Managing the Social Risk of Mining

It is self evident that in many cases mining disrupts communities, however, community reaction to mining varies enormously. This is due to a whole host of factors, some physical, some financial, some political and some a direct result of the projected mining company attitude towards the community at large. Physical and political factors are increasingly being dealt with realistically and financial aspects are to a significant extent determined by profit margins. If the acceptable profit margin canÆt accommodate all necessary costs (which now includes a variety of community considerations unheard of even a decade ago), then the project is just not viable. Despite major commitments now made by many mining companies to their affected communities, corporate attitudes, and their projection, remain as the most outstanding factor in mining project development where real gains can still be made in effectively reducing social risk. This paper addresses both international and domestic experience gained in managing this aspect of mining development risk, including initiatives implemented by multilateral institutions.