Community, industry and local government Paper 2022

RUNNING HEAD: COMMUNITY, INDUSTRY AND LOCAL
GOVERNMENT
Community, industry and local government
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COMMUNITY, INDUSTRY AND LOCAL GOVERNMENT
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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

COMMUNITY, INDUSTRY AND LOCAL GOVERNMENT
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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,