Licence to Operate
According to EY ’ s 11th annual survey of 250 executives , mining companies believe the biggest risk their businesses face over the next two years is the threat of losing their licence to operate ( LTO ). A narrow , legacy focus on LTO may be the strategy that puts you out of business , warns EY . Applying just the social and environmental lenses , seeing it as a soft issue or allocating it to one section of the business , will directly threaten your ability to operate . The stakeholder landscape is shifting . There is more information , bigger platforms and more at stake than ever before . Underestimating the power of each and every single stakeholder would be a mistake .
With the sector making efforts to redefine its image as a sustainable and responsible source of the world ’ s minerals , EY ’ s global mining and metal advisory leader Paul Mitchell said : “ Licence to operate has evolved beyond the narrow focus of societal and environmental issues . There are now increasing expectations of shared value outcomes from mining projects . Any misstep can impact the ability to access capital or even result in a total loss of licence .” EY maintain mining and metals companies need to transform their business models to remain competitive and welcome all their stakeholders along on that journey . To achieve a positive outcome a new approach is required - like safety , LTO needs to quickly become part of a mining company ’ s DNA .
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