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eric reguly

The CEOs of some of the world's top mining companies did not come to the Vatican to pray, see Pope Francis or traipse through the sweltering halls of the Vatican Museums. They came to discuss ways to make their industry a bit less devilish and you have to give the Vatican credit for all-star drawing power. Any mining conference would have been envious of the guest list.

Saturday's "day of reflection with the mining industry," which was organized by the Pontifical Council for Justice and Peace, the Vatican department that deals with earthly matters such as promoting humans rights, included the CEOs of Anglo American, Rio Tinto and Newmont Mining. Those three men alone represented companies with well more than $100-billion (U.S.) in market value. The chairmen, presidents or senior executives of dozens of other companies, ranging from AngloGold Ashanti to African Rainbow Minerals, made the pilgrimage too.

Why did they come? It was certainly not to seek publicity. The executives did not arrive with their usual gaggle of spin doctors. They did not come because they were cozened into it. In truth, AngloGold floated the idea of a Vatican mining conference in January. There was no formal press conference. A post-conference chat in the offices of the president of the pontifical council, Cardinal Peter Turkson (who was a leading contender to replace Pope Benedict XVI) was attended by precisely one journalist - me.

The goal instead, said Rio Tinto boss Sam Walsh, was "to open a dialogue where mining interfaces with the community ... to hear other views with the promise of all of us making a difference."

The Vatican is not against mining. Cardinal Turkson noted that mining was the first industry to be mentioned in the bible (in the book of Deuteronomy). It acknowledges that mining can bring wealth and employment to poor countries. It knows equally well that what's good for the mining company and its shareholders does not necessarily translate into "the common good."

In a written message to the mining executives, Pope Francis said he hoped the meeting would lead to "a process guided by moral principles which seeks the good of all parties involved in the sector" and which can provide answers "to the many challenges which confront the mining executives in their decision-making."

Indeed, communities everywhere are weighing the pros and cons of large-scale mining developments and some are taking the view that the benefits are lacking.

In the spring, Canada's Eldorado Gold faced mass protests in Northern Greece as it moved closer to developing one of Europe's biggest mining projects, near the birthplace of Aristotle. In one protest, its mine site was firebombed.

In July, protests against Newmont's Conga gold mining project in Peru, which will see three lakes drained, flared up again. Reportedly, at least five protesters have died since the anti-Newmont campaign began in 2011.

Last week, mass protests took place in Romania, where another Canadian company, Gabriel Resources, plans to open Europe's biggest gold mine, one which will use cyanide to leech the gold from the ore. The protesters and environmental groups have stalled the mine for two decades, but may be running out of luck.

The quiet little conference came as the cult of "shareholder value" is coming under attack. Mining executives know that operating licences will be more readily awarded by governments if the notion of "stakeholder value" is indulged. That means taking care of employees and the environment as well as shareholders.

Mark Cutifani, the Australian who replaced Cynthia Carroll as Anglo American's CEO in April, said the one-day session may bring the church and the mining companies closer together, for practical reasons. In some remote parts of the Democratic Republic of the Congo, for instance, the church is the only institution on the ground. In one instance, the company funded a hospital whose employees came from the church. "We ended up being collaborators," he said.

He said mining companies sometimes make the mistake of assuming it knows a mining community's needs before listening to them. In once case in Peru, the company misjudged the value of local water development. "We knew it was important but didn't know it was their main goal," he said.

To be sure, mining companies will not turn into saints overnight. To bastardize a famous quotation from the bible, it may be easier for a camel to pass through the eye of a needle than a mining boss to enter the kingdom of god. With a little more good behaviour from the mining companies, that may change.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 27/03/24 4:46pm EDT.

SymbolName% changeLast
AU-N
Anglogold Ashanti Ltd ADR
+2.81%21.99
EGO-N
Eldorado Gold Corp
+2.8%13.97
ELD-T
Eldorado Gold
+2.87%18.97
NEM-N
Newmont Mining Corp
+3.68%35.25
RIO-N
Rio Tinto Plc ADR
+2.07%63.46

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