Involving the Public - Mining and the Environment: From Ore to Metal - page 147

rights. The resolution of structural economic and legal inequalities, of course, is out of the
control of mining companies and may require intervention at the national level through,
for example, land reform, legal recognition of land rights, devolution of authority and
responsibility, or improved governance and accountability (see also Chapter Fourteen).
Public involvement in mine development will not resolve these broader issues, but will
help to identify and understand these underpinning conl ict areas.
Development pressures and associated conl icts occur when society and the economy undergo
change, inevitably as a mine development moves forward: (1) introduction of new technologies,
new ways of communication, and improved access and infrastructure may have positive and
negative effects on affected communities; (2) commercialization of common property resources
may invite powerful external groups to monopolize benei ts, often excluding marginalized
Indigenous Peoples from using the resources; and (3) migration caused by mine development
may change the ways in which host communities and local resource use are organized.
National resource management policies and programmes themselves can serve as sources
or arenas of conl ict, although their intention is to reduce conl icts or improve livelihoods.
FAO (2000) provides the following reasons: (1) policies imposed without local participation;
(2) poor stakeholder identii cation and consultation; (3) uncoordinated planning as many
government and other agencies still rely on sectoral approaches with limited cross-sectoral
planning and coordination; (4) inadequate or poor information sharing, leading to suspicion
and mistrust; (5) limited institutional capacity - conl icts arise when government and other
organizations lack the capacity to engage in sustainable natural resource management; (6)
inadequate monitoring and evaluation of programmes concerning natural resource manage-
ment; and, most importantly, (6) lack of effective mechanisms for conl ict management.
For natural resource management to be effective, mechanisms for participatory conl ict
management need to be incorporated into mine management. These should ensure that open
or latent conl icts are constructively dealt with to reduce the chances of conl ict escalation.
IFC Performance Standard 1, Article 23 summarizes the key requirements of an effective
Grievance Mechanism:
The client will respond to communities' concerns related to the project. If the client
anticipates ongoing risks to or adverse impacts on affected communities, the client will
establish a grievance mechanism to receive and facilitate resolution of the affected com-
munities' concerns and grievances about the client's environmental and social perform-
ance. The grievance mechanism should be scaled to the risks and adverse impacts of the
project. It should address concerns promptly, using an understandable and transparent
process that is culturally appropriate and readily accessible to all segments of the affected
communities, and at no cost and without retribution. The mechanism should not
impede access to judicial or administrative remedies. The client will inform the affected
communities about the mechanism in the course of its community engagement process.

The resolution of structural
economic and legal inequalities,
is out of the control of mining
companies.

3.7 UNDERSTANDING THE BENEFITS AND RISKS OF
PUBLIC INVOLVEMENT

Benefi ts

Consultation and collaboration
with the public makes common
sense as well as good business
sense.

Direct benei ts for the mining company in public involvement include reducing i nancial
risks and costs, and creating positive community perceptions and corporate image. Hence,
consultation and collaboration with the public makes common sense as well as good busi-
ness sense, considering that most mining investments are long-term investments. Lack