Mongolia 2012 day 1 brereton
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  • 1. International Best Practice inCommunity Relations in MiningProfessor David BreretonDeputy Director – Research Integration 1
  • 2. 3
  • 3. The Sustainable Minerals Institute: What we do
  • 4. What is good practice in community relations? Practice that helps to build and maintain the social licence to operate of mining projects 5
  • 5. The concept of the ‘social licence’• A mining project has a social licence if it has the broad acceptance and support of local communities and other key stakeholders in the society.• The social licence can be as valuable as the formal licence granted by governments. 6
  • 6. A Case Study: Newmont’s Conga project in Peru August 2012 Newmont CEO admits July 2012 project is ‘effectively June 2012 3 protesters dead’ Permission shot dead; Nov, 2011 to resume, State of Licence with new emergency suspended conditions 2011 Community protests & 2010: blockade Environmental New licence granted Government elected
  • 7. Why the social licence is important iThe costs of poor relations• Increased difficulty in getting project approvals• Potential delays and disruption• Employees placed at risk• Reputational damage – difficulty in obtaining future access to land and resources – withdrawal of investor support – international criticism 8
  • 8. Why the social licence is important iiThe benefits of good relations• reduced transaction costs due to greater cooperation and trust• goodwill – a buffer for when things go wrong• more motivated employees 9
  • 9. Building blocks for securing a social licence Commitment Systems Social licence Skills Knowledge
  • 10. Community relations vs. public relationsPublic Relations Community Relations• One-way • Two-way• Messaging • Understanding• Telling • Listening• Persuading • Responding 11
  • 11. The three elements of engagement Source: Zandvliet and Anderson, Getting it Right 1 12
  • 12. Some good practice guidelines• Be inclusive – don’t play favourites• Be open and transparent – an informed community is a much stronger ally than an uninformed one• Respond promptly to concerns and issues raised by the community• Follow through on commitments• Seek out opportunities to give community members a sense of ownership and control over initiatives• Ensure that project benefits & opportunities are broadly distributed 13
  • 13. The importance of integrationEveryone in the project should be reading from the same page
  • 14. Some useful resources http://www1.ifc.org/wps/wcm/connect/topicshttp://www.icmm.com/library/c _ext_content/ifc_external_corporate_site/ifc+sommunity-development-toolkit ustainability/publications/publications_handb ook_stakeholderengagement__wci__1319577 185063