Friday, August 31, 2007

Interesting news from El Cerrejón coal mine, Colombia

Hello again
Having published some very critical information concerning the huge open-pit coal mine at El Cerrejón, La Guajira department, Colombia, I feel it is fair today to follow up with an official statement published in Bogotá on August 27, 2007, by Carbones del Cerrejón Limited. So here goes:


Cerrejón Announces Independent Social Review

Carbones del Cerrejón Limited ("Cerrejón"), the largest coal mining company in Colombia, and its shareholders, Anglo American, BHP Billiton and Xstrata Coal, have commissioned an independent social review of Cerrejón's past and current social engagement. The review will be conducted by a multi-stakeholder, independent panel, comprising five internationally recognized experts in social development.

León Teicher, President of Cerrejón said: "We have initiated this review of Cerrejón's social performance to benefit from an independent assessment of our social engagement to date and to gain strategic guidance to enhance Cerrejón's future performance. The review will be conducted independently of Cerrejón management by a highly credible group of independent members with specific experience of social development both from within Colombia and from an international perspective.

"The committee's report will allow us to evaluate Cerrejón's past and current social engagement within La Guajira and to receive recommendations that ensure Cerrejón ranks amongst the best international performers in this field. This review underlines our commitment to address the priorities of our stakeholders in the region and to international best practice in social engagement.

Cerrejón is an important contributor to the local, regional and national economy, creating over 10,000 direct jobs and many more indirectly. Cerrejón makes a significant and beneficial contribution to the sustainable development of local communities and has implemented leading practices in human rights policies.

The independent committee is chaired by Dr. John Harker, President of Cape Breton University, Canada.
Its members comprise:

 Salomón Kalmanovitz, Dean of Economics and Business Administration of Jorge Tadeo Lozano University, Colombia and a former member of the Board of directors of the Colombian Central Bank;

 Elena Serrano, Casa de La Paz Foundation, a non-governmental organization based in Chile which promotes peace, social development and environmental awareness;

 Daniel Gagnier, Chair of the Canadian not-for-profit organization International Institute for Sustainable Development (IISD) and former Senior Vice-president, ALCAN Inc.; and

 Nick Killick, International Alert, a UK-based, international non-governmental organization focused on peacebuilding and security in developing countries.

Cerrejón and its shareholders recognize the independence of the committee and will provide all relevant information and full access to the company's facilities, staff and records. The committee will be supported by Social Capital Group, an internationally recognized consultancy that will undertake the fieldwork required for the review and will report directly to the committee.

At the end of the process, the independent committee will present a comprehensive report to Cerrejón and its shareholders that will include specific recommendations on current and future community engagement practices, including addressing legacy issues. The review process is expected to be completed within six months and an executive summary of the report will be made publicly available.

The review forms a critical part of Cerrejon's Corporate Social Responsibility strategy and will inform the future development of the company's policies and practice in this area.

Bogotá D.C. August 27, 2007

(see also http://www.cerrejoncoal.com/secciones/CERWEB/ENGHOME/MENUPRINCIPAL/SALADEPRENSA/NOTICIAS/doc_137_HTML.html?idDocumento=137)
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I, for one, very much look forward to seeing the review and report. But all the reporting will be of no use if recommendations are not implemented. Events in the distant and recent past do not bode terribly well. Watch this space!

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