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Wednesday, July 23, 2008

Anglo American Defends Zimbabwe Operations

In a June 25, 2008 post to the blog International Mining, John Chadwick writes about the effect of recent political instability on Anglo American's platinum project in Zimbabwe. In the wake of Mugabe's controversial return to power, Anglo American's Zimbabwean operations are in the spotlight. The company's decision to continue production at the Unki platinum mine has launched a debate about the responsibilities of foreign firms in times of political instability.

While some argue that Anglo American's choice to stay in Zimbabwe equates to complicity with a repressive regime, others hold that a pullout would be an economic insult to an already injured populace. In response to critics, Anglo American argues that if it abandons the project, Mugabe's government will assume control. Anglo American also cites its continued support of social development initiatives in the communities around the project, including an irrigation project to promote agriculture, and support to schools and community health programs.

The controversy surrounding Anglo American shows that there is a rising demand for accountability on human rights issues in business as well as government. However, public disagreement on the appropriate course of action for Anglo American shows that many important questions about corporate social responsibility remain unanswered.

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