COOPERATION BETWEEN MNC AND STATE: BHP BILLITON IN SUPPORTING CHILE’S COMMITMENT ON UN SDG NUMBER 6.A 2014 – 2017

Abstract

Chile is a South American country that is richly endowed with mineral resources especially copper. Mining sector is very important as it works as a driven engine for Chilean economy. With an open – window market, Chilean mining sector is dominated by foreign investor that makes Australian mining company, BHP Billiton become the biggest entity that dwelled the largest Chilean copper soil in Atamaca desert. However, mining activity is very consumptive as it required a significant amount of water and energy. The availability of water basin or aquifer is threatened if this consumptive behaviour continues. Therefore, in order to preserve water sustainability, the state has to cooperate with the mining actor to find the alternative for this issue. One of the alternatives is to increase the usage of desalinated seawater which aligns with UN SDG 6. Chile approved BHP Billiton initiative to construct seawater desalinated plant (2014 – 2017) as a part of their CSR effort to reduce the company dependency of aquifer usage in mining operation. The result showed significant increasing number of seawater usage. This foot step is later promoted by Chilean government, and to be followed by other mining companies, in order to preserve water availability for future generation and future mining industry in Chile. Cooperation between BHP Billiton and Chile will be viewed throughout the theory of Neoliberalism involved the relation between state and MNC.