Investigating giant mining operations<\/p>\n
The operations of the world's giant mining companies have
\noften raised concerns due to their alleged insensitivity to the
\nlocal communities and the environment.<\/p>\n
However, research financed by the International Development
\nResearch Center (IDRC) indicates that the multinationals are much
\nbetter than local mining firms in promoting the welfare of the
\npeople living near their mines.<\/p>\n
The research involved three giant mining projects in Chile.
\nThis included the Escondida copper mine -- the largest private
\nmine in Chile -- owned by a consortium led by Australia's Broken
\nHill Proprietary, the Calenderia copper mine owned by the U.S.-
\nbased Phelps Dodge Corporation, and the Fachinal gold and silver
\nmine owned by the U.S.-based Coeur D'Alenne Mines Corporation.<\/p>\n
The research was carried out by a team of researchers led by
\nJose Miguel Sanchez, an economist at Chile's Pontifica
\nUniversidad Catolica, the results of which were reported by
\nSantiago-based mining journalist Louise Egan in the IDRC website.<\/p>\n
To the researchers' surprise, these projects contradicted the
\nwidely held stereotype that large multinational companies are
\nimpersonal and insensitive giants, with little regard for local
\npopulations or the environment.<\/p>\n
The researchers did document some negative impacts, ranging
\nfrom the depletion of water resources in the area surrounding the
\nEscondia and Candelaria mines to an increase in prostitution and
\nvenereal disease in a town near Fachinal.<\/p>\n
But due to certain \"good practices\" pursued by the companies,
\nthe \"damage\" done to the communities was minimized, the team
\nconcluded.<\/p>\n
The most successful in this regard was Escondida, which
\nmaintained working relationships with local scientists and
\nresponded swiftly to any allegations of pollution or threats to
\nwildlife by commissioning studies.<\/p>\n
The team also concluded that the main reason for the
\nrelatively healthy relations between large mining interests and
\nlocal communities is the existence of internal corporate
\nguidelines defining each company's mission, standards, and
\nprocedures.<\/p>\n
\"In all cases, we see a corporate model, or a shared mental
\nmodel, that responds to a particular mission,\" one of the team
\nanthropologist Julio Castillo said. This practice of defining
\n\"how to do things right\" is absent in most small locally owned
\nmines.<\/p>\n
The corporate model, which rules regardless of the local
\ncontext, shapes the way the company interacts with the community.
\nIt also sets environmental standards that are often superior to
\nlocal laws.<\/p>\n
A second set of \"good practices\" noted by researchers concerns
\na company's external affairs strategy -- how it relates to the
\ncommunity. In the areas where Escondida and Candelarie are
\nlocated, there is a strong sense among community members that the
\npresence of the mining firms has brought economic benefits to
\nthem.<\/p>\n
The researchers attribute that to the companies' commitment to
\nlocal purchasing and hiring. For example, 80 percent of
\nEscondida's 2,000 permanent staff and 82 percent of Candelaria's
\nemployees were hired locally.<\/p>\n
In addition, all three companies have a policy that gives
\npreference to local suppliers.<\/p>\n
Another key point mining companies should understand, the
\nresearchers say, is the value that local communities place on any
\npermanent contributions to regional development.<\/p>\n
This is especially true in areas with a strong mining culture,
\nwhere enthusiasm over the economic benefits of new mining
\nprojects is tempered by the knowledge that all mines will
\neventually close. -- IDRC<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/investigating-giant-mining-operations-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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