluntary vs. Mandatory.......................................................................................... 174 4.7.7 Recent Debates: Canadian RoundTables ................................................................. 177 4.8 Summary ............................................................................................................................... 179 CHAPTER 5: Discussion .................................................................................................................. 182 CHAPTER 6: New Tools and Policy Recommendations ................................................................. 190 6.1 Practical Approaches............................................................................................................. 191 6.1.1 Risk Management..................................................................................................... 192  iv  6.1.2 6.1.3 6.1.4 6.1.5 6.1.6  Conflict Zones .......................................................................................................... 192 Best Practices ........................................................................................................... 192 Voluntary Principles on Security and Human Rights............................................... 193 Implementation......................................................................................................... 194 Monitoring Performance .......................................................................................... 197  CHAPTER 7: Conclusion ................................................................................................................. 199 CHAPTER 8: Claim for Originality of Research.............................................................................. 202 CHAPTER 9: Suggestions for Future Work ..................................................................................... 203 Bibliography....................................................................................................................................... 204 APPENDIX I Database of Cases...................................................................................................... 237 APPENDIX II Declarations and Conventions................................................................................... 242 Universal Declaration of Human Rights...................................................................................... 242 International Covenant on Economic, Social and Cultural Rights .............................................. 246 International Covenant on Civil and Political Rights .................................................................. 253 C169 Indigenous and Tribal Peoples Convention........................................................................ 265 Voluntary Principles on Security and Human Rights .................................................................. 274 Statement by the Governments of the United States and the United Kingdom..................... 274 Risk Assessment.................................................................................................................... 275 Interactions Between Companies and Public Security .......................................................... 276 Interactions Between Companies and Private Security......................................................... 278 APPENDIX III Checklist for Corporations/Enterprises Interested in Investing Strategic Efforts in Human Rights Issues. ........................................................................ 280 APPENDIX IV Freeport McMoRan: Social, Employment and Human Rights Policy..................... 285 APPENDIX V Ivanhoe Mines: Values and Responsibilities ........................................................... 288 APPENDIX VI Rio Tinto plc, “The Way We Work” ...................................................................... 294 APPENDIX VII Anglogold Ashanti Limited: Values & Business Principles .................................. 301 APPENDIX VIII Certificate of Approval, Behavioural Research Ethics Board ............................... 304  v  List of Tables CHAPTER 3 Table 3.1  Rights Mining Companies Should Ensure ................................................................ 25  Table 3.2  Human Rights Principles for Corporations ................................................................ 26  Table 3.3  Extractive Industries’ Violations of Indigenous Peoples’ Rights – Countries Identified by UN (1996-2006).................................................................................... 42  Table 3.4  Participants Initially Identified with the Voluntary Principles on Security and Human Rights, December 2001 ................................................................................. 57  Table 3.5.  Participants in the Voluntary Principles on Security and Human Rights, July 2008 .... 59  CHAPTER 4 Table 4.1  Human Rights Context, Broad Categories and Issues................................................ 66  Table 4.2  Human Rights Issues: Main Groups of Factors.......................................................... 67  Table 4.3  Points of Conflict and Problems................................................................................. 68  Table 4.4  Priorities of Points of Conflict.................................................................................... 68  Table 4.5  Points of Conflict in Principal Cases Described......................................................... 68  CHAPTER 6 Table 6.1  Typical Human Rights Courses for Business........................................................... 196  vi  List of Figures CHAPTER 1 Figure 1.1  Key Human Rights Challenges .................................................................................... 5  CHAPTER 3 Figure 3.1  Attributes of 23 Extractive Industry Codes ............................................................... 47  Figure 3.2  Mining Companies Perceived Role in Society........................................................... 47  CHAPTER 4 Figure 4.1  Clusters of Human Rights Issues in Mining............................................................... 67  Figure 4.2  Incidence of Human Rights Issues in Large-Scale Infrastructure and Extractive Industry Projects......................................................................................................... 69  Figure 4.3  Rio Tinto, Spain, Location Map ................................................................................. 72  Figure 4.4  Open-Air Calcination 1880s....................................................................................... 73  Figure 4.5  Question of Open Air Calcination in Huelva Province. ............................................. 74  Figure 4.6  Decision-making process when dealing with bad governments............................... 136  vii  Glossary AA1000 ACFOA ADB AGA AP APEGBC AS/NZS AusAID BBC BCL BSR CAO CASM CBMM CBO CEEST CEM CEO CESR CERD CESCR CFMEU CI CIDA CIDSE COICA COW CRA CSI CSR CVRD DFAIT DFID DRC DSD ECOSOC EIA EIR EITI E&MJ ESCAP ERA ETS FCO FFIJD FI-FO  AccountAbility 1000 Standard Australian Council for Overseas Aid Asian Development Bank AngloGold Ashanti Limited Associated Press Association of Professional Engineers and Geoscientists of the Province of British Columbia Standards Australia/Standards New Zealand Australian Aid for International Development British Broadcasting Corporation Bougainville Copper Limited Business for Social Responsibility Office of Compliance Advisor/Ombudsman of the International Finance Corporation and the Multilateral Investment Guarantee Agency Communities and Small Scale Mining Initiative Companhia Brasileira de Metalurgia e Minerção Community-Based Organization The Center for Energy, Environment, Science and Technology Compania Explotadora de Minas S.A. Chief Executive Officer Center for Economic & Social Rights Committee on the Elimination of Racial Discrimination (UN) Committee on Economic, Social and Cultural Rights (UN) Construction, Forestry, Mining and Energy Union Conservation International Canadian International Development Agency International Co-operation for Development and Solidarity Coordinator of Indigenous Organizations of the Amazon Basin Contract of Work Conzinc Rio Tinto of Australia Corporate Social Investment Corporate Social Responsibility Companhia Vale do Rio Doce (now known as Vale) Department of Foreign Affairs and International Trade Canada United Kingdom Department for International Development Democratic Republic of Congo Defense Signals Directorate (Australia) Economic and Social Council (UN) Environmental Impact Assessment Extractive Industries Review Extractive Industries Transparency Initiative Engineering and Mining Journal Economic and Social Commission for Asia and the Pacific (UN) Environmental Risk Assessment European Treaty Series United Kingdom Foreign & Commonwealth Office Freeport Fund for Irian Jaya Development Fly In-Fly Out  viii  FLA FNA FOE Footsie for Good FPP/TF Freeport FSU FTSE FUNAI GAAP GC GDP GFA GHG GMI GRI GSP ha HIV/AIDS HRC HRIA HRW IACHR IBLF ICC ICCA ICEM ICFTU ICME ICMI ICMM ICRC IFC IGC IHRSTAD IIED IISD IMAZON IMF ILO IGWG IRA ISO ISO 14001:2004 ITUC JATAM MED  Fair Labor Association Front des Nationalistes et Intégrationnistes (Nationalist and Integrationist Front) Friends of the Earth FTSE4Good (an ethical fund index) Forest Peoples Program/Tebtebba Foundation Freeport McMoRan Copper & Gold, Inc. Former Soviet Union FTSE Group (a company jointly owned by The Financial Times and the London Stock Exchange) Fundação Nacional do Índio (Brazil: National Indian Foundation) generally accepted accounting principles Global Compact Gross Domestic Product Global Framework Agreement Greenhouse Gas Global Mining Initiative Global Reporting Initiative Global Sullivan Principles Hectare Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome Human Rights Committee (UN) Human Rights Impact Assessment Human Rights Watch Inter-American Commission on Human Rights International Business Leaders Forum International Chamber of Commerce International Center for Corporate Accountability International Federation of Chemical, Energy, Mine and General Workers’ Union International Confederation of Free Trade Unions The International Council on Metals and the Environment International Cyanide Management Institute International Council on Mining and Metals International Committee of the Red Cross International Finance Corporation Institute for Global Communications Institute for Human Rights Study and Advocacy International Institute for Environment and Development International Institute for Sustainable Development Instituto do Homem E Meio Ambiente da Amazônia (Brazil), Amazon Institute of People and the Environment International Monetary Fund International Labour Organization Intergovernmental Working Group on the Mineral Industry (Canada). Irish Republican Army International Organization for Standardization Requirements for “environmental management systems” International Trade Union Confederation Jaringan Advokasi Tambang (Indonesian: Mining Advokasi