Anglo American Drops Noted Plan on AIDS Drugs

In a controversial move that could have wider ramifications for how companies in poor countries handle AIDS, Anglo American PLC has decided not to implement an in-house feasibility study to provide AIDS drugs to its African work force, according to people at the mining company familiar with the situation. Anglo was widely praised when it disclosed plans for the study a year ago, when it was one of the first major corporations to reveal measures aimed at treating AIDS cases among its rank-and-file African employees. With 125,000 workers in Africa, the London-based conglomerate is one of the biggest employers on the continent.

The study's goal was to see if providing antiretrovirals was feasible given the high cost of the life-long treatment and harsh working conditions in many Anglo mines. About 20 percent of its work force is infected with HIV, Anglo estimated. The new decision is likely to be seen as a setback in the effort to provide AIDS treatment in Africa, where hopes have been increasingly pinned on the private sector. Ten months ago, Anglo CEO Tony Trahar said, "We're in the forefront here, and we're quite happy to take the lead."

"This is bad news for the industry and bad news for AIDS in South Africa," said Alan Whiteside, an economist at the University of Natal who has written widely on AIDS in South Africa. "If Anglo can't do it," he said, "who will?" Michael Spicer, an Anglo spokesperson, declined to comment on whether the in-house study was cancelled. "We are seeking to progress [pilot studies] on a broader basis and we are in discussions with partners to do that," said Spicer. Anglo might propose an industry-wide study to the Chamber of Mines industry association at its executive committee meeting on Friday.

While drug costs in developing countries have plummeted, they remain expensive compared with the wages and benefits of Anglo's mineworkers. Company officials also said that they wanted South Africa's government to help shoulder the costs of treating migrant workers' families. But the administration of President Thabo Mbeki has opposed widespread distribution of AIDS drugs.

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