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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Introduction
Social 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
philanthropy
expectations

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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 Consulting (UK) Limited 2016 version: Jan 2016

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