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Article

4 Jun 2007

Author:
Mike Scott, FT

Mining groups encounter tough lessons in geography

...according to Karina Litvack, head of corporate governance and sustainable investment at F&C Asset Management..."...companies could find themselves in hot water if the environmental, social and governance risks have not been managed from the outset, whereas early preventive action might have saved them the trouble of cleaning up so-called 'legacy problems'." In many developing countries, companies are having to accept responsibility for problems not directly affecting their business. Companies such as De Beers and Anglo American have extensive HIV/Aids programmes that spread far beyond their own employees...Another example...is the pressure for mining groups in Africa to improve the working conditions for miners...Yohan Hill, mining analyst at Eiris...points out that environmental issues can lead to criminal charges...[also refers to BHP Billiton, Newmont, Rio Tinto, Eden Energy, Luca Technologies, Syngas Technologies, Syntroleum, Umicore]