Social License to Operate

Mining companies of any size or jurisdiction recognize the need to secure legal licenses to operate – government permits that define the formal framework for companies to operate. Today, the mining industry is recognizing that mining companies, and the mining industry as a whole, also need to secure a “social license to operate.”

Currently, a social license to operate is an informal, intangible and most importantly nonpermanent permission to operate within a community.

By earning and maintaining a social license to operate, the mining company or industry gains the inputs that it needs to advance a project while at the same time contributing to the sustainable development and well‐being of a community.

Without a social license to operate, community resistance can create delays or stoppage, non‐granting of legal licenses, or reputational damage to the company or industry. Additionally, there is a missed opportunity to contribute to advancing the development and well‐being of a community.