barrick gold Essay

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Case writing assignment # 1

The main communication problem they are facing is that they had problems decoding the messages as a result of misinterpretation and procrastination by Barrick. “Barrick had begun surveying in the Pascua-Lama area in 1991 and was granted its first approval to begin development in 2001—which it did not exercise at the time because of low gold prices”. This is an example of Barrick procrastinating. The cause of this problem is due to lack of trust. Barrick made a promise to the government of Argentina that he will transport the glaciers to a safe location, which he failed to do. Another cause is fear of environmental damage. Both the locals and government where scared that Barrick will put their environment at risk. They believed that Barrick was not reliable, that he will just misuse their resource. The symptoms of these problems are trust issue and bad decision making from the government. Now that Barrick has misused is trust, it is hard for him to have a relationship with the government. With the government turning a blind eye on the benefits they stand to get if this company is allowed into their country to mine these resources. Some of these benefits include; receiving royalties on each ounce of gold or silver mined, reduction in the level of unemployment, massive growth in their GDP and enhance their trade relations with the host countries and others. The key stakeholder groups are Environmental Groups, Consumers, Investors, and government/Regulatory. The issues they are concerned about “environmental groups” is that they want to know if the company would keep declining in terms of

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