ICMM presents Human Rights in the Metals & Mining Industry: Handling and Resolving Local Level Concerns & Grievances, the second in a series of publications designed to help member companies deal with challenging issues in this area. The publication sets out good practice approaches to help companies design and/or enhance existing complaints procedures or mechanisms. Focussing on this issue, which was highlighted in the recent publication, Human Rights in the Metals & Mining Industry: Overview, Management Approach and Issues, complements ICMM members’ work at the operational level to build strong, trusting relations with local communities around their operations.
Meanwhile, a UK registered mining company failed to comply with OECD standards for operating overseas when it did not consult an indigenous group on the construction of a bauxite mine in India, a UK Government examination has found. UK-registered Vedanta Resources plc operates directly or through subsidiaries in India, Zambia and Australia with a focus on aluminium, copper, zinc, lead and iron mining. The company is listed on the FTSE 100.The Government’s examination found that Vedanta acted inconsistently with the OECD Guidelines for Multinational Enterprises by failing to put in place an adequate and timely consultation mechanism fully to engage the indigenous group Dongria Kondh about the construction of a bauxite mine in the Niyamgiri Hills, Orissa, India.
Trade, Investment and Small Business Minister, Lord Davies, said: “The Government promotes responsible business practices and adherence to internationally recognised standards. Clearly, mining can have an impact on those living nearby so it is essential that UK registered companies maintain an open dialogue with local communities, including indigenous groups, affected by their activities and put adequate means of consultation in place”.
A complaint under the Guidelines against Vedanta was made by Survival International on December 19, 2008, triggering the start of the complaint procedure by the UK National Contact Point (NCP) for the OECD Guidelines. The UK NCP’s Final Statement on the complaint made two recommendations:
Vedanta should immediately and adequately engage with the Dongria Kondh, on the construction of the bauxite mine. And, Vedanta should include a human and indigenous rights impact assessment in its project management process, paying particular attention to the creation of an adequate consultation process, prior to the finalisation and execution of a project, with indigenous groups potentially affected by the company’s activities.
So, the timing of the new ICMM publication is very appropriate as it aims to:
- Describe a set of ‘overarching design principles’ that provide basic, high-level guidance for companies developing complaints mechanisms
- Outline some basic criteria to help operations ‘assess the nature of and potential for complaints’ and so to develop a mechanism most appropriate to their situation
- Present three possible types of mechanism, with incrementally greater levels of external engagement
- Set out various ways in which global headquarters of companies can develop ‘group-wide procedures’ to support best practice locally.
