“It used to be the case that the value of a gold mine was based on three variables: the amount of gold in the ground, the cost of extraction, and the world price of gold. Today, I can show you two mines identical on these three variables that differ in their valuation by an order of magnitude. Why? Because one has local support and the other doesn’t.” (Yani Roditis, former COO Gabriel Resources)
Social Licence to Operate
Social Acceptance, Transparency and Trust
Social Licence to Operate (SLO) has been ranked for the last number of years as the biggest risk to the mining industry. Now broadly described as ESG, but when engaged in advancing mining or any large infrastructure project, working positively with people and communities which is the key to success.
Each community has unique values dependent on their natural, built and intangible heritage. This is what gives them their sense of place and their identity. Stakeholders, engagement, and impact must be understood and valued by miners and energy companies.
Whether the operations are established, or reworking an abandoned mine to entering non-traditional mining areas through exploration communities must be part of the decision process.
Success is through identifying shared values between communities and industry.