Pension funds promise to “deal robustly” with tailings dams non-disclosure

PENSION funds have promised to “deal robustly” with mining companies that failed to disclose the location and design of their tailings dam, said Reuters.

Citing a joint statement from John Howchin, secretary-general of the Council on Ethics of the Swedish National Pension Funds, Reuters said non-disclosure regarding the management of tailings facilities was “… unacceptable and poses a very real risk to our investment”.

The newswire added that all of the major mining companies such as BHP, Anglo American, Rio Tinto, and Glencore had provided tailings management details. The details were requested in the wake of the Brumadinho tragedy in January in which a dam owned by Brazilian miner, Vale, burst killing hundreds of people.

Vale’s response regarding its tailings facilities ran to 28 pages, said Reuters.

Adam Matthews, director of ethics and engagement at the Church of England pensions board, said the data marked the beginning of much-needed transparency. “We now know who has a facility, where it is, and we are beginning to understand the risks associated with individual dams,” he said.

The Church of England Pensions Board and the Swedish AP Funds Council of Ethics are working with other ethical investors, and industry body the International Council on Mining and Metals (ICMM) to devise new standards for tailings dams, said Reuters.