abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

30 Mar 2015

Author:
Firat Kayakiran and Andre Janse Van Vuuren, Business Day (South Africa)

Mining communities increasingly negotiating more successfully with companies, demanding better returns

'Community acceptance is the motherlode of mining', 30 March 2015: …While opposition to mines is nothing new, the issue is a growing concern for miners such as Anglo American, and executives are increasingly speaking out…Push-back has been growing since the 1980s, when communities were rarely consulted about new mines. Now, local support is critical, according to Thras Moraitis, [principal at X2 Resources; previously head of strategy at Xstrata] "You can’t get a permit without involving full and prior consent of the local communities," he says. Communities…are mobilising to negotiate more successfully with…companies…[and] [r]esidents who are relocated…are demanding more in return…[A] study…[by] the Kellogg School of Management at Northwestern University in Illinois reported a growing lack of trust among local communities. The cost is "both real and significant", the authors wrote in urging companies to work harder to integrate social effects, including human rights problems, into their earliest planning for new projects…[refers to Glencore, Kumba, Vedanta]