Pollution from leaded fuel in developing countries
Anglo-Swiss mining company Xstrata supplied lead for toxic product tetraethyl lead (TEL), used by company Innospec in leaded petrol exported to developing countries.
Tetraethyl lead (TEL) was widely used from the 1920s as an anti-knock additive in petrol. As a result of its toxicity, its use in motor fuel was phased out from the 1970s, culminating with bans in all but a handful of developing countries. TEL is still used in aviation fuel.
The US-based chemicals company Innospec is the world’s only manufacturer of TEL products. The company was fined US$40 million by the US Securities and Exchange Commission in 2010 for bribing Iraqi and Indonesian officials to continue to sell leaded petrol after environmental NGOs in Indonesia had successfully campaigned for a phase-out.
The lead that Innospec used to manufacture TEL was supplied by Anglo-Swiss mining company Xstrata from its Mount Isa lead mine in Australia, and its Britannia smelter in the UK.
Complaints under OECD Guidelines filed in four countries
In 2011, the LEAD group, an Australian NGO, filed complaints with National Contact Points under the OECD Guidelines against Innospec and Xstrata. The OECD Guidelines specify that ‘enterprises should… take due account of the need to protect the environment, public health and safety’. Four OECD countries were involved in the TEL supply chain: Australia (the source and exporter of the lead); the UK (where Xstrata had its smelter, and where the company was traded on the London Stock Exchange); the USA (where Innospec is incorporated); and Switzerland (where Xstrata and Innospec’s distributor were incorporated). LEAD noted that leaded petrol is banned in all four of these countries. LEAD also pointed out that Innospec itself manufactures alternative, lead-free fuel additives, which could easily replace TEL.
Successful mediation
Xstrata agreed to mediate; Innospec did not. In February 2012, a mediation was held in London. The LEAD group attended via teleconference, and was represented in person by RAID’s Executive Director.
Following successful mediation, an agreement was reached between the parties and the complaint against Xstrata was withdrawn.
In May 2013, Xstrata was acquired by Glencore.