Anglo American faces R55bn environmental liability disputes

Mining communities say mine closures were underfunded

- By Tebogo Magoba

Mining giant Anglo American is facing mounting pressure from community activists and regulators over environmental and social liabilities estimated at up to R55-billion, as the company restructures its global operations and prepares to relocate its headquarters to Canada.

The Mining-Affected Communities United in Action (Macua), representing communities impacted by mining, has accused Anglo American of attempting to exit South Africa without fully settling decades of environmental damage, labour obligations, and social commitments linked to its historic operations.

The allegations come as Anglo American finalises a merger with Canadian miner Teck Resources, creating a new entity, Anglo Teck, headquartered in Vancouver.

Macua says this move symbolises a broader corporate withdrawal from the country where the company was founded more than a century ago.

Macua estimates Anglo American's unfunded environmental and mine-closure liabilities in South Africa at between R40-billion and R55-billion, based on regulatory disclosures and the company's historic mining footprint.

The liabilities relate to long-term environmental damage, including acid mine drainage contaminating water systems, land sterilisation rendering areas unusable for agriculture or development, groundwater pollution, and rehabilitation costs for closed or abandoned mining sites.

"These liabilities cannot become a case of profits leaving and damage remaining," said Macua national coordinator Sabelo Mnguni.