How to get at social licence to mine

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1 How to get at social licence to mine R esults from a pre- study and literature review on mining and sustainable development Paper to the Future Mining conference Sydney 4-5 November 2015: 033 Lena Abrahamsson, Joel Lööw, Magnus Nygren & Eugenia Segerstedt Human Work Science Luleå University of Technology

2 2 Introduction Socially sustainable development is a complex and large concept and quite difficult to cover in a small project, like our pre-study, without ending up on a quite abstract level. In order to be as concrete as possible we chose three areas of research: diversity, gender, and work conditions. These three areas can be regarded as relative mature and we argue that they give important contributions to our understanding of social sustainable development in relation to the mining sector even if they not always explicitly refer to it as such.

3 3 Many social related challenges to handle for the mining industry One large challenge is the recession that the global mining industry experiences right now. The large and strong companies can still afford to invest for the future, but the weaker will be drained of their capital. A recent Swedish example is Northland Resources heavy bankruptcy and closure of the newly established iron ore mine in Pajala in the north of Sweden last winter, With large negative consequences for a small and rural local society such as Pajala. A social licence to mine is clearly deemed important by the mining companies in Sweden. But the on-going recession, especially in iron ore mining, seems to lower the sizes, varieties and number of sustainability activities.

4 4 Challenges for the mining companies Increasing rationalisation pressure Implementation of new technologies (automation, remote control, intelligent sensors, mobile IT-tools) And new forms of work organisation (lean, effective and learning) and focus on the core processes of the company The proportion of unskilled labour will decrease There will be fewer employees with higher wage costs and perhaps more use of contractors and fly-in-fly-out (FIFO). The recruitment of skilled labour and expertise to mines far away from larger cities Particularly difficult to attract young people and women to education and jobs in the male-dominated mining sector in Sweden. The design of a safe and yet flexible work environment Implementation of technology and work organisation that develop good work conditions and enables learning and innovation. Change the prevailing macho-culture in order to create a safe and productive production.

5 5 Challenges in the local societies surrounding the mines in Sweden To break up the unequal gendered structure of the local labour market as well as to support diversity of lifestyles, an open culture and an open business climate. It is often a situation of rural districts, indigenous people, high valued nature areas, old-fashioned cultures (at least in their self-images and even more in external images of the cultures), low educational level (especially among men), depopulation (women and young people are moving away), stagnation, downsized welfare services and a low level of other community services, and gender-segregated labour markets with low degrees of differentiation. How to lower the social risk associated with boom-recession cycle? How to make the best of the periods with low level of unemployment, new investments in housing and infrastructure, growing entrepreneurial activities and an emerging diversity of lifestyles? More of the same? There is a risk that the future holds more of the same and will result in the same social Professor problems, Lena Abrahamsson, if the old patterns Human Work are Science not actively addressed

6 6 A social licence to mine has been researched for many years In order to make a change towards sustainability its goals must become more than just a vague and rhetorical instrument in the political discourse or a smokescreen defined to meet the needs of all stakeholders It must also be practically related to needs, possibilities, and limitations relevant in a mining context and at the local and regional level. Lack of criteria and effective methods for capturing social impacts We need more apparent and measurable indicators against which stakeholders can make decisions. However, this is easier said than done. Some trends can be contradictory. What is positive for one process or stakeholder may be bad for another. Even for the individual stakeholder there might be contradictions, sometimes unconscious. It is a real challenge to weigh this complex picture and make socially sustainable optimisations and enable a balance

7 7 Definitions SUSTAINABILITY usually refers to an (often ideal) end-state that can be sustained over time. A positive condition when a certain society or group meets sustainability criteria. A goal that requires considering many aspects. SUSTAINABLE DEVELOPMENT refers to a process of change towards achieving sustainability goals. There is some criticism associated with this vision of development as a movement forward and upward. The mining companies we have been in contact with mainly discuss sustainable development rather than sustainability (probably because of sustainability s possible association with preservation and perhaps also restoring of the old situation). The sustainability challenge for the mining industry? To clearly demonstrate that it contributes to the welfare and well-being of the current generation, without compromising the potential of future generations for a better quality of life.

8 8 Diversity one of the key words for social sustainability Diversity a variety of lifestyles. Ethnic and social diversity are two of the many possible positive signs of enabled diversity of lifestyles and social inclusion, but are not necessarily a goal. Social cohesion, community culture, identity, demographic patterns, infrastructure, housing opportunities, migration, indigenous people specific regional development issues, the impact of the resources boom on other activities in regions and the long-term legacy of mining activities and closure. Compared to economical end ecological impact, social impact of the mining industry on local communities is understudied. It does not include mining companies internal issues and the interrelations between mining companies and local mining communities. And is seldom linked to the research fields of sustainable work conditions or gender Professor equality. Lena Abrahamsson, Human Work Science

9 9 Sustainable work conditions in mining Physical work environment, workplace design, man-machine interaction, occupational health, safety, organisational work environment Still a need for further research on work environment in mining Especially in the light of current technical and organisational development. Long shifts, risk-taking and safety culture. FIFO can create socially unstable local societies and too many levels of contractors might create a complex and unstable situation when it comes to safety, workplace cultures and organisational learning. Need for broader studies on mining work that includes interaction between technical, organisational, psychological, environmental, and physical factors. Even though the studies on different aspects of work conditions in mining are numerous they lack the connection between the societal and company levels.

10 10 Gender equality important contribution to social sustainable development and to a social licence to mine Women in mining is a large research theme that focuses on why and how women are excluded from the mining industry. Research on men and masculinity in mining focuses on the often problematic aspects of the common type of mining masculinity. Research on organisational gender aspects focuses on how organisations are gendered and how differences between women and men are socially constructed, created, and sustained by organisational processes, informal as well as formal. The emerging research area focusing on gender equality measures for male dominated workplaces However, most of this research does not include specific analyses of the links to other aspects of socially sustainable development, especially outside the companies.

11 11 Conclusions The social dimension is a relatively underdeveloped dimension both when it comes to sustainable development in general and the mining industry in particular In order to bridge the gap between theory and practice on social licence to mine it is important to identify and analyse social aspects of sustainable development in the mining industry and in the surrounding mining societies in order to develop parameters and indicators for practical use without detract from the complexities of social situations. It is also important to include a broader range of aspects of social sustainable development. Aspects such as gender, work conditions, and cultural aspects (diversity) are important parts of the challenges mining activities meet.

12 12 It is tempting to explain the mining sector s eventual problems related to these aspects based on the notion that mining companies import the surrounding local communities norms and cultures, but one conclusion from this paper is that they also export such norms. This means that sustainable change also needs to start within workplaces of the mining industry itself. Social aspects of sustainable development have been important issues for the modern mining industry during its decades and even century of business even if it has been different aspects and in different ways in different times. Even if it not always has been strategic choices, the social footprints are nevertheless important to learn from.

13 Professor Lena Abrahamsson Division of Human Work Science (Avdelningen för arbetsvetenskap) Department of Business Administration, Technology and Social Science (Institutionen för ekonomi, teknik och samhälle) Luleå University of Technology (Luleå tekniska universitet) SE Luleå, Sweden

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