Olympic medals a story in globalization, and business

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The first Olympic medal ceremony took place Thursday near Tiananmen Square, as the 6,000 gold, silver, and bronze medals were formally presented to organizers of the Beijing games.

Assembled in a mint in Shanghai and a product of Melbourne-based BHP Billiton Ltd., the metals themselves are a story in globalization. The gold and silver medals are comprised of silver from Australia (the gold medals are plated with gold from Chile) while the bronze medals are smelted from Chilean copper. A ring of Chinese jade from the Qinghai province adorns each.

The combined lode cost BHP, the world’s largest mining company, over $1 million in raw materials. Although the company declined to comment on the specific values of the medals, the rising cost of commodities was not enough to deter the mining giant.

For one, the Olympic sponsorship was merely a drop in the bucket for BHP, a billion-dollar corporation. Second, for BHP, it’s all about the big picture. Iron ore — not gold, silver, or bronze — is the BHP’s primary product, and while the company and China have tussled in the past, China comprises 20 percent of BHP’s business (already up from 12.5 percent when the agreement was announced in 2005). Apparently, a little Olympic goodwill can go a long way.