Mining giant Anglo American Plc has once again come under fire from activists who raised concerns about the impact of some of its operations on the environment, some dating as far back as the 1970s.
The mining giant faced accusations this week it had facilitated lead poisoning and contaminated water and soil in Zambia’s Kabwe region in the 1970s, a charge it vehemently denies.
It has also been accused of water and air pollution in Chile, and has had to fend off concerns that some of its large mines in the South American country could cause glaciers to melt.
Speaking at Anglo’s annual general meeting on Wednesday, Lydia Moyo, a proxy shareholder and mother of two girls from a village affected by lead poisoning in the late ’60s and ’70s, called on Anglo American South Africa to take responsibility for water and soil contamination in Kabwe.
“Much of our soil and water is contaminated, making it difficult for us to grow vegetables and even our staple maize. Given that Anglo American South Africa knew about children’s deaths from lead poisoning back in the 1970s, what is stopping you from turning your attention towards the ongoing sufferings of the people of Kabwe?”
In October 2024, a South African court dismissed a lawsuit brought against Anglo American by 140,000 women and children from Zambia who claimed they had endured lead poisoning from one of the company’s mines. The case, filed in October 2020, was hailed as one of Africa’s largest class-action lawsuits.
Richard Price, Anglo’s head of legal and corporate affairs, told shareholders on Wednesday that an attempt was being made to hold its South African subsidiary liable for a mine that the company never owned, nor operated, and for pollution and harm that others had caused and had acknowledged as their responsibility.
“We do not believe it is correct for the claimants to attempt to attribute legal responsibility to Anglo American South Africa for the current situation in Kabwe,” said Price.
We do not believe it is correct for the claimants to attempt to attribute legal responsibility to Anglo American South Africa for the current situation in Kabwe.
— Richard Price, Anglo’s head of legal and corporate affairs
He said the mine was nationalised in 1971 and operated by Zambia Consolidated Copper Mines (ZCCM) and its predecessor companies for 20 years, up to 1994 when it was closed. After that closure, uncontrolled mining and processing activity took place, leading to pollution from processing and smelting operations.
Price said the company would continue to defend itself in the current suit.
“We simply do not believe that we are responsible for the current situation. We strongly encourage careful consideration of the commercial motives of law firms and their funders in bringing a case like this, singling out Anglo American South Africa, part of a major reputable mining company, while completely ignoring the evidence and clear culpability of the actual responsible parties.”
But representatives of communities affected by mining in South America also had a go at Anglo.
Claudio Rojas, a member of Movimiento No + Anglo — a coalition of environmental organisations and communities affected by the company’s operations in Chile — laid blame at the miner’s door for polluted air and water.
He pointed to fines imposed by authorities against Anglo in Chile as evidence of its noncompliance with environmental laws.
“Does Anglo want to create a sustainable future? How does Anglo American explain to its shareholders that the wealth they received is built on children sickened by pollution, and destroyed villages without water?”
Communities and movements have raised concern that the Maipo River Basin, which provides drinking water for nearly 6-million people, could be contaminated by Anglo’s Los Bronces copper mine, a key asset of the company 50km outside the capital, Santiago. They also believe that air quality could be drastically reduced, and that glaciers could disappear at an accelerated rate as a result of operations at Los Bronces.
Chile is home to 4% of the world’s glaciers
Anglo American board chair Stuart Chambers said the group acknowledged the drought that has been affecting Chile for more than a decade, and in response, it was implementing projects to alleviate water scarcity. Anglo was working with local communities on the issue.
Chambers said from 2026, the Los Bronces copper mine will start using desalinated water obtained from the coast, which after the first phase of the project is to supply 46% of all Los Bronces’s water needs. This was in addition to an interim water management strategy initiated by Anglo and focused on increasing water efficiency.
He denied that Los Bronces was putting glaciers at risk, and said Chilean authorities accepted this.
“However, while understanding these significant concerns about nature and the glaciers, in order to align our commitment we made to the authorities, we will conduct the largest glacier monitoring exercise ever in Chile, which covers 15 glaciers, and when we have the results, this information will be made available publicly.”
Sara Taaffe, the analyst responsible for environmental issues at the Church of England Pensions Board — an Anglo shareholder — requested clarity on the extent of the group’s impact on nature and whether this was being dealt with through its biodiversity, water, and greenhouse gas emissions targets.
“Could the board commit to providing more detailed disclosures on the organisation’s nature impact and dependencies and explicitly outline how your targets and implementation strategies are effectively addressing these concerns in your next reporting cycle?” she asked.
Chambers responded that Anglo was planning to update its sustainable mining plan. “We are working on our first transition plan, our climate transition plan, under the auspices of the transition plan task force, and we aim to publish that before the end of this year.”
In South Africa, Anglo said it was committed to providing clean water for communities around Amplats’ Mogalakwena mine in Limpopo, its platinum division. Concerns had been raised that the mine’s hydrogen operations had worsened water scarcity, with one-third of residents lacking access to clean water.
Chambers insisted Amplats adhered to strict environmental and water conditions and said this was closely monitored.
“The Mogalakwena mine also follows a very comprehensive complaint and grievance procedure, with engagement, compensation and remediation where appropriate. That will continue.”
Once Anglo completes its demerger from Amplats, he was confident the new entity would continue upholding the same standards.
Meanwhile, Anglo’s restructuring plans received a boost after the majority of shareholders voted in support of the demerger of Amplats, paving the way for the independent entity to trade under the new name Valterra. Amplats shareholders will vote on the proposed name on Thursday.
The Amplats demerger is part of the revamp of the group’s portfolio to focus on copper, premium iron ore, and crop nutrients. The strategy was unveiled in May 2024 after Anglo had rejected a $39bn takeover bid by rival BHP Billiton.
As part of simplifying its portfolio, Anglo has sold its steelmaking business and will disinvest from diamond producer De Beers. It will eventually reduce its holding in Amplats to 19.9% after the demerger.
Anglo CEO Duncan Wanblad told shareholders the group remained on track to complete the portfolio transformation by the end of 2025.
“We remain on track to substantively complete the portfolio transformation by the end of this year, recognising that the timing of our dual track process to divest our interest in De Beers for value, which we are committed to completing at the right time, is dependent on market conditions.
“It is worth remembering that De Beers has some of the best diamond mines and resources in the world. It has an iconic brand and is a global leader in the industry. We are protecting this value in what is a challenging near-term diamond market. But let me assure you that there is no change to our strategic rationale for exiting this business and setting De Beers up to thrive on a standalone basis,” Wanblad said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.