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Namibia: Corporate Investment in Oppression

To discuss minor improvements in social conditions and the lack of positive harm being done obscures these companies' support for white minority rule.

In December 1971, the Namibians protested the contract-labor system in a massive strike, and the South African government was forced to manufacture some reforms. SWANLA was abolished, its duties delegated to decentralized labor bureaus in the reserves; Africans were given the right to terminate contracts, to look for new jobs (within time limits set by pass regulations), and to make contract changes (subject to permission of the labor board).

Demands for permission to live with families, equal pay for equal work, employment security and rights to live in urban areas were denied. John Kane-Berman of the South African Institute for Race Relations remarked sadly, "The worst features of the old system are still there: the compounds, the low wages and the separation of families."

THE WHITE sector of Namibia has enjoyed a boon economy since World War II due to increasing numbers of foreign corporations investing in mineral extraction. Meanwhile, the South African government has given no consideration to reserving Namibia's resources.

The U.N. stated in 1964, "The Territory's mineral resources are being rapidly exploited by foreign companies. The two mining operations which are at present yielding the most fruitful returns will probably be worked out within 25 years. Thus the country runs the risk of finding itself in the not too distant future without the raw materials that now provide the main support for the money economy."

Four U.S. corporations investing in Namibia are facing shareholder proxy resolutions this year. Two companies have maintained large operations in Namibia since 1946, and two are considering new investments.

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American Metal Climax Inc. and the Newmont Mining Corporation each own 29 per cent of the Tsumeb Corporation. Tsumeb is Namibia's major base-mineral producer and largest employer, with 5000 black employees included on its payroll. Proxy resolutions call for both corporations to withdraw. (Another resolution asks Newmont, which manages the mines, to establish equal opportunity in its worldwide operations.)

The Tsumeb mines have voluntarily used the entire system of contract-labor and skilled jobs reserved for whites since the mine began operating in 1947. No law forced this practice until the Mines and Works Mineral Ordinance No. 20 of 1968. Tsumeb's workers were among the first to strike in 1971.

In reference to the food and housing Tsumeb provides in the workers' compounds, "They are the equal of any similar community of Southern Africa," Newmont states.

R.J. Ratledge, Tsumeb's general manager, stated in March 1971 that the average black wage was $28 per month with a minimum of 70 cents per day ($21 per month). The lowest paid white worker, who supervised laborers and handled explosives, received starting wages of $444 per month.

As a result of the strike, Tsumeb drew up a new contract which spells out benefits, overtime and hours of work for Africans. The company raised the minimum wage to 93 cents for surface work and $1.03 for those underground.

Though the Mines Ordinance limits the types of jobs blacks can take, it does not make any statement about their level of wages. Tsumeb claims that the present level of wages is adequate because wages are supplemented by "free" food and medical care.

From 1946 to 1970, Tsumeb paid South Africa approximately $140 million in taxes. Ratledge claims that the building of the Capetown to Luanda Highway (a strategic supply route to the Portuguese in their fight against the Angolan liberation movement and an element in South Africa's defense of its northwestern boundaries) was financed with Tsumeb's contribution.

In response to the U.N. and World Court decisions, American Metal stated, "All these are political claims in the international arena and are well beyond the scope of any commercial corporation and normal business operation." Newmont stated that it complies with the law of authorities in de facto control or all countries where it does business.

THOUGH Harvard is not involved in Newmont or American Metal, it does own stock in Phillips Petroleum and Continental Oil. Shareholder resolutions ask these two companies to cease all onshore and offshore explorations in Namibia.

Phillips and Continental each own 37.5 per cent in a consortium made October 1972 to explore a sedimentary basin off Namibia's shore. The lease concession covers nine years and entitles the South African government to a certain percentage of oil production and royalty fees. South African exploration represented less than 1 per cent of the total exploration budget for Phillips in 1972.

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