Stakeholder Engagement and Social Sustainability in the Mining Sector

Local communities are undertaking an increased role in mine project decision making processes, associated with growing pressure and expectations from regulators, financiers and the general public. This is particularly evident in international projects within developing economies. Environmental and social issues are often complex. Solutions demand difficult choices and trade-offs between sustainable development dimensions: economic growth, social equity and environmental integrity. Proactive stakeholder engagement can play a critical role in assisting decision-makers in determining the operational reality of sustainable development by jointly exploring project trade-offs between proponents and affected stakeholders. Good stakeholder engagement has other potential benefits, ranging from reduced financial risk due to regulator delays, legal disputes or negative publicity to increasing market share through good public image. Approaches to consultation and disclosure have changed from short-term regulatory based focuses, to longer-term, strategic tools for relationship building, proactive risk management and new business identification. Approaches to consultation form a significant opportunity to contribute to overall social sustainability. This paper discusses, based on authorsÆ experience, the broader concept of stakeholder engagement and its contribution to social sustainability of the mining industry. The focus is on key considerations for an effective stakeholder engagement. Three case studies outline how broad based, proactive stakeholder engagement can contribute to improved operation and overall sustainability. The case studies include: a greenfields project in Ghana; a long-term mine in Australia; and an open-pit mine in Vietnam.