Controversial International Mining Arbitrations and the Impact of ‘Social Licence’ – Lessons Learned and Future Planning

Mining projects often take place in remote areas where there are significant water and energy requirements and require a high degree of coordination with national governments (eg, through the negotiation of concession contracts) as well as local governments and communities where the project takes place.

The necessity for mining investors to liaise with local government and communities makes the concept of a ‘social licence to operate’ – that is, the process in which a mining investor gains approval from the local community where the mining project will occur – a key issue raised in international mining arbitrations. How past arbitral tribunals have dealt with the ‘social licence’ concept can, in turn, encourage companies, governments and legal practitioners to plan strategies to avoid disputes – or to employ effective dispute resolution strategies if any dispute relating to a ‘social licence’ arises.

This is the focus of this chapter written by Louise Woods, Rob Landicho, Ciara Ros and Elena Guillet, published in Getting The Deal Through (GTDT) Mining Practice Guide by Lexology.