SRK finds many mines focus on meeting the minimum requirements of national legislation but struggle to comply with permit conditions, rather than good international industry practice. A legal-compliance focus often does not address risks. Mid-tier companies and emerging and junior miners tend to be more reactive than major mining companies. Many mines do not recognise the value of constructive stakeholder relationships and the foresight this brings in the identification of high-level risks.
Where companies have adopted international standards, the commitment to transition from compliance-only to beyond-compliance practice grows. These companies are generally motivated by building brand, managing their reputation and distinguishing themselves from their competitors, while maintaining their social licence, increased efficiency and profitability. Some mining companies develop integrated and well-communicated strategies. To move along the sustainability continuum they need to implement a comprehensive stakeholder engagement plan throughout the life-of-mine.
To truly understand the situation and actively engage stakeholders, ongoing monitoring and proactive management is key. The growing risk of losing their social licence to operate may be the leading business risk for mining.
Mining companies will need stronger corporate support and improved operational structures and systems to achieve environmental and social performance goals.
