Human rights

A number of the countries in which we operate – Colombia, the Dominican Republic, Papua New Guinea, Peru, the Philippines and South Africa – are considered moderate or high risk from a human rights perspective.

The primary human rights issues relevant to our operations include:

• Labour: The rights of our employees and contractors to fair remuneration, equal pay for equal work, freedom of association, safe and healthy workplaces, non-discrimination and protection of their legal rights;
• Security: The conduct of security organisations protecting our operations at certain specific locations where there is a threat to our people or assets, and the conduct of public security forces who operate within our operations’ areas of influence during the execution of their duties; and
• Communities: The impact our operations may have on communities, including disputes relating to the use of land and mineral assets, micro-inflation, displacement of communities, influx of migrant workers, impacts to culturally sensitive resources, access to resources and economic benefits.

All sites are required to undertake human rights risk assessments. For high-risk locations, risks must be reviewed annually. These assessments are closely associated with community engagement activities. Operations in high-risk locations are also required to establish performance standards for all contractors (including third-party security personnel), conduct training to promote compliance and monitor performance against the standards.

No human rights abuses were identified at Xstrata operations in 2010.

Voluntary Principles on Security and Human Rights

Xstrata is committed to implementing the Voluntary Principles on Security and Human Rights (VPs) across our global operations. The stated aim of the VPs is “to guide companies in maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms.” Among other aspects, the principles highlight the role companies can play in promoting respect for human rights and assisting host governments with security sector reforms and strengthening the rule of law.

Human rights training

A total of 28,920 employees and contractors undertook human rights training during the course of 2010, representing approximately 41% of the total combined employee and contractor workforce. We focus our training and awareness-raising efforts on those regions and countries where our risk assessments suggest the greatest potential for human rights abuses exist. In 2010 we prioritised our operations in South Africa, Colombia, the Philippines, Dominican Republic and Australasia. We use the findings from these risk assessments to select relevant and locally appropriate topics for our training programmes.

The Tampakan project is located in the Philippines, in a high-risk region for security. SMI (the operating company) has worked together with local communities, public and private security forces to improve security in the region. Local communities asked the Philippines authorities to establish volunteer reserves (CAFGU) in the region to further enhance security. CAFGU groups comprise community members who are comprehensively trained to form volunteer reserve forces. Any mobilisation of forces is closely controlled by the Philippines army. SMI is not involved in the management, recruitment or training of these forces. In 2008, SMI adopted the Voluntary Principles on Security and Human Rights, implemented training for all SMI and private security personnel and raised awareness of the VPs among national government agencies, non-governmental organisations and other mining companies.

In 2010, SMI continued to provide VPs training to its private security personnel and this training will continue in 2011. In partnership with the Philippine Government’s Commission on Human Rights, SMI assisted with the roll out of VPs training to Philippine National Police and Philippine Armed Forces personnel deployed in the Tampakan project area, that commenced in December 2010.

Child and forced labour

Child labour is a common problem in a number of the regions in which we have operations, in particular Brazil, Tanzania and the Dominican Republic. Xstrata’s Statement of Business Principles upholds the elimination of all forms of forced or compulsory labour and prohibits any form of child labour.

None of Xstrata’s managed operations have been found to have significant risks for incidents of forced, tied or compulsory labour. No cases of under-age or forced labour among employees or contractors has come to our attention during 2010.

All operations report the age of the youngest employee and the minimum working age permitted in the relevant jurisdiction. In general, we employ people aged 18 or older. In 2010, two 15 year olds were employed; one at Newlands coal operation in New South Wales, Australia through a structured work placement for local students and the other at the Nikkelverk site in Norway who is a school-based apprentice working two days per week while attending school for three days per week.