10 Most Controversial Mining Companies

Most Controversial
Mining Companies of 2011

March 2012

MOST CONTROVERSIAL MINING COMPANIES OF 2011
The extraction industry is traditionally one of the most criticized by various stakeholders for its negative
impacts on communities and the environment. This RepRisk special report focuses on mining companies
and their projects in 2011.
In order of ranking, the 10 Most ControversialMining Companies of 2011 were:
1.

Alpha Natural Resources

2.

Newmont Mining Corp

3.

Glencore International

4.

BHP Billiton

5.

Freeport-McMoRan Copper & Gold

6.

Rio Tinto

7.

Compania de Minas Buenaventura

7.

Barrick Gold (equal ranking)

9.

Anglo American

9

Vedanta Resources (equal ranking)

These mining giants and their global operations havecome under fire for allegedly polluting potable
water supplies, scarring landscapes and damaging sensitive ecosystems. There were also numerous allegations detected by RepRisk related to impacts on local communities and effects on the traditional way
of life of indigenous peoples. Furthermore, these companies were accused of having poor occupational
health and safety standards, which resultedin toxic emissions and accidents that have caused injuries,
fatalities or serious illness.
The negative stakeholder sentiment captured throughout 2011 by RepRisk indicates that it may be in a
company’s best interests to heed the warning signals and proactively address the environmental, social
and governance issues raised by various activist groups, employees, governments, shareholders, andcommunities. For some companies, such as Vedanta and Rio Tinto, mining operations were so heavily
criticized that activists disrupted their Annual General Meetings, calling on the companies to put a stop
to alleged human rights abuses near their work sites and improve their stance on the environment. For
Newmont and Minas Buenaventura, the outcry surrounding their Conga Mine led to the suspensionof
the project in late November.
BHP Billiton attracted a great deal of NGO criticism for its allegedly widespread environmental destruction and human rights abuses. Following Glencore’s Initial Public Offering in 2011, public and media interest in the company’s activities increased and it was heavily criticized for operations in Africa and South
America. Alpha Natural Resources’ purchase ofMassey Energy saw its RepRisk Index soar, making it the
most controversial miner of the year.
Freeport-McMoRan Copper & Gold faced allegations of human rights abuses, particularly in Papua New
Guinea where its subsidiary was accused of perpetuating the abuse of workers by paying police to guard
its Grasberg Mine. It was further accused of contaminating water bodies with heavy metals from minetailings. Barrick Gold had to contend with multiple claims of sexual abuse by security staff, and Anglo
American faced ongoing lawsuits by former mineworkers in South Africa, who attributed their illnesses
to having worked for the company.
RepRisk® is a registered trademark

RepRisk AG, February 2012

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1.

ALPHA NATURAL RESOURCES INC

Alpha Natural Resources shot to the topof the most controversial mining companies list following its
purchase of Massey Energy in June 2011. Massey has been targeted for the controversial practice of
mountaintop removal mining, as well as alleged pollution, safety problems, poor employment, and fraud
issues. Critics of mountaintop removal claim that it scars the landscape, threatens wildlife and contaminates drinking water.
Masseyhad a well-documented history of problems prior to its purchase by Alpha Natural Resources,
including the infamous explosion at the Upper Big Branch coal mine in April 2010 that resulted in at least
25 miner fatalities. Since the incident, the company allegedly received over 1000 citations from the US
Mining Safety and Health Administration. Furthermore, the investigation reportedly found that...