Conflicts between Mining Companies and Communities: Institutional Environments and Conflict Resolution Approaches
Publisher: Business Ethics, the Environment & Responsibility
Author(s): Chang Hoon Oh, Jiyoung Shin, and Shuna Shu Ham Ho
Date: 2023
Topics: Conflict Causes, Conflict Prevention, Extractive Resources, Governance, Renewable Resources
Countries: Chile, Peru
Although companies recognize the importance of social responsibility and community engagement, conflicts between companies and communities have been noticeably increasing. To better understand the role of institutional environments in company–community conflicts, we analyze two mining conflicts—Minera Yanacocha's Minas Conga extension project in Peru and Minera Los Pelambres' El Mauro Tailings Dam in Chile. Our findings imply that, to prevent negative consequences and alleviate company–community conflicts, mining companies should address underlying structural causes and pursue informal approaches in order to obtain and maintain their social license. We find that better formal institutional environments not only alleviate conflict intensity but also facilitate informal approaches through which companies and communities can cooperate to resolve conflicts. The best practice would be to start and continue dialogs between communities and companies, mediated by impartial governments, to understand the concerns of the counterparty and find means by which to address the causes.