International Social License in Mining Projects (398d5fa8-9bb7-41fe-a37a-87700a767f4f)

"Social License, the consent of the neighbors and community to develop and operate a mine, has received little attention until recently. Though social license is intangible, not having this relationship with the community carries operational and economic risk to a project, potentially including future impairment of the asset. Acquiring and maintaining social license is a long term personal relationship. It requires communication, commitment, consistency, and transparency. This presentation will review the building blocks to acquire and maintain a social license based on experiences with mining projects in Mexico. INTRODUCTION 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 2015 it is widely recognized that mineral resources and reserves must give due regard to the social license in order to operate. “Most commonly, the 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 I 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.In 2015 it seems that we have added some other legs to the stool. The 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 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."