Title: The Social Licence to Operate and the Legitimacy of Resource Extraction
Author/Institution: J. Owen & D. Kemp, University of Queensland
Publication Year: 2013
Legitimacy as the Core Currency of Resource Governance
Owen and Kemp examine how legitimacy functions as the foundation of social license within extractive industries. The authors argue that legitimacy arises when stakeholders perceive that mining projects operate responsibly, respect environmental limits, and contribute to local development. In this sense, social license represents the broader societal acceptance of extraction activities rather than merely compliance with legal regulations.
Stakeholder Expectations and Governance Performance
The study emphasizes that mining projects operate within complex stakeholder environments that include governments, communities, NGOs, and international investors. Each actor evaluates mining operations through different criteria, including economic benefits, environmental performance, and social equity. When governance systems fail to balance these expectations, legitimacy gaps emerge that may trigger protests or regulatory intervention.
Implications for Global Mining Stability
Owen and Kemp conclude that the stability of resource extraction increasingly depends on institutional credibility rather than purely geological potential. Transparent regulatory systems and effective consultation processes are critical to maintaining stakeholder confidence, particularly in regions where mining activities intersect with sensitive environmental and social contexts.