154 | <strong>Environmental</strong> <strong>and</strong> <strong>social</strong> <strong>transparency</strong> <strong>under</strong> <strong>the</strong> Companies Act 2006Annex 7: Company AGMs in practice: <strong>the</strong> mining industry | 155quickly to implement <strong>the</strong> Report’s recommendations); Geoff Nettletonof Philippine Indigenous Peoples’ Links raised issues regarding <strong>the</strong>Connor project in <strong>the</strong> Philippines, <strong>and</strong> a perceived lack of communityconsultation <strong>and</strong> engagement; Frank Nally of <strong>the</strong> Society of St Columban,raised concerns about <strong>the</strong> company’s operations in <strong>the</strong> north eastof Mindanao in <strong>the</strong> Philippines, <strong>and</strong> read a statement from residentsof Anislagan, Placer, Surigao del Norte, Philippines which outlined <strong>the</strong>perceived threat posed to <strong>the</strong>ir way of life by Anglo American operations.The chair, Sir Mark Moody Stuart, <strong>the</strong>n made claims regarding<strong>the</strong> legality of AA’s actions, <strong>the</strong> strength of governance in <strong>the</strong> Philippines,<strong>and</strong> <strong>the</strong> company’s efforts (or lack of) to engage with <strong>the</strong> communities.Geoff Nettleton <strong>and</strong> Frank Nally rebuffed <strong>the</strong> claims, withreference to direct <strong>and</strong> long-st<strong>and</strong>ing experience of operations on <strong>the</strong>ground, at which point <strong>the</strong> chair made significantly revised claimsbefore <strong>the</strong> business of <strong>the</strong> meeting was reportedly swiftly movedon. 386A.7.2.3BHP Billiton plcBHP Billiton plc is one of <strong>the</strong> twin holding companies of <strong>the</strong> BHP BillitonGroup, as part of its ‘dual-listed structure’. It is listed on <strong>the</strong> London StockExchange, while its twin holding company BHP Billiton Ltd is listed on <strong>the</strong>Australian Stock Exchange. 387 It was born of <strong>the</strong> merger of BHP (a majorglobal natural resources company working with minerals, oil, gas <strong>and</strong> steel),<strong>and</strong> Billiton (one of <strong>the</strong> world’s biggest mining companies) in 2001. 388 It nowoccupies ‘significant positions in major commodity businesses, includingaluminium, energy coal <strong>and</strong> metallurgical coal, copper, manganese, ironore, uranium, nickel, silver <strong>and</strong> titanium minerals, <strong>and</strong> [has] substantialinterests in oil, gas, liquefied natural gas <strong>and</strong> diamonds’. 389 It operates in 25countries worldwide <strong>and</strong> as at 31 December 2007, had a market capitalisationof over US$190 billion. 390- AGM 2005 – Geoff Nettleton of Philippine Indigenous Peoples’ Linksasked, on behalf of <strong>the</strong> local communities, whe<strong>the</strong>r <strong>the</strong> companywould making a clear commitment not to proceed with mining at GagIsl<strong>and</strong>, <strong>and</strong> whe<strong>the</strong>r BHP would make a commitment to <strong>the</strong> emerginginternational principle of free prior <strong>and</strong> informed consent; RichardSolly, on behalf of families in Colombia, questioned <strong>the</strong> displacementactivities at Cerrejon Zona Norte (33% owned by BHPBilliton), relayinga message from a community representative expressing <strong>the</strong> displacedfamilies’ disappointment that dialogue had broken down overjust compensation <strong>and</strong> communal relocation; Andrew Whitmore ofPhilippine Indigenous Peoples Links questioned <strong>the</strong> company’s plansfor nickel exploration <strong>and</strong> extraction on <strong>the</strong> isl<strong>and</strong> of Mindanao, in <strong>the</strong>face of community opposition he had experienced on <strong>the</strong> ground.- AGM 2006 – Richard Solly, representing <strong>the</strong> peoples surrounding <strong>the</strong>Cerrejon mine in nor<strong>the</strong>rn Colombia, raised questions relating tocommunity rights. He raised <strong>the</strong> question in light of global protestsagainst <strong>the</strong> project, as well as wide-ranging worldwide support fromlabour organizations, politicians <strong>and</strong> NGOs. 391- AGM 2007 – Representatives of <strong>the</strong> Colombian coal miners’ unionSINTRACARBON made representations regarding alleged poor treatmentof labour at <strong>the</strong> Cerrejon Coal mine in La Guajira, one-thirdowned by BHPBilliton, <strong>and</strong> forced evictions in <strong>the</strong> local community;Datu Victor Aying, a community leader from Mindanao in <strong>the</strong> Philippines,spoke about ignored community opposition to BHPBilliton’sPujada Bay nickel project <strong>and</strong> environmental damage reportedly stemmingfrom <strong>the</strong> project; Jo Villanueva of LRC, <strong>the</strong> Philippine branch ofFriends of <strong>the</strong> Earth, questioned BHP’s involvement with a partner in<strong>the</strong> Philippines that had reportedly been implicated in <strong>the</strong> death of asecurity guard; Andrew Hickman, of Down To Earth, called for <strong>the</strong>company to stay out of protected areas in Kalimantan, in IndonesianBorneo; Richard Solly, who accompanied <strong>the</strong> SINTRACARBON representatives,expressed concerns regarding alleged intimidation <strong>and</strong>suppression of criticism at <strong>the</strong> Cerrejon mine. 392A.7.2.4Vedanta Resources plcVedanta Resources plc is a traditional pyramid group of companies, listedon <strong>the</strong> London Stock Exchange, <strong>and</strong> headquartered in London. It is a diversified<strong>and</strong> integrated metals <strong>and</strong> mining group, with principal operations inIndia (o<strong>the</strong>r significant operations in Zambia <strong>and</strong> Australia). In April 2007,it had market capitalisation of around £8 billion. 393- AGM 2004 – Individuals drawn from four UK NGOs raised a numberof questions, especially focusing on Vedanta’s construction of a hugeralumina refinery on tribal l<strong>and</strong> in Orissa, <strong>and</strong> <strong>the</strong> blasting of <strong>the</strong>region’s most sacred mountain, Nyamgiri, to provide <strong>the</strong> bauxite feedstock. 394
156 | <strong>Environmental</strong> <strong>and</strong> <strong>social</strong> <strong>transparency</strong> <strong>under</strong> <strong>the</strong> Companies Act 2006| 157- AGM 2008 – Representatives of <strong>the</strong> Mineral Policy Institute (MPI)- AGM 2007 – R. Sreedhar, a geologist, raised <strong>the</strong> company’s allegedlyabuses. 397illegal expansion of its smelter in South India, its polluting impactsin Zambia, <strong>the</strong> heightened prospect of a major penalty for Vedanta’soperations in Armenia (closed by government order); Samarendraattended as proxies <strong>and</strong> raised issues regarding tail dumping at <strong>the</strong>notorious Freeport mine <strong>and</strong> <strong>the</strong>ir involvement in <strong>the</strong> civil war in Panguna.Das, a journalist from Orissa raised <strong>the</strong> question of Vedanta’s reporteddonations to political parties; representatives of Action Aid questionedA.7.3.2 BHP Billitoncompany claims regarding <strong>the</strong> rehabilitation it had provided to relocatedvillagers in Orissa; tribal representatives Kumuti Majhi <strong>and</strong>Phulme Majhi, attended as proxies, speaking with interpreters about<strong>the</strong> perceived danger to <strong>the</strong>ir livelihoods <strong>and</strong> safety, which <strong>the</strong>y linkedto Vedanta’s operations in Orissa. 395- AGM 2006 (Australia) – Representative of <strong>the</strong> Mineral Policy Instituteattended as a proxy <strong>and</strong> asked a question regarding BHP’s reportedrequested exemption to numerous national laws in South Australia. 399- AGM 2008 – Despite a press ban, <strong>the</strong> journalist Peter Popham wasable to gain access to <strong>the</strong> AGM as a proxy, in order to provide a pressaccount of <strong>the</strong> directors’ response to questions from numerous tribalrepresentatives in attendance, relating to <strong>the</strong> controversies of Vedanta’ssubsidiary’s operations in Orissa, India. 396A.7.3 Examples of relevant practice outside of <strong>the</strong> UKHere we will briefly examine some examples of this practice in <strong>the</strong> meetingsof <strong>the</strong> same company groups, held in o<strong>the</strong>r host states. While <strong>the</strong>seevents did not take place <strong>under</strong> UK law, <strong>the</strong>y were permitted withoutresistance by company groups based in <strong>the</strong> UK, <strong>and</strong> thus are of relevancein <strong>under</strong>st<strong>and</strong>ing <strong>the</strong> degree to which this practice is accepted by UKcompanies.A.7.3.1 Rio Tinto- AGM 1998 (Australia) – Representatives of International Federation ofChemical, Energy, Mine <strong>and</strong> General Workers’ Unions (ICEM), environmentgroups <strong>and</strong> indigenous people’s organisations attended <strong>and</strong>spoke using proxy rights or by buying small shares.- AGM 2006 – Spokesperson for Papuan asylum seekers spoke as aproxy, regarding <strong>the</strong> alleged direct links between operations at <strong>the</strong>Freeport mine (in which Rio Tinto has a 40% share) <strong>and</strong> human rights