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Werhane, Patricia ...

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Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine

Werhane, Patricia H.; Gorman, Michael E.; Mead, Jenny; Starr, Justin

E-0374 | Published August 13, 2012 | 3 pages Case

Collection: Darden School of Business

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To dewater the former Magma Mine and sink the exploratory shaft, the RCM team was faced with extracting and managing about 2 billion gallons of naturally accumulated water as well as about 300 million gallons per year of new inflow. The team's goals were to accomplish the dewatering safely, in a quick and economically feasible way, while also protecting the environment and managing the interests of local stakeholders. The team had four options to consider: treat and release, reverse osmosis, pond evaporation, and irrigation pipeline. In choosing the best option, Salisbury and RCM had to consider the seriousness of stakeholder concerns and the possibility of jeopardizing the bigger RCM project.

What were the stakeholder concerns? Did eliminating stakeholder controversy and putting the water to beneficial use make investing in the cost of the pipeline and the risks of a more limited pumping schedule worthwhile?