International Social License in Mining Projects

"Mining has been a source of controversy for at least 500 years. “Since there has always been the greatest disagreement amongst men concerning metals and mining, some praising, others utterly condemning them…” (Agricola, 1556). In 2016, it is widely recognized that mineral resources and reserves must give due regard to the social license in order to operate.“Most commonly, the social license to operate (SLO) is understood to refer to ‘the ongoing acceptance and approval of a [project] by local community members and other stakeholders that can affect its profitability’ (Moffat, 2014).” “Social License to Operate has gained traction, in part, because it is also a concept which – while remaining poorly, technically defined – is generally easily and widely understood by community stakeholders (Bice, 2014).”A generation ago we learned that mining is based on a stable platform supported by three pillars, geology, mining and metallurgy. The three-legged stool is a very stable structure (Fig. 1).In 2016, it seems that we have added some other legs to the stool (Fig 2). The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) addresses “social, and governmental factors…” (JORC 2012), and refers specifically to social license in Section 4 of the Report Template “Estimation and Reporting of Ore Reserves.”The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Guidelines refer to “environmental, legal and social data…(CIM 2003).”Compared to these, the 2014 SME Guide is positively verbose stating “a discussion of any potential social or community related requirements and plans for the project and the status of any negotiations or agreements with local communities,” (SME 2014) although in all cases the scope of this disclosure is left at the discretion of the competent person.When there are more than three legs on the stool, it is imperative that all legs be constructed exactly to the design. Any one or more legs that are out of alignment will cause the stool to wobble.Engineers are trained to create designs to meet specifications. Loads can be estimated, forces calculated and cost studies completed that will lead to, not only a stable design, but the most efficient design that meets the specifications."