Rio Tinto: The Mining Giant Pollutes Indonesia's Environment


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BECG030 For delivery in electronic format: Rs. 400 ;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

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Case Length : 16 Pages
Period : 2003
Pub. Date : 2003
Teaching Note : Not Available
Organization : Rio Tinto
Industry : Mining
Countries : USA

Abstract:

The case discusses the controversies regarding environmental abuses in Indonesia caused by Rio Tinto, the world's largest mining company. It provides information about Rio Tinto's mining operations at the Kelian Gold mine, Grasberg Gold and Copper mine, and East Kutai Gold mine in Indonesia. The nature and extent of environmental pollution and damage to the country's natural resources caused by these mines has been examined in depth. The case not only discusses the efforts taken by the company to repair the damages thus caused but also comments on their inadequacy. Besides briefly describing the nature of the mining industry, the case gives information about various other allegations of unethical business practices raised against Rio Tinto in Indonesia as well as in various other parts of the world.

Issues:

Understand the nature of the mining business, its impact on the environment, and on the health, safety and livelihood of the indigenous people from the affected areas

Contents:

  Page No.
Rio Tinto Under Attack 1
Background Note 2
Indonesia - Paying for Rio Tinto's Operations 3
Taking Remedial Action 7
Will Rio Tinto Change for the Better? 9
Exhibits 11

Keywords:

Controversies, environmental abuses, Indonesia, Rio Tinto, mining, Kelian Gold mine, Grasberg Gold, Copper mine, East Kutai Gold, Indonesia, pollution, damage, country, natural resources, inadequacy, mining industry

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