Multinational Company In Australia: BHP Billiton

Description of BHP Billiton

1. The Broken Hill Propriety Company Limited was formed on the date 13^th August 1885, and this company was formed from the merger of two companies that was BHP and Billiton. These two companies were small mining companies and founded in the mid-1800s, and now BHP Billiton is the leader in this diversified resource industry. History of Broken Hill Proprietary’s is related with silver, lead and zinc mine in Broken Hill, Australia. BHP was incorporated in 1885, and this company engaged in the discovery and development of Zinc, Silver, Copper, Iron Ore, diamonds, Oil and gas, and other natural resources. This company was also the leader in value-added flat steel products. On the other hand Billiton was the global leader in the metals and mining sector, and he was also the biggest producer of aluminum and alumina, chrome, and many other resources (BHPBilliton, n.d.).

• Industry in which company operates- BHP Billiton operates in Metal and mining industry. This industry is the largest industry and involves almost 700 companies in mineral exploration, and also includes development and production in almost 100 countries. This sector involves largest diversified resource companies in the world such as BHP Billiton and Rio Tinto. These companies representing the successful future in this industry for both leaders and junior miners. This sector relies on equity markets for the purpose of arranging capitals for projects related to intensive development of mineral or the also for arranging the funds for higher risk exploration to find new deposits. From 2009 investors in the Australian market get support of 270 new junior resource floats (ASX, n.d.).
• Number of staff in Australia- in the year 2016 BHP Billiton employed almost 26827 employees in Australia, and this number also includes employees of subsidiaries companies controlled by BHP Billiton (IBIS, 2016).
• Number of staff globally- at global level BHP Billiton employed 80368people in their companies for the purpose of creating an environment in which talented people can work and achieve their full potential (Forbes, 2016). Company believes that harmonious workplace is more productive, and company also believes that diversity in workforce and high motivation levels contribute in all factors of success.
• Location of Global Headquarters of company- the Global headquarter of the company is located in Melbourne, Australia. The original headquarters of BHP was established a few blocks away at 121 Collins Street West in 1885 (BHP, n.d.).

2. Mining laws of Australia are related with the environmental laws of developing body, and for this purpose protection and conservation of the environment from operations conducted in mining industry is the most important responsibility of each state government. Therefore, every state government framed their own laws and regulations on the basis of their environment legislation. The main aim of these legislations is to ensure that projects related to mining fulfill the minimum environment obligations imposed on them. Usually, these processes include the three stages:

First stage includes the requirement related to proposal, notice of intention, plan for environment protection, and initial advice statement stage. While conducting this stage it is necessary that developer must submit the proposal which state the expected time period of the project, requirement of infrastructure to complete the project, and impact of project on environment.

Second stage of the process includes the assessment conducted by government. After receiving the proposal from the company then whether environmental assessment is necessary or not is decided by the relevant authority of the government. In other words, government assess whether this project is environmentally significant or not, and if there is so then they address the issues related to environment.

Last stage includes the approval of the government. At the period of this stage relevant authority of government decide whether or not to give environmental approval for this project. It must be noted that this approval continuously tied to a continuously environment management system (Chambers and company, n.d.).  

The main aim of this process is that it put obligation on project developer to recognize the requirements of environment at initial stage of the project. This process also enables the project developer to address the environmental concerns of public, and also make changes in the project model at the initial stage. This process also beneficial for the company as it avoid the cost related to environmental objections which rose at a later stage of the project. However, this process also increases the transparency of mining industry regulations of Australia (Safe work Australia, n.d.).

Regulation 65 of Mining Regulations 2011 defines the preparation of programs. As per this regulation any program related to mining operations for the purposes of section 70 B (2) of the Act, must be carried out in pursuance of exploration license and it also fufill some additional requirements stated below:

Regulatory Framework affecting BHP Billiton

It must include the factors related to natural environment which are affected by the proposed project, and also includes the description related to impact occurred on natural environment from the operations of proposed project.

It also includes the information which is generated because of any consultation taken by the company related to proposed project, and report also address any issue related to environment raised by the person with whom consultation occurred  in particular steps such as holder related to tenement has taken or proposes to take and also address those concerns.

Report must state the strategies framed by holder of the exploration license for the purpose of managing the concerns stated in above paragraphs and also for achieving the result stated under section 70B(2)(b)(i) of the Act.

It also state the criteria for the purpose of measuring the environmental and activity completion outcomes stated in the proposed program and it must state the details related to:

What needs to be measured and which form of measurement is used, and also state the locations where those measurements are taken and manner in which such locations are determined.

What considerations are taken by the holder to achieve the outcomes, and it also state the details related to any background or control data used by holder and method in which such data is acquired by the holder (Migration regulations, 2011).

3. There are umber of international treaties which directly or indirectly affects the products and services of BHP Billiton. It must be noted that BHP Billiton worked at global level and it is necessary for company that they address the issues related to natural environment at serious level. Global working of the company also increases the responsibility of the company in environmental context. As per the charter of the company, the main approach of the company is towards the management of environment and it is clearly based on the identification, assessment and control of material risks at all the stages of their projects. The main aim of company is to avoid the environmental impacts and if it is not possible to minimize the impacts (BHP, n.d.). Following are some international treaties which affect the products and services of BHP:

• UNFCCC- on 21^stMarch 1994 parties entered in to the Agreement of UNFCCC. Now, this agreement has reaches the level of universal membership. This agreement is a part of Rio Convention, and adopted in 1992 at Rio Earth Summit. Other agreements adopted at same time are UN Convention on Biological Diversity and the Convention to Combat Desertification. These three agreements are related with each other and the main aim of these conventions for developing synergies in their activities on those issues which are similar in them. This convention also introduces one more convention that is Ramsar convention on wetlands, and Australia is also the party of this convention. The most important and ultimate goal of UNFCCC is to prevent the dangerous interference of human beings in the climate (UNFCCC, n.d.). Activities conducted by BHP Billiton are considered as human interference in the natural environment and effects of mining and exploration of minerals affect the climate in negative way. Therefore, it is necessary that while conducting its activities BHP Billiton must complied with the principles of UNFCCC.
• Kyoto Protocol-there is one more agreement which relates with the United Nations Framework Convention on Climate Change and the main aim of this protocol is to take commitment from parties by setting targets related to internationally binding emission reduction. This convention recognizes that the highest contribution in GHG is from developed countries which are result of the industrial activity conducted from last 150 years. This protocol pressurizes the developed nations under the principles stated in common but differentiated responsibilities. On 11^th December 1997, this protocol was adopted in Kyoto, Japan, and come into force on 16^th February 2005. In Marrakesh, Morocco the rules for the purpose of implementation of this protocol were adopted and it was known as Marrakesh Accords (UNFCCC, n.d.). By following the principles of Kyoto protocol BHP Billiton can also set targets for reducing the impact on its projects on natural environment.
• Cartagena Protocol On Bio safety To The Convention On Biological Diversity-On May 1992, this convention on biodiversity was finalized in Nairobi, and on 5^th June 1992 this agreement was opened for signature at the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro. On 29^th December 1993 this agreement was entered into force, and today this convention is considered as the important instrument at international level for the purpose of addressing issues related to biodiversity. This convention provides a holistic approach towards the biological diversity, and also the sustainable use of natural resources. It also addresses the importance of fair and equal sharing of benefits generated from natural resources. The main issue addressed by this convention is biosafety and it’s also put its efforts in the protection of human health and natural environment against the negative effects of new techniques related to biotechnology. However, biotechnology is also considered as great technology for the promotion of human well being especially in case of fulfilling the basic needs such as food, agriculture and health care. Therefore, this convention considers both sides of biotechnology. On one side this convention provides access to technology and also transfer of technologies which also includes biotechnology, that are relevant for the purpose of conservation and sustainable use of biological diversity. On other side, this agreement ensures the procedure development for protecting the biotechnology in context of aim of convention for the purpose of reducing the all threats which are related to biological diversity, and it also address the issues related to the risks to human health. Biodiversity maintenance and ecosystems for future generations is the important way we think about the environment and sustainability (CPD, n.d.).

In the year 2013 new targets related to biodiversity and environment conservation was set up by the BHP Billiton such as first target of the company consider the requirements related to core business of the company for the purpose of developing the plans related to land and biodiversity management plans which includes controls related to prevention, minimization, rehabilitation, and it also sets the offset impacts of biodiversity and services related to ecosystems. All these plans must be achieved by the company by its operations. In case main actions of company achieve the targets set by the company then company also develop complimentary actions.

References:

ASX. Metals & Mining Sector Profile. Available at: https://www.asx.com.au/documents/products/asx-metals-and-mining-sector-profile.PDF. Accessed on 14th April 2017.

BHP Billiton. Biodiversity and land. Available at: https://www.bhpbilliton.com/environment/biodiversity-and-land. Accessed on 14th April 2017.

BHP Billiton. Our approach. Available at: https://www.bhpbilliton.com/environment/our-approach. Accessed on 14th April 2017.

BHPBilliton, (2013). BHP Billiton Opens New Global Head Office. Available at: https://www.bhpbilliton.com/media-and-insights/news-releases/2013/11/bhp-billiton-opens-new-global-head-office. Accessed on 14th April 2017.

BhpBilliton. Our history. Available at: https://www.bhpbilliton.com/our-approach/our-history. Accessed on 14th April 2017.

CBD. Cartagena protocol on biosafety to the convention on biological Diversity. Available at: https://www.cbd.int/doc/legal/cartagena-protocol-en.pdf. Accessed on 14th April 2017.

Chambers and Company. An Overview of the Australian Legal Framework for Mining Projects in Australia. Available at: https://www.chamberslawyers.com/wp-content/uploads/downloads/2013/10/060518-Presentation-Eng.pdf. Accessed on 14th April 2017.

Forbes, (2016). #455 BHP Billiton. Available at: https://www.forbes.com/companies/bhp-billiton/. Accessed on 14th April 2017.

IBIS. BHP Billiton Limited – Premium Company Report Australia. Available at: https://www.ibisworld.com.au/australian-company-research-reports/mining/bhp-billiton-limited-company.html. Accessed on 14th April 2017.

Migration Regulations 2011- Regulation 65.

Safe Work Australia. Mining. Available at: https://www.safeworkaustralia.gov.au/sites/swa/whs-information/mining/pages/mining. Accessed on 14th April 2017.

UNFCCC. First steps to a safer future: Introducing The United Nations Framework Convention on Climate Change. Available at: https://unfccc.int/essential_background/convention/items/6036.php. Accessed on 14th April 2017.

UNFCCC. Kyoto Protocol. Available at: https://unfccc.int/kyoto_protocol/items/2830.php. Accessed on 14th April 2017.