Mining Projects In Australia

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Mining Projects In Australia

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Mining Projects In Australia

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1.Identify a Multinational Company Operating in Australia. Provide a brief description of the Company.
2.Identify any regulatory framework/s affecting the multinational company you have Identified Operating in Australia and discuss why and how it affects the company.
3.Identify any treaties, Conventions or agreements that have impacted on the products or services that multinational company provides in Australia. How does it Impact the goods/services?

1.Metal and mining industry of Australia is very wide, and Rio Tinto is the biggest player of this industry. This company is operated in Australia for the period of more than 100, and it joins almost 200000 people as shareholder of the company till today’s date. Almost half assets of the company are in Australia, and this company conducts its operation in various products such as iron ore, aluminum, coal, diamonds, bauxite, alumina, salt, and uranium. Production activities of company are operated in almost more than 30 operating sites and processing plants in Australia. Commitment towards environment is the important issue recognized by the company, and this company also aims to build communities which are sustainable and resilient. Commitment of company towards environment ensures safe future (Rio Tinto, n.d.).
Rio Tinto is the leading company in mining and metal industry at global level, and the main focus of this company is on the finding, mining, processing, and marketing the mineral and natural resources of earth. Company has clear strategy towards its activities, and the main aim of the company is delivering the superior value of the shares hold by shareholders through their activities. Strategies of the company include strength of the company such as world class assets of the company, talented employees, balance sheet which is strong and operating excellence (Rio Tinto, n.d.).
Global Footprint- approach of company towards their work includes values of safety, respect, teamwork, integrity, and excellence. These factors are combined with the strength of workforce of the company and assets of the company. Values of the company are very helpful in achieving the future success at long term. Workforce of the company is really big and it includes 50000 employees in almost 35 countries. Company develops such a culture where safety of their peoples are necessary and workers also keep check on their safety as well as safety of their workmates, contractors, and community. In this company every person is responsible to create and preserve value for their business, and diversity and innovation of products is the main attribute of every person, and values of the company guides the actions of the company.
Company’s headquarters are situated in UK, and group of companies involve Rio Tinto plc, a company which is listed on London and New York Stock Exchange, and Rio Tinto Limited which is listed on the Australian Securities Exchange. This company strongly represents the Australia and North America, and successful conduct its activities in the Asia, Europe, Africa and South America. Such global activities helps the company in getting expert knowledge in technology and marketing, and also help the company in supplying right product at right time with right quality. Business of the company includes underground mines, mills, refineries, smelters and power stations, and it also conduct its activities in the field of hydropower portfolio, and researches and service facilities (Rio Tinto, n.d.).

Industry of company- Rio Tinto operates in metal and mining industry, and this industry is the biggest industry of Australia.

Employees in Australia- Rio Tinto have almost 23000 people in Australia, and contractors also (Rio Tinto, n.d.).
Employees at global level- 54938 employees are employed by Rio Tinto at global level, and in 2016 company employed almost 51030 that are more than 50000 employees at global level (Statista, 2016).
Headquarters of company- the headquarters of company are established in London and UK.

2.Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is the important Act which recognize the importance of environment while operating the company’s activities. In Australia, provisions of this Act are recognized at national level, and as per the provisions person is committed an offence if any activity conducted by such person adversely affect the matter protected by Act. Person does not commit any offence if such activity is conducted with the approval of minister of environmental department in Australia. Provisions of this Act cover all those matters which are related to the protection and conservation of natural environment (department of Environment and Energy, n.d.).
Environmental rules of developing body are those rules on the basis of which mining industry frame its environmental regulations in Australia. These laws are framed and updated by state government because it’s their duty to protect and conserve the natural resources against the projects of mining industry. Protection of natural environment is the important issue which led to introduction of various laws related to mining industry. These legislations are developed for ensuring that all projects related to mining industry must go through the assessment in environmental context. This process usually involves three stages in which first stage states the obligation on companies to submit proposal for project in which developer state the plan for reducing the negative impact on environment, second stage includes the assessment of project by government bodies in the context on impact on environment, and last stage includes the approval from government bodies to carry on the project (Chambers and company, n.d.). 
This process is framed by the government with clear intention of imposing some obligations related to environment on companies, and it require that company must address all the issues related to environment before initiating any working on their proposed project. Such requirements help the project developer to identify those issues which are related to public concern at the starting level of the project. After identifying such issues company can frame strategies at the initial stage and avoid the losses incurred at later stage of the project. This process helps the country in bring transparency in their mining legislations (Safe work Australia, n.d.).
Mining industry negatively effects the environment and this issue is the big concern of public. General awareness related to harmful effects of mining industry on natural environment is rising among the general public and potential effects that can be caused by the activities of the industry on natural resources. Because of raising awareness, many new initiatives and legislations are introduced by both government and companies which are engaged in the mining activities.
It must be noted that operations of metal and mining industry such as exploration of resources, cause various negative effects on the environment such as effects which cause before, during, and after mining operations. Effect and nature of adverse impacts are clearly depends on the range of factors which are associated with the mine. These factors involve various things such as characteristic of the ore body, type of technology and extraction methods used by the company in mining and also the processing of minerals which are conducted on site, and the local environment sensitivity. Usually, impact of mining activities on local environment is completely depends on the sensitivity of area. There is no direct physical impact of mining activities on environment but its effects are indirect such as land contamination, air contamination, and water contamination also.
3.Following international treaties and conventions affect the products and services of Rio Tinto:

Ramsar Convention- this convention is ratified by the Australian government, and it is recognized as treaty which is intergovernmental. This treaty states the procedure which is related to national action, and it also receives the support of organizations working at international level for ensuring the conservation of sustainable use of wetlands and resources related to them such as salt. This convention has great impact on the activities of Rio Tinto because this company extracts number of products from wetlands. Therefore, it is necessary while extraction that company took actions to reduce the effect of its activities on wetlands (Ramsar, n.d.).
UNFCCC- this agreement was conducted between the parties on 21st March 1994, and now membership of this agreement is reached at universal level. As part of Rio Convention, this agreement was adopted in the Earth summit held in 1992 at Rio. At the same time some other agreements are also adopted by the members such as UN Convention on Biological Diversity and the Convention to Combat Desertification. All these agreements are connected in some form with each other, and the main issue conducted by them is that they have to develop synergies on those issues which are similarly addressed in them. This convention also includes one more agreement that is Ramsar convention, and this convention is introduced for the purpose of protection of wetlands and its related resources, and this convention is also ratified by the Australia. The main aim of UNFCCC is to prevent the dangerous interference of human beings in the natural environment (UNFCCC, n.d.). in the present case, Operation of Rio Tinto are the clear interference of human beings in natural environment and it is necessary for the company to take steps for reducing the impact of its activities on environment such as exploration and extracting of natural resources will led to shortage of resources for future generation. Therefore, company must comply with UNFCCC while initiating its projects.

Kyoto Protocol: Kyoto protocol is the part of the United Nations Framework Convention on Climate Change, and it is signed at international level. The main aim of this protocol is to set target for reducing the internationally binding emission, and for this purpose this protocol needs commitment from members of this protocol. As per this protocol, from last 150 years developed countries conducting the industrial activities and because of this they become the biggest contributor in increasing GHG. Through this protocol such highly contributing countries face pressure and different responsibilities are imposed on them under similar principles. This protocol was adopted in japan on 11th December 1997, and on 16th February 2005 this convention was come into force. Rules are adopted in Marrakesh, Morocco, for the purpose of implementation of Kyoto protocol, and it is known as Marrakesh Accords (UNFCCC, n.d.).
It is the duty of companies engaged in metal and mining industry that they must comply with all their obligations related to natural environment stated in abovementioned treaties and conventions. Companies can fulfill these obligations by following the steps stated in above process and by fulfill their obligations related to working sites and by taking the approval from relevant government authority (Environmental management in Mining, n.d.).
Meeting was held in 1994 at the International Association of Impact Assessment (IAIA), and representatives of World Bank attend this meeting, also by the members of United Nations Environment Programme (UNEP), and those agencies which work at international level. Question was raised towards Australia for taking initiative by showing example of best practices of environment in mining industry (Garner, n.d.).
Issue related to biodiversity becomes the serious concern at global level with the growth of human population. Activities conducted by the company adversely affect the biodiversity, and it also develop interest with important stakeholders of the company, also includes government’ local communities and non-government organizations. Since 2004, Rio Tinto recognized the important of management of sound biodiversity, and they also framed strategy for this purpose. Strategy framed by the company for this purpose includes various aspects such as it states that all sites must understand the risk and impact related to biodiversity, and such sites which show high risk must develop plan for minimizing those impacts (Rio Tinto, n.d.).
ABS. Mining and the environment. Available at: https://www.abs.gov.au/ausstats/abs@.nsf/90a12181d877a6a6ca2568b5007b861c/ce28d7fbe5faa308ca256cae0015da32!OpenDocument. Accessed on 26th 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 23rd April 2017.
Deparrtment of the Environment ad energy. Local government and Australian environment law. Available at: https://www.environment.gov.au/resource/local-government-and-australian-environment-law. Accessed on 26th April 2017.
Environmental management in mining. Overview of best practice in environment management in mining. Avaialble at: https://www.google.co.in/url?sa=t&rct=j&q=&edata-src=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjYtpyss63TAhUVUI8KHa5mC6IQFgghMAA&url=http%3A%2F%2Fwww.apho.org.uk%2Fresource%2Fview.aspx%3FRID%3D93778&usg=AFQjCNH5ibJ8aNh2Rj94W0BviWBuEMQ6yQ. Accessed on 14th April 2017.
Garner, L. E. International treaties governing mineral exploration. Environmental and engineering geology, volume 3.
Ramsar. ABOUT RAMSAR. Available at: https://www.ramsar.org/. Accessed on 14th April 2017.
Rio Tinnto. Rio Tinto in Australia. Available at: https://www.riotinto.com/australia-9559.aspx. Accessed on 26th April 2017.
Rio Tinto. Rio Tinto in Australia. Available at: https://www.riotinto.com/documents/Rio_Tinto_in_Australia_brochure.pdf. Accessed on 26th April 2017.
Rio Tinto. About Rio Tinto. Available at: https://www.riotinto.com/aboutus/about-rio-tinto-5004.aspx. Accessed on 26th April 2017.
Rio Tinto. History. Available at: https://www.riotinto.com/aboutus/history-4705.aspx. Accessed on 26th April 2017.
Statista, (2016). Number of employees at Rio Tinto from 2006 to 2016 (in thousands). Available at: https://www.statista.com/statistics/272483/rio-tinto-number-of-employees-since-2006/. Accessed on 26th 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.
Rio Tinto. Environment. Available at: https://www.riotinto.com/ourcommitment/environment-4794.aspx. Accessed on 14th April 2017.

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