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Environmental Risk

Waste Dumping Location Developed a Dam to dump the mine waste. Destroyed by landslide in 1982 Alternate dam was not built Waste going into the river.

Increased Rate of Flooding Due to continuous disposal of waste rocks and tailings into the river. Resulted in rise in riverbed levels. Decrease in level of oxygen.

Reputational Risk

Loss of trust and respect in Media, Local Community and the Investors. Termed Big Australia Bully for manipulating the law. Plaintiffs further aggregated the risk by contacting shareholders. Result, loss of shares.

Regulatory Risk by PNG as well as Did not considered regulations enforced


Australian government. Took advantage of PNGs loose regulations. PNG could change their regulations in future.

Financial Risk

Had to face huge financial loses due to the mine. Ineffective planning lead to huge debt. Gave priority to repayments over shareholders return. Project ROI less than expected, shareholders backed off. In 3 years, project gave US $120 million in return to investment of US $1.9 billion. Also had to settle the lawsuit for a compensation of US $4 billion. All the investment in vain, as thinking to take down the mine.

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