BHP Billiton and Mozal (B) Harvard Case Solution & Analysis

BHP Billiton began construction of Phase 1 Mozal aluminum smelter in 1998. In connection with the problems that are community, BHP Billiton and its partners have set Mozal Community Development Trust (MCDT), who worked on the improvement of infrastructure, social services and community health. During the two phases of construction, the project has contributed more than USD160 million into the local economy, mainly through the use of Mozambican workers and the use of local contractors and suppliers. MCDT by preventing malaria and HIV / AIDS program, made improvements to clinics and schools, and initiated training of the workforce and the development of, and support small and medium enterprises. In addition, he initiated projects aimed at improving the education of engineers and technologists of the country to international standards. In 2002, when both phases Mozal plant was completed, the World Bank, the International Finance Committee (IFC) said that Mozal set a precedent for future projects in Mozambique. Mozal, said the IFC, "demonstrates the clear advantages of the integration of environmental and social issues at the beginning of the project, and reflects the approach and procedures for processing and IFC was the introduction to environmental and social issues." For BHP Billiton, Mozal experience has shown that, in determining the basic resources of the project, it made good business sense to invest not only in business, but also in the host community.
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by Pat Werhane, Jenny Mead, Laura Pincus Hartman Source: Darden School of Business 10 pages. Publication Date: March 24, 2008. Prod. #: UV1163-PDF-ENG

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