What a social license to operate means for global mining companies

Abstract

A social licence to operate (SLO) is granted to companies by the local community and stakeholders. An SLO cannot be self-awarded, there are certain steps that a company needs to have in place to obtain the approval of the local community. The key is for companies to acknowledge that their operations play a significant role in society and they can promote social development. An SLO is a concept that has widely gained momentum within the mining sector and can be used to promote social development. The research focussed on the International Council on Mining & Metals (ICMM) member companies and their reference to the SLO and the ten principles of the ICMM. The research paper may provide guidance for all mining companies in improving their social impact on local communities. The research methodology that was used, was based on a qualitative cross-sectional content research design which used the ICMM member companies annual integrated and sustainability reports over a five-year period. The research found that all the ICMM companies acknowledged the importance of their relationship with the local communities and provided further information on how they engage with their local communities. There was also definitive link between the ICMM ten principles and obtaining an SLO. The mining sector plays a significant role in the economy, providing essential minerals and improving society development. The research demonstrated the importance of relationships between a mining company and the local community. Providing benefits to the community can provide positive returns for companies and obtaining an SLO is crucial to achieve this. Mining companies can have a great impact on social development and provide many benefits to local communities and stakeholders which are aligned to the United Nations Sustainable Development Goal’s. The key is to ensure that the relationship between the company and the community is filled with respect, credibility and all interests are aligned.