Safety | Investing in safety
In a bid to improve the safety of tailing dams, investor action has targeted mining companies not implementing the new Global Industry Standard on Tailings. IWP&DC reports on the latest developments in tailings dam safety
Above and right: Aftermath of the Brumadinho tailings dam failure in Brazil in 2019 Credit: ILANA LANSKY /
Shutterstock.com
ON THE THIRD ANNIVERSARY of the Brumadinho disaster that killed 270 people when a tailings dam collapsed at a Vale mine site in Brazil, investors have published the names of companies committed to implementing a new global industry standard for improving safety across the mining sector. Seventy-nine companies, representing a third of those with tailings dams (by market capitalisation), have committed to implement the new Global Industry Standard on Tailings Management or are assessing their alignment to it. This includes the largest companies that are members of the International Council on Mining & Metals (ICMM) such as BHP, Anglo, Glencore, Rio Tinto and Vale. However, 183 companies have yet to confirm if
they will implement the standard including: Southern Copper, Zijn Mining, ArcelorMittal, Grupo Mexico, Saudi Arabian Mining Company, Ganfang Lithium Co, Boashan Iron & Steel Co, China Northern Rare Earth High-Tech Co, POSCO and Zhejiang Huayou Cobalt. The US$4.7 billion Church of England Pensions
Board set up and leads the 100 strong coalition of investors (representing USD$20 trillion under management) that form the Investor Mining and Tailings Safety Initiative. The church announced that they will vote against the chairs of boards at companies in which they invest that have not confirmed their intention to implement the industry standard. Given the continued risk posed to communities and the environment from tailings dams, the pensions board encouraged other investors to consider following suit to drive compliance with the standard.
26 | March 2022 |
www.waterpowermagazine.com
Commenting on the companies not committing
to implement the Standard, Adam Matthews, Chief Responsible Investment Officer for the Church of England Pensions Board and Chair of the global Investor Mining and Tailings Safety Initiative, said: “If anyone doubts the continued risk posed by tailings dams, there have been 12 incidents at mine sites since Brumadinho leading to further loss of life and destruction of the environment. Tailings safety remains a clear and present risk to communities and the environment as well as to those invested in companies or providing them with insurance or banking facilities. We are not yet confident this issue is being properly addressed. “We are encouraged by the number of companies that have confirmed they will adopt the Global Industry Standard or are assessing alignment. However, any company that sets itself against the standard will face considerable scrutiny from investors. As a first step we will vote against the chair of those companies and are considering shareholder resolutions. If the chair of a board does not see this as a major risk that requires the highest standards of operation, then they themselves pose a risk to us as a shareholder in that company.” Since the 2019 Brumadinho disaster on 25 January
there have been a further 12 incidents at mine sites involving the collapse of tailings or waste facilities in Angola, Brazil, India, Mexico, Peru and Turkey. Three have involved fatalities (two in Myanmar, with one leading to the loss of 126 lives, and one in Peru). All have resulted in environmental impacts. Whilst a number of the incidents happened at non-listed companies, the issue remains a significant risk for boards of public and private companies.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37
