Comparative Analysis of Mackellar Mining and CIMIC Group Operations

A comparative analysis of the operations of Mackellar Mining and CIMIC Group
Name
Institution

Introduction
CIMIC Group is one of the major international public, private partnership groups that
engage in the activities of mining and infrastructural construction. The company was formerly
known as Leighton Holdings before it changes its name in the year 2015. The company is
known for environmental service, mining, building and property, engineering and infrastructure
as well as telecommunication industries. It operates in some countries including Australia, South
East Asia, New Zealand, and the Middle East. The core values of the company are innovation,
delivery, accountability, and integrity1. One of the projects that the company is currently
handling is the Metro Tunnel RailWorks.
Mackellar Mining, like its counterpart CIMIC Group, also takes part in Mining services.
Other than that, the company also does stockpile management, workshop maintenance services
and haul road maintenance. The company has an operation record of over 40 years and has
carried out some projects that have helped the company build a reputation for high-quality
service delivery. The company was initially known as Jalgrid and Jalagrid WA Pty Ltd when it
was founded in the year 1972. The entity made use of the initial name until the year 2003 when
the company rebranded and adopted the current name2. One of the most recent projects that the
company had to work on is the Paddington Gold Mine project.
1 “CIMIC Group Limited SWOT Analysis.” 2018. CIMIC Group Limited SWOT Analysis, July,
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2 Marsh, Jillian K. 2013. “Decolonising the Interface between Indigenous Peoples and Mining
Companies in Australia: Making Space for Cultural Heritage Sites.” Asia Pacific Viewpoint 54
(2): 171–84. doi:10.1111/apv.12017.

This paper entails a comparative analysis of the Malak Coal Mine Project by the CIMIC Group
and the Paddington Gold Mine Project of the Mackellar Mining Company. The study takes into
consideration the community engagement by both companies.
The projects
The Paddington Gold Mine project is a long-term project under the management of
Mackellar Mining Company. The side of the project is located in the Western parts of Australia.
The project description involves the excavation of ore and waste mining as well. The total output
of the process is approximated at 2M BCM each month, and the project is projected to take seven
years. However, the transition of the seven-year term can only be initiated by the owner of the
miner. The project uses dry hire of more than thirty machines with maintenance. The Malak Coal
Mine Project has its site in Indonesia. The client in this project is the Bayan Resource group, and
the role of the company is to deliver targeted quantities to the client daily. At the initial stages of
the project, the target production was two million tons per year. The current mining target for the
company is at 2.2 million tons in a year3. The project is valued at $A180 million.
The host Communities
In carving out a project such as mining, it is essential to include the local community is
the process as they form a vital part of the stakeholders4. It is required of the companies to
develop a stakeholder engagement plan that includes the local communities to help with the
3 Chia, Kerryn, John Koch, Rohan Sadler, and Shane Turner. 2016. “Re-Establishing the Mid-
Storey Tree Persoonia Longifolia (Proteaceae) in Restored Forest Following Bauxite Mining in
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4 Dawkins, Cedric. 2015. “Agonistic Pluralism and Stakeholder Engagement.” Business Ethics
Quarterly 25 (1): 1–28. doi:10.1017/beq.2015.2.

development of a good rapport between the mining company and the local community5. It is
therefore vital to include a community liaison officer in the leadership structure of the project
management. The liaison officer should come from the community to help in the creation of a
connection between the local community and the company6. The inclusion of a member of the
local community in the project management helps in understanding the peoples’ culture and
believes as well as expectations from the company. In most instances, the interests of the local
community are always anchored on jobs and corporate social responsibility of the company.
Through the development of a stakeholder engagement plan, the company can strategically
manage some of the expectations of the community.
In the case of Melak Coal Mine Project, the local community in Eastern Kalimantan,
Indonesia has been friendly and supportive to the miners. The company has not reported any
incidences of hostility from the local community. The peaceful environment that the community
has provided the miners has enabled them to operate peacefully without the worry of hostile
reactions or actions from the community. The only security measure that the company has had to
take is the use of multi-media communication among the works which have proven to be not
only effective but also efficient in the course of the mining process. The peaceful coexistence
5 Provasnek, Anna Katharina1, [e-mail], Erwin1, [e-mail]
Schmid, and Gerald2,3, [e-mail], [e-mail] Steiner.
2018. “Stakeholder Engagement: Keeping Business Legitimate in Austria’s Natural Mineral
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6 Maciej, Nowak, Targiel S. Krzysztof, Błaszczyk Bożena, and Kania Sebastian. 2018.
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