Miners Face Higher Bar To Maintain 'Social Licence', Report Warns

Mining companies face the loss of their social licence, conflict with communities and potentially costly lawsuits if they are unable to demonstrate they are going beyond their required stakeholder and environmental obligations, warns a report from Deloitte.

Australian and international mining firms have traditionally sought to mitigate the risk of conflict with the communities in which they operate by investing heavily in socioeconomic development such as recruitment, training and health programs. They must also comply with strict regulations such as environmental rehabilitation and monitoring the post-mining environment.

But according to the report being circulated among the mining industry from corporate consultancy Deloitte, the impact of these investments is often viewed as insufficient, and miners' social licences could be increasingly at risk unless they can prove they are not only meeting but exceeding what is legally required of them.