Social license to operate - do mining companies pursue this concept inSweden?

Social License to Operate:

do mining companies pursue this concept in Sweden?

Håkan Tarras-Wahlberg - Swedish Geological AB - Stockholm School of Economics Institue for Research

What is meant by ”SLO”?

Origins in western (Anglo-American) Mining Industry

Example of definition (miningfacts.org): ”SLO refers to the acceptance within local communities of both mining companies and their projects…… The credibility of mining companies is based on mutual respect, honesty, open dialogue, transparency, timely responses to community concerns, information disclosure, and constancy and predictability in the companies’ ethical behavior. Obtaining an SLO is essential for reducing the risks of social conflicts and for enhancing a company’s reputation”.

Note, SLO ≠ Free Prior & Informed Consent (FPIC)

What mining companies may do to gain SLO

Why then?

Some research results (from Sweden)

Concluding quastion & thoughts

This presentation:

How obtain ”SLO”?

Abide by ”hard law”, in addition:

Following ”soft laws” (ICCM, OECD, WB, EITI, SveMin etc.)

Create local work & business opportunities

Initiatives for transparent disclosure

Local agreements (e.g. Impact Benefit Agreements)

Provision of information / educative efforts

Philantropy

CSR & Co C

Why do more: negative public opinion

43

67

56

65

72

84

55

55

62

63

83

87

Improving revenue management and transparency

Reducing CO2 emissions that contribute to climate

change

Improving its approach to health and safety

Using, reusing and disposing of materials responsibly

Improving community relations

Reducing environmental impacts

2010

2007

2007 2010

Why do more: the main issues of concern

Issues of concern - Sweden

Some research, then:

What do mining companies in Sweden do to gain a Social Licence to Operate ?

• Completed: study of choices made by companies in applying for mining licenses (-2012)

• Later, case study (to be selected)

• Complementary case studies: in South Africa (ongoing); and Australia (to be selected)

Why focus on permitting process: Scope & expectations of EIA

Results - Sweden: Social license to mine in Sweden: do companies go the extra mile to gain community acceptance?

Established mining companies: - no more than necessary

New mining and exploration companies: - more than legally required

In spite of this: - The established companies accepted; new ones resisted

Results - Sweden:

Results - Sweden:

Is CSR the solution then?

Yanacocha, Peru:

”Corporate Social

Responsibility

distinction”

”Conga no va”

LonMin, South Africa:

”Best in class”

” Ten years of

Sustainable

Development

Reports…. a narrative

of broken promises and

worthless commitments

to improve”

2013:

”LKAB should

do more”

But, who should do what?

Early 1900s:

”LKAB does

everything”

What should mining companies do (in Sweden)?

Mine and explore for minerals, reponsibly

Create (local ) work & business opportunities

Pay taxes, abide by laws

Consult & disclose

Provide information / educate

What else do you think they should do?

Concluding thoughts:

Swedish mining companies – beginners at CSR. Does that make them irresponsible or bad?

Results & efficiency of CSR in mining, in many places contested.

Swedish companies have become alerted to the need for CSR by influences from abroad.

How well does CSR fit in a Nordic, welfare state based context ?

Is there anything in the Swedish experiences that can be usefully applied elsewhere?