British mining giants Anglo American and Rio Tinto, which have been in fierce competition with Chinese companies in Africa, have declared that they will hold their Chinese counterparts to strict environmental and labor standards before they sign up for African joint ventures with them. For some miners in Zambia, this would likely be welcome news. But as the Telegraph reports, the motivation for enforcing such standards is not entirely altruistic:
China, hungry for resources, has looked to Africa in recent years for its supply of the key commodities it needs to fuel its expansion. But it has been heavily criticised, particularly for its role in Sudan where it is the leading purchaser of oil, but also the main supplier of arms to the country’s government, which was responsible for the massacre in Darfur.
Anglo and Rio regard Chinese competition to develop mines in Africa as a serious economic issue. The Chinese have had significant success in convincing African governments to favour Chinese companies over Western rivals.
Rio and Anglo will look after their bottom lines through their joint ventures in Africa with some of China’s most progressive state-backed companies. The Chinese have undercut global mining companies in Africa by importing their own cheaper labour and by using lower health and safety standards. If the UK-based miners can encourage Chinese companies to raise their operational standards it will cut the cost differential between the international giants and the Chinese.
