Anglo American Statement

Anglo American statement

In response to the postings on the Business and Human Rights Resource Centre website regarding human rights at Minas Rio project, Anglo American states that it works strictly in accordance with current social and environmental legislation as well as abiding by international best practice standards. Theprojectis regularly inspected by federal environmental authorities, those from Minas Gerais and Rio de Janeiro states, and also by State and Federal Prosecution Offices. Anglo American acknowledges that the construction of the Minas-Rio Project, which is large and complex, causes impacts. Where required, it has implemented mitigation programs developed in cooperation with authorities, communities and cities where the company works. In addition, all environmental impacts from the Minas-Rio project are monitored by Anglo American’s accredited contractors, who report results to environmental bodies as required by law.

In order to ensure a clear response, we have used headings to address each topic covered below:

Right to Freedom of Assemblyand Movement

Anglo American has never breached or disrespected the right to free assembly, association and expression of any group. The assemblies organized in the months of May and August, 2013, by organizations including the Brazilian Institute of Social and Economic Analyses (Ibase) and the Environmental Thematic Study Group of Federal University of Minas Gerais (Gesta/UFMG) took place without any interference of Anglo American.

Inevitably, during the construction of a large industrial project, access to certain areas is restricted for safety reasons. However, beyond this, Anglo American has not breached the right to come and go of the communities within the implementation region of the Minas-Rio project.

The Environment

On the issue of water, the management of water resources for the construction of the Minas-Rio projectaims to meet the demands of the project along its life span without affecting other users. In order to ensure sustainable water management, the company has worked on five areas: development of technical studies, monitoring of water resources, water balance study of the project, development of water resource management system, and active participation in management bodies and forums, such as the Basin Committees. With regards to monitoring water balance in water bodies, sincemid-2007, Anglo American has reviewedthe quality and quantity of surface and underground water. The values observed are within legal limits. The supply wellsprings of the communities around the Minas-Rio Project in Conceição do Mato Dentro are monitored monthly with biannual reports being sent to environmental bodies. Once Minas Rio is in production, its main water source will be the Peixe River, located in the city of Dom Joaquim in Minas Gerais. The quantities involved have been fully approved by the Institute of Water Management of Minas Gerais (Igam) upon completing an assessment of the water availability of the entire basin of the region, considering population growth projections and checking that the permitted amount would not affect the supply to any other user of the basin.

Regarding the charges of water salinization in the Açu port region, we need to clarify that these are not related to any works by Anglo American, but only related to LLX port. That company should be contacted separately.

Property Rights and Resettlement

Anglo American stresses that it has complied with all applicable legal procedures for the acquisition of all properties required for construction of the Minas-Rio Project in the states of Minas Gerais and Rio de Janeiro. The company emphasizes that it has never used coercion or practiced any violent and/or illegal acts in negotiation processes with land owners. When the removal of landholders has been necessary, such action has always been preceded by a court order and carried out in conjunction with authorities, according to legal guidelines.

Anglo American has a Land Management Program that respects local and World Bank standards. Negotiations are individual and not collective, as contained in the Land Negotiation Program approved by standing authorities. All resettled familiesreceive social-psychological and livelihood creation support including agricultural capacitation for 3 years after their move.

Identification of Affected Communities

Government environmental agencies have identified which families are determined to be directly affected by the project, as listed bythe Environmental State Policy Council (Copam),and subject to the Land Negotiation Program. This is not a process that Anglo American leads independently but one that has external oversight. Diversus, a regional consultancy, is preparing a detailed analysis on this subject which will be debated at the next Copam meeting. Anglo American will take action as determined by Copam. The indirect impacts of the project and ways of mitigating or compensating them, where mitigation is not possible, are currently under analysis.

Compliance with Licensing Conditions

The development of the Minas-Rio project is in full progressand is being completed in strict compliance with permits and the company’s commitment to international standards. A central office manages compliance with all licensing conditions. As the project is under construction, some of these do not yet require completion and others do. In both cases, Anglo American operates under detailed supervision by many public authorities to ensure that our progress against these is as required.

Anglo American welcomes individuals and communities to express any concerns or complaints they may have directly to the company. The best mechanism is through the “Speak to Us” System, which has a free-toll phone line (0800-9417100); e-mail (); and post boxes spread throughout the communities.

Broader Support to the Community

At Minas Rio, Anglo American focuseson developing a transparent and solid relationship with the community and promoting local socioeconomic development. Some examples of these programmes are listed below:

• PreservAÇÃO, an Environmental Education Program which benefits 9,100 students and 910 teachers, from 49 schools in the cities of Alvorada de Minas, Santo Antônio do Riacho, Serro, Dom Joaquim and Conceição do Mato Dentro.
• Construction and remodeling of Health Units and Hospitals in Conceição do Mato Dentro, Dom Joaquim and Alvorada de Minas, including training to medical professionals.
• Local labour development programmes, resulting in a R$ 24 million investment in the qualification of professionals in Conceição do Mato Dentro to enable them to find jobs at the project and more widely.
• A partnership with Reprolatina, a sexual health NGO, through which 30,000 people have benefited from either programmes designed to raise awareness or certify sexual health professionals.
• The Mover Program, which provides professional training and qualifications, with lectures, workshops, “mobile” trainings in a bus andviaa web portal.
• Promova, a Local Supplier Development Program, which aims to generate 8,000 jobs by 2015.