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Friday, 26th May 2006 (2237 views)

The bid by diversified mining group Xstrata to take over the 80 per cent of Falconbridge has been met with some hostility by people who question its social responsibility.

Wayne Fraser, the Ontario and Atlantic Canada director of the United Steelworkers union, told the Toronto Star: "We believe Xstrata has a bad record on workers' rights and civil rights in its developing world operations and a poor record on environmental compliance."

Other critics suggested that a takeover of Falconbridge, the largest mining company in Canada, would be likely to have negative consequences for Falconbridge's workers and the long-term sustainability of Canadian mining.

But Xstrata, which has exposures to gold and silver as well as larger operations in copper and coal, has promised that no workers would be laid off for at least three years if the bid is successful, adding that it operates according to the law.

Xstrata's commitment to ethical mining is spelled out on its website. In places where the company operates, it "respects the rights of indigenous people and seeks to derive mutual benefits from the opportunities that exist".

 

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