Social Acceptance for Mineral and Metal Projects: The Role of Government Report authorship: Vlado Vivoda, Sarah Mackenzie and Paul Rogers Presentation by Saleem Ali, Ph.D. University of Delaware (USA) and Universityof Queensland (Australia) saleem@alum.mit.edu www.saleemali.net Twitter @saleem_ali 1
PRESENTATION OUTLINE 1. Exploration, Mining, Processing, and Smelting 2. Building Social Acceptance 3. Stakeholders and their Roles 4. Stakeholder Engagement 5. Managing Impacts and Sharing Benefits 2
Exploration, Mining, Processing and Smelting Increasing demand for minerals Potential for revenue generation, economic development and poverty alleviation But also potential to have significant negative social and environmental impacts Pollution & negative impacts on human health Damage of habitat Appropriation of land Alteration of social relationships Destruction of livelihoods Human rights violations (including social, economic and cultural rights) Conflict Adverse impact on social acceptance 3
How do you build social acceptance? Through good engagement (inclusive, transparent, two-way, meaningful) By managing impacts By sharing benefits with all stakeholders 4
Standards, tools and mechanisms for building social acceptance Intl. Standards and Frameworks Social Impact Assessment Free Prior and Informed Consent (FPIC) Resettlement planning Agreements Grievance mechanisms Shared value and benefit sharing Distribution and use of taxes and royalties Local content Strategic community investment 5
Stakeholders and their Roles Not just mining companies and community Government overarching role Involvement and responsibility of all stakeholders Working together to strike balance and compensate for different levels of capacity Participate Monitor Engage Inform Community / Civil Society Mining Companies Comply Participate Regulate Consult Protect Enable Inform Participate Control Facilitate Mediate Government Invest Respect Allocate 6
Stakeholder Engagement Key issues for Government Provide frameworks / regulations around engagement and consultation Engage and inform constituents Participate alongside companies in community engagement and information sharing activities Monitor and control company activities Defend and uphold the rights and interests of affected / impacted citizens 7
Managing Impacts and Sharing Benefits Key issues for Government Legislate and regulate risk assessment and mitigation Monitor, control and sanction Redistribute mining revenues (taxes, royalties, etc.) Provide guidance and regulations around local employment Provide support to improve local skills and expertise and enhance potential for local employment Provide guidance and regulations around local procurement Provide support for the development of local goods and services industry Participate in strategies for community investment or CSR by companies to ensure alignment with local, regional and national strategies 8
Mining, Smelting, Refining Differentiating features: community s relative lack of control over NIMBY syndrome for mining versus smelting, refining. Planned obsolescence of mining project versus potential for longerterm trajectory of smelting and refining, partly linked to recycling sector potential Energy versus water requirements Air pollution versus water pollution Common features Competing land use features Bio-persistent metallic pollution concerns 9
Difference between metals Unlike gold, which is viewed by activists as a luxury metal, copper and zinc are viewed as essential metals. Lead has a pollution reputation branding challenge but since it is now usually mined as a by-product, there is less emphasis on its specific pollution attributes for social acceptance. There is also a recognition of its importance in radiation shielding. Public is generally aware of uses of copper but less so of zinc though its pharmaceutical nomenclature has led to greater perception of acceptance. 10
Cases noted in our report Copper in Zambia poverty and dependence Mozal smelter development donor-induced project Copper in Philippines the cost of conflict Tintaya in Peru lessons from a dialogue process Norlisk nickel dealing with legacy Lisheen planning for closure at a lead and zinc mine Amabtovy nickel in Madagascar local procurement and ecosystem services valuation Community engagement norms comparison Performance standards comparisons Navigator work for GIZ on economic linkages 11
Conclusion Striking a balance: Government plays a key role in building social acceptance and must: Protect its citizens Encourage sustainable investment and growth Provide an enabling and attractive environment for investors Ensure appropriate laws and regulations are in place Effectively monitor and enforce applicable laws and regulations Be transparent and accountable to all stakeholders 12
THANK YOU 13