International Business Term Paper

Topics: Human rights, Gold mining, Guatemala Pages: 19 (6324 words) Published: April 16, 2012
When it comes to dealing with issues in the international level, ethics becomes more and more difficult to understand as ethics can be interpreted in different ways to different people, and their ethics may change when dealing with issues abroad. Today, many individuals from different parts of the world and from different backgrounds, cultures, environment, etc. have started to do business with each. Globalization has given opportunities for individuals to expand within the foreign markets in order to succeed in the business world. Many different businesses in Canada have taken advantage of this opportunity to expand in order to have access to foreign markets, and Goldcorp Inc. is one of them.

Goldcorp Inc. is a Canadian public company that was incorporated in Canada on March 31, 1994. Its headquarters are located in Vancouver, British Columbia where the company was incorporated. Goldcorp Inc. operates under the gold mining industry in Canada and they currently own 16 operations and development projects all over the Americas which include: three mines and one project in Canada; two mines in the United States of which one is fully owned while the other has 67% ownership; four mines in Mexico; one mine in Honduras; one mine with 37.5% ownership in Argentina; one project with 40% ownership in Dominican Republic; one project with 70% ownership in Chile; and one mine in Guatemala called the Marlin mine, which has been criticized for human rights and environmental issues.

Goldcorp Inc. is one of the world’s leading gold producers and has been claimed to be one of the “world’s lowest cost and fastest growing multi-million ounce gold producer”. Goldcorp anticipates that their gold production will increase within the next five years by 50% and has continuously grown throughout the years through making strategic alliances by mergers and acquisitions of other firms. In 2009, Goldcorp produced 2.42 million troy ounces of gold at a cost of $295 per ounce of gold and earnings were up to $588.2 million compared to the $397 million in 2008. Goldcorp Inc. is continually prospering, but it is not without problems along the way and one of the most recent issues involves their operations in Guatemala on the Marlin mine.

The Marlin mine is a gold mine owned by a subsidiary of Goldcorp Inc. which is named Montana Exploradora de Guatemala, S.A.. A picture of the location of the Marlin mine is in Appendix 1. However, the mine was not operated by Goldcorp Inc. from the beginning. The mine was discovered through regional exploration in 1998 by Montana Exploradora and was later purchased by Francisco Gold Corporation in 2000. The company, Francisco Gold Corporation, later merged with Glamis Gold in 2002 and therefore control of the mine was transferred to Glamis Gold. The construction of the mine began back in 2004 after the necessary documentations such as the environmental permits and licenses were granted through the Guatemalan government. The Marlin mine began production in December of 2005 and a year after, Glamis Gold was acquired by Goldcorp Inc. and today it is still owned by Goldcorp Inc. Through the acquisition, Goldcorp Inc. was able to establish itself as one of the world’s largest gold companies including another Canadian mining business, Barrick Gold Corporation.

The majority of the Marlin mine is located within the municipalities of San Miguel Ixtahuacán and the Sipacapa in Guatemala. There has been much controversy related to the location of the mine due to the fact that the community members within the 19 villages in the San Miguel Ixtahuacán believe that they were not consulted upon before the construction of the mine which is required under national Guatemalan law and international law. Many community members against the mine say that Goldcorp Inc. or its predecessors have not told them about the environmental impact in which the mine would cause and therefore violated the rights of the indigenous people...
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