Conflict with communities is costing mining companies billions of dollars, according to a study by The University of Queensland (UQ), the Harvard Kennedy School and Clark University.
Researchers found that conflict caused delays that can add costs of about US$20 million per week for mining projects valued between US$3 billion and US$5 billion.
One company’s analysis of its exposure to non-technical risks revealed US$6 billion in costs over two years, representing a double-digit percentage of the company’s annual operating profits.
“The cost-cutting currently under way in these industries seems to be missing the potential opportunities for cost savings that can come from investing in improved relationships with communities,” said the deputy director of the UQ Centre for Social Responsibility in Mining, Dr Daniel Franks.
Read more at The University of Queensland