Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (B) Harvard Case Solution & Analysis

Involvement of local stakeholders and building strong relationships is a strategic imperative for multinational companies in the often politically Mining and oil and gas sectors. For BHP Billiton, the second largest mining company in the world, its Tintaya copper mine in Peru has long been a source of intense conflict. My - which was owned and managed by the Peruvian State first and then BHP Billiton - stands on land expropriated from local farmers' livelihoods. In 2000, in order to challenge the loss of land, mining-related environmental degradation, and allegations of human rights violations, the Coalition of five indigenous communities in an alliance with a group of local and international NGOs (non-governmental organizations) to build its case against BHP Billiton and carry it directly to the Australian headquarters. The result of these efforts was the creation of a unique corporate community negotiation process known as table dialogue Tintaya. In December 2004, after three years of negotiations, BHP Billiton and the five communities signed compensate families for the loss of land and livelihood, as well as the creation of a local environmental group monitoring and community development funds. However, as the company addresses a conflict, another group of local stakeholders proposes new requirements - requirements that this time the company can not meet. Conflict with this new group of violent seizure of the mine is completed in May 2005, followed by BHP Billiton employees will be forced to shut down operations, abandon the mine, as well as a new strategy for winning back local support. "Hide
by Brooke Barton, Ezequiel Reficco, V. Kasturi Rangan Source: Harvard Business School 2 pages. Publication Date: September 13, 2006. Prod. #: 507030-PDF-ENG

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