NGOs

Good article on the costs of poor stakeholder engagement in the extractive sector

This article notes that:

“Researchers at the Centre for Social Responsibility in Mining interviewed employees at several dozen major international corporations who are involved with extractive activities, and found that companies are increasingly having to deal with the social and environmental impacts of their work, and that it’s hurting them where it hurts most: their bottom lines.”

“The researchers, led by Daniel Franks, took a look at 50 planned major extractive projects (oil drilling, new mine construction, that sort of thing) and found that in fully half of them, local people launched some sort of “project blockade.” In 40 percent of the projects, someone died as a result of a physical protest, and 15 of the projects were suspended or abandoned altogether, according to Franks’ study, published in Proceedings of the National Academy of Sciences.”

“There is a popular misconception that local communities are powerless in the face of large corporations and governments,” Franks said in a statement. “Our findings show that community mobilization can be very effective at raising the costs to companies.”

And also that:

“Delays, even early in a project, can be extremely costly—at a major mining project, $20 million per week in lost revenues and lost investment isn’t uncommon. According to the study’s respondents, a nine-month delay at a Latin American mine cost a company $750 million; protests that shut down power lines at another operation cost $750,000 a day. Even before drilling or extraction has started, lost wages and startup delays can cost $50,000 a day when programs are forced to a standstill after they’ve started.”

Read the rest here.

On October 30 and 31st in London around 15 oil, gas, mining, and heavy industry executives will be joining Professor Wayne Dunn and myself along with some former senior executives/CSOs from oil, gas, biofuels, palm oil/agribusiness and mining industries to focus on ways to engage stakeholders in difficult situations.

Read more about it here, or email me if you’d like to come along: tobias.webb@innovation-forum.co.uk

There are a few places left if you’d like to join us or send a colleague along. It will be interesting. We also have a special guest speaker from the mining sector joining us. 

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