Olympic Dam Mine Case Study

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Introduction Olympic Dam Mine is an underground mine which produces copper, silver, gold and uranium and was first opened in 1988. In addition to the underground mine, the site also hosts an integrated metallurgical processing plant. The Olympic Dam Mine is located 555 kilometres north-west of Adelaide in South Australia. The mine has been owned by BHP Billiton since 2005 when it was purchased for $9.2 billion AUD from the Western Mining Corporation. The Olympic Dam Mine currently employs approximately 3500 people from the Adelaide region and surrounding towns with a majority of the employees living in the nearby town of Roxby Downs. Overview In 2007, the global conglomerate BHP Billiton announced it was going to expand the Olympic Dam Mine …show more content…

Stakeholders can be either internal or external to the organisation (Kinicki et al.2015). The main stakeholders of BHP Billiton are; the environment, shareholders, employees and the government. Environment Due to the nature in which the mining sector operates there will always be some form of negative environmental impact. The expansion of the Olympic Dam Mine will impact the environment as harmful chemicals leach into the water table, higher chance of erosion and land degradation and an increased amount of greenhouses gases created by operation of machinery. However, BHP Billiton is implementing numerous methods in order to minimise the negative impact the mining sector has on the environment. Shareholders A shareholder is anyone who owns shares in an organisation’s company. Shareholders profit if the organisation performs well while if the organisation performs poorly a shareholder stands to lose (Investopia). The impact of BHP Billiton on shareholders with the expansion of the Olympic Dam Mine is that the expansion is going to cost over 200 million US dollars with a majority of this coming from shareholder contributions. If the expansion does not generate a high enough revenue the shareholders are at risk of not being repaid in the form of …show more content…

With the expansion of the Olympic Dam Mine BHP Billiton is trialling a new environmentally conscious method called heap leaching. Heap leaching is a process of extracting minerals and metals by placing them on a pad and the use of chemical reactions to dissolve the minerals. This method is considered more environmentally conscious than traditional techniques as it requires less energy consumption making heap leaching an environmental alternative (Wikipedia). Heap leaching also is 60-70% cheaper than alternative methods. BHP Billiton also proves they are environmentally conscious as the Olympic Dam Mine has storage facilities for its waste products, has an air pollution control unit and a monitoring system for air emission and noise. The Olympic Dam Mine employees also undergo frequent monitoring for radiation exposure and personal health showing that BHP Billiton is being accountable for the dangers employees are surrounded by working in the mine. Thus, BHP Billiton is accountable toward the environment and its

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