Implementing policy frameworks for sustainable development in the Australian mining industry: Maintaining a social license to operate in turbulent economic times

Sustainable Development is one of the greatest challenges facing the mining industry. Mining activities have significant positive and negative impacts on countries and communities and multinational mining companies and their operations are highly visible. Their activities are under constant scrutiny and the industry as a whole faces an ongoing struggle to develop and maintain its ‘social license to operate’. To address these challenges, industry associations such as the International Council of Mining and metals (ICMM) and the Minerals Council of Australia (MCA) have developed policy frameworks to assist mining companies in the improvement of their sustainable development performance. This paper presents a case study that evaluates the performance of one operation’s Community Investment Fund in relation to the goals established for social and economic performance in the ICMM and MCA principles. This particular study represents an unique opportunity to follow the development of one Community Fund from its inception in 2002 until 2009, tracking the impacts on the Fund of major economic changes of the period; first, the mining boom and skills shortage, then the global financial crisis. We draw upon the outcomes of three separate evaluations of the Fund’s performance, conducted in 2004, 2007 and 2009 respectively, to develop the case study. The paper begins with a discussion of the ICMM and MCA policy frameworks and how they have been implemented in setting the form and direction of the Community Fund. Overall Fund performance is discussed, particularly in relation to the Fund’s choice of program partners. We conclude with a discussion of the challenges faced by mining companies in implementing commitments to international and national policy instruments.