Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Suncor Energy Inc.’s majority-owned unit Syncrude Canada Ltd. was charged with safety violations in the death of an oil sands worker, the latest setback for a company under investor pressure to improve its safety record.
Alberta Occupational Health and Safety laid five charges against Syncrude in the death of a worker who drowned after the excavator he was operating fell into a pond in June 2021 at the company’s oil sands mine. The death was one of a string of fatalities in recent years at Suncor-owned oil sands sites that became the focus of activist Elliott Investment Management LP’s campaign to shake up the company’s management.
“It would be inappropriate to comment on a case that is before the courts, however I do want to acknowledge that we continue to keep the individual’s family, friends, and coworkers in our thoughts,” Suncor spokeswoman Erin Rees said by email.
Elliott, founded by Paul Singer, said in the letter introducing its campaign that Suncor had been “plagued by repeated operational challenges and safety issues” and that it needed to review its leadership and overhaul its culture, among other actions. Suncor racked up 32 safety violations between November and January after OHS launched a regulatory probe of the company.
A truck accident early last year killed a contractor and injured two others at its Base Plant mine. Two deaths occurred in December 2020 at the Fort Hills mine. A fatality at Suncor’s Base Plant last July prompted chief executive officer Mark Little to step down. He was replaced by former Exxon Mobil Corp. CEO Rich Kruger in February after a seven-month search.
(By Robert Tuttle)
Comments