Sustainable development through mining final

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© SRK Consulting (UK) Ltd 2016. All rights reserved.

Presenter:

Location:

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Value of a Social License to Operate

Sustainable Development through Mining

Dr Cathryn MacCallum

Santiago, Chile

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IntroductionSocial license and sustainable development

• Understanding• Achieving • Measuring

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Global Sustainability Challenge

aspirations and demands of people’s expectations and needs against the capacity of natural resources

upon which they/we depend

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Sustainable Development and Poverty Reduction

Sustainable Livelihoods Framework

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International Development Agendas

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Corporate Social Responsibility to Social License

misinformed

dependency

substitute

conflict

philanthropy

expectations

RI

SK

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Redefining a Social License to Operate

Social risk to operations

• Pre-existing poverty and unsustainable livelihoods

• Shift from subsistence to cash based economy

• Political and community conflicts

Social license to operate

• Facilitation of critical dialogue

• Understanding poverty contexts

• Engagement in responsible and culturally appropriate practices

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Interrelationships and Interdependence

Host communities

Mining company

Regulatory bodies

Global context

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Community Profiling

Poverty drivers should inform social obligations

Put people and what they value at the centre rather than what they want or need

Poverty is complex and multidimensional

Understanding local context and perceptions is the first step in effective relationships

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Quantifying a SLO

• How does a company know if they have achieved a SLO or not ?

• What can they do to improve or maintain it ?

• How and what are the cost implications?

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Measuring an SLO

• Understand the complexities and multi-dimensions of the poverty context;

• Tackle vulnerability, promote resilience, mitigate risk• Enhance security, social cohesion and asset valuation

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Social License and Sustainable Development

“Development is, ultimately, the

progress of human freedom and

capability to lead the kind of lives

that people have reason to value.”

(Sen 2013)

•Start with the assets in a community rather than the needs of the community;

•Enable investigation of livelihood dynamics in a given geography and historical context;

•Place the interactions of the different capital assets within a broader policy environment;

•Create opportunities to build on what is already happening and on what the host community values

•Emphasize the importance of seeing land as just one among several assets/ capitals required to make a living.

(MacCallum 2014)

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Conclusions- Three take away messages

1. People attribute more value to what they may lose than what they may receive.

2. Mining has a legitimate role in the SDG framework and can utilise this to achieve and maintain a SLO;

3. The SRK SLO Index can assist a mining company to identify the causal factors of risks and opportunities and in turn enable effective mitigation and maximization.

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SRK Office Locations

>1,600 Professionals, 50 offices, 22 countries, 6 continents

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© SRK Consulting (UK) Limited 2016 version: Jan 2016

Engineering

Sustainable development through mining final