Vale the only coal miner in Moz to fulfil legal CSR obligations

Friday, 28 March, 2014

Back to Africa now with a worrying article on Mozambique via Mining Weekly [, who state with depressing directness that most of the multinational coal miners operating in Mozambique aren’t meeting social obligations.

The main thrust is this, and it’s pretty cut and dried: “only one of the multinational coal miners operating in the Moatize district of Mozambique’s Tete province has so far honoured its obligations to use part of its income to fund local community development.” While this is bad enough in the wider, qualitative sense, it’s worse given that these payments aren’t voluntary, they’re required by law. 

The companies concerned are: 

- India’s Jindal Steel & Power
- Minas de Moatize (owned by Anglo-Australian company Beacon Hill)
- Rio Tinto
- Vale, of Brazil. And Vale is the one that has been fulfilling its duties .

While these four should be releasing a total of 22.2 million meticais, local communities have so far only received only 7.2 million. 

In consequence, according to the article, “programmes to benefit communities have fizzled out as the funds have had to be diverted. The original plan was that, of the monies received from the miners, “30% of the total would be allocated for infrastructure and the remaining 70% to benefit the communities” [said Tete provincial finance and planning director Maria de Lurdes Fonseca] “but all the money came to be allocated to the communities”.

On a more positive note, the article also goes on to provide a brief outline of Vale’s CSR work in Mozambique, and reports on meetings and workshops over the last month held in order to strengthen the company’s work with communities.  Someone, it seems, is setting an example. It’s very difficult to see why others aren’t following.