International Trade Law: A Report on BHP Billiton's Compliance

Desklib provides solved assignments and past papers to help students succeed.

Legal aspects of international trade
and enterprise
Page | 1

Executive Summary
To regulate international trade it is important that the business abides with the
international rules and regulations. The main aim of this report is to identify and detailed
discussion of the company BHP Billiton. Further, it consist of the regulatory framework
that affects the business operations and impacts over it. It also includes the treaties,
agreements, and conventions that impact the products and services of the BHP Billiton.
To maximize the compliance status this report assists in explaining the several treaties
and agreements of the government for assisting the international transactions.
Page | 2

Table of Contents
Executive Summary.......................................................................................................................2
Introduction....................................................................................................................................4
Question 1..................................................................................................................................5
Question 2..................................................................................................................................6
Question 3..................................................................................................................................8
Conclusion.....................................................................................................................................9
References..................................................................................................................................10
Page | 3

Introduction
With the expansion and growth of the business, it is important that the business must
comply with all the rules and regulations enacted by the government. To conduct the
trade of Australia in a fair and transparent manner, the government enacted several
legislations that assist the corporation to comply with all the compliance status. In
Australia, the BHP Billiton is trading entity that basically deals in multinational mining,
petroleum, and metals. This report governs and analyses the impacts of international
legislation on Australia and its businesses. At the end of the report, there are various
treaties of the government are discussed that assist in regulating the international
transactions in a fair and apparent manner. Each and every company in Australia has
the desire to enter into the contract by entering and promoting the businesses at an
international platform.
Page | 4

Question 1
BHP Billiton is an Australian based company which is ranked as the world’s largest
company dealing in the mining business. It is the third largest company in terms of
revenue and its income is triple from the year 2004 and 2012. This company is primary
listing in the Australian Securities Exchange and founded on 29 September 1860 and a
few years later the company acquires mineral rights over the tin-rich Billiton and Bangka
Islands situated at the eastern coast of Sumatra. The company has four operational
units includes coal, copper, iron ore, uranium, natural gas, nickel, and petroleum.
Number of staff in Australia
In Australia, the BHP Billiton employed over 16,504 employees.
Number of staff globally
At the global level, the total numbers of employees employed are 27,161.
Location of global headquarters
BHP Billiton is a trading entity comprises under the group of BHP Group Limited and its
headquarter is situated in Melbourne, Victoria, Australia.
Page | 5

Question 2
Work Health and Safety Regulation
The main aim of this regulation is to ensure that the employees and workers remain
protected from the hazardous practices that are prevailing under the process of mining.
Further, this act ensures that there are strict rules and policies are abided on the
company so as to regulate and conduct the practices of the business in an ethical
manner (Meyer and Peng, 2016). BHP Billiton is responsible to maintain and regulate
such environment that protects the health and safety of the workers while performing
the process of mining. It is important that the company take necessary precaution
during the handling and maintain the machinery by providing proper training to the
employees as well as the workers so as to minimise the risk at the place of occupation.
Mining Act, 1978
This act is connected with the mining activities in Australia. Its main aim is to regulate
the obligations in relation to the environment. It consists of the provision in relation to
the mining so that the process of mining conducted in a fair and ethical manner
(Eckhardt, 2018). BHP Billiton Iron Ore will consider the functions mentioned under the
Mining Act as per the specific tenure and assist in complying all the obligations and
requirements that are mentioned under this act.
Rights in Water and Irrigation act, 1914
This act assists in governing the rights related to the natural waters and enacted the
provision in relation to the conservation and use of water for the purpose of irrigation
and the management of the works of irrigation. It also includes the provision in relation
to the construction or alters wells and interference with the beds and banks of the
watercourse. BHP Billiton Iron Ore for the purpose of mining requires permits and
license for the performance of the mining activities.
Environmental Protection Act, 1986
This act provides for the prevention, pollution prevention and control for providing harm
to the environment. It assists in taking preventive measure for managing and protecting
the environment in relation to the incidents or the matters connected with the hazardous
things. The main object of this act is to provide protection to the environment with the
help of the number of principles mentioned under this act (Kingsbury & Donaldson,
2015). It is important that the BHP Billiton Iron Ore assists in fulfilling the obligation in
relation to the environment while performing the mining process by fulfills all the
regulation as per the requirements. Further, it is important that the company abide with
the obligations that need to be performed in the favor of the environment and which
includes heritage, amenity, the health of the human and other related matters that need
to consider the company and its management (Ten Brink, 2017).
Bush Fires Act, 1954
Page | 6

The main aim of this act assists in reducing the danger so as to extinguish the dangers
in relation to the fire (Oita, et. al., 2016). This act also obliges in concern with the
various activities that prohibit the extinguishment and use of the explosives In the
process of mining. BHP Billiton Iron Ore land assist in complying with the provision and
the requirement that are mentioned under this act.
Wildlife Conservation Act, 1960
The main aim of this act is to conserve and protects the flora and fauna with the
accidental fire. This act assists in guiding the provisions and assist in taking effective
steps for conserving the forest (Mills, 2017). For complying with the requirements of this
act BHP Billiton assist and bind the company to take the appropriate license for the
performance of the activities associated with it.
Heritage of Western Australia Act, 1990
This act assists bin conserving and protecting the heritage and culture of the country by
taking effective and efficient steps in this regards. The BHP Billiton and its mining
activities assist in reducing the negative impact over the environment.
Fair work legislation act, 2009
In accordance with the provision of this act, it assists in providing safety and also
supports in determining the appropriate wages for the workers in accordance with their
work. It is important that the company not indulge in the discriminated practices
between the employees. BHP Billiton is abode with this act and ensures that the
business transaction in an effective and efficient manner.
Corporation Act, 2001
This act assists in stating the provision that assists in conducting the company and its
function are a fair and transparent manner. It also assures that the directors perform
their duties and responsibilities in accordance with the provision mentioned under this
act. BHP Billiton is formed under this act and abides to regulate the business functions
in accordance with the provision of this act. This act not only protects its shareholders
but also the investors of the company against the fraudulent practices of the senior
executives as well as the directors of the company.
Page | 7

Question 3
Treaties are defined as an agreement which is entered into by the government of the
different countries so as to come at a solution regarding the particular problem. This is
also done so that the government of the country can promote the import and export of
the goods within the country. This is seen that the treaties are considered to be the
principal source of public international law. This term has been defined in the
international agreement which concluded between the states. The term specifies that
treaties are the written form of agreement that is defined by international law
(O’Faircheallaigh, 2017). This is seen that the Australian government has entered into
various treaties with different nations that help them to achieve the objective of
maximisation trade between the different countries. This has been defined by the
government of Australia that an agreement between the state or the territory and the
foreign government will not be therefore considered to be a treaty. There are two forms
of treaties that are entered into by the government of the country which includes the
bilateral treaty and the multilateral treaty. Some of the treaties that are impacting the
function of BHP Billiton includes the following:
 The Antarctica treaty: This was the treaty that was signed between the twelve
countries which relate to the use of the sea and the area for the scientific
purpose only and not for any other purpose. This treaty concluded between
twelve nations. This is seen that the total number of parties now for this treaty are
around 53. The provisions that are included in this treaty includes that Antarctica
would be used solely for peaceful purpose only. The ocean would be used for the
scientific purpose and the observations that are generated from the above would
be exchanged between the countries which have accepted the treaty. This treaty
was entered by the country so as to promote the sustainability of the minerals in
the oceans. This can be considered that this impacted the company in several
ways as the company could not extract the minerals that are available in the
oceans for their production. Hence the production of BHP impacted by this treaty
and it was not possible for them to expand the business of the company.
 International convention for the prevention of pollution of the sea by Oil: This was
the treaty that was entered between several countries. This treaty recognised
that most of the pollution in the sea is caused by the ships that are cleaned and
the shipboard operations. This treaty helped in prohibiting the dumping of oils
generated waste into the water. Certain specials were made according to this
treaty due to which danger to environment sustainability increased. This treaty is
amended from time to time so as to achieve the aim of the treaty. This treaty
impacted the company as due to this treaty this resulted in an increase in the
company's cost of production.
 Treaty between the United States-Australia for free trade: This is considered as
the treaty that is entered between the United States and Australia to promote the
free flow of goods and services between them. This was done by the country so
that the domestic companies can expand their business outside the domestic
continent. The treaty includes that a little tax would be implemented on the basic
materials which are required by the country and would be imported between the
Page | 8

countries. This treaty impacted the company in a positive way as due to this the
company was able to export the product to the other countries at a lower rate and
a little amount of tax was implemented on them on the exports of minerals.
Hence this can be understood from the above that there are several treaties that
affected the operation of the companies in Australia (Watson, 2018). These treaties
helped the companies to perform their obligation in a better manner and also resulted in
expanding the business of the company. The treaties that were entered between the
countries impacted the production and the extraction of the minerals.
Page | 9

Conclusion
With the discussion above, it concludes that the above legislation and treaties assist in
regulating the commercial transaction of the business and corporation s so as to comply
with the government and ethical norms. This report assists in dealing with the regulatory
frameworks at the national and international platform. It also helps in achieving business
objectives by expanding business operations. This also provides the opportunity to the
learners to perform the business practices in an ethical and moral manner. It also
abides businesses not to indulge in unethical practices and negative practices.
Page | 10

References
 Eckhardt, J., 2018. Corporations and global trade policy-making in the twenty-
first century. In Handbook of the International Political Economy of the
Corporation. Edward Elgar Publishing.
 International treaties governing mineral Exploration, 2017. [Online]. Available
through <https://www.eolss.net/Sample-Chapters/C09/E6-65-05-04.pdf>.
 Kingsbury, B., & Donaldson, M., 2015. Global administrative law. Max Planck
encyclopedia of public international law, Oxford University Press, Oxford.
 Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
 Mills, A., 2017. The Hague Choice of Court Convention and Cross-Border
Commercial Dispute Resolution in Australia and the Asia-Pacific. Melbourne
Journal of International Law. Vol. 18.
 O’Faircheallaigh, C., 2017. Mining royalty payments and the governance of
Aboriginal Australia.
 Oita, A., Malik, A., Kanemoto, K., Geschke, A., Nishijima, S. and Lenzen, M.,
2016. Substantial nitrogen pollution embedded in international trade. Nature
Geoscience, 9(2), p.111.
 Ten Brink, P. (Ed.)., 2017. Voluntary environmental agreements: process,
practice and future use. Routledge.
 Watson, I., 2018. Aboriginal Recognition: Treaties and Colonial Constitutions We
Have Been Here Forever. Bond Law Review, 30, p.7.
Page | 11