The Ethical Standards of the Former Bre-X Minerals Ltd

The Ethical Standards of the Former Bre-X Minerals Ltd

  • Submitted By: Mukariba
  • Date Submitted: 11/15/2009 8:46 PM
  • Category: Business
  • Words: 818
  • Page: 4
  • Views: 566


Management Planning Paper
Charles T Mapaso


The paper seeks to look at ethical standards of the former Bre-X Minerals Ltd. The paper will also evaluate the legal, ethic and social responsibility impact, if any, on the organization.
Management Planning Paper
It all started with the owner of Bre-X Minerals following the advice of a trusted geologist friend to but property on the Busang River in the steaming jungle of Borneo, Indonesia. Samples taken initially showed deposits of 30 million ounces and in no time the deposits had grown to 200 million ounce resource. The capitalization of the Canadian Bre-X Minerals had grown from zero to $6 Billion within a short space of time. Talk of gold rush. Suddenly every big mining company wanted to get the peace of the cake and had to be involved one way or other. Some tried takeover bids. Others approached the Indonesia government pointing out the weakness of Bre-X Minerals to taken on such a huge project on its own.
Eventually the Indonesian government got involved and a compromise deal was reached, Bre-X Minerals was to retain 45% with other big mining companies and the Indonesia government sharing the balance.
The other companies, now involved, send in their own teams to drilling the area to confirm the deposits. Within days of negative results one of the Bre-X Minerals’ Indonesian geologist is said to have jumped of a flying helicopter 250 meters up in the air.

Law, Ethics and Social Responsibility
The way the above story unfolds indicates a high disregard of expected behavior and procedure in similar situations. The company if it valued its reputation, the law, ethics and social responsibility it would have taken steps to verify the samples rather than rely on one person, the Indonesian geologist. The Bre-X Minerals story is a bit complex in that the real truth is unknown.

It is puzzling that a company would go...

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