An analysis of factors leading to the establishment of a social licence to operate in the mining industry

Communities around the world have increasingly come to demand more involvement in decision making for local mining projects, a greater share of benefits from them if they are to proceed, and assurances that mineral development will be conducted safely and responsibly. At the same time, Bridge (2004) notes full legal compliance with state environmental regulations has become an increasingly insufficient means of satisfying society's expectations with regards to mining issues. There is now a recognised need for mineral developers to gain an additional ‘social licence to operate’ (SLO) in order to avoid potentially costly conflict and exposure to business risks. However, there is a correspondingly limited amount of scholarship specifically focused on SLO. More particularly, there is a need for research that uncovers those factors that lead to the issuance (or non-issuance) of a SLO in the complex and changeable environments that often characterise mineral development. In an effort to identify key determinants of SLO outcomes in the mining industry, this paper presents a comparative case study analysis of four international mining operations: Red Dog Mine in Alaska, USA; Minto Mine in Yukon, Canada; the proposed Tambogrande Mine in Peru; and the Ok Tedi Mine in Papua New Guinea. The analysis that is presented also makes use of insights from supplementary key informant interviews conducted by the author and the emerging literature on mining and communities. Five lessons for earning a SLO emerged from this analysis: (1) context is key; (2) a social licence to operate is built on relationships; (3) sustainability is a dominant concern for communities; (4) local benefits provision and public participation play a crucial role; and (5) adaptability is needed to confront complexity.     

Community relations and mining: Core to business but not “core business”

Over the past two decades the global mining industry has witnessed the necessity and emergence of community relations and development (CRD) functions, essentially under the rubric of sustainable development and corporate social responsibility (CSR). These functions provide companies with mechanisms through which to engage and manage their relationships with key stakeholder groups, share development benefits and protect business interests. Despite widespread claims by the industry that companies have adopted CSR as a ‘core competence’, we argue that the industry has yet to incorporate the CRD function as part of ‘core business’ at the level of practice. This article characterises a CRD function and related processes within the context of a large-scale mining operation in West Africa. Findings reflect a more universal trend relating to the function and organisational positioning of CRD practice in the resources sector. The authors argue that functional equity needs to be established if the sustainable development agenda is to have a genuine future within the mining industry.     

Beyond the resource curse? Diamond mining,development and post-conflict reconstruction in Sierra Leone

In recent years, the so-called ‘resource curse’ syndrome has gained increasing currency. Growing evidence suggests that many African countries with significant natural wealth have actually reaped limited rewards, instead experiencing underdevelopment, corruption, political instability, and in some cases, violent conflict. In the small West African state of Sierra Leone, it has been suggested that diamonds played a key role in fuelling a brutal civil war during the 1990s, an issue that has given rise to a burgeoning literature on ‘blood diamonds’. However, as Sierra Leone emerges from a decade of destruction, other research suggests that diamonds could actually provide the impetus for post-war reconstruction. This paper explores the role of alluvial diamond mining in post-conflict Sierra Leone, focusing on two communities in the Eastern Province that were badly affected by the war. Drawing on field-based research conducted between 2002 and 2007, the paper considers the diamond mining situation in the context of broader development strategies in post-conflict reconstruction. It is argued that sustainable development can only be achieved if future policies are based on a detailed understanding of relationships between diamond mining and rural development at local, regional and national levels.     

Exploring the origins of ‘social license to operate’ in the mining sector: Perspectives from governance and sustainability theories

In the mining sector, local communities have emerged as particularly important governance actors. Conventional approaches to mineral development no longer suffice for these communities, which have demanded a greater share of benefits and increased involvement in decision making. These trends have been spurred by the growth of the sustainable development paradigm and governance shifts that have increasingly transferred governing authority towards non-state actors. Accordingly, there is now widespread recognition that mineral developers need to gain a ‘social license to operate’ (SLO) from local communities in order to avoid potentially costly conflict and exposure to social risks. A social license can be considered to exist when a mining project is seen as having the ongoing approval and broad acceptance of society to conduct its activities. Due to the concept's relatively recent emergence, however, only a limited body of scholarship has developed around SLO. Drawing on examples from northern Canada, this paper uses governance and sustainability theories to conceptualize the origins of SLO in the mining sector and describe some of the associated implications. Further research is needed to determine governance arrangements which help facilitate establishment of SLO in different mineral development contexts.     

Economic risk and mineral taxation on Indigenous lands

Mining generates risk of environmental and social harm for Indigenous peoples but can also generate substantial revenues for them, creating opportunities for community development in a context where economic and social disadvantage is the norm. Especially as mining revenues should, in part, compensate for mining’s negative social and environmental impacts, it is vital that mineral taxation on Indigenous lands reflect a careful assessment of appropriate tax mechanisms and a matching of these with community priorities. Yet little has been written that could serve as a guide for Indigenous decision makers. This article contributes to an understanding of the issues and choices facing Indigenous communities in designing mineral taxation regimes, by focusing on the question of economic risk. Risk arises as a key variable in choosing or designing a mineral taxation regime in three ways. Different approaches to mineral taxation are inherently more or less risky, in the sense that they are more or less certain to generate tax revenues. A second aspect of risk involves the degree of economic certainty or predictability associated with different types of commodities and projects. Third, the risk tolerance of Indigenous peoples and communities can vary significantly. We show how Indigenous groups can integrate and address these different dimensions of risk, by recognising the ‘risk consequences’ associated with different approaches to mineral taxation and choosing an approach that reflects, as fully as possible, the group’s risk tolerance.     

THE SOCIAL CONTEXT OF WESTERN WATER DEVELOPMENT1

ABSTRACT: Social scientists were included in the planning and design for an integrated, trans-basin water resource project. Within this complex project, a socioeconomic impact assessment (SIA) concentrated on identifying the social, political, and economic issues and potential impacts inherent in developing a city's water rights. Before the SIA began, some of the development alternatives had already generated widespread hostility and organized opposition from communities within the watershed. The SIA involved residents of affected communities in the study design and project planning. The study found a number of components that constituted the concerns, beliefs, and expectations about perceived, potential impacts that might result from the different alternatives. In most cases these issues constituted threats to valued environmental resources, valued community resources, the social environment, the economic base, and a secure future. The social science component was a key factor in the ultimate decision to pursue a particular alternative which was sensitive to the social and political issues, minimized environmental and socioeconomic impacts, and ultimately had support among the communities potentially affected. The experience from this case study suggests that the approach used can be applied successfully in the planning of other water development projects and result in cooperation from the wide range of interest groups that often present costly obstacles to such projects.     

Sustainable development in the mining industry: clarifying the corporate perspective

This paper examines sustainable development in the corporate mining context, and provides some guidelines for mining companies seeking to operate more sustainably. There is now a burgeoning literature that examines sustainable development in the context of minerals and mining, most of which is concerned with sustainability at global and national scales. What is often challenging to ascertain, however, from these numerous perspectives on sustainable mineral extraction, minerals and metals recycling, environmental management, and social performance, is how sustainable development applies to mining companies themselves, and what steps a mine must take in order to improve the sustainability of operations. Since mining processes have the potential to impact a diverse group of environmental entities, and are of interest to a wide range of stakeholder groups, there is ample opportunity for the industry to operate more sustainably. Specifically, with improved planning, implementation of sound environmental management tools and cleaner technologies, extended social responsibility to stakeholder groups, the formation of sustainability partnerships, and improved training, a mine can improve performance in both the environmental and socioeconomic arenas, and thus contribute enormously to sustainable development at the mine level.     

Promoting sustainable development in Ghanaian small-scale gold mining operations

This paper provides an overview of the initiatives that have been undertaken by the Ghanaian government to promote more sustainable development in resident small-scale gold mining operations, and recommends a series of strategies for perpetuating a pattern of continued improvement. Since the passing of the Small Scale Gold Mining Law (PNDCL 218) in 1989, which effectively legalized small-scale gold mining as an industry in Ghana, the government, in particular, the Minerals Commission, has made a concerted effort to regularize operations, and to provide technical and financial support to miners. Under the auspices of the German non-profit Gesellschaft Technishe Zusannebarbeit (GTZ), a small-scale gold mining registration system has been implemented, district support centres for small miners have been constructed and the Precious Minerals Marketing Corporation (PMMC) has been created, which purchases products from small-scale miners at near-market prices. Careful analysis reveals, however, that these efforts have collectively only had a marginal impact, and that the industry is still in dire need of aid. Specifically, to perpetuate further a pattern of improved sustainability--improvements in both the socio-economic and environmental arenas--additional technical and financial support must be provided, and sound environmental management practices implemented. The Minerals Commission has been burdened with these tasks and challenges but because it is largely understaffed, it is highly unlikely that it will be able to facilitate sufficient improvement in the sector on its own. Nevertheless, marked improvements can be achieved if: (1) avenues for technological dissemination are created and improved; (2) research partnerships are forged with local universities; (3) experienced consultation is hired when needed; and (4) other governmental agencies, namely the Mines Department, Environmental Protection Agency (EPA) and Geological Survey, provide the Minerals Commission assistance with prospecting, monitoring, regulation and environmental auditing activities.     

Challenges of transformation: The case of Norilsk Nickel

As Russia’s largest mining company, Norilsk Nickel was for much of its history an archetypal Soviet institution. Following the collapse of the Soviet Union and the subsequent prolonged economic crisis, in 2001 new management came into the company with the objective of transforming the company into a modern global corporation. In the years that followed, management pushed through a series of radical changes to the organisation and its operations. Simultaneous with these changes, the company extended its asset base in Russia and acquired assets outside the country. The progressive direction of the company was, however, taking it further and further out on a limb and the programme of transformation was not being matched and supported by public policy and regulation. Pressures came to a head in the middle of 2008 when a change in the structure of company’s ownership and a collapse of metal prices combined to bring about increased involvement of the state in company’s affairs and a more national emphasis to its strategic orientation.     

On the contested nature of place: ‘Figuera’s Well’, ‘The Hole of Shame’ and the ideological struggle over public space in Barcelona

This paper explores some of the discursive practices through which the place meanings are formulated, warranted and, above all, contested. Drawing particularly on the work of the social psychologist Michael Billig, we present a rhetorical analysis of newspaper reports and interview accounts about the ‘development’ of a contested public space in Barcelona, known locally both as Figuera’s Well and the Hole of Shame. This analysis explores a number of rhetorically opposed constructions of the nature, purpose and appropriate beneficiaries of this place, whose implications are discussed both within the context of local power struggles and within the context of wider ideological struggles over the nature of public spaces in Barcelona. We argue that a rhetorical perspective reveals how practices of attributing meaning and value to places are often more conflict-ridden, action-oriented, and politically-charged than is implied by much research in environmental psychology. Relatedly, we argue that environmental psychologists need to complement a ‘weak’ conception of the role of conflict in the formation of public space (focused on subjective differences in environmental tastes, preferences and values) with a ‘strong’ conception of the role of conflict (focused on ideological struggles over access, equality and inclusion).     

Maintaining land use agreements in Papua New Guinea Mining: ‘Business as usual’?

Most large scale resource extraction projects in Papua New Guinea (PNG) require companies to negotiate with customary landowners for access to development sites. In the discussion of process and challenges of development and operation of projects, particularly mines, the paper, basing as a case study of land use arrangements in PNG mining, has several objectives to address. First, it discusses land use arrangements in the mining industry and how they have evolved over the last few decades. Today, most of these arrangements involve pluralistic framework agreements which have been shaped by land tenure debates, civil uprisings, government initiatives and increasingly politically savvy customary landowners. This pluralistic process encourages key stakeholder involvement, particularly customary landowner participation which has been an innovative piece of sustainable mineral policy development in PNG. Second, the paper argues that ‘it is not business as usual’ for mining companies as it would generally be the case in developed and many developing countries because they are increasingly forced to be proactive in addressing landowner and community interests while managing mining projects. A brief overview of land use debates in PNG is summarised at the outset to provide background to mining and development in the country. Third, the significance of the corporate social responsibility (CSR) paradigm and its impact on business, particularly the mining industry is acknowledged intermittently in the discussion to shed light on how it is influencing development of local communities. Finally, the paper argues that the post-Bougainville period has led to a change of the old enclave model of mining development to a broad based community driven form of development around mining. However, it is difficult to predict as to how this model of mining led development in rural PNG will span out in the long run. In the meantime, genuine landowner partnerships with developers and government in the management and operation of mining projects in the country are proving to be a positive outcome for everyone despite some major challenges.     

Review of sustainability management initiatives within Finnish forest products industry companies—Translating Eu level steering into proactive initiatives

Sustainability has become a major focus area within forest products industry. The European operational environment and national environmental steering in EU member states highlight the importance of sustainable development and the development of associated new management approaches to promote sustainability. This article reviews some key elements of sustainability management, covering examples of both Finnish forest products industry initiatives and public environmental steering at the European level. An assessment is made of the current situation and an outline of a future outlook for sustainability management, with special emphasis on bridging the gap between industry initiatives and environmental steering in the form of legislation, policies and strategies at the EU level.This study applied a hybrid approach comprising a review of EU sustainability initiatives, a policy and legal review and a questionnaire survey of forest industry actors. The results of the future outlook indicate that energy efficiency is perceived to be the most important focus area in addition to e.g. environmental and waste management and recycling. Less than half of the companies aim at applying sustainability management. Life-cycle management is also considered to be important whereas product-based approaches, climate change and local industrial symbiosis receive very little attention. All responding companies aim to integrate the principles of sustainability into their operations and most companies consider that life-cycle thinking, management and assessment are useful for them. Energy efficiency is identified as the most important focus area with energy and materials efficiency seen as the most crucial factors for the achievement of responsible competitive advantage and building of sustainable value-added. The findings indicate that sustainability and life-cycle management are not receiving enough management focus at the moment and neither is the industry receiving enough guidance at either the EU level or via national steering and regulatory frameworks.     

Environmental impact assessment of a proposed info-tech complex in East Calcutta wetlands

An info-tech complex is proposed for 286 acres (116 ha) of land within the East Calcutta wetlands. The proposed site is 15 km east of Kolkata city and only 8 km south of Dum Dum airport. The site is vacant, with pockets of agricultural land and a few degrading water-logged areas. In order to assess the likely impact of the proposed development on the environment, a rapid environmental impact assessment of an area of 10 km radius from the centre of the project site was carried out. The present status of the environment with respect to ambient air, surface water, groundwater, soil, landuse, noise, and socio-economics of the core and buffer zone has been documented and correlated with 24 project activities during construction, development and operational phases. The frequency of adverse impacts is greater than that of beneficial impacts. Out of the total adverse impacts 20 are short term, reversible and have a low magnitude. The total impact score for the proposed project is (–)468.75 and as per the Assessment Value Index Scale the environmental impact of the proposed project activities is no appreciable impact. But there are certain sectors where the environment will be adversely impacted. Therefore, appropriate measures have been suggested to ameliorate the adverse impacts. It is envisaged that if these measures are implemented then there will be an improvement in the quality of the environment, as well as life, by 687.5 units.     

社会影响评价在油气田钻井工程中的应用

本文介绍了国际石油工业环境保护协会（IPIECA）《石油天然气行业社会影响评价导则》中社会影响评价的定义、主要原则、主要内容、评价程序与方法等,并以某油气田钻井工程社会影响评价实践为例,论述了如何有效地开展油气田钻井工程社会影响评价工作。     

A dangerous bet: The challenges of formalizing artisanal mining in the Democratic Republic of Congo

Among policy-makers and governments, there is a broad consensus that artisanal and small-scale mining (ASM) needs to be ‘formalized’ – embodied in a standardized legal framework that is registered in and governed by a central state system-, the basic condition being that artisanal miners are given formal property rights. This article aims to contribute to this discussion, drawing on a case study from the Eastern Democratic Republic of Congo (DRC), where it is estimated that up to 90 percent of mineral production and export is ‘informal’. After having pointed out some of the theoretical assumptions behind the formalization canon, we study the challenges of formalizing the mining sector in the DRC. Next, we provide an in-depth analysis of one concrete policy measure of the Congolese government, the temporary ban on all artisanal activities. We argue that the mining ban was not only a radical example of a top-down formalization policy, but also an illustration of a bureaucratic and technical measure that compounds but does not address different problems associated with ASM: conflict, informality, poverty, illegality, state control. Looking at the empirical evidence from the DRC, we argue that these kinds of technical solutions can never address the broader socio-economic and political issues at stake.     

Landfill site selection using spatial information technologies and AHP: A case study in Beijing,China

Site selection is an important and necessary issue for waste management in fast-growing regions. Because of the complexity of waste management systems, the selection of the appropriate solid waste landfill site requires consideration of multiple alternative solutions and evaluation criteria. Based on actual conditions of the study area, we considered economic factors, calculated criteria weights using the analytical hierarchy process (AHP), and built a hierarchy model for solving the solid waste landfill site-selection problem in Beijing, China. A geographic information system (GIS) was used to manipulate and present spatial data. All maps are graded from 1 (lowest suitability) to 5 (highest suitability) using spatial information technologies. The candidate sites were determined by aggregation based on the criteria weights. The candidate sites are divided by ‘best’, ‘good’ and ‘unsuitable’ landfill areas. Best landfill areas represent optimal sites; good landfill areas can be used as back-up candidate sites. Our work offers a siting methodology and provides essential support for decision-makers in the assessment of waste management problems in Beijing and other rapidly developing cities in developing countries.     

Contrasting community and corporate perceptions of sustainability: A case study within the platinum mining region of South Africa

The concept of sustainable development is debatable within the mining context as the fact that mineral resources are non-renewable makes mining inherently unsustainable. The need for a realistic definition of sustainability that can be applied to mining is important, in light of claims by the industry that sustainable development principles underpin aspects of their operations. Furthermore, the socio-economic upliftment that should logically follow the implementation of these principles is not visible in many mining areas. Within the theoretical frameworks of intermediate sustainability, our study aimed to determine the level of sustainability that is appropriate for the mining context. The evaluation of community perspectives within the Rustenburg platinum region in South Africa as a case study, based on qualitative information derived from structured questionnaires and informal interviews brings further clarity. We found out that the environmental and social costs associated with mining were high, while economic benefits to surrounding communities were low. The perceptions of community and corporations were found to contrast sharply: the reality experienced by community members fell well short of the optimistic scenarios presented in the corporate social responsibility reports of the mining companies, which has implications for the mining industry in the area. The Rustenburg region is typical of mining areas, more especially the developing world, and application of a realistic sustainable development concept here can help the mining industry elsewhere to move its operations onto a genuinely more sustainable path.     

Mining and sustainable development: considerations for minerals supply

Sustainable development involves meeting the needs of human societies while maintaining viable biological and physical Earth systems. The needs include minerals: metals, fuels, industrial and construction materials. There will continue to be considerable demand for virgin mineral resources, even if levels of recycling and efficiency of use are optimal, and rates of population growth and globalisation decrease significantly. This article aims to stimulate debate on strategic issues for minerals supply. While the world has considerable stocks of mineral resources overall, international considerations of the environmental and social aspects of sustainable development are beginning to result in limitations on where mining will be conducted and what types of deposits will be mined. Current and emerging trends favour large mines in parts of the world where mining can be conducted within acceptable limits of environmental and social impact. Finding new deposits that meet such criteria will be all the more challenging given a disturbing global decline in the rate of discovery of major economic resources over the last decade, and the decreasing land area available for exploration and mining.
To attract responsible exploration and mining, governments of mining nations will need to provide: regional-scale geo-scientific datasets as required to attract and guide future generations of exploration; resource access through multiple and sequential land use regimes, and frameworks for dealing with indigenous peoples' issues; and arrangements for consideration of mining proposals and regulation of mines that ensure responsible management of environmental and social issues.
The minerals industry will need to continue to pursue advances in technologies for exploration, mining, processing, waste management and rehabilitation, and in public reporting of environmental and social performance.     

A course in Environmental Planning and Management

Summary This paper describes a 13-weeks, third-year course in Environmental Planning and Management developed and taught by the authors. Initiated in 1969, the course consists of a mix of lectures, seminars, workshop/laboratory sessions and field-based projects. The objectives of the course are for students: to become aware of the need for, and the complexities of, environmental management; to be able to criticise constructively work done by environmental agencies and consultants, managers and decision makers; and to learn and apply some of the methods and techniques used in environmental management.Topics covered by the current syllabus are: concepts of resource and environment; constitutional aspects; international law and the environment; Australian and Canadian environmental legislation and agencies; human manipulation of ecosystems; energy subsidies; modification of biogeochemical cycles; population dynamics and cropping; fisheries; national parks and reserves—policies in different countries; international heritage areas; environmental assessment (including impact assessment, land evaluation, land capability and land suitability assessment); and regional, integrated land-use and environmental planning and management. Techniques taught include: field surveys and interviewing; laboratory analysis of selected water quality, sediment and soil parameters including nutrient concentrations, heavy metal and pesticide residues; and for some students, applications of geographic information systems (GIS) technology following preceding GIS courses.A major problem is selecting the most appropriate mix between the social and natural sciences—appropriate, first in terms of students' heterogeneous skills and backgrounds, and second, in terms of understanding the causes of environmental problems and issues, and devising practicable solutions.     

A review of the PGM industry,deposit models and exploration practices: Implications for Australia's PGM potential

Australia is prospective for platinum group metal (PGM) mineralisation (in particular primary magmatic reef, primary magmatic by-product, late magmatic and hydrothermal, and alluvial placer type) but its known PGM endowment is negligible compared to that of South Africa, Russia, the USA and Canada. Most Australian PGM projects are operated by mid-cap or junior companies and form part of larger, more diverse project portfolios held by these explorers. Most projects were ‘hot’ while market conditions were favourable. However, as other metals became ‘fashionable’ and market conditions for PGM changed, so did the focus of these companies. Pure PGM companies are rare in Australia. The search for and development of PGM-only deposits in Australia are high risk business activities. No new primary PGM deposits have been discovered since the mid to late 1980s and none of the significant deposits that were discovered or evaluated in the 1980s have been mined. This review suggests that at least several A$10 million but more likely several A$100 million were sunk into PGM exploration and development projects but none advanced to the mining stage. The viability of Australian PGM projects is very sensitive to (1) metal prices, (2) the US$/A$ exchange rate, and (3) large capital expenditure requirements relative to the small size of Australian PGM-only deposits. Most PGM-only projects were initiated at times of high PGM prices. However, advanced exploration, feasibility studies and project development always lagged behind the price booms. South Africa, Russia and Canada contain approximately 98% of the known global PGM reserves. This situation has a very negative effect on the Australian PGM industry as the well-endowed nations continue to receive the lion's share of exploration spend and new projects.