A guide to leading practice sustainable development in mining

are able to show that they take their community responsibilities seriously (Harvey &
Brereton, 2005). These benefits can include reduced time in obtaining approvals and
negotiating agreements, easier access to new resources, an improved corporate risk
profile and, potentially, the ability to secure access to capital on more favourable terms.
For those companies with residentially-based operations in relatively remote parts
of Australia, another business driver is the challenge of attracting and retaining
employees, particularly in the context of recurring skills shortages. Put simply,
employees and their families will be more likely to move to, and stay in, communities
if they are seen as offering a good quality of life with long-term educational,
recreational and employment opportunities, for young people in particular.
This provides a strong incentive for companies to invest time and resources in
contributing to the development of these communities.
Indigenous Communities
With more than 60 per cent of Australian minerals operations neighbouring Indigenous
communities, the development and maintenance of strong and positive relationships
with Indigenous communities is critical to securing and maintaining the industry’s
social licence to operate. Increasingly, agreements with Traditional Owners require
mining companies to engage effectively with Indigenous communities and contribute
to long-term development objectives. Companies that are unable or unwilling to do so,
or fail to follow through on undertakings, are likely be seriously disadvantaged when it
comes to negotiating future agreements with Traditional Owner groups.
As well as the broader corporate business case for the establishment of lasting
relationships with Indigenous communities set out above, there are a number of
specific benefits to mining companies from such relationships. They include:
facilitating the development of mutually beneficial and sustainable land access
agreements. Such agreements respect Indigenous rights and interests in country
as well as securing access for exploration and mining, and are achieved through
negotiation based on respect and common understanding, rather than litigation.
facilitating legal compliance through the protection
of Indigenous cultural heritage.
accessing a local labour force based in neighbouring Indigenous
communities that could decrease dependence on expensive fly-in, flyout
operations and/or reduce the need to establish mining towns.
attaining the benefits of workforce diversity through
increased Indigenous employment.
securing a local supply chain through local Indigenous-owned businesses
gaining input from Indigenous community members in various aspects of a
mining operation, such as environmental management, risk management,
mine closure planning and the management of social impacts.
ensuring better outcomes in environmental management through
access to local and traditional ecological knowledge.
enhancing the industry’s sustainable development credentials by contributing
to the development of prosperous and sustainable regional communities.
Barrick’s Pierina mine operates in an area dominated by Indigenous people in the
Andean mountains of Peru. The following case study highlights the positive influence
that mining can have on a community in which a modern mining operation is located.
A GUIDE TO LEADING PRACTICE SUSTAINABLE DEVELOPMENT IN MINING 95