US-based iron miner Cleveland-Cliffs CEO Lourenco Goncalves' message is: Count me out - in response to BHP CEO Andrew Mackenzie's advocacy of a global independent public classification system for tailings dams - an issue Mackenzie has said will be discussed at Monday's International Council for Mining and Metals Meeting, an annual gathering of CEOs.
"He [Mackenzie] is outsourcing responsibility," Goncalves told S&P Global Platts. "That might be workable in Australia, but never here in the US. Here the company is responsible and the buck stops with the CEO."
Earlier this week, after discussing BHP's half-year results, Mackenzie called for "some urgency" and a global industry response that would take dams to "a nuclear level of safety."
Mackenzie's comments followed the January 31 statement issued jointly by the Church of England Pensions Board, Church Commissioners for England, Sweden's Public Pension Funds and funds now representing over GBP 3 trillion ($3.8 trillion) in assets under management, calling for a global independent public classification system and "corresponding independent and public audits that monitor the safety risk of mining company tailings dams."
"It's surprising that the biggest mining company in the world needs to get directions from the Church of England," Goncalves said.
Others do see Mackenzie's rallying cry as noble and needed in the wake of Vale's Brazil Feijao mine dam burst late last month, which left more than 165 people dead and 140 missing. In 2015, BHP was directly affected by a similar disaster at the Samarco-operated Fundao dam, also in Brazil and a Vale-BHP joint venture, which killed 19 and caused extensive environmental damage.
Samarco has yet to restart. "He [Mackenzie] should take care of his own business -- BHP still has a lot to do with Samarco," Goncalves added.
"The restart of Samarco's operations will occur only if it is safe, economically viable and has the support of the community. Resuming operations requires the granting of licenses by state and federal authorities and community hearings, among other requirements," BHP said in a January statement.
"I'm totally against the idea [of independent and public audits]," Goncalves said, noting that each individual mining CEO needs to do what's right to protect their communities, their workers and shareholders.
"Each region is different. Each company needs to analyze the individual conditions and we must not outsource this responsibility," Goncalves emphasized. "The CEOs need to have their own plan, and develop the absolute best practice. We have that here at Cleveland-Cliffs and we are more than happy to share our expertise."
BHP chose not to respond, when contacted by Platts about Goncalves' remarks.
When asked if he'd attend that the ICMM meeting Monday in Miami, Goncalves said: "Cleveland-Cliffs is not a member and never will be. I have better things to do."
