Running head: CASE STUDY 2 1

CASE STUDY II

Corporate Responsibility & Community Engagement at the

Tintaya Copper Mine

Seyedehdelband Salehianamiri- 1067599

Anyanime Dennis Ufot- 1064797

Dr. Adnan Ozyilmaz

MGT660

Carolina University
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Introduction

Conflict negotiation is a resolving procedure for any conflict or disputed situation

permanently by offering proper support to identified needs of a situation. Development of

effective conflict resolution through negotiation is important for developing a better working

environment. In this assignment, different issues and conflict situational perspectives of the

given case study will be determined. For evaluating the conflicts with relevant concepts and

tools, potential justified alternative strategies will be developed in this paper.

1. Problem statement

i. Stating prime and sub-prime issues

According to the given scenario of Tintaya Copper Mine, the main determined issue is a

negative impact on environmental components as a part of sustainable practices (Kasturi, Barton

& Reficco, 2012). Along with that, some additional or sub-prime issues are detected such as loss

of communal land, violation of human rights and limitations in sustainable development. In this

term, as a prime concern, it can be mentioned that due to the mining area, several communal

lands are diminished. It includes several conflicts between the government as well as the

company due to unfair equitable compensation factors. Additionally, the absence of transparency
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in land sales and presence of different forces in evictions are also considered as the components

of this prime determined issue in the case study.

Apart from this, the wastewater of Tintaya mine has contaminated local springs and

rivers that have developed a negative impact on animals and humans as they must consume that

polluted water. Along with that, Tintaya mine is not properly facilitated its employees including

labor harassment, forced evictions, mistreatment local women and many more. These are

considered violation of human rights based on which several conflicts are

developed. Additionally, limitation of mining services has reduced its involvement in developing

proper sustainable practices (Kasturi, Barton & Reficco, 2012). These sub-prime issues also

affected the principles and activities of Tintaya mine. Due to these issues, community

engagement-related conflicts are developed within the mining area. Moreover, these conflicts or

determining issues are effectively reduced the favorable taxation of mining industry with foreign

investment.

2. Summarizing facts

i. Brief description of facts in the given scenarios

Based on the given situational context, it can be highlighted that BHP Billiton’s Tintaya

mine in Peru has experienced a wide range of issues that have generated conflict with local

indigenous communities (Kasturi, Barton & Reficco, 2012). This open pit mine had two different

types of copper ore such as copper sulfide and copper oxide. The production of this mine has

changed over time and has been driven up by world commodity prices. From the local source of

the mine location, it is detected that BHP Billiton unethically purchased the land in Tintaya for
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mining. It has introduced arguments or conflicts with local communities over their communal

land. Moreover, it has misinterpreted expropriate power of the land in terms of awakening local

property owners’ bargaining power.

Besides this, it can be mentioned that despite higher brand value and emerging

partnerships with global markets, BHP Billiton was not very responsive towards the complaints

from local communities relating to environmental and human rights violation issues. However,

after receiving repetitive complaints from local mining area people, BHP Billiton produces a

response to local community representatives. As per the instruction from BHP’s headquarters, it

produced a temporary responsibility to the local community. In this term, it can be highlighted

that operational practices of the company were not addressed the local communal issues and

organizational headquarters was not effectively responded to the mentioned issues.

3. Facts analysis

i. Analysis of the case study

In alignment with the case scenario, it can be defined that Peru was considered as globe's

top mineral exports in 2005 and it has developed a positive impact on its national economic

growth (Kasturi, Barton & Reficco, 2012). Therefore, formation of mining in Tintaya, Peru was

highly profitable for BHP Billiton as it included natural mining resources along with availability

of local forces. Through improvement of the mining area and procedure, BHP was able to

achieve economic dependency on different facilities across the local area. It has involved labor

force from local regional poor provinces that have indicated their achievement in gaining the

cheapest labor force in mining.

In a similar context, a fundamental disconnection or distance was seen between Peruvian

subsidiary and headquarters of BHP Billiton which was addressed as strategically ignorant
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conflicts. As mentioned by Adekunle, Abimbola and Ehimen (2019), this type of conflict has

developed a negative impact on organizational operations by addressing the decisions of high

authorities. In this term, BHP Billiton’s headquarters was not aware of the accurate situation in

Tintaya mine.

ii. Evaluation of tools and concepts in alignment with the case study

In aligning with the situational scenario, it can be highlighted that ignorance of the

situation causes a higher conflict among people that hampers its practices. As opined by

Onwudinjo (2023), conflict is generated or developed through intolerance and ignorance that

have influenced negative thoughts among individuals. In this term, it can be mentioned that

absence of conflict acknowledgment also encouraged conflicts within a situation (Fuentes,

Zelaya & Madsen, 2021). It is entirely applicable to the given situation as BHP was not

acknowledged its faults and negative operations in Tintaya mine which increased its conflicts

with local community people.

Besides this, differences in culture as well as an absence of negotiation context have

affected disputes in a situation as well. In this term, Rockmann, Langfred and Cronin (2019)

have explained that the long establishment of individuality and differences in local communal

procedures are highly responsible for encouraging negotiations significantly. Along with that, it

can be mentioned that presence of higher personality-based individuals can increase the chance

of conflict instead of negotiation. In aligning with the scenario, it can be highlighted that BHP

Billiton has a higher personality in comparison with Tintaya locality and therefore the leading

mining brand was not acknowledged its complaints featured by local community.

Avoiding repeating the same mistakes by formulating an active listening tool is effective

for declining the chance of conflicts. In this context, Caputo, Fiorentino and Garzella (2019)

have mentioned listening carefully to the details of a conflicted situation is important for
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avoiding further disruptions. Along with that, it is effective for ensuring a positive impact on

situational conflicts as it increases understanding between two different groups of people. Based

on the given scenario, it can be mentioned that headquarters management and operational team

of BHP Billiton was not actively listened to the conflicts and issues among communal people of

Tintaya mine area and thus it increased conflicts.

Besides this, another effective tool is the anticipation of negotiation tactics as it helps in

changing the behaviors and beliefs of people who are involved in conflicts. In the opinion of

Light (2021), it is a fundamental tool of negotiation and conflict that can be helpful for reducing

the negative thinking of people towards each other even after being involved in a conflict. Based

on the situational context, it can be mentioned that anticipation will be effective for this conflict

as it will help both parties to influence each other positively. Along with that, Yasmin, and

Ghafran (2019) have described that anticipation tools play a significant role while assessing the

values, integrity, and honesty of people for introducing a positive impact across the situation.

Therefore, in the given scenario, application of anticipation tactic will be helpful in terms of

reducing aggressiveness of BHP Billiton’s local operational executives in front of the

community. It will be helpful for producing a positive negotiation by maintaining value of the

situations and relating communities.

4. Description of alternatives

i. Determination and analysis of alternative strategies for resolving issues in case

study

By following and summary of facts and determined issues of the given scenario, some

alternative strategic options will be delivered for reducing the land destruction issues and other

communal conflicts between HP Billiton’s Tintaya mine and its local community people.
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Firstly, negotiation with the local province people through agreement will be considered

an important alternative strategic decision. It will be effective for exchanging trust and

behavioral preferences between two conflict groups (Gates, 2022). Along with that, it portrays a

significant impact on defining a significant relationship of power while dealing with two specific

groups that are involved in conflicts. In order to reduce conflict through negotiation,

development of a specific agreement is important at the initial stage as it limits the expansion of

excessive aggressiveness and domination of a party on other people. Introduction of the

agreement's strategic approach as an alternative negotiation tactic will restrict the power of BHP

while negatively affecting local rivers of Tintaya by mining waste disposal and its unethical land

adoption practice as well.

Secondly, using a preference sheet can be considered as another strategic option for

motivating the issues of conflicts to make a proper negotiation. In this term, Appel- Meulenbroek

et al. (2021) have mentioned that use of preference sheet develops a positive impact on planned

negotiation for introducing a positive outcome on different issues. Along with that, the goal of

this alternative strategic tool is to offer effective values by obtaining a positive negotiation. In

aligning with the scenario, preference sheets can be effective for creating an important focus on

reducing negative impacts from environmental components by generating an alternative waste

disposal area connecting to the mining. It will create a barrier for BHP from polluting local rivers

and other water bodies with mining waste.

Third alternative strategic approach is to introduce a monitoring committee while

focusing on reducing human rights violations by local people of Tintaya including the

mistreatment of women and exploitation of local labor force. According to the view of

Loosemore et al. (2021), collaborating with the local community with a strong and effective

negotiation policy is important for avoiding harassment towards the regional people. Based on
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the given scene, formation of new monitoring and controlling committee in Tintaya will be

significant for checking the violation of their human rights by BHP. Therefore, it will reduce

their conflicts through observational negotiations.

ii. Limitations of the suggested alternatives

Above-mentioned alternatives have some specific limitations that can reduce their

effectiveness in a situation. Preference sheets are not effective in case of controlling different

conflict points at a time (Galoni, Carpenter & Rao, 2020). However, in the given case there is

one prime and several sub-prime issues and thus the mentioned strategy cannot be entirely

effective. Along with that, the introduction of a local monitoring committee will not be able to

offer a bias-free decision due to the involvement of local advisory executives from BHP.

Moreover, local agreements cannot be effectively implemented without the presence of proper

communication. The agreement and its actions are based on direct communication practices for

avoiding conflicts (Oats & Tuck, 2019). However, as per the given case study, effective and

regular communication between Tintaya local communities and BHP operational staff will not be

possible due to the difference in language, culture, and behavioral attributes.

5. Recommendations

i. Justification for the chosen alternative strategy

After reviewing the alternative strategies, it can be mentioned that development of a

proper agreement will be highly appropriate for conflicts in the given scenario. Involvement of

proper and effective agreements can develop a win-win situation for BHP’s Tintaya mine

conflicts with its local people. Along with that, it can help to involve emotional aspects of people

while introducing their substances by modifying the agreements specifically (Tang et al., 2020).

It can produce a desirable outcome from a conflict as it will help in encouraging a general

relationship between the local people of Tintaya and BHP. Moreover, creating an optimal
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outcome from agreement will be effective for clearing all miscommunications and

misunderstandings effectively.

Conclusion

Based on the entire discussion, it can be mentioned that negotiation is an effective aspect

of reducing conflicts among people in different situations. Along with that, it is important for

creating an ideal solution for conflicts by sharing valuable circumstances along with recognition

of different situational perceptions. Besides this, it can be mentioned that negotiation is

considered a kind of adjustment for resolving a situation by resolving mistakes. In alignment

with the given case study, different negotiation, and conflict concepts, as well as tools, are

defined after determining the prime and sub-prime issues while BHP Billiton introduce Tintaya

mine in Peru by unethically acquiring the land from local communal people. Moreover, it has

developed potential strategic options for reducing conflicts and recommended a specific strategic

choice aligned with the case study.

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