Analysis of Sustainability Issues and Solutions for Anglo American Plc

This report examines the sustainability challenges faced by Anglo American Plc, a major mining company. It identifies key issues such as tailing management and exploration feasibility, outlining their environmental, economic, social, and governmental implications. The report explores relevant theories like the Hierarchical System Model (HSM) and stakeholder theory to explain these issues. It then suggests alternative solutions, including downstream dam construction and geomembrane lake liners, to mitigate negative impacts. The analysis emphasizes the importance of stakeholder engagement and regulatory frameworks in achieving sustainable development. The report concludes with recommended solutions aimed at improving safety, reducing environmental damage, and ensuring long-term business prosperity within the mining industry.

Sustainability Issue in
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Outline of problems/issues in the cases along with causes & factors affecting the situation. 1
Environment ...............................................................................................................................2
Economy ....................................................................................................................................2
Social ..........................................................................................................................................2
Government ................................................................................................................................2
2. Relevant theories, concepts, models to help explain the case.................................................3
3.Implications of the problem/issues...........................................................................................4
4. Possible alternatives to address the problems/issues..............................................................5
5. Conclusions.............................................................................................................................7
6.Recommended Solution and reasons.......................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Sustainability is moving from the corporate side lines into the mainstream nowadays.
Sustainability is the most important consideration in order to protect the natural resources in the
environment. Due to not maintaining the sustainability it may cause uncertain energy costs,
looming regulation on carbon emissions, concerns about access to raw materials and the
availability of natural resources etc. Overall study explained about the deep understanding on
sustainability development by the help of explaining different methods or approaches (Dentchev
and et.al. 2016).
Company Overview
Present study based on the sustainability in the business for which its taking Anglo
American Plc company which is multinational mining company based in Johnnesburg, South
Africa and London and UK. This the worlds the largest mining company which produces 40 %
Platinum from all over the world or also being a major producer of diamonds, copper nickel, iron
ore and metallurgical and thermal coal (Brown and et.al. 2016). Preset study will be explains
how the company respond to sustainability environment and towards their ethics. Further, in this
research will be critically evaluate the factors that impact of the current business organisational
practices on sustainable development for future.
Rationale
The reason to conduct this study is to define the importance of sustainability in the long
term prosperity of global companies. Sustainability in business practices is very essential to
address some issues of pay attention towards the sustainability growth (Andriof and Waddock,
2017). By applying the sustainability measures can help company to get the more participation of
women, and reducing the corruption and embedding rule of law principles in their operations and
initiatives. So the main purpose of this study is to explore the certainty of sustainability in within
the company environment in order to make stakeholders happy and satisfied.
1. Outline of problems/issues in the cases along with causes & factors affecting the situation.
Issues 1: Tailing Facilities
Tailing up the technology curve is important for improving the monitoring and
surveillance of tailing facilities. There has been a step change in surveillance performance
through the introduction of satellite based technologies. Tailing management issue is one of the
biggest sustainable issue for mining industry. Due to economic downturn this challenges may
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arise in more frequent manner (Beylot and Villeneuve, 2017). TMFs is the process which store
large amount of mining waste which generated as a by product when extracting minerals, which
can be affect the serious threat for human beings and environment. Such as Anglo American
faces heavy disruption in Brazil project in 2015 Samarco disaster which killed as many as 19
people. On other words, due to tailing it may also cause and devoid of vegetation due to the
harsh soil that protect the rooting of plant species. Sustainability issues in Tailing management
are related to environment, economy and social. Some issues mentioned in the table given below:
Environment Economy Social Government
 It might
include air and
water pollution
 Issue in
ecosystem
destruction.
 Carbon
emissions
 Issue in
increasing
Capital
expenditure.
 Energy cost
 Reagent loss
 Health and
safety issues.
 Stakeholders
consideration.
 Culture
impacts.
 Legal code of
conduct
policies.
However, tailing sustainability issue can cause different variety of environmental
problems due to which people are facing challenges living their life normally. Such as given
below :
Dust : Dry tailing is contains small dirt particles which picked up by the wind which
might be very harmful for the human beings may cause serious health problems.
Leaching : due to rainfall on the land of mine tailing can make the water polluted and
harmful which can be the measure issue for human health (Brown and et.al. 2016). Like, by
adding water with tailing it creates sulfuric acid which can may affect the sustainability
environment.
Issue 2: Exploration feasibility and construction
This is another sustainability issues that company facing during the exploration,
feasibility and construction stages of mines projects. This is very important for the company to
deliver the outcomes must be according on what has been promised, if company fails to see the
proper support from the community. So that, it could be the sign of dissatisfaction among them.
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It is very necessary to work as team by gaining the trust of local people, government and
businesses. In other words, if company disconnect with social economic activities or local
stakeholders. They are going to be create big trouble for the company. Apart from that, Anglo
American should have the trust of government, local communities, banks, NGO's in order to
conduct the business activities without any interference of government. Otherwise, it causes the
business failure and low reputation in the market (Chen and et.al. 2019).
2. Relevant theories, concepts, models to help explain the case.
Model Framework for tailing management (HSM) Hierarchical system model.
The HSM is a graphical user friendly software tool that helps users to build up the
systems model of mine site water, energy and emission network at arbitrary level of detail. This
model of HSM explains the major six major components such as
 Water inlets that represent water entering the system.
 Water outlets that showing the water leaving the system.
 Emission outlets that represents energy and emissions exiting the system
 Energy emission which existing the system.
 Stores that represents where water is held within the system.
 It expresses that where the water represents and used within the system.
Theory/concept of Tailing management facilities:
Theory of Stakeholders theory for Exploration feasibility and construction
Stakeholders theory is an economic theory whose fundamental basis includes the modern
theory of property right (Cooper, 2017). It explains the role or function of stakeholders such as
investors, employees and customers. Stakeholders reflect to all that people who involves in the
process of mining sector. Interest of all the stakeholders are required in the decision making
process. As per the Donaldson and Preston Model of stakeholders engagement it has been
measured the importance of stakeholders and their role play in the mining sector. Apart from
that, it discovers the new learning material task effective management goals.
In other words, it makes the effective and learning effective strategies that affect the
overall project goals and goals. This brings the new working styles which makes the effective
learning outcomes. Apart from that, it helps to bring the new managing and developing outcomes
to buildup the best relationship with the stakeholders. In order to conduct the stakeholder
analysis helps to define the long term effective relationship between the dealing with good
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opportunity and task (Crane and Matten, 2016). This model has described three aspects of the
stakeholder analysis.
Descriptive approaches : This approach helps to define the map what business actually
works today. It showing the opinion that single focus on shareholder interests is unethical. But
after facing the huge court cases and governmental regulations has defined that, company should
need to required an involvement of stakeholder interests. In this approach. This express the
importance of shareholder and company should have required to take the decision making
approach of other stakeholders apart from that, it brings the new working goals and take the long
lasting result.
Instrumental Approaches : Essentially frame it as a means to increased efficiency,
better efficiency, better business performance and ultimately higher profits. With instrumental
approaches care about stakeholder theory because it will make the most ineffective work
challenge (Dentchev and et.al. 2016).
Instrumental Approaches: This is the last approach, which shows the ethical issue and
this frame usually rests on the ideas that each stakeholder group has intrinsic value.
Normative Approaches : This frame usually rests on the idea that each stakeholder
approaches having the intrinsic value. This approach set that no one interest is the leading and
generating the working goals and best effective result task.
In other words, stakeholder analysis is the most essential and effective development task
that makes the most positive result goals in order to meet the company aims and objectives. In
order to maintained the sustainability development growth. The very expressive and become two
most effective challenging and leading most effective attentive goals strategic goals.
Stakeholder engagement phase represents the most important role in tailing management
decision making (Dyllick and Muff, 2016). The stakeholder should consists all business internal
and external parties that represent different interest. Such as experts, mining company
representatives. In mining industry, company can adopt different phases of decision making
approach with the help of normative that helps to focus on what is best for society.
3.Implications of the problem/issues
In order to reduce the negative consequences of the tailing management issues, company
can adopt some safety principles such as given below:
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 Government should have required to adopt the effective and disciplinary framework to
facilitate the tailing management and maintained the safe operation at Anglo American.
 Anglo American need to make sure to accomplish all the primary objectives to ensure the
safety of TMFs in order to conduct and applying safety management structure to
minimize the risk. Also, it required to use technological resources or management system
to improve the safety precautions in order to maintained the sustainability growth.
 During the process of tailing it must be implemented by proper planning, constructed,
operated and closed by applying a case by case or site by site approach in the
consideration of measuring the climatic and hydrology, geology, tailing properties and
other conditions (Eskerod and Jepsen, 2016).
 A systematic approach of Tailing management facilities should be recognized by all the
company stakeholders in order to reduce the uncertainty risk and dissatisfaction issues.
 Company also need to adopt and followed the proper systematic approach to manage the
TMF safety under the consideration of all stakeholders.
 Anglo American Plc. Required to operate its function according with the safety
precautions, laws and regulations, after the permission of the country environment norms
etc.
 Adopt the use of proper land-use planning, geological intellection in order to evaluate the
TMF siting and intended post operational use.
 In order to reduce Exploration feasibility and construction issue company should take
involvement of stakeholders in decision making process.
4. Possible alternatives to address the problems/issues.
Alternative methods of tailing management facilities
In order to reduced the tailing management issues there has been three major
methodologies introduced recently to reduced the negative impact of tailing also it helps to
reduce the use of water wastage.
All Downstream Dam Construction
All kinds of tailing dams have generally made up from three methods such as upstream,
center line, or downstream (Evans and et.al., 2017). This refers to how the dam is raised from its
initial level. In term of downstream construction method it is the most durable and reliable
construction method among the all others. On the same side Center line and upstream method is
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not that much effective. By the help of these methods can help to reduce the tailing issues in
Anglo American.
Geo membrane Lake Liner
In order to reduce the water infiltrate into the surroundings Anglo American should have
tried to use plastic liner which is also known as geomembrane which reduces the use of acid
substance. In other words, it helps to restore the seepage water in order to maintained the
sustainable environment.
Other methods
On the other side, there are two strategies of tailing management facilities that helps to
reduce the negative impact. Such as direct and indirect disposal. Direct disposal is the term
which direct reduced the tailing effects directly into rivers, oceans and lakes. Further, there are
two strategies in direct disposal which is riverine tailing disposal (RTD) and submarine tailing
disposal (STD). RTD is one of the most simple method which occurs where tailing are
transported to the river by a ripe by a pipe and discharged. On the other hand, STD is the other
strategy of direct disposal which is similar method as RTD which uses pipe to transport mine
tailing into the sea at a certain depth (Jovanović and et.al., 2016).
In indirect disposal strategy of TMF in which dump mines of tailing disposed in an
impoundment cell or in dams. In this further action plan it makes sure the best leading working
task that helps stakeholders to maintained the proper effective planning.
Other some approaches in order to reduce the tailing management facilities impact on
environment. Such approaches are given below:
Paste and thickened tailing
This is the most effective energetic thickened idea or alternative method for minimizing
the environmental impact of tailing is paste disposal, either as surface deposition or underground
back lifting. This method or approach helps to reclaim water, process reagents and energy.
Another benefit is regained the depth of tailing. Reduce the potential possibilities if acid
drainage.
Reuse, recycling and reprocessing : This is the another way that helps to reduce the
waste material of mine and helps to get the environment clean and effecting. In this alternative
method involves the new use or application of the total mine waste and gives the better
environment to the nature (Kourula, Pisani and Kolk, 2017).
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Alternative methods of Exploration feasibility and construction
In order to maintained the proper stability the consideration of all stakeholders is very
much important and essential. Important stakeholders is important to collect all resources
required. It maintained the sustainability growth of the company. It helps to bring new methods
or technologies to bring new strategies and sustainable growth strategy. Such strategies are
mentioned below to sustained the stakeholders interest.
Establish a formal engagement process : Trust between company and stakeholders are
must have required to create the value and reputation of the company. This helps to take future
challenges and growth in terms of managing good results and growth. For example : Anglo
American Plc needs to take consideration of all stakeholders before starting the project of mine.
Integrate insights into company decision making : This is the another strategy ow way
through Anglo American can take involvement of all stakeholders such as investors, government,
employees etc (Martin and Rice, 2015). it helps to build the positive sustainability growth in the
business environment. Stakeholders are willing to word with companies should be viewed as
allies who can help identify and communicate issues on the horizon. Apart from that, it builds the
trust and properly executed stakeholders engagement will build trust among the parties involved
beyond.
Other Alternative methods
Employees, contractor and business partner : In order to overlooked on the system of
internal employees and shareholder is very much required. In mine industry this is very
necessary to considered their interest and get involvement in decision making. Anglo American
maintained their good interest with the company stakeholder that helps to improve direct
relationship with other people.
Stakeholder analysis method is potentially helpful for the company in order to meet out
the new upcoming that affect the long term relationship between the effective target performance
(Nisic, Knezevic and Lilic, 2018). This maintaining the leading challenges goals in order to
sustained the good environmental goals in order to make the company more effective.
5. Conclusions.
As per the above discussed report, it has been analyzed the sustainability development is
most important concern for mining industry in order to protect the social, environmental and
health and safety. In order to maintained Sustainability development key stakeholders are also
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played a most essential role. Study explained the issues facing by the company such as Tailing
management facilities due to which water, air get polluted and other issue taken was Exploration
feasibility and construction which shows the role and trust of stakeholders. Furthermore, this
study explained about the methodologies theories and concept for the selected issues that helps to
understand the deep understanding of sustainability development in business environment.
6.Recommended Solution and reasons
In order to maintained the competitive advantage. Company needs to make sure that all
authorities involved in TMF safety is corpora ted with each other. Apart from that, In order to
reduced the negative risk it might be reducing the effective management task in order to
implement the all strategies and approaches in equal manner (Onuaguluchi and Eren, 2016). On
the other side, In within the company effective leaders must have required to encourage and
engage other trainers and trainees to initiate in sustainability development that helps in business
environment. Apart from that, it develops the most enlarging developing goals. The competent
authorities should ensure public participation and easy access to information in accordance with
the relevant provisions of the industrial accidents.
Apart from that, Anglo American must adhere all policy and administrative legal
recommendation in order to make all stakeholders happy and satisfied in order to meet out the
sustainability development needs (Schaltegger, Hansen and Lüdeke-Freund, 2016). Also, mine
companies should need to enforce sufficient legislation for ensuring the safe construction,
operation and maintenance and closure of TMFs.
There are given some terminologies that should need to acquire by the company into their
company functions.
 Railing storage facility is helpful to contained the slum part. For that company can open
pit for the rest of the dumping raw material which is waste and not useful for the
company.
 Tailing dam is a tailing or may be a disposal dam. This dam helps to measure and helps
to settle the waste material.
 Tailing impoundment is the required space for specially create for deposited and stored
items.
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 By having the economic viability and social and environmental acceptability of any
mining enterprise. This helps to make the good impact on the overall environment and
goals.
 TMFs is most important and viable and social environmental acceptability of any mining
enterprise in order to maintained the proper effectively growth and long term results.
 Apart from that, Company also need to adopt and acquire different opportunity to
maintained the different opportunity and task (Searcy, 2016).
 Government also should need to provide the effective leadership and create minimum
administrative framework in order to develop the safe environment.
 Company should need to set TMFs at the first priority of the Anglo American.
 A systematic approach of managing TMS is must be required to acknowledge by the all
stakeholders.
 TMF should be operated as per the set framework to secure the environment and social
appearance.
 In order to optimum potential risk to neighboring communities and land uses.
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REFERENCES
Books & Journals
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tailings storage in the Life Cycle Assessment of copper production: A case study. Journal
of Cleaner Production. 153. pp.139-145.
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participation GIS. Applied Geography. 67. pp.77-93.
Chen, X. and et.al. 2019. Effect of overflow tailings properties on cemented paste
backfill. Journal of environmental management. 235. pp.133-144.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dentchev, N. and et.al. 2016. Embracing the variety of sustainable business models: social
entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches
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Eskerod, P. and Jepsen, A.L., 2016. Project stakeholder management. Routledge.
Evans, S. and et.al., 2017. Business model innovation for sustainability: Towards a unified
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Jovanović, V., Jovanović, D., Matić, B. and Đonović, N., 2016. The influence of healthcare
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