New Expectations of the Mining Industry

As the mining industry moves further into developing countries in search of new resources, its role in international development is coming under increasing scrutiny. This is a trend that is likely to accelerate, along with the potential for headaches among managers in the industry. Public interest in development and environmental issues is rising as faith in “big business” falls. This has strengthened nongovernmental organizations (NGOs) campaigning for sustainable development. And it has put more pressure on banks, governments and development agencies to curb corporate misdemeanors. Developing world governments are also becoming emboldened to reject previously agreed terms they do not consider equitable. The mining industry has begun to formulate a response to these pressures but must go much further. Societal and environmental issues must move from public relations to core strategic thinking. Abiding by rules or codes is not a relevant response. Instead, genuine support for sustainable development is required. This will involve delegating the responsibility for engaging with local communities to on-the-ground staff and developing a dialogue with local stakeholders rather than conducting an initial assessment and disengaging.