“NEW REPORT- Shifting Dynamics in Social License: Why Community Is King in Latin America’s Mining Sector”, 2nd March 2020

…Mining companies in Latin America face a litany of risks ranging from political changes and shifting regulations to tax reforms and volatile metals prices. But arguably chief among them is social license to operate; securing and maintaining support from local stakeholders is hugely challenging.

Failure is not an option, as illustrated by the array of delayed and suspended mining projects around the region shut down for lack of community backing. The problem is not confined to trouble hotspots, such as parts of the Peruvian highlands or anti-mining provinces of Argentina, though these no-go zones serve as a further warning of what can go wrong when community relations efforts fall short.

Mining projects from Chile to Chihuahua, Guatemala to Uruguay, have faced local opposition…

“A mining company can obtain all necessary permits and licences, but if the project does not have the acceptance of the local community the project will be delayed or suspended,” says Jordi Ventura, a Latin America mining attorney at US-based law firm Jeffer Mangels Butler & Mitchell (JMBM). “Getting a social licence to operate from the local community will save the company time and money in the long run.”…