Mining On Top: Stockholm 2013 26-27 Nov 2013 Social license to operate - do mining companies pursue this concept inSweden? – Dr Håkan Tarras-Wahlberg, Swedish Geological; Managing Director

1. Social License to
Operate:
do mining companies pursue
this concept in Sweden?
Håkan Tarras-Wahlberg
- Swedish Geological AB
- Stockholm School of Economics Institue for Research

2. What is meant by ”SLO”?
 Origins in western (Anglo-American) Mining
Industry
 Example of definition (miningfacts.org):
”SLO refers to the acceptance within local communities of both
mining companies and their projects…… The credibility of
mining companies is based on mutual respect, honesty, open
dialogue, transparency, timely responses to community
concerns, information disclosure, and constancy and
predictability in the companies’ ethical behavior. Obtaining an
SLO is essential for reducing the risks of social conflicts and for
enhancing a company’s reputation”.
 Note, SLO ≠ Free Prior & Informed Consent (FPIC)

3. This presentation:
 What mining companies may do to gain SLO
 Why then?
 Some research results (from Sweden)
 Concluding quastion & thoughts

4. How obtain ”SLO”?
 Abide by ”hard law”, in addition:
 Following ”soft laws” (ICCM, OECD, WB, EITI,






SveMin etc.)
Create local work & business opportunities
Initiatives for transparent disclosure
Local agreements (e.g. Impact Benefit
Agreements)
Provision of information / educative efforts
Philantropy
CSR & Co C

5. Why do more:
negative public opinion

6. Why do more:
the main issues of concern
87
Reducing environmental impacts
84
83
Improving community relations
72
63
Using, reusing and disposing of materials responsibly
65
62
Improving its approach to health and safety
56
55
Reducing CO2 emissions that contribute to climate
change
Improving revenue management and transparency
2007
2010
67
55
43

7. Issues of concern - Sweden

8. Some research, then:
 What do mining companies in Sweden do to
gain a Social Licence to Operate ?
• Completed: study of choices made by companies in
applying for mining licenses (-2012)
• Later, case study (to be selected)
• Complementary case studies: in South Africa
(ongoing); and Australia (to be selected)

9. Why focus on permitting
process:
Scope & expectations of EIA

10. Results - Sweden:
Social license to mine in Sweden: do companies go the extra mile to gain
community acceptance?
 Established mining companies:
- no more than necessary
 New mining and exploration companies:
- more than legally required
 In spite of this:
- The established companies accepted; new ones
resisted

11. Results - Sweden:

12. Results - Sweden:

13. Is CSR the solution then?
LonMin, South Africa:
”Best in class”
” Ten years of
Sustainable
Development
Reports…. a narrative
of broken promises and
worthless commitments
to improve”
Yanacocha, Peru:
”Corporate Social
Responsibility
distinction”
”Conga no va”

14. But, who should do what?
Early 1900s:
”LKAB does
everything”
2013:
”LKAB should
do more”

15. What should mining companies do
(in Sweden)?
 Mine and explore for minerals, reponsibly
 Create (local ) work & business opportunities
 Pay taxes, abide by laws
 Consult & disclose
 Provide information / educate
What else do you think they should do?

16. Concluding thoughts:
 Swedish mining companies – beginners at CSR.
Does that make them irresponsible or bad?
 Results & efficiency of CSR in mining, in many
places contested.
 Swedish companies have become alerted to the
need for CSR by influences from abroad.
 How well does CSR fit in a Nordic, welfare state
based context ?
 Is there anything in the Swedish experiences that
can be usefully applied elsewhere?