The health impacts of extractive industry transnational corporations: a study of Rio Tinto in Australia and Southern Africa

Abstract

Background Operations of transnational corporations (TNCs) affect population health through production methods, shaping social determinants of health, or by influencing regulation of their activities. Research on community exposures to TNC practices and policies has been limited. Our research on extractive industries examined Rio Tinto in Australia and Southern Africa to test methods for assessing the health impacts of corporates in high and middle income jurisdictions with different regulatory frameworks. Methods We adapted existing Health Impact Assessment methods. Data identifying potential impacts were sourced through media analysis, document analysis, company literature and semi-structured interviews. The data were mapped against a corporate health impact assessment framework (CHIA) which included Rio Tinto’s political and business practices; productions; and workforce, social, environmental and economic conditions. Results Both positive and detrimental aspects of Rio Tinto’s operations were identified. Requirements imposed by Rio Tinto on its global supply chain are likely to have positive health impacts for workers. However, political lobbying and membership of representative organisations can influence government policy in ways that are unfavourable to health and equity. Positive impacts include provision of direct employment under decent working conditions, but countered by an increase in precariousness of employment. Commitments to upholding sustainable development principles are undermined by limited site remediation and other environmental impacts. Positive contributions are made to national and local economies but then undermined by business strategies that include tax minimisation. Conclusion Our study confirmed that it is possible to undertake a CHIA on an extractive industry TNC. The different methods provided sufficient information to understand the need to strengthen regulations that are conducive to health; the opportunity for Rio Tinto to extend corporate responsibility initiatives and support their social licence to operate; and for civil society actors to inform their advocacy towards improving health and equity outcomes from TNC operations.

Health impacts of industrial mining on surrounding communities: Local perspectives from three sub-Saharan African countries

“…Indeed, recurrent thematic aspects reported in our study have been studied in previous research, including environmental [ 14 , 15 ], social [ 18 , 39 ] or economic [ 10 , 35 , 40 ] determinants of health. While several studies report potential health benefits [ 10 , 41 ], negative aspects tend to prevail in studies synthesising health literature [ 18 , 42 , 43 ], which is in line with our findings. Similarly, a recent study have reported a positive trend of water infrastructure in mining regions but health benefits were less evident [ 44 ].…”

“…Studies measuring health conditions of local communities [e.g. 10 , 41 , 45 ] might have missed important aspects for the health and well-being as perceived by affected populations themselves. For example, health effects caused by cracks in the houses related to blasting and cultural dimensions of health have to our best knowledge received little attention.…”

Short-term effects of national-level natural resource rents on life expectancy: A cross-country panel data analysis

“…Even though extractive industries may contribute to improved health outcomes locally through improved public infrastructures, employment and business opportunities, these effects are likely to be too small to be reflected in national estimates due to the relatively small populations directly exposed to such projects. From a central government perspective, natural resources are primarily of interest as a source of additional income, allowing governments to promote access to and improve quality of health services, along with socio-economic development more broadly [ 63 , 64 ] that can contribute to improved health outcomes [ 41 , 64 , 65 ]. Our results suggest that booms in global commodity prices do indeed create windfall revenue gains for governments in the short run.…”

An overview of the commercial determinants of health

“…Their model discusses the political, economic and regulatory environments; the structure, practices and products of corporations; and the health and equity impacts of the activities of corporations [13]. The authors later applied their model for an evaluation of the activities of a fast-food restaurant and a mining company [39,40]. Their findings showed that corporations could have a positive impact when providing employment in communities, for example, but this could be undermined by the precariousness of such employment, and the negative impacts of the company's activities on the environment and health [39,40].…”

“…The authors later applied their model for an evaluation of the activities of a fast-food restaurant and a mining company [ 39 , 40 ]. Their findings showed that corporations could have a positive impact when providing employment in communities, for example, but this could be undermined by the precariousness of such employment, and the negative impacts of the company’s activities on the environment and health [ 39 , 40 ]. It has been noted that the Baum et al model, however, fails to address some corporate practices, such as the influence of businesses on science and social norms [ 12 ].…”