[Facilitation Note: Dr. Daniel Franks (Senior Research Fellow, CSRM, University of Queensland) highlights that a “policy framework that encourages responsible mineral resource development and greater public and civil society involvement in decision-making can improve outcomes for communities while still maintaining a reasonable investment climate”. He shares a few examples of “policy innovation within companies to better address the social impacts of resource development”.]
Dear Network Members,
Policy innovation for better governance of the social impacts of mining
Mining and energy developments bring change. They can negatively impact the environments, communities and economies near ore deposits and processing sites; simultaneously they can also bring economic, social and sometimes environmental opportunities through the conversion of the ore body into financial resources; the development of skills, infrastructure and businesses; and the investment of those resources into social and environmental initiatives. Change is experienced very differently by different people depending on a multitude of factors including, values, history, livelihoods, demographics and, of course, the distribution of the costs and benefits of a project.
The process of how change is managed can have a big influence on the outcomes. It is sometimes argued that to attract extractive resource developments developing country governments should reduce business costs and put in place policies and laws that expedite or prioritize mineral and energy resource development. Such an approach, however, can be a disincentive for investment by experienced and responsible resource developers not only because it can increase business risks and jeopardize the prospects for long term success of developments, but also because weak governance environments tend to attract inexperienced companies. Significant costs can be experienced by companies in conflict with communities due to delays, shutdowns, and the closure of projects (see Davis and Franks 2011).
When stakeholders have an opportunity to actively participatein the decision-making of resource developments and ensure that the project is consistent with their values and livelihoods, their experience of those developments tends to be more positive and their attitudes toward projects more supportive (though this is not exclusively so).
These initiatives point to greater flexibility for governments to implement policies that mandate better social and environmental performance for all companies operating within their jurisdiction. A policy framework that encourages responsible mineral resource development and greater public and civil society involvement in decision-making can improve outcomes for communities while still maintaining a reasonable investment climate.
Kind regards,
Dr. Daniel Franks
Senior Research Fellow
Centre for Social Responsibility in Mining
University of Queensland
Co-Chair Social Impact Assessment, International Association of Impact Assessment
Twitter: @resourceafflict
