Sunday, May 25, 2014

​Community conflicts costing miners billions | Mining Australia

​Community conflicts costing miners billions | Mining Australia





In the new study, Conflict translates environmental and social risks into business costs, UQ Centre for Social Responsibility in Mining deputy director Dr. Daniel Franks said conflict in the resources sector has now become a major contributor to project costs, with a number of flagship projects abandoned or delayed following community opposition.
“Our analysis shows that mining and hydrocarbon companies fail to factor in the full scale of the costs of conflict. For example, as a result of conflict, a major, world-class mining project with capital expenditure of between US$3 and US$5 billion was reported to suffer roughly US$20 million per week of delayed production in net present value terms,” the report states.
“There is a popular misconception that local communities are powerless in the face of large corporations and governments,” Franks explained.
“Our findings show that community mobilisation can be very effective at raising the costs to companies.”

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