Bhp External and Internal Environments
The BHP OK Tedi Mine in Papua New Guinea (PNG) has raised many environmental, ethical and social responsibility issues regarding organisational management on many fronts. There have been many approaches in an attempt to confront and address the varying factors which encompass both past and present business practices.
The mine was an open pit gold and copper mine located in the western province of PNG the operation of which resulted in collateral damage, affecting up to 50,000 people in the nearby villages. During the 1970’s, early drilling began and was overseen by Kenneth Copper Corporation. BHP then won the lease in 1984. The initial stages of the mining saw utilisation of the cyanide extraction procedure, however, a large copper region was then found seeing the partnership of BHP with both a Canadian company and the PNG government to form OK Tedi Mining Limited.
Many environmental issues from environmental uncertainties and complexities have arisen in relation to the operation of the mine, which has seen BHP, as the major stakeholder; make vital organisational and managerial decisions. A number of key components needed to be addressed not only at the earliest stage of operations, but also components that needed to be addressed as the dynamic nature of these revealed itself.
The extent of knowledge of the environmental complexity by BHP management was clearly limited. It is evident that the decisions were made on a complex/stable analysis, while the changing environmental conditions failed to be taken into account. Most significantly, the actual environment itself, its geographic instability and rainfall levels were overlooked in the decision-making process. High rainfall levels result in a larger than usual runoff into the OK Tedi River. An environmental impact statement was compiled which would bring about the organisational decision to construct a dam in the early 80s, preventing the flow of millions of tons of toxic waste and tailings into the river
The mine was an open pit gold and copper mine located in the western province of PNG the operation of which resulted in collateral damage, affecting up to 50,000 people in the nearby villages. During the 1970’s, early drilling began and was overseen by Kenneth Copper Corporation. BHP then won the lease in 1984. The initial stages of the mining saw utilisation of the cyanide extraction procedure, however, a large copper region was then found seeing the partnership of BHP with both a Canadian company and the PNG government to form OK Tedi Mining Limited.
Many environmental issues from environmental uncertainties and complexities have arisen in relation to the operation of the mine, which has seen BHP, as the major stakeholder; make vital organisational and managerial decisions. A number of key components needed to be addressed not only at the earliest stage of operations, but also components that needed to be addressed as the dynamic nature of these revealed itself.
The extent of knowledge of the environmental complexity by BHP management was clearly limited. It is evident that the decisions were made on a complex/stable analysis, while the changing environmental conditions failed to be taken into account. Most significantly, the actual environment itself, its geographic instability and rainfall levels were overlooked in the decision-making process. High rainfall levels result in a larger than usual runoff into the OK Tedi River. An environmental impact statement was compiled which would bring about the organisational decision to construct a dam in the early 80s, preventing the flow of millions of tons of toxic waste and tailings into the river