The decision over the weekend by Indonesia to revoke the gold mining exploration permit of Australian Arc Exploration (ARX) due to violent community protests demonstrates the perils of doing business without a social licence to operate.
Whilst Oxfam cannot pass judgment on the Arc Exploration case, it's clear that communities held grave concerns that the proposed mine would threaten forests and water supplies. It is tragic that this has resulted in loss of life.
A social licence to operate is gaining informed consent – without intimidation or coercion - from communities affected by a proposed mine, well before the heavy machinery rolls into town.
As Australian mining and exploration companies increase their activities in resource-rich, developing countries, there is growing societal and investor expectation that they will secure the consent of landowners, respect human rights, conduct operations with a high level of transparency and ensure communities get a fair share of their resource wealth.
But all too often, consultation with communities is mistaken for actual consent to commence digging.
The Drum
No comments:
Post a Comment