mining

By Sarah Jones - Intelligencer, January 20, 2022

Over the last ten months, Brian Kelly has traveled, twice, from his home in Alabama to New York City. Kelly, along with roughly 900 of his co-workers, has been on strike since April 2021, a lengthy ordeal they pin on their employer Warrior Met Coal’s lackluster proposals for a new contract. In an unusual move for a labor strike, he and hundreds of workers came to protest the three hedge funds that own Warrior Met and pressure them to pressure the company’s management. It hasn’t been easy: Last November, the NYPD arrested Kelly and several others in front of the headquarters of BlackRock, the largest shareholder in Warrior Met.

A third-generation coal miner, Kelly worked for Warrior Met’s predecessor, Walter Energy, for two decades until it filed for bankruptcy protection in 2015. That’s when a judge allowed the private equity firms that took it over, including Apollo Global Management, Blackstone, and KKR, to reject prior labor contracts with Kelly’s union, the United Mine Workers of America, as the Financial Times previously reported. Miners accepted a pay cut of $6 an hour to keep their jobs. Health-insurance costs increased. “Then they forced us to work seven days a week, up to 16 hours a day,” Kelly recalled. “Overall, we made a sacrifice during that time.” The firms say they saved jobs; instead, miners say private equity prospered from their suffering. Though private equity no longer owns the company, the strike is arguably their legacy.

“All told, we estimate that this conglomerate of private equity firms realized about $1.1 billion in savings coming out of the bankruptcy court just over the past five years, that were essentially taken out of the pockets of workers,” said Phil Smith, a spokesperson for the United Mine Workers. A bigger payday was still to come. “Before its initial public offering in 2017, Warrior paid them a $190m dividend from cash on hand,” the Financial Times reported. “A few months later it paid a $600m dividend funded with cash as well as a $350m debt offering.” Austerity for some can be a windfall for others.

In statements, Apollo, Blackstone, and KKR all emphasized that they are no longer intertwined with Warrior Met. “Our former investment in Warrior Met saved the company’s mining operations from the brink of collapse, allowed the company to deleverage and invest in its business and preserved more than a thousand high-paying jobs in Alabama,” a spokesperson for Apollo said. “During the time of Apollo’s investment until our ultimate exit in 2019, the company thrived — its stock price increased, they had positive relations with its workforce and the representative union, and employees, who rank among the top earners in Alabama, received significant pay increases and bonuses.”

That likely won’t persuade Smith or the miners who make up his union. Smith calls the firms “vulture capitalists,” which he explained in detail. “What the vultures do is they see something lying down on the ground and they come and they eat it, right?” he said. Warrior Met’s predecessor, Walter Energy, “was lying dead in bankruptcy court,” he explained, when private equity swooped in. “They’re preying on distressed and dead companies and figuring out ways to extract more money for themselves and for their investors from the bones and the remains of those companies,” he added.

By Austyn Gaffney - Sierra, January 19, 2022

The United Mine Workers of America issued a statement criticizing the senator for withdrawing his support from the legislation:

When West Virginia senator Joe Manchin III, a well-known coal baron, withdrew support from the Build Back Better agenda, the Biden administration’s landmark climate and social safety net bill, an influential coal-mining union was quick to respond.

The United Mine Workers of America (UMWA), a labor union formed in 1890 to organize coal miners seeking safe working conditions and fair pay, released a statement by international president Cecil E. Roberts on December 20 characterizing the union’s relationship with Manchin as “long and friendly” but expressing disappointment that the bill didn’t pass. (On the same day, the AFL-CIO, the largest federation of American labor unions, released a similar statement.)

“We urge Senator Manchin to revisit his opposition to the legislation and work with his colleagues to pass something that will help keep coal miners working,” Roberts wrote, “and have a meaningful impact on our members, their families, and their communities.”

Given the UMWA’s history with Manchin—he has been an honorary member since 2020—it was a notable reminder of just how much is at stake for miners and their communities as the president’s signature measure hangs in the balance. The Build Back Better legislation includes important items for the UMWA, like incentives to build manufacturing facilities in post-coal communities, financial penalties for employers who deny workers their rights to unionize, and an extension of the black lung trust fund, a levy paid by coal companies that provides a small monthly payment to miners with pneumoconiosis, a disease caused by coal dust and silica inhalation. 

By Marisela Trevin - Left Voice, December 27, 2021

A zoning law would have opened up the southern Argentinian province of Chubut to large-scale mining by multinational corporations. But the law was defeated in just five days by an alliance of environmentalists, workers, youth, and indigenous people. Their fight points the way forward for other movements around the world.

The people of the southern Argentinian province of Chubut are celebrating more than just the holidays this December. After a fierce struggle against a recently enacted zoning law that would have opened the province up to large-scale silver, copper, and lead mining by multinational corporations like Canadian Pan American Silver, the governor was ultimately forced to backtrack. The law in question, which was approved on December 15, was repealed last Tuesday, just five days later.

From the night of the approval until the afternoon of December 21, the movement against the law spread rapidly throughout the province. In a context of growing austerity, unemployment, and poverty, thousands took to the streets to make their voices heard. Dozens of protesters were injured and arrested in the brutal repression, and 16 government buildings were set on fire or otherwise destroyed, including the provincial house of government. Protesters were not only demanding the repeal of the law but also Governor Mariano Arcioni’s resignation.

The governor, whose party, Chubut Somos Todos, is politically aligned with the national government, had won the elections in 2017 campaigning against multinational mining in Chubut. Since he took office, however, he has seized every opportunity to relax mining regulations against the people’s will, with the support of the national government, local business associations, and union bureaucracies.

The so-called Law on Sustainable Metal Mining and Industrial Development for the Province of Chubut had been unexpectedly approved in an expedited procedure the day before a mass protest was to be held against the bill. Among the 14 legislators who voted for it were several who, like the governor himself, had been voted in after opposing multinational mining. This group also included legislator Sebastián López, who was expelled from his party last year for having been caught on camera requesting a large sum of money to vote in favor of large-scale mining in Chubut. One of the main proponents of the bill was Carlos Eliceche, the president of the Committee for Economic Development, Environment and Natural Resources and a legislator for Frente de Todos, the national ruling party, who emphasized that the initiative was put forward “at the request of President Alberto Fernández, to develop mining and attract investments.”

By Bruce Wilson and Shea Sinnott - Centre for Social Innovation, December 4, 2020

By various - COP26 Coalition, December 2, 2021

By Nora De La Cour - Jacobin, November 8, 2021

Last week, more than 500 coal mine workers picketed in New York City, joined by a diverse army of other labor movement members and supporters. The mine workers, who extract coal for steel production, are now in the eighth month of their strike against Warrior Met Coal in Brookwood, Alabama. Their aim is to force Warrior Met to restore the pay, benefits, and schedules they had before their previous employer, Walter Energy, declared bankruptcy and auctioned off its assets in 2016.

On Thursday, the mine workers marched to the headquarters of BlackRock, the world’s largest asset manager and Warrior Met’s biggest shareholder. After the rally, five United Mine Workers of America (UMWA) members and the union’s president, Cecil Roberts, sat down in the street and refused to move. The six were handcuffed by the New York Police Department and arrested for their act of civil disobedience.

The striking workers brought their picket to the middle of Manhattan because they have been barred from gathering outside the Brookwood mines. On October 27, a Tuscaloosa County circuit judge issued a temporary restraining order stopping all UMWA picket activity at Warrior Met. The injunction, which has been extended through November 15, blocks strikers from gathering within 300 yards of any mine entrance or exit.

That’s a huge restriction. As Haeden Wright, president of the UMWA auxiliary for two of the striking locals, explained to Jacobin, moving the pickets three football fields back from the mines “could put you on a completely separate road from Warrior Met property.” In in an interview with Jacobin, labor scholar Steve Striffler called the restraining order “an unconstitutional act that effectively takes away the miners’ right to free speech and assembly at the conflict’s most important sites.”

The injunction is the apparent product of an aggressive campaign by Warrior Met to spread the misleading narrative that UMWA members are engaging in violence and vandalism on the picket lines. Labor journalist Kim Kelly reported that Warrior Met hired the public relations firm Sitrick and Company to “neutralize the opposition” and “reframe the debate” around a strike that has garnered local and national support despite embarrassingly insufficient coverage from the corporate media.

By Arthur Svensson - Industri Energi, November 8, 2021

The acceleration of electrical vehicles (EV) production is crucial for the transition to a low-carbon economy, yet it appears to be linked to serious labour rights abuses. New research released today reveals dire conditions, discrimination and extremely low pay at some of the world’s largest industrial cobalt mines operated by multinational mining companies in the Democratic Republic of Congo. Cobalt is considered an essential mineral in the lithium-ion batteries that power electric vehicles. Over 70% of the world’s cobalt is extracted in Congo.

Cobalt is everywhere. It is a silvery-blue mineral used in the rechargeable batteries that power our mobile phones, laptops and tablets, and in larger quantities, the electric vehicles that will soon dominate our roads. It is a strategic mineral in the plan to decarbonise and move away from fossil fuels towards renewable energy. Accelerating this switch is one of the priorities to tackle the climate crisis and industry experts forecast that electric vehicle sales will skyrocket in the next 10 years. This will require a dramatic increase in cobalt production. The booming demand for cobalt has a dark side, however.

The 87-page report"The Road to Ruin? Electric vehicles and workers’ rights abuses at Congo’s industrial cobalt mines” by by corporate watchdog Rights and Accountability in Development (RAID), and Centre d’Aide Juridico-Judiciaire (CAJJ), a Congolese legal aid centre specialised in labour rights, exposes a system of widespread exploitation. Congolese workers at five industrial mines in Congo where cobalt is produced: Kamoto Copper Company (KCC), Metalkol RTR, Tenke Fungurume Mining (TFM), Sino-Congolaise des Mines (Sicomines) and Société Minière de Deziwa (Somidez) were interviewed for the research. They said they received very low pay and were subjected to excessive working hours, degrading treatment, violence, discrimination, racism, unsafe working conditions, and a disregard for even basic health provision.

Some workers described being kicked, slapped, beaten with sticks, insulted, shouted at, or pulled around by their ears. Others reported severe discrimination and abuse at Chinese-operated mines. One worker said, “Our situation is worse than before. The Chinese come and impose their standards and culture. They don’t treat Congolese well. This is new colonisation.”

By staff - The Intercept, November 6, 2021

By staff - Rights and Accountability in Development (RAID) and the Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021

Cobalt is everywhere. It is a silvery-blue mineral used in the rechargeable batteries that power our mobile phones, laptops and tablets, and in larger quantities, the electric vehicles that will soon dominate our roads. It is a strategic mineral in the plan to decarbonise and move away from fossil fuels towards renewable energy. Accelerating this switch is one of the priorities to tackle the climate crisis and industry experts forecast that electric vehicle sales will skyrocket in the next 10 years. This will require a dramatic increase in cobalt production.

The booming demand for cobalt has a dark side, however. The Democratic Republic of Congo, one of Africa’s poorest nations, holds the lion’s share of the world’s cobalt reserves. In 2020, 70% of the world’s cobalt was extracted from within its borders with tens of thousands of workers labouring in large-scale industrial mines to dig up the ore. Multinational mining companies that own many of Congo’s mines, eager to demonstrate their “green” and “responsible” credentials, say they produce “clean” and “sustainable” cobalt, free from human rights abuses, and that their operations contribute to good jobs and economic opportunities.

This report, based on extensive research over two years, paints a very different picture. It shows dire conditions for many Congolese workers in the industrial mines, often characterised by widespread exploitation and labour rights abuses. Many workers do not earn a “living wage” – the minimum remuneration to afford a decent standard of living – have little or no health provision, and far too often are subjected to excessive working hours, unsafe working conditions, degrading treatment, discrimination and racism.

In recent years attention has mainly focused on Congo’s artisanal mining sector, partly because of the risks of child labour it creates, whereas the conditions for workers in the large-scale industrial mines have gone largely unnoticed. This report examines workers’ rights at Congo’s industrial mines where the large majority of cobalt is coming from, producing some 80% of the cobalt exported from the country (in contrast to the 20% produced in artisanal mines).

The findings presented in this report are based on detailed research over 28 months by UK-based corporate watchdog Rights and Accountability in Development (RAID) and the Centre d’Aide Juridico- Judiciaire (CAJJ), a Congolese legal aid centre specialised in labour rights. The research team carried out extensive field research in and around Kolwezi, a mining town where many of Congo’s cobalt and copper mines are located. It is informed by 130 interviews of workers and former workers at five mining companies, as well as interviews with subcontractors, union representatives, lawyers, Congolese local authorities, medical staff and industry experts.

Read the text (PDF).

By Chris Baugh - The Bullet, October 26, 2021

The UK government is hosting the 26th United Nations Climate Change “Conference of the Parties” (COP26) in Glasgow from 31 October to 12 November 2021.

The Intergovernmental Panel on Climate Change (IPCC) was formed in 1988. Its latest report to the UN in August of this year contains even starker warnings for the Earth’s climate than previously, unless decisive action is taken to cut greenhouse emissions. Without this, there is little prospect of keeping an average global temperature increase below the 1.5 to 2 degrees Celsius target in the 2015 COP21 Paris Agreement.

This was the first time an agreement had been reached on target reductions but it excluded major polluting industries like aviation and shipping and was devoid of any mechanism for implementing the targets. This reflects the global capitalist consensus that it is market mechanisms that will make the adjustment from fossil fuels to a zero carbon economy. This is despite the warning of Lord Stern who famously described climate change as “the biggest market failure in human history.”

Articles in the pages of The Socialist and Socialism Today have pointed out that it is capitalism’s insatiable pursuit of profit that has led us to this situation. Capitalism has shown itself unwilling and an actual impediment to the action on the timescale and scope required. An article published by Trade Unions for Energy Democracy (TUED) gives recent evidence of how renewable energy companies are “party to a race to the bottom, capitalist dynamic.”

It cites the use of forced Uyghur labour in China-based solar companies and the ‘off-shoring’ of manufacturing for the Scottish wind industry. The large wind and solar companies prop up a market architecture that is sucking in huge amounts of public money to guarantee profit margins. The report is quoted as saying “these companies have not just gone over to the political dark side, they helped design it.”

While richer governments of US and Europe talk up their climate commitments, the solutions proposed will not fix the climate crisis. UK plans to transition to renewable energy are reliant upon an unprecedented wave of resource extraction from ‘Global South’ countries. Intensifying the mining of so-called transition metals and minerals used to produce green technologies such as solar panels, wind turbines and electric vehicle batteries, is devastating communities from Chile to China.