MP Pension is in dialogue with Brazilian mining giant Vale as locals around a Mozambique mine have been offered insufficient compensation.

MP believes Vale has violated United Nation’s human rights declaration, including the right to appropriate living standards, MP wrote in a statement.

Vale has, in addition, violated MP’s responsible investment policy.

According to the fund, Vale opened a coal mine in Mozambique in 2011, which led to a relocation of 900 families. Some refused to move and are still living close to the mine.

Several families now feel they were offered a deal that did not live up to previous living conditions in regards to job opportunities, access to food, water and fertile soil. Locals have also not been consulted in a way that follows Vale’s corporate social responsibility guidelines.

MP is now in a conversation to ensure the locals are compensated appropriately, promoting three main goals – to develop a report on the socio-economic effects of the mine and rehousing by the end of 2018, promote access to amends and compensation for affected families and take actions to avoid similar violations in the future.

“The aim of the dialogue is to promote responsible corporate behaviour to the benefit of the locals. It will at the same time protect MP Pension’s investment,” MP wrote.

Following its responsible investment policy, MP has sold a series of shares in oil, coal and tar sand but has continued to invest in Vale because its coal industry accounts for less than 25 per cent of its revenue.

MP is already in dialogue with Vale about compensation for Brazilian locals after the Fundão Dam disaster in 2015 which killed 19 people and polluted the water of hundreds of thousands.

Share Story: