The devolution of the social licence to operate in the Australian mining industry

Abstract

The aim of this paper is to present a brief historical analysis of the Australian mining industry and the development of its social licence to operate. Commencing with the discovery of coal in the 18th century, to gold and copper and base metals in the 19th century, to the world class iron ore, mineral sands and diamond mines of the 20th century to the current day, the paper will attempt to determine how and why an industry, formerly well-respected by the public, is considered to be a pariah in the eyes of many sections of society. The theory of social licence and its use in the Australian minerals industry is briefly described and a working definition of "an honest, transparent engagement resulting in a beneficial outcome to all parties before, during and after mining" is adopted throughout the paper. Case studies illustrating examples where mining operations were, and continue to be sustained for decades, provide clear evidence of having a social licence to operate. On the other hand, examples are provided illustrating where poor environmental management practices, tailings dam failures, disputes with landowners, and/or government intervention have resulted in the loss of the social licence and early, unplanned closure. The paradox is that despite the industry's acknowledged contribution to the Australian economy, particularly in times of global ructions such as the GFC and the current coronavirus pandemic, there is considerable antipathy towards the industry by the public. Furthermore, the Australian mining industry's approach to environmental management and sustainable development is regularly used as a model for emerging mining economies. The industry has pioneered remediation and rehabilitation on challenging sites, including prime agricultural land, forests, riverine and beach environments. Successes are rarely acknowledged however but failures are highlighted, by the media, opponents of the industry, and governments. Clearly, the business as usual approach is not enough. Mining industry leaders need to take strong measures to ensure the industry is sustainable and maintains its social licence including eliminating all fatalities and serious injuries, ensuring the safety and stability of tailings storage facilities, accelerating progressive rehabilitation particularly on open cut coal mines, successfully closing mines, and lifting the environmental performance of all mines, not just a few.