Companies
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BHP Group Ltd
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Bougainville Copper Ltd
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Rio Tinto Ltd
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Vale SA
MELBOURNE, Dec 6 (Reuters) – Rio Tinto’s (RIO.AX), legacy Bougainville mine poses imminent life-threatening risks to locals, a report showed on Friday, prompting communities to call for the global miner to take action.
Community and human rights groups have been pushing Rio Tinto to review issues around land, water and health arising from the Panguna copper mine that the global miner ran for nearly 20 years until civil war broke out in 1989.
Rio Tinto, which has not committed to compensation, agreed to fund a two-year investigation by environmental firm Tetra Tech Coffey, which found serious issues persist as a result of the mine.
The findings, released in a report on Friday, included “imminent, life-threatening risks posed by the collapsing mine pit, levees, and infrastructure,” as well as ongoing contamination of the Jaba-Kawerong river.
Rio Tinto recognises the gravity of the impacts and accepts the findings of the investigation, Chief Executive, Australia, Kellie Parker said on Friday.
“We remain committed to working closely with stakeholders to ensure that the legacy of the Panguna mine is addressed fairly and equitably for the benefit of impacted communities,” she said in a statement.
The report follows a separate class action in Papua New Guinea’s capital Port Moresby over damage from the mine, demanding billions of dollars in compensation. It has the support of more than 5,000 local community members as calls for miners to make reparations for environmental damage grow.
BHP (BHP.AX), last month agreed to a 170 billion reais ($29.85 billion) compensation deal with the Brazilian government, Vale (VALE3.SA), and Samarco for the Mariana dam collapse in 2015, one of Brazil’s worst environmental disasters.
Among other issues, Tetra Tech Coffey found mine-related flooding has impacted food gardens, access to drinking water, essential services and safety around river crossings. It also said toxic chemicals have been stored in some locations and found in certain areas.
The report made 24 recommendations for what impacts need to be addressed or mitigated and outlined areas for further investigation to better understand risks.
Rio said that it was already acting to address issues around ageing infrastructure with Bougainville Copper (BOC.AX), and the government for works on four sites that pose severe and imminent risks to nearby communities.
Reporting by Melanie Burton; Editing by Saad Sayeed