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Mining & Natural Resources
One of BHP Billiton’s exploration sites.
joint venture drilled approximately 15,000 meters of
exploration holes, reaching as deep as 1 000 meters
below surface. An operation of this magnitude costs
a significant amount of money. At the end of 2010,
the Joint Venture has spent close to $50 million in
the exploration of the Mumbwa tenement. This pro-
ject is currently in its fourth phase of development
and as of 2011 the results of the exploration program
where still being analysed.
BHP Billiton’s partnership with Blackthorn Resources
in the Mumbwa IOCG Project reflects BHP Billiton’s
core charter value of creating win-win situations in
all of their partnerships. In this Joint Venture the
tenement is owned by Blackthorn Resources, BHP
Billiton brings considerable financial resources,
technical expertise and experience to the project in
pursuit of a win-win arrangement that benefits both
parties.
BHP Billiton works hard to maintain a solid and
mutually beneficial relationship with the Zambian
Government. BHP Billiton understands the value
of this relationship and believes it to be essential
in order to reach long-term sustainable growth.
They also recognize the benefits that they bring to
a given economy as a large foreign direct investor
and work with the Government in order to maximize
this potential and be a responsible corporate citizen.
BHP Billiton believes it to be fundamentally important
not to upset local economies through their temporary
exploration activities. They work hard not to create
false expectations on the regional economies in the
areas where they operate for a short-term. They
recognize their temporary operations can cause
harm in the local communities by inflating prices
through shifting the demand curve. Therefore they
take special care to not leave a false economy
behind in the event that they do not find the mine
they are looking for and leave the area.
In other areas in the world BHP Billiton takes great
pride in getting actively involved in the communities
around the mines that they operate. It will be no
different in Zambia if the giant resource they are
looking for is found and turned into a large world-
class mining operation. BHP Billiton is acutely
aware of the responsibility that is assumed when an
investment of this magnitude is made in a country. A
large mine will have both micro and macro economic
impacts through employment and training of
hundreds of locals citizens for generations to come,
there will be significant community development,
local expenditure and BHP Billiton hopes that they
will be able to set an example for other foreign
investors.
Looking to the future, BHP Billiton remains confident
that they will find the giant copper resource that they
are looking for and once mining operations begin
there is no doubt that the mine will contribute greatly
to the Zambian economy.