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  • Social License To Operate

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    Juan Maximiliano Rico Sedas
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    1) The Mareña Renovables wind farm project in Spain was stopped by the community after several attempts to start construction due to a lack of social acceptance and trust. 2) The Wirikuta mining project in Mexico was cancelled due to public protests and opposition from artists and celebrities, despite the company's ownership of concessions in the sacred land. Both cases illustrate how critical earning and maintaining social acceptance is for resource projects. Local communities can halt projects that lack understanding of their needs and values. Even with legal permits, negative public perception and opposition can force cancellation. Building trust and legitimacy over the long-term through open dialogue is

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    --Social License to Operate--

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    1) The Mareña Renovables wind farm project in Spain was stopped by the community after several attempts to start construction due to a lack of social acceptance and trust. 2) The Wirikuta mining project in Mexico was cancelled due to public protests and opposition from artists and celebrities, despite the company's ownership of concessions in the sacred land. Both cases illustrate how critical earning and maintaining social acceptance is for resource projects. Local communities can halt projects that lack understanding of their needs and values. Even with legal permits, negative public perception and opposition can force cancellation. Building trust and legitimacy over the long-term through open dialogue is

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    15 views9 pages

    Social License To Operate

    Uploaded by

    Juan Maximiliano Rico Sedas
    1) The Mareña Renovables wind farm project in Spain was stopped by the community after several attempts to start construction due to a lack of social acceptance and trust. 2) The Wirikuta mining project in Mexico was cancelled due to public protests and opposition from artists and celebrities, despite the company's ownership of concessions in the sacred land. Both cases illustrate how critical earning and maintaining social acceptance is for resource projects. Local communities can halt projects that lack understanding of their needs and values. Even with legal permits, negative public perception and opposition can force cancellation. Building trust and legitimacy over the long-term through open dialogue is

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    Social License to Operate

    (SLO)

    1
    WHAT IS SOCIAL LICENSE TO OPERATE

    DEFINITION
    Refers to the ongoing acceptance and approval of a
    mining project by local communities and other
    stakeholders that can affect its profitability.

    UNDERSTANDING
    Institution where the expectations or “rules” between
    companies and local communities are negotiated
    through all the life cycle of the project.

    KEY FACT

    Has to be earned and maintained.


    CHARACTERISTICS
    NOT-WRITTEN DYNAMIC AND
    INTANGIBLE CHANGING

    GRANTED ON A
    NON-PERMANENT
    SPECIFIC SITE

    INFORMAL
    VALUE OF SLO

    RISK MITIGATION

    OPERATION OF THE PROJECT

    BENEFITS FOR STAKEHOLDERS


    ACHIEVE GOALS
    CENTRAL COMPONENTS

    TRUST

    CREDIBILITY

    LEGITIMACY

    LEGAL
    REQUIREMENTS
    MEASURING THE SOCIAL LICENSE

    Level of SLO Symptons/indicators

    Shutdowns, blockades, boycotts, violence/sabotage, legal


    Withheld / Withdrawn challenges

    Lingering / recurring issues & threats preesence of


    Acceptance / Tolerance
    outside NGOs, watchful monitoring

    Company seen as good neighbor, pride in collaborative


    Approval / Support achievements

    Psychological Political support, co-management of projects,


    identification united against critics
    SUCCESS FACTORS

    Positive
    Understanding Ensuring an open
    Language & history corporate
    the local culture communication
    reputation

    External factors affect the outcomes through a situational analysis


    that examines the social, political, economic, and technological dimensions
    EXAMPLES

    Mareña Renovables Project

    Began in 2003 under Spanish company Preneal, was to be the biggest


    wind farm in Latin America, consisting of 132 turbines, in addition to
    substations, docking stations, and associated roads and transmission
    lines. Stopped by the community after several tries and the sale of the
    project to different international fund.

    Wirikuta

    Wirikuta is asacred land with include the Real de Catorce city. In 2009,
    the Canadian First Majestic Silver Corp acquired the 35 concessions of
    the disappeared Real Bonanza company to extract silver ore and
    relaunch mining activity in Real de Catorce, through its project called 'La
    Luz’. Due to the movement of artists and celebrities the project was
    cancelled.
    ACTIVITY

    Present two different cases of SLO.


    1. A case where the lack of absence of SLO
    stop the project.
    2. A case where despite the lack of SLO, the
    project and the company continue to
    operate.

    Reflections about the SLO taking as a starting


    point the two cases presented.

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