Abstract

The case discusses the controversies regarding environmental abuses in Indonesia caused by Rio Tinto, the world’s largest mining company. It provides information about Rio Tinto’s mining operations at the Kelian Gold mine, Grasberg Gold and Copper mine, and East Kutai Gold mine in Indonesia. The nature and extent of environmental pollution and damage to the country’s natural resources caused by these mines has been examined in depth. The case not only discusses the efforts taken by the company to repair the damages thus caused but also comments on their inadequacy. Besides briefly describing the nature of the mining industry, the case gives information about various other allegations of unethical business practices raised against Rio Tinto in Indonesia as well as in various other parts of the world.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Mining in Indonesia
• Rio Tinto’s corporate social responsibility
• environmental pollution
• unethical business practices.

Keywords

Controversies, environmental abuses, Indonesia, Rio Tinto, mining, Kelian Gold mine, Grasberg Gold, Copper mine, East Kutai Gold, Indonesia, pollution, damage, country, natural resources, inadequacy, mining industry