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Broken Hill Proprietary (BHP)

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Introduction BHP Biliton was formed in 2001 through the merger between Broken Hill Proprietary (BHP) and Bilition. BHP was first incorporated in 1885 as a silver, lead and zinc producer in Broken Hill, Australia while Bilition originated as a tine mine on Indonesia’s Belitung Island in the 1860s.(BHP Bilition,2015).BHP Bilition is the world’s largest mining and resource companies with major commodities such as aluminium. coal, copper, iron ore, manganese, nickel, silver and has petroleum and coal assets. BHP Biliton operates under a Dual Listed Company(DLC) structure, with two parent companies BHP Bilition Limited and BHP Biliton Plc operated as a single economic entity run by highly qualified Board and management team. The company’s headquarter …show more content…

Political factors BHP Billition is a worldwide resources company that is vulnerable to political risk factors in almost all markets. Political issues can have a big effect on the company’s authorization, development options and project pipelines. BHP Billition has invested a lot of capital in exploration and infrastructure projects in regions where there is high risk of political instability. Economic factors BHP Bilition is vulnerable to economic factors of a rise in energy costs, operations, materials and labor costs. These fluctuation could negatively affect the company growth plans and company income. The company is vulnerable to unpredictable currency assesments in the global industrial economies. (Permatasari, 2012). Socio-cultural factors BHP Billition is vulnerable to socio-cultural issues in all procedures and business owner’s relationship especially in the Third world regions where they have a strong sense of regressive culture. These features demand that the company support neighbouring communities financially and supply resources for infrastructure projects often need tailor made approvals that can increase the development costs and lower profitability. The firm has taken measures to build on its status in Chile by concerntrating on changing the worker condition.

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