South32 Share Price Rises Amidst Charges Made By the Columbian Community

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The Colombian Constitutional Court has demanded that South32 Ltd [ASX:S32] pay for the damage caused by its operations in the Cordoba province.

Payments are expected to be made to the affected Indigenous and Afro-Colombian communities.

South32, who grew by 1.76% in share value today, could see future rough patches if they are forced to compensate for the damages.

Their consistent share increase could see negative change over time due to the upcoming skirmish with the Colombian courts.

South32’s plan of action

The Perth-based company wants to appeal the ruling issued during the Month of March.

After their mine supposedly caused skin, lung, and heart problems to people in the surrounding areas, action was taken against South32.

They did not agree with the ruling at hand.

Mining.com reported that South32 stated:

‘We are in the process of appealing the decision. At this stage, it is not possible to fully assess any potential financial or operational impacts, as the decision orders various compensatory and remedial activities which are not yet quantifiable. Our work is continuing to understand the impact of the decision and we will advise of any material developments.’

South32 did not acknowledge the issue of their apparent environmental faults. However, they did state they will commit to a positive approach with surrounding communities where the mine operates.

The courts expect South32 to not only pay to compensate for the environmental pollution and health problems, but also to obtain a new environmental licence.

The court’s decision was received on Monday.

South32 state that they will continue their work to understand the impact of the overall decision and will further advise any material developments that are underway.

Despite the appeal, South32 are committed to extending a positive approach to surrounding areas, saying they are proud of their work as it supports social and economic growth for Colombian communities.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

PS: Free Report: Jason Stevenson from Money Morning, extends his vast criteria of mining share knowledge in his article. 10 ASX mining stocks that could make you huge money in the next 12 months and beyond. Download your free report here.

 

Ryan Clarkson-Ledward

Ryan Clarkson-Ledward

Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers.

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