Community, industry and local government Paper 2022

RUNNING HEAD: COMMUNITY, INDUSTRY AND LOCAL
GOVERNMENT
Community, industry and local government
Name of the Student:
Name of the University:
Author’s note:

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COMMUNITY, INDUSTRY AND LOCAL GOVERNMENT
This paper will compare the community relation activities of two mining projects of
two companies, which are BHP Billiton and Karara mining limited. This paper will identify
the different approaches of these two companies related to community relations.
Description of mining projects:
BHP, which is known as BHP Billiton, is a global mining company of Australia. After
the foundation in 1885, this organisation has grown as the largest mining company in the
world. At present, twenty-nine mining projects are controlled by this company. The BHP
Billiton controls South Flank mining project in the central Pilbara, Western Australia
(Communityprofile.com.au., 2019). This company has invested US$2.9 billion dollars in the
capital expenditure for this project (BHP, 2019). The south flank Mining project is the
expansion of existing mining area C hub of BHP Billiton. Through mining Iron Ore, this
mining project will improve the quality of BHP Billiton’s Iron Ore production (Ellem, 2015).
In 2007, Karara mining limited was formed through a joint venture between Ansteel
group- the Anshan Iron and Steel Corporation and Gindalbie Metals Limited to operate
Karara mine. The karara project was started in 2013. To run this project successfully in
future, Karara Mining Limited invested more than $1 billion to construct infrastructure and
logistics chain such as rail and port facilities (Kararamining.com.au., 2019). The karara Iron
wore project is situated 220 km south-east of Geraldton in the Shire Perenjori.
Description of associated host communities:
BHP Billiton Company promotes health and economic wellness of the community,
wherever the company is operating. This company aims to be an active participant in the
community and deliver a positive outcome. This mining project is situated in the Pilbara

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region. The estimated population of the Pilbara region, which covers approximately 506575
km2, is 85957 in 2018 (BHP, 2019). This region is internationally famous mining and energy
area possessing a wealth of resource endowment, dynamic communities, rich aboriginal
culture and natural landscape.
Karara Mining project is located in 200 km South-east of Geraldton in the Shire of
Perenjori of the Western part of Australia. The approximate area of Karara is 350km2
(Huang, & McMurray, 2016). This mining project is the most significant mining operation.
Karara Mining Ltd has a plan for long term iron ore business in this project. The priority of
this organisation is sustainable development for the community, where this mining company
operates.
Relationship between the company and the host community:
BHP Billiton is controlling the South Flank Mining Project. The mining procedure
can create a negative impact such as environmental pollution, crime increase, on the host
community (Chapman, Tonts & Plummer, 2014). Noise pollution occurred because of traffic,
blasting and use of heavy machinery. In 2008 BHP Billiton reports that there are 536
complaints against the company. Among these complaints, 200 complaints are related to
noise pollution (BHP, 2019). Noise pollution with dust and vibration due to mining operation
are creating an impact on the host community. Air pollution is another issue, which has a
negative impact on the host community of the South Flank Mining project. The quality of air
downgraded because of dust from excavation and transportation. The processing of material
generates pollutants. Host community of this project is affected by air pollution. There are
many allegations regarding water pollution against BHP Billiton. Because of these
environmental issues, the host community of South Flank Mining Project are having a
negative impression about this mining company.

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Karara Mining Ltd prioritises the safe working environment in the mine project.
Because of the unsafe working environment, this organisation had to pay 40000 dollars as a
fine ((Kararamining.com.au., 2019). Traffic and crime is another issue, which is affecting the
host community of Karara Mine Project. Crime against property, crime risk and anti-social
behaviour are increasing in the project area. Crime and domestic violation portray severe
social issues in host communities. The traffic volume and incidents have increased in the
mine area. Another problem for the host community is increasing house cost due to the mine
project. The Karara mining project creates a decisive impact on the culture of the host
community (Huang & Staples, 2014).
Community projects:
The BHP Billiton is focused on improving economies and standard of living of the
host community. This organisation is working with the host communities to detect the social
needs with a collaborative approach. BHP Billiton is interested in identifying the existing
resources through which the mining company can create social investment (BHP, 2019). The
company prioritises several areas such as indigenous people, human rights, social
investments, and stakeholder engagement. To understand the host community, a procedure is
followed by this company. At first, the company define the boundaries of the host
community. Detecting all stakeholders and organising social baseline studies are following
steps. The organisation evaluates the host community’s social impacts and opportunities. To
understand the local human rights context and its impacts, BHP Billiton has taken steps. This
mining company is interested in identifying the local cultural heritage and securing the
cultural heritage by working with the people from the host community. This mining
organisation has developed comprehensive planning to develop the host community. BHP
Billiton constructed stakeholder engagement plan, Human rights plan, Complaints and
grievance mechanisms, social investment framework, indigenous people’s policy statement,

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and community development management plan to improve the social, economic and health
condition of the people from the host community. This mining organisation has taken several
initiatives to implement the plan efficiently. At first, culturally aware staff are recruited by
this organisation. After preparing an inclusive and culturally perfect decision, this
organisation engage with the people to apply the decision. To imply the plan, this company
evaluates the performance of the community partner. To improve social improvement
actions, robust governance framework is prepared by the company (BHP, 2019). At present,
this company responses immediately after incidents from the host community. The company
monitors the performance to ensure the plan is executed appropriately. Several surveys are
conducted by the company to realise the community perception. BHP Billiton maintains a
proper analysis of all complaints. The BHP Billiton analyses any incident in the host
community. To improve the situation of the host community, this mining company do
research and evaluation regularly. To ensure the sustainability, this company prioritises the
recruitment from the host community, developed supply chain, proper taxes and royalties,
human capability and inclusion, proper governance, improve the environment, utilisation of
resources and the approach of management.
In comparison with the BHP Billiton, The karara mining limited is focused on
improving the quality of lifestyle of people from the host community and improve the
relationship and connections with the community. The authority of this mining organisation
has identified four areas, where the mining authority will invest in developing the host
community (Zandvliet, & Anderson, 2017). The investment will be done by this company in
Health, education and youth development and fulfilling the needs of housing. Karara Mining
Limited delivers funding annually to achieve positive outcomes for the targeted community.
Several initiatives and programs are organised by the company to improve the host
community. In 2011, Karara Company developed a firm on six hundred acres of the land,

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owned by the company (Kararamining.com.au., 2019). Host community utilise this firm for
agricultural purpose and generate profits on a user-pay basis. This firm, where people from
the host community work together, is the alternative way to generate fund and create positive
outcomes for the host community. Every year, Karara authority checks the application
thoroughly to identify the potential community impact. After the review process is done, the
Karara authority gives the right to the community to get positive outcomes. Fundraised from
this firm are distributed to the areas, where fundraising is difficult. In 2016, from this firm,
120,000 dollars were raised and utilised in the host community. In 2011, Karara authority
partnered with Midwest Employment and Economic Development Aboriginal Corporation
(MEEDAC) and developed a chicken firm and horticultural enterprise in the Innovation Park.
The innovation park is administrated by the Australian Department of prime minister and
cabinet. The innovation park is significant for the community development program
(Kararamining.com.au., 2019). People from the host community get several benefits from this
project. Employment opportunity, on-job training, production of fresh vegetables, and eggs
are those benefits. This project has an aim to develop a totally enclosed and environment
controlled 10,000 square meter greenhouse. During the construction period in 2012, the
karara Community Health Fund was created. At first, 30,000 dollars was invested form the
contractor partners of Karara and local governments (Kararamining.com.au., 2019). Now the
contributions for this fund come from the recycling procedure of waste and scrap metals of
the Karara mining area. Being a partner of Royal Flying Doctor Service, this mining
organisation built the mobile dental clinic. The mobile dental clinic is a customised clinic van
with every equipment. The karara authority provides the medicinal equipment for the mobile
dental clinic, and Royal Flying Doctor Service operates the program. In the Mid-West part of
Australia. The authority of Karara mining limited provides financial support to the
Parkerville Children and Youth Care Inc and Murchison Family Support network in

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Geraldton. This business organisation provides AUD 100,000 to this important project. To
improve the health situation of the host community, this organisation provides benefits to the
doctor so that they come to this host community areas for providing better treatment with the
people. Through these initiatives, Karara Mining Limited ensure the development such as
education, health, youth development and household needs of the people from the host
community (Mayes, 2015).
Structure of the community relation policy:
The structure followed by the BHP Billiton to ensure the community relation will be
analysed in this part. This company respect community stakeholders to detect the community
issue. BHP Billiton has a community team. This team manage community-related issues. The
company has a community relation policy. According to the policy, the employee should
respect the culture and customs of the host community. The company will respect and help
the community until and unless there is any conflict between the company and the host
community. While the decision making the procedure, the community team will prioritises
every stakeholder of the company. Any complaints from the host community will be
investigated, and an appropriate report will be sent to the higher authority. Before investing
money in a community development program, the amount of risk will be analysed. The
community management team will prepare critical issues of the program. The funding should
not provide any extra benefits to government officials or any other person. The line leader or
the 2Up leader will collect the complaints from the community. The company will identify
the partner for the community improvement program. Through an accurate and consistent
process, the community management team will monitor the progress of the project. The
company will promote sustainable development in the host community area.

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Karara Mining Ltd prioritises the value of host community. The environment and
communities manager of this company has the key responsibilities to ensure the company’s
vision of a community programme. The head of the environment and community team of the
company has several responsibilities to promote the company’s approach towards the host
community. The community manager will prepare strategic policy related to the host
community and fixed budget for the development of the communities. The manager will
guide his environment and community team to create a productive relationship with the
people from the community. To manage the community-related issues, this company depends
upon the environment and community management team and its manager. This team will
investigate any complaint related to the community and send the investigation report to the
higher authority. This team will fix the vision of the company related to a community issue.
This team will fixed strategies to develop the community situation by identifying the
community problem. Health, education, youth development and fulfilling the housing needs
are the main component of the policy prepared by the environment and community
management team. Through this team, Karara Mining Ltd promotes the sustainable
development of host communities.
Report on community relations activities:
The community relation activities of BHP Billiton are managed through the
community management team. This company has an advisory panel who manage the
community relation of the company. On the other hand, Karara Mining ltd manages the
community relation activities through its team leader of environment and community
management team. The environment and community management team maintain community
relation activities (Lodhia & Martin, 2014).

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Comparison of the community relation approaches:
The approach of these two companies related to community relations activities is
more or less similar. These two company has a shared vision to promote sustainable
development for the host communities. However, these two mining companies have separate
ways to promote sustainable development in the host communities. BHP Billiton focuses on
the development of every stakeholder through its sustainable development procedure. The
authority monitors its community development program and evaluates its success.
On the other hand, Karara Mining Ltd promotes its sustainability programme through
several initiatives, such as community firm, community health fund, mobile dental clinic,
family support program. The main component of the community development policy of
Karara Mining Ltd is to improve the health and education of the people from host
communities and enhance youth development and provide household needs.

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References:
BHP. (2019). BHP | Environmental sustainability. Retrieved 24 September 2019, from
https://www.bhp.com/community/environmental-sustainability
BHP. (2019). BHP | Our approach. Retrieved 24 September 2019, from
https://www.bhp.com/community/our-approach
BHP. (2019). BHP | Social investment. Retrieved 24 September 2019, from
https://www.bhp.com/community/social-investment
BHP. (2019). Supporting communities. Retrieved 24 September 2019, from
https://www.bhp.com/our-approach/our-company/our-code-of-conduct/caring-about-
society/supporting-communities
Chapman, R., Tonts, M., & Plummer, P. (2014). Resource development, local adjustment,
and regional policy: Resolving the problem of rapid growth in the Pilbara, Western
Australia. Journal of Rural and Community Development, 9(1).
Communityprofile.com.au. (2019). Pilbara Region Community Profile - Pilbara Development
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& Industry: a journal of the social and economic relations of work, 25(1), 9-22.
Huang, T. T., & McMurray, A. (2016). Report: I.
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Practices and benefits. Melbourne: RMIT University.

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Kararamining.com.au. (2019). Geoff Wedlock Innovation Park – Karara Mining. Retrieved
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wedlock-innovation-park/
Kararamining.com.au. (2019). Mineralisation and Ore Type – Karara Mining. Retrieved 24
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