Title: The Paths to Social Licence to Operate: An Integrative Model Explaining Community Acceptance of Mining
Author/Institution: K. Moffat & A. Zhang, CSIRO / University of Queensland
Publication Year: 2014
Trust and Procedural Fairness as Foundations of Community Acceptance
Moffat and Zhang’s research provide one of the most influential empirical models explaining how communities grant or withdraw a social license to operate in the mining sector. Based on survey data collected in Australian mining regions, the authors demonstrate that community acceptance depends primarily on trust in mining companies and perceptions of fairness in decision-making processes. Communities are more likely to support mining activities when they believe engagement processes are transparent, information is shared openly, and local concerns are genuinely considered.
From Stakeholder Communication to Relationship Governance
The study challenges the traditional corporate approach that treats stakeholder engagement primarily as communication or reputation management. Instead, the authors argue that social license emerges through long-term relationships between companies and communities. These relationships must include credible grievance mechanisms, fair distribution of benefits, and continuous dialogue that allows stakeholders to influence project governance.
Implications for Critical Minerals and Energy Transition Projects
Moffat and Zhang’s framework is particularly relevant in the context of the energy transition. As demand for copper, lithium, and other critical minerals increases, mining projects are expanding into regions where community expectations and environmental concerns are significant. Their findings suggest that trust-building practices must be embedded early in project planning to avoid conflicts that could disrupt supply chains.