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Article

1 Mar 2009

Author:
Juliet Hepker, Critical Resource

The financial value of trust

[M]ining…[c]ompanies focused on cost-cutting may be tempted to treat management of socio-political and sustainability issues as a luxury they can forego, particularly for projects being put on hold. But research based on Critical Resource’s LicenseSecure™ methodology…suggest[s] that a foreign company’s handling of social and political concerns…can be critical to the way the business is treated by its hosts when conditions improve…Mining companies should seek…to balance the need to adapt quickly to the current change in operating environment with their longer-term interests. Well-focused sustainable development programmes and other relationship-building activities can help ensure that local and national support…is not lost or damaged. [refers to BP, Freeport McMoRan]