Barrick Gold Case study Essay
Barrick Gold Case study
The purpose of this case analysis is to describe the communication problem and the resulting symptoms that are occurring with Barrick Gold Mine Company happening at the peak of Andes range, the Pascua-Lama development, and the concerns of its stakeholders. As an ending to this case analysis there shall be a solution provided on how the massive gold mine company can solve the disputes with its stakeholder groups.
The main communication problem that Barrick is facing is caused by their own hand, by saying and promising things and doing completely something else, this has caused a lack of trust between its stakeholders and a bad image to its own company. This problem is affecting it’s companying by slowing down the process of mining gold and productivity.
One example would be the Huasco River Valley munificent vineyards and olive groves that are being grown by a river running from the glaciers where the mine was being built. Apparently chemical wastes have been dumped from the mine into the river including cyanide. Thus Argentina passed a law that protects its glaciers which will halt Barrick company mining project.
The cause of the problem was Barrick Gold not sticking to its promise, the proposed transportation of the glaciers that would be mostly affected by their mining’s far away from its sites, which actually which never happened. The symptoms of the problem is their stakeholders, Chile’s national water commission recommending a legal complaint, the unhappiness of the farmers, opposition groups filling complaints, and the biggest hit is the Argentinian national legislatures, passing a law that protects their glaciers, all of these symptoms show the lack of trust between Barrick gold mine and its stakeholders.
The key stakeholder groups are the local farmers, hosted country’s (Chile and Argentina), shareholders of the company, and residents of the valley. All of them are unpleased with the mining sites, as it is causing environmental havoc, small amounts of local economic benefits, as well as having far too low profits for its shareholders.
What Barrick Gold mine company has to do in order to better its standards with its stakeholders is, that it must talk to the Chile and Argentinian government to somehow fall to an agreement that allows the company to continue their productivity efficiently without harming the environment, this would allow a better reputation in the eyes of its stakeholders(farmers, residents of the valley) and its key stakeholders (The hosted country’s and its shareholders), also possibly donating a small portion of their profits, to enhance the environment of their hosted countries, the channel that should be used is the media, to allow the population to known of their plans and their change of a better, safer, and beneficial environment for the population and their governments.
Barrick Gold mine had its ups and downs; their biggest communication problem was the loss of trust of its stakeholders, an unethical image, and a huge stake in the outcome.
By following the communication model, Barrick Gold mine still has a chance to regain the trust of its stakeholders, by providing a better environment and benefits to gain on both sides; this will allow them to proceed forward in a better and efficient productivity and a better and stronger communication with their stakeholders.