Multinational Mining Companies Research Articles

Corporate Social Responsibility in the Mining Industry: Exploring Perspectives of Host Communities in a Developing Country

This paper aims to explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country-Ghana. To explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country, this study used Ghana as a test case and conducted 18 in-depth, semi-structured interviews with respondents drawn from the mining host communities of Prestea and Bogosu. The findings show that members of the host communities–the group deemed to be the most powerful and legitimacy-conferring stakeholder placed pressure (i.e., expectations and/or concerns) on the mining firms that operate in the host communities in terms of their social and environmental performance. Five themes, i.e., general categories, emerged from the data of this study in terms of the social and environmental issues that are of priority/importance to the host communities: a prioritisation of community development projects, environmental/sustainability-related issues, employment of indigenes/local enterprise development, communication of social responsibility information and preservation of local culture and tradition. This study is an exploratory study based on only 18 in-depth, semi-structured interviews, i.e., using purposive sampling. The implication of this study is that because developing countries have similar socioeconomic, cultural, and geopolitical features, the finding of this study may be relevant to researchers and policymakers in developing countries where multinational mining companies (MMCs) operate. Although mining communities’ awareness regarding corporate social responsibility has increased in recent decades, to date, we know little about the social and environmental issues that are of priority/importance to the host communities of mining firms in developing countries.

THE EFFECT OF TAX BURDEN, FOREIGN OWNERSHIP, INTANGIBLE ASSETS AND BONUS MECHANISM ON TRANSFER PRICING

In Indonesia, a country with a significant mining industry and a dynamic stock exchange, transfer pricing decisions among mining companies have become a subject of interest. These decisions involve determining the prices at which related entities within the same multinational corporation trade with each other. The complexity arises from the potential discrepancies between market prices and the prices set for intra-company transactions. This study aims to investigate the impact of Tax Burden, Foreign Ownership, Intangible Assets, and Bonus Mechanism on Transfer Pricing Decisions among Indonesian mining firms listed on the Stock Exchange from 2017 to 2021. Using purposive sampling, six mining companies were selected as the research sample. Employing Panel Data Regression Analysis via Eviews 9 software at a 5% significance level, the study finds that collectively, the independent variables significantly influence companies' choices for transfer pricing, as indicated by the F-test (F-statistic value = 13.07910, F-table value = 2.759). Regarding individual variables, Tax Burden lacks significant influence (p-value = 0.3819), while Foreign Ownership negatively impacts transfer pricing decisions (p-value = 0.002, t-statistic = -3.503829). Intangible Assets (p-value = 0.8969) and Bonus Mechanism (p-value = 0.6290) also do not significantly influence transfer pricing. The study concludes that investors should cautiously analyze company policies due to varied motivations for transfer pricing, and recommends government review of policies to curb detrimental transfer pricing practices. The limited number of multinational mining companies and scarce information on their transfer pricing practices are study limitations.

Examining the social sustainability strategies of multinational mining companies in a developing country

PurposeThe purpose of this paper is to examine the social sustainability strategies of multinational mining companies in addressing risks in areas of exploratory intensity and contributing to social capital in local communities.Design/methodology/approachThis study is situated within an interpretivist paradigm and uses a qualitative research methodology, drawing on data from semi-structured interviews with multinational mining companies operating in Ghana and key stakeholder groups.FindingsThe results of this study show that multinational mining companies use strategies broadly categorised as social responsibility, social compliance, local content and relationship proximity to address challenges embedded in the extractive process.Originality/valueBy examining the strategies in addressing risks to sustainable social development in mining communities, this study contributes to fill the social sustainability gaps in mining research and adds to relevant literature.

Host communities’ infrastructural development expectations of multinational mining companies in Ghana’s mining industry

ABSTRACT This paper, through an ethnographic research approach, examines the infrastructural development expectations that host communities have of multinational mining companies (MNMCs) and how these expectations influence corporate-community relationships in two of Ghana’s mining districts. Using data triangulation from multiple stakeholder perspectives, two MNMCs ranked among the ten best corporate social responsibility firms in the world are studied to explore how and why these expectations impact corporate-community relationships. Theoretically, the paper argues that the Ubuntu philosophy (culture) of the rich sharing their wealth with the underprivileged in society influences community expectations. These expectations, in turn, affect social legitimacy of companies. It therefore emphasizes the need to consider the informal context when using institutional and stakeholder theory to examine corporate social responsibility (CSR) in African countries. By this, the paper contributes to the reorientation of stakeholder theory from a firm-centric to community-centric focus. Managerially, the paper suggests that multinational companies coming to Africa’s mining communities need to understand this cultural norm and set aside enough resources to provide infrastructure projects in host communities to enhance corporate-community relations.

O trabalho terceirizado e por turnos está associado ao aumento do risco de COVID-19? Descobertas de um estudo com trabalhadores da mineração

Abstract Objectives: to investigate the sociodemographic and occupational risk factors associated with COVID-19 infection in mining workers. Methods: a retrospective cohort study, using secondary workers’ health data from a multinational mining company, from March 2020 to April 2021. A COVID-19 case was defined based on a SARS-CoV-2 positive result in a polymerase chain reaction (PCR) test. Risk ratios (RRs) for positive testing were estimated using Poisson’s regression model. Results: of 10,484 workers, 2,578 (24.6%) had at least one positive result for COVID-19. Each worker underwent an average of 4.0 (standard deviation: 3.6) tests, totaling 41,962 PCR tests. Most of the evaluated workers were male (88.3%), aged from 30 to 39 years (38.7%), outsourced (74.1%) and non-shift workers (70.5%). Our multivariate model showed that outsourced (RR: 1.39; 95% confidence interval [95%CI]: 1.27;1.51) and shift workers (RR: 1.10; 95%CI: 1.01;1.20) had a higher risk of SARS-CoV-2 infection than their counterparts. Conclusions: outsourced and shift workers have a higher risk of COVID-19 infection than their counterparts. Therefore, it is necessary to provide continuous monitoring with regular and adequate testing for mitigation and prevention of COVID-19 in these occupational groups.

COVID-19: perfil de trabalhadores brasileiros em uma companhia de mineração e a dinâmica dos casos comunitários

Abstract Objective: to describe the COVID-19 clinical outcomes profile from mining workers and the cases dynamic within the mining units and their respective municipalities. Methods: a cohort and ecological study using workers clinical-epidemiological, sociodemographic, and occupational secondary data of a multinational mining company, and of COVID-19 cases from five municipalities where the mining units were located, in Brazil, between March 2020 to April 2021. We calculated the cases cumulative incidence and the 7-day moving average (MA), and compared at the mining unit and respective municipality. Results: the study included 17,523 workers, 88.4% male, and 22.6% had at least one positive result for COVID-19. The workers most tested, with positive results, placed in quarantine, and with symptoms were female, middle-aged, living and working in Rio de Janeiro state, directly hired by the mining company, in shift-work, and in high-risk occupations. All mining units presented a cumulative incidence higher than their respective municipalities. Three municipalities showed peaks of COVID-19 with MA cases coinciding with an increase in cases among mining workers. Conclusion: approximately one-fifth of workers were diagnosed with COVID-19. The mining units had a similar temporal distribution of COVID-19 cases to the municipalities where they were located.

Creation and Preservation of Business History: The Selection Trust and Anglo-American Corporation Archives in Zambia's Copperbelt

Based on original archival research and oral interviews, this article examines archives creation and the preservation of the history of the multinational mining companies of Selection Trust (ST) and Anglo-American Corporation (AAC) in Zambia's Copperbelt region between 1922 and 2000. The investment of foreign capital by multinational companies in the Copperbelt mines from the 1920s, marked the genesis and formal preservation of business archives in the Copperbelt. This article argues that although the ST and ACC archives were privately owned and strictly preserved for corporate interests and administrative efficiency, these documents eventually became publicly available because of Zambia's political independence and the nationalisation of the mining industry in the 1960s. In the early 1970s, the United National Independence Party (UNIP) government nationalised the Zambian mines and merged the two multinational companies to form the Zambia Consolidated Copper Mines (ZCCM). Consequently, in 1982, the ST and ACC archives were merged. However, following the complete privatisation of the mining industry in 2000 the identity of mining archives reverted to private entities. This article provides new and significant insights into the power and role of regional and local political-economic shifts in determining the nature and identity of business archives in Zambia.

Barriers to environmental sustainability practices of multinational mining companies in Ghana: an institutional complexity perspective

PurposeThis paper aims to examine the barriers to the environmental sustainability practices of large-scale mining companies throughout a mine lifecycle, analysed in the context of the plural and competing logics and tensions in the broader institutional environment.Design/methodology/approachThe paper used a qualitative methodology based on multiple cases involving multinational mining companies, regulators and other major stakeholder groups, as it offers an opportunity for analytical generalisations where the empirical results are compared to previously established theories.FindingsThe empirical results indicate that the environmental sustainability barriers are embedded within gaps in Ghana’s natural resources governance framework. The gaps arise out of contradictory interests and values, which hinder the direction and practices of large-scale mining companies.Research limitations/implicationsThe findings may only apply to the context of this study and is inadequate as the basis for assessing the effectiveness or otherwise of specific initiatives of large-scale mining firms in Ghana.Practical implicationsThis study have implications on how large-scale mining companies and their stakeholders define their values and goals, and engage in a dynamic process to accommodate the multiple and competing logics by implementing effective structures at the organisational and institutional levels.Originality/valueThis paper contributes to the sustainability and institutional complexity perspective by showing that plural logics are often contradictory, but may also be complementary in situations of complicit commonality, hindering sustainable outcomes. The authors argue that this is one of the few studies that have examined the barriers to environmental sustainability explicated in the context of institutional complexity.

Formal and informal sustainability reporting: an insight from a mining company’s subsidiary in Ghana

PurposeUsing a subsidiary of a multinational mining company in Ghana as a case, the purpose of this study is to examine the formal and informal forms and channels of sustainability reporting in the emerging economy’s context. Design/methodology/approachSemi-structured interviews were conducted amongst managers and employees of the mining company and members of their host community. Based on the interview themes, archival data were extracted from the 2020 Integrated Annual Report of the case company to corroborate the results from the interviews. FindingsThe authors found that most of the stakeholders from the host community interviewed were not aware and, to an extent, not interested in formal sustainability reports. In place of that, the management of the mining subsidiary uses informal channels of communication, including meetings and durbars, to verbally engage the local community and their representatives on sustainability matters. Whilst the formal sustainability reports met the internal requirements set by the parent company, the informal engagements were critical for gaining external legitimacy from the host community and other interest groups. Hence, the authors argue that mining companies and their subsidiaries, particularly in developing economies, need to consider informal forms of sustainability reporting alongside the formal channels to engage local communities to address sustainability issues and avert disruptions to their operations. Originality/valueSustainability reporting studies have focussed mainly on annual reports published in print or corporate websites, ignoring informal forms of sustainability reporting. This study sheds light on the informal forms of sustainability reporting. This is important as formal forms of sustainability reporting may be less useful for engaging local mining communities in developing economy contexts.

The Early History of Water Wars in Chile: Rivers, Ecological Disaster and Multinational Mining Companies

Abstract This article examines an early water war in Chile between local agriculturalists and the North American-owned El Teniente copper mine. It recovers a hitherto unknown history of ecological degradation caused by industrial copper mining during the twentieth century in Chile. It argues that contemporary water wars in Chile, usually viewed as a product of the privatisation of water rights in 1981 and the expansion of foreign investment in the mining sector during the 1990s, combined with the impact of global climate change, have roots in the appropriation of water in Andean rivers by North American companies at the beginning of the twentieth century. The article's thesis is that the Chilean state subsidised the mining industry by granting water rights and turning a blind eye to mining companies' contamination of rivers relied on by agriculturalists for irrigation. Finally, the article traces conservationist responses to the ecological crises produced by contamination of water and soil by the El Teniente mine, which was owned by the Kennecott Copper Company. It demonstrates that conservation of water resources was employed by estate owners as a means of asserting private property rights against the interests of mining companies.

Standardization can be good for exploration: a social capital view of the productivity dilemma in operational teams

Process Management Programs (PMPs) rely heavily on the standardization of activities to improve organizational efficiency and reliability. Standardization, however, can lead to rigidity and inertia, which may eventually inhibit exploration and innovation. While scholars have provided cognitive and routine-based arguments to cope with this dilemma, the fact that standardization is a social process that requires collaboration between individuals has been overlooked. In this paper, we propose that standardization can improve a team’s social capital and thereby facilitate the activities that enable exploration. Specifically, we hypothesize that standardization relates positively to external communication, psychological safety, and the perception of support for innovation in operational teams. These three social capital attributes mediate the relationship between standardization and exploration. We tested this multilevel mediation model by analysing 431 members of 62 operational teams in a large multinational mining company that had recently implemented a Process Management Program (Lean Management). Our multilevel mediation results confirmed that standardisation promoted exploration by enhancing the teams’ social capital. For robustness we tested our model with a second survey of 450 workers of different companies and obtained similar results. Therefore, we propose that the productivity dilemma can be balanced by improving operational teams’ social capital.

Mining Social Media (Twitter) Data for Corporate Image Analysis: A Case Study in the Indonesian Mining Industry

PT Freeport Indonesia (PTFI) is the largest multinational mining company in Indonesia which frequently becomes trending topics on social media. Since the continuation of the company’s business operations depends on many stakeholders including the regulators, it is important for the company to listen to public opinion in order to develop a solid public relation strategy to maintain its corporate reputation. The objective of this study is to gather insights from social media as input towards a data-driven public relations strategy development. As a case study, we analysed Twitter conversations mentioning PTFI between 20 to 30 August 2020 during which there was a strike in the company. We performed text mining techniques using Drone Emprit system specifically sentiment analysis, bot analysis, and descriptive analysis to get quantitative measures of the corporate image on social media. The findings suggest several improvement opportunities of the current social media strategy of the company including the lack of engagement from local communities, the absence of specific strategy to handle negative sentiment, and the lack of awareness of social media topics not reported by mainstream media. As the implication of the findings, we propose several recommendations including nurturing engagement from employees and local communities, addressing the most influential tweets, and choosing better time periods to get more engagement.

Cobalt mining and the corporate outsourcing of responsibility in the Democratic Republic of Congo

The consumption of cobalt has tripled globally over the last decade, largely driven by rising demand for electronics and electric-battery vehicles. This fast-growing market has pressured multinational mining companies operating in the Democratic Republic of Congo, the world's largest supplier of cobalt, to formalize artisanal mining under the banner of responsible sourcing. Based on field research in the cobalt-rich Province of Lualaba, survey data and interviews with relevant actors, this article examines the integration of artisanal miners in corporate-led formalization projects. First, we suggest that the reliance on wageless artisanal workers in large-scale industrial operations holds important lessons for understanding the unintended effects of mining formalization. Second, the flexible recruitment of artisanal workers by mining companies represents an emergent trend of corporate outsourcing of responsibility.

Social Investment Management of PT. Chevron Pacific Indonesia in the framework of National Defense

Ethics in a multinational company environment is related to business problems, but the position of corporate partnership determines sustainable companies. The study aims to integrate the concept of social investment (SI) with state defense in multinational mining companies' environment. Social Investment (SI) business ethics as part of Corporate Citizenship (CC) has a different concept base. CSR for companies is an honest effort for companies towards the surrounding community. Whereas the State Defense is a political concept of the State that regulates citizens' rights and obligations in defending the country. The ethnographic method can combine the CSR and State Defense models in the multinational company oil mine environment. Chevron Pacific Indonesia Inc.'s CSR in international companies is called Social Investment (SI) has a dilemma; because CSR is seen as a long-term corporate interest, on the other hand, the regional Government distributes a small portion of profits to the surrounding community. After analyzing PT Chevron Pacific Indonesia's CSR and the Regional Government's strategy in realizing public welfare in the context of state defense, researchers can formulate the Corporate Citizenship (CC) as the State Defense CSR model.

Impact mitigation or ecological restoration? Examining the environmental sustainability practices of multinational mining companies

AbstractThis paper examines the environmental sustainability practices of multinational mining companies in addressing their impacts and promoting the sustainable development of local communities in Ghana. Although large‐scale mining companies have embraced environmental sustainability, the drivers and the mechanisms for addressing their impacts throughout the mine life cycle is not fully understood because of the limited research in this area. The focus in this study involves an examination of the drivers for environmental sustainability in a weak and non‐enabling institutional context and the mechanisms for addressing impacts on biodiversity, water quality and quantity, and ambient climate. The findings show that the environmental sustainability practices of multinational mining companies are determined by regulatory compliance and corporate environmental responsibility based on perceived ethical obligation. Additionally, we find gaps in mine closure planning and rehabilitation because of the limited requirement for biodiversity restoration in the domains of flora repopulation and active fauna reintroduction. This paper provides empirical and theoretical insights for academics and practitioners in industry and policymaking.

Mobilising control and dissent: navigating the digital landscape in a remote Aboriginal community

ABSTRACT A remote Aboriginal community has adopted the online digital landscape in today’s globalised culture and the free market. At the same time, their lives intertwine with a predominantly white Australian affluent neighbourhood on their traditional lands. The development of their traditional lands by a multinational mining company extends the complexity of their traditional lifestyle into a corporate world of trade, boom and economic crisis. This interaction between the affluent mining community of non-Aboriginal residents and the intersection of the digital world made up of smartphones, and social media has flow-on effects within the community. Aboriginal self-determination persists, supported by mobile and internet technology, and involved members from the higher echelons (traditional owners) to the social outliers. This study looks within the community and between the clans. In this ethnographic study, the authors attempt to discuss the effects of social media and mobile technologies that enable power and agency. Our findings bring to the fore a different perspective, inspired by Aboriginal peoples’ use of the digital landscape for collective reflexivity. For collective reflexivity to occur, all relationships, according to our generous study participants, are in a continuous cycle of deconstruction and reconstruction.

Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa

Abstract The potential impacts of extractive industries on local food security are difficult to predict. On the one hand, resource extraction may generate more employment opportunities, provide farmers with better market access and increase fiscal transfers to resource-producing regions. On the other hand, mineral production may contribute to the marginalization of poor smallholders by encouraging land grabs, environmental degradation and structural labor market shifts. Combining geocoded survey data from the Demographic Health Survey and Afrobarometer with information on the control rights of gold, diamond and copper mines in Sub-Saharan Africa, this paper is the first attempt to systematically test the effect of mining activities on local populations’ access to food. Results from logistic models using individual mines as level of analysis suggest that the impact of mineral extraction on food security is gender- and ownership-specific. Mining operations decrease food availability among women in a substantial way, while – at the same time – showing no significant or even a positive effect on men’s access to food. Our instrumental variable models further reveal that particularly multinational mining companies are linked to increased food insecurity, while domestic firms are not. Finally, our fixed effects estimates demonstrate that mining is also related to poorer nutritional diversity. Relying on detailed information on children’s food consumption patterns from the Demographic Health Survey, we find that children living in districts hosting multinational mining firms eat a less diverse diet compared to other districts.

Corporate Social Responsibility and Sustainable Development: A Case Study of Multinational Mining Companies in Sierra Leone

The study employs a multi case study analyses from the three mining communities. Proportionate sampling and purposive sampling techniques were applied in selecting the number of participants used in this study. The chiefdoms were grouped into two neighborhoods (Management staff and community stakeholders). The study found out at communities’ levels that companies have been responsive to their host communities to some extent, by contributing to socioeconomic development at certain level through the use of CSR policies. Their contributions included jobs creation and employees’ upgrading and; infrastructural development such as, constructions of housing, schools, clinics, feeder roads and; offer scholarships to school going youths, and support agribusiness in the various communities from the mineral proceeds. There are also indications that developmental projects across the three mining communities are in some way benefiting some stakeholders or locals as part of the mining companies’ contributions towards attaining sustainable development in the affected communities. On the environmental, the study revealed that organisations were set up to handle environmental issues in the three communities. And, there have been some amount of compensation given for resettlements and crops reparations. Nevertheless, communities were not total involved on decisions affecting major environmental issues.

Performance analysis of electric and diesel equipment for battery replacement of tethered LHD vehicles in underground mining

ABSTRACTLoad Haul Dump (LHD) equipment, haulers, and locomotives are essential to both hard and soft rock mining. Key performance indicators were calculated for both diesel and electric LHDs using the data provided by a multinational mining company operating metal mines. Battery-powered vehicles, having both the advantage of low maintenance and no tether to haul, showed an improvement in uptime. The electric fleet was, on average, operational 11 h longer than diesel vehicles before they are pulled off for maintenance. The results from comparing diesel and electric equipment show that the best equipment would be a fusion of the reliability of electric vehicles and the mobility of diesel equipment, both being attributes of battery powered equipment. Battery-powered vehicles are constantly improving and will only increase their prowess over diesel equipment.

CSR in Ghana’s gold-mining sector: Assessing expectations and perceptions of performance with institutional and stakeholder lenses

PurposeThis article examines community expectations and perceptions of the corporate social responsibility (CSR) performance of a multinational mining company following a unique incident of cyanide spillage from a tailings (processed ore effluents) storage facility. CSR remains a critical component of stakeholder management in developing countries due to the continuous environmental and social impacts of mining development. The article employs the stakeholder and institutional theories to assess the CSR manifestations of a large-scale mining company in the context of pressures at the plant level.Design/methodology/approachWe employ a mixed method design using survey and stakeholder interviews to collect, analyse, and present findings within legal, ethical, and discretionary CSR categories. The survey data were statistically analysed by calculating the standard deviations of the three CSR dimensions to compare and understand the data variations in respect of the perception ratings of respondents on a four-point Likert scale, while interview data was evaluated using an inductive approach based on thematic networks.FindingsThe findings suggest that unfulfilled expectations for employment generate wider consensus towards demands to share in mining benefits based on rising perceptions of inequity and social exclusion. Additionally, host communities within farming areas engage in speculative development in anticipation of CSR-related compensation resulting in a homogenised expectation. Further, this study reveals that reactive CSR practices are interpreted as both insincere and patronising, contributing to a negative perception of mining activities in affected communities.Research limitations/implicationsAs a single-case study, the findings may be inadequate for theoretical generalisations and therefore limited to the context of the study.ImplicationsRethinking stakeholder and institutional theories, and exploring new assumptions in the context of the mining industry in Ghana, may expand the current discourse within the academic, corporate, and statutory communities.ContributionThis study adds to and expands the assumptions of stakeholder and institutional theories in a mining context within local communities. It may also improve the knowledge of managers of large-scale mining companies on effective stakeholder management.