The Social Licence to Operate in the age of Critical Raw Materials

The notion of a social licence to operate (SLO) is not just a bureaucratic checkbox—it embodies the heart and soul of responsible mining in the critical minerals sector. As we stand at the precipice of a new era in technology and sustainability, the call for a deep, authentic connection between companies and communities has never been more urgent. Critical minerals are the backbone of our modern world, essential for electric vehicles, renewable energy systems, and defense infrastructure. To unlock this potential, we must embrace the challenges these projects face with passion, integrity, and a commitment to collaboration.  As FQM's social licence to operate challenges in Panama tell us, community engagement is also vital to de-risking project viability.
 

1. Unique Challenges of Critical Minerals

High Demand and Strategic Importance:
Our world is in the midst of a transformational shift towards sustainable technologies, and critical minerals are at the forefront of this evolution. They are not just commodities; they are the lifeblood of innovation. The rising demand for these minerals creates immense pressure for extraction and development—pressure that must be managed mindfully. If we are to harness these resources responsibly, we must come together to prioritise ethical practices that protect our environment and communities.
 

Location Overlap with Sensitive Areas:
Many of the world’s critical minerals are nestled in regions that are ecologically rich and culturally significant. They are sometimes sacred spaces for indigenous communities and biodiversity hotspots that deserve our utmost respect and protection. This overlap presents an opportunity for dialogue and collaboration. Let us not allow these conflicts to divide us; instead, let’s forge partnerships that honour local traditions while enabling sustainable resource development.
 

Long-term Impacts:
The negative consequences of mining can be long-lasting, impacting not just the environment, but also the lives of those in nearby communities. As stewards of the land and guardians of future generations, we must commit to careful planning and diligent impact mitigation. Together, let’s ensure that we leave behind a legacy of environmental integrity and community well-being.
 

2. Why a Social Licence Matters

Legitimacy and Trust:
Securing a social licence to operate is a testament to a company’s commitment to cultivating trust and maintaining a strong relationship with local communities and stakeholders. This trust is paramount, as it paves the way for collaboration, open dialogue, and shared decision-making. It is not just about permissions; it’s about partnering for a future that respects both people and the planet.
 

Avoiding Conflict:
An absence of a social licence can lead to unrest and significant project delays. Such consequences not only hinder operations but also damage reputations and fracture communities. By striving for a robust social license, we can foster harmonious relationships that transcend challenges, transforming potential conflicts into opportunities for collective growth.
 

Sustainability and Long-Term Viability:
When companies earn their social licence, they are empowered to operate sustainably and ethically. This not only encompasses managing environmental impacts but also includes nurturing meaningful relationships with communities. Together, we can build a future where projects thrive, where local voices matter, and where the benefits are shared. The journey towards sustainability is much more achievable when we embark on it together.
 

3. Building a Social Licence

Engagement is Key:
Let’s rise to the challenge of actively engaging local communities, indigenous groups, and stakeholders at every step of the project lifecycle. This is more than just a responsibility; it’s an invitation to co-create solutions that prioritise community needs and aspirations.
 

Transparency and Communication:
Effective communication is the bedrock of trust. By embracing transparency and sharing information about the project’s risks and benefits openly, we invite communities to participate in meaningful discussions. Let us create an atmosphere of openness where every voice can be heard, where concerns are acknowledged, and where the community can be part of the process.
 

Respect for Local Values:
We must treat local traditions, cultural values, and land rights with the utmost respect. This is not merely a compliance issue but a profound opportunity to show honour and appreciation for the heritage of the communities we work within. By centering local values, we can enrich our projects and ensure that they reflect the diverse tapestry of human experience.
 

Benefit Sharing:
The fruits of critical mineral projects must be shared widely. Let’s commit to creating opportunities for local employment, investing in community infrastructure, and launching educational initiatives that empower people. By structuring benefit-sharing agreements, we can transform projects into catalysts for community development and resilience.
 

Contingency Planning:
Challenges are inevitable on any journey, but preparation can make all the difference. By developing contingency plans that include mechanisms for conflict resolution and accountability, we can ensure that we remain responsive and responsible. Our commitment to collaborative problem-solving will strengthen the bonds with the communities that surround us.
 

In Conclusion

The social licence to operate is not just a lofty ideal—it is an essential foundation for the future of critical minerals projects. It represents a commitment to responsible business practices, community empowerment, and environmental stewardship. By embracing this philosophy, we can forge a new path, one built on collaboration and mutual respect.