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Social conflict incurs financial cost for extractive industry - study

The financial cost of social conflict is an important reason why companies in the mining, oil and gas industries should make more effort to ensure their projects do not provoke tensions with local communities, researchers said…A study published in the Proceedings of the National Academy of Sciences found that delays caused by these conflicts can incur costs of around $20 million per week for mining projects valued at between $3 and $5 billion. It noted "growing appreciation" among sustainability experts of the potential financial damage unmitigated environmental and social risks can inflict on large-scale extractive ventures…That is why leading companies are implementing the U.N. Guiding Principles on Business and Human Rights, allowing them to manage their rights risks more effectively, according to study author Rachel Davis…[Also refers to Vedanta Resources & Barrick Gold]

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Vedanta Resources lawsuit (re Dongria Kondh in Orissa)

New report on costs of company-community conflict in extractive sector