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200 Villagers Houses Burnt Down Again Near Barrick Gold Mine in Papua New Guinea - Essay Example

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This case involves a raid by the police in Enga Province of Papua New Guinea near the Porgera gold mine, in which at least 200 homes were razed to the ground. While the police contend that they were targeting miners with no authorization to mine gold, and only burnt 20 homes,…
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200 Villagers Houses Burnt Down Again Near Barrick Gold Mine in Papua New Guinea
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200 Villagers Houses Burnt Down Again Near Barrick Gold Mine in Papua New Guinea

Download file to see previous pages... Moreover, there have been reported injuries and deaths of small-scale miners close to the mine. Finally, it has also been alleged that the Porgera Joint Venture Mine’s security and associated state police have meted extreme violence on the locals (MiningWatch Canada, 2014).
It is expected that such concerns will lead to a drop in share value, especially due to obvious lack of transparency on the part of Porgera Company (MiningWatch Canada, 2014). In such a case, investors would be at risk of losing their money because of misrepresentation and failure by Porgera to disclose critical information, such as their environmental compliance and agreements with local communities. On top of making them an unattractive investment opportunity, it will also harm their reputation, especially in light of conflicts and death in the local community (MiningWatch Canada, 2014). In addition, they could also be liable to huge fines if they are found guilty of environmental permit violations.
These issues have raised various ethical concerns about the company, despite creating social and economic benefits for the community via resource revenues and job creation. The company has obviously failed to sufficiently consult and engage the local community, while they have not given accurate information about the impact of their mining. In addition, there are environmental concerns about the safety of the mines, as well as lack of transparency about economic compensation and use of the local’s land. As a result, Porgera has failed to consider the social, environmental, and economic impacts of their activities, which are all important aspects of ethical mining practices.
As a competitor, such issues have been avoided, especially as the company is aware that the local community expects to generate substantial improvements in their living standards (Ali, 2013). The company has sought to ...Download file to see next pagesRead More
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