Citigroup came out with their sustainability analysis for mining companies: Which businesses should you invest in that are protecting themselves against environmental liabilities?
Corporate multinationals came out on top: BHP Billiton, Anglo American and Alcoa. The losers were state owned entities: Kazakhmys, CVRD and Norilsk Nickel--companies set up by governments to protect people and the nation's wealth from the predations of multinationals.
The study, which is analyzed at www.mineweb.com, states the following:
"In recent years, a groundswell of public opinion has caused sustainable development to become a serious business consideration for investors," the report asserted. "We argued that five factors that make up sustainable development will affect long-term shareholder value and that those companies which are reacting most effectively to these challenges, are likely to outperform." Citigroup's analysts based their sustainability risk assessment on governance and human rights, health, safety and environment, commodity issues, country risk aspects, mine development prospects and the company's ability to access capital.