Title: Extractive Relations: Countervailing Power and the Global Mining Industry
Author/Institution: J.R. Owen & D. Kemp, University of Queensland
Publication Year: 2018
Why Early-Stage Exploration Shapes Long-Term Social Outcomes
Owen and Kemp’s research offer one of the most influential re-framings of how social license is formed in the mining sector, shifting attention from operational conflict management to the earliest moments of project–community interaction. Drawing on extensive empirical research across multiple mining jurisdictions, the study argues that exploration and discovery phases are not socially neutral or preliminary—they are decisive periods in which expectations, power relations, and perceptions of legitimacy are first established. In regions experiencing new discoveries, such as Kenya’s Kakamega belt, these early interactions shape how communities interpret mining not as a technical activity, but as a political and social force with future consequences for land, livelihoods, and local authority structures.
Expectation Management and Countervailing Power in Mining Territories
Methodologically, the research combines long-term fieldwork, institutional analysis, and political economy perspectives to examine how communities respond to extractive projects before formal permitting or production begins. Owen and Kemp introduce the concept of countervailing power to explain how communities, civil society actors, and local institutions mobilize influence in response to perceived asymmetries between themselves and mining companies. Crucially, the study shows that uncalibrated optimism during early engagement—promises implied rather than stated, timelines left ambiguous, or benefits informally anticipated—can harden into grievance when exploration slows or project scopes change. These dynamics often originate well before companies consider social risk “material,” yet they set the trajectory for future acceptance or resistance.
Implications for License to Operate and Stakeholder Prosperity
The research has direct relevance for contemporary debates on License to Operate and stakeholder prosperity, particularly in emerging mining regions. Owen and Kemp demonstrate that LTO is not secured through compensation or mitigation after impacts occur, but through anticipatory governance—clear communication, transparent boundary-setting, and early institutional alignment with local authorities and communities. For projects like Kakamega, the findings underscore that early-stage engagement is not only about consent, but about shaping realistic pathways to future prosperity. By treating communities as political actors rather than project risks, the study reinforces a central lesson: sustainable mining outcomes depend on managing expectations as carefully as resources, and on recognizing that legitimacy is built long before the first permit is issued.