Rio Tinto far from ethical, says global union

rio tinto

Bougainville Freedom Movement

As the debate on whether to reopen the controversial Panguna copper mine in Bougainville intensifies, communities must be aware that mining operator Rio Tinto’s bad behaviour is not a thing of the past.

The environmental devastation caused by the Panguna mine has been one of the key grievances by local communities against Bougainville Copper Limited (BCL), the mining company majority‐owned by Rio Tinto.

And far from cleaning up its act, Rio Tinto stands accused of ongoing environmental damage, health and safety violations, and clashes with indigenous groups.

For example, nomads living in Mongolia’s Gobi Desert say their wells have dried up after their scarce source of underground water has been diverted by Rio Tinto’s vast Oyu Tolgoi gold and copper mine in the country. The company had promised to ke the herders’ precious water source untouched.

Last December, Rio Tinto’s Ranger uranium mine in Australia’s Kakadu national park leaked 1.4 million litres of radioactive slurry. It followed a similar leak just a week earlier at a Rio Tinto uranium mine in Namibia. According to an independent expert report on the leak at Ranger, corporate governance and management of process safety did not meet expected standards at the time of the leak.

Rio Tinto’s track record on the environment is no better in Indonesia. Take the Grasberg mine where Rio Tinto has invested over a billion dollars. Norway’s state‐owned pension fund sold its entire US $850 million stake in Rio Tinto in 2008 because Grasberg discharges huge amounts of tailings (the often contaminated by‐product of mining extraction) directly into a natural river system.

The mining giant also fails to protect its workers. Last year, 40 people were killed at the company’s fully or partially owned operations. Miners at Grasberg recently threatened a month‐long strike after their demands that management be held responsible for the deaths of five workers in September went unheeded.

Rio Tinto, which has a market value of US$ 90 billion, is increasingly turning to contract and subcontracted workers to cut costs. At its Madagascar Minerals operation, there were double the numbers of contract workers as permanent staff as of early 2014. In Australia, Rio Tinto has sacked fulltime workers on mass but kept on casual or contract workers at the Hail Creek mine in Queensland.

It is this kind of corporate bad behaviour that has led IndustriALL Global Union, which represents 50 million workers in over 140 countries, to run an on‐going campaign against Rio Tinto to demand it live up to its claim of being a sustainable company.

Only last month, thousands of workers at Rio Tinto took part in a global day of defiance to demand safer workplaces, secure jobs and respect for workers’ rights.

It is up to the people of PNG and Bougainville to decide whether to let Rio Tinto back. If they do, IndustriALL will work with unions in the area to ensure the workers are organized and to struggle for justice at the mine.

But make no mistake, Rio Tinto remains far from ethical. There’s little reason to believe that the company’s conduct in Bougainville would be any better today than it was in the past.



Filed under Environmental impact, Human rights, Papua New Guinea

2 responses to “Rio Tinto far from ethical, says global union

  1. Harry Baxter

    It is interesting that, after trying to find on the Internet who the major shareholders of Rio Tinto are, I found that there is the suggestion that HRH Queen Elizabeth II of Great Britain is indeed probably the biggest shareholder.
    Back in around 1970 I saw the Royal Yacht anchored just off Kieta. At that time I wondered what interest the young Queen had in Bougainville.
    I would like to be wrong in my findings believe me. If I am then I apologise profusely.
    My name Harry Baxter

    • SMW

      I googled this when I read your comment. and found what I think might be the article you are referring to. It speculates that, as we don’t know which companies the Queen invests in, or whether or not she has an ethical investment policy, she MIGHT be investing in a company such a Rio Tinto. It appears to be bemoaning the secrecy surrounding her investments, not displaying any knowledge of them. Incidentally the names of Rio’s top 20 investors are easily found – she is not amongst them.

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