Le Mozambique

Augé, Benjamin

doi:10.3917/ifri.demon.2014.01.0124

Cited by 1 publication

(2 citation statements)

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“…Thus, MNCs in Mozambique benefit from various conditions: the fragility of country public institutions, expressed in the inability to negotiate and ensure that contracts are executed by MNCs in a sustainable way (Castel-Branco, 2010; country dependence on foreign aid, which leads to a government being incapable of negotiating concession contracts, which would bring about larger benefits for the local/national economy, besides granting (excessive) tax benefits (Selemane, 2009) and; the excessive promiscuity/involvement of national elites in business (Augé, 2014;Cohen et al, 2014;Selemane, 2009), which further weakens the power of already weak institutions to bring about benefits for the national economy. Given the operational deadlines, mining companies have often built new infrastructure without consulting the affected communities or waiting for municipal approval, highlighting the asymmetry of power between companies and local institutions (MacKinnon, 2013, in Kirshner andPower, 2015).…”

Section: Assessment Of Extractive Multinational Companies In Mozambiquementioning

confidence: 99%

“…The existence of coal in Tete, Mozambique (the fifth largest coal reserve in the world), has inevitably led the country in becoming an attractive destination for foreign direct investment of the extraction mining industry (Lesutis, 2019;Kirshner and Power, 2015;Wiegink, 2018). Since the first decade of 2000, the mining sector has become a driver of the development of the country and, already in 2011, this industry contributed to 5% of gross domestic product (GDP) (Augé, 2014). The MNCs VALE, SA and Rio Tinto (in 2014 Rio Tinto sold its coal assets in Mozambique to the Indian Government-run International Coal Ventures -Jindal), have invested nearly US$12bn in exploration in Tete since 2008, directly using for mine construction some 7500 workers, transforming the region into Mozambique's El Dorado (Mosca and Selemane, 2012).…”

Section: Introductionmentioning

confidence: 99%

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Exploring mining multinational resettlements and corporate social responsibility in emerging economies: the case of the company VALE, SA in Mozambique

Machanguana

Dias-Sardinha

2021

SAMPJ

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Purpose This paper aims to contribute to the scientific and societal debates about the role of corporate social responsibility (CSR) and particularly on the resettlements’ processes as part of extractive multinational companies (MNCs)’s commitments where the host country is an emerging extractive economy. Design/methodology/approach It is an exploratory study based on the analysis of secondary data, few interviews and on-site observation and deals with the description of the assessment of VALE, SA resettlement processes and assumed CSR practices of VALE, SA, an MNC operating in the Moatize district, Tete province in Mozambique. Findings The MNC assumes resettlement processes to be part of the CSR arena and reveals that VALE, SA follows a reactive poor approach as to CSR. The weak institutional context in Mozambique is like others described in the literature. The empirical data together with the sense of an ethical responsibility approach associated with resettlement processes and the paradigm shift in aid for trade as to development supported by the MNC’s CSR leads to the conclusion that resettlement can be considered part of the CSR of a mining MNC. Research limitations/implications The difficult access to key informants of the resettled communities, local government and little interest in interview participation by VALE, SA, showed a current lack of confidence and communication limitations by the company as to this issue. Practical implications The failure of VALE, SA and other mining companies to meet their resettlement responsibilities and the inability of government supervision, requires local and national, as well as social and scientific communication processes and debate on this issue to be maintained on an ongoing basis during the mining life cycle to guaranty accomplishments of CSR. Social implications The controversy over whether mining MNCs will benefit Africa’s emerging economies as to their socio-economic development will continue until MNCs commit themselves and act to be economically, legally and ethically responsible for contributing to the sustainable development of the countries where they operate. Originality/value This paper contributes to the debate on whether CSR frames the resettlement process based on literature review and key stakeholder views.

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Section: Assessment Of Extractive Multinational Companies In Mozambiquementioning

confidence: 99%