Why Mining Has Realised It Needs To Change Its Reputation
New Century Resources (ASX:NCZ) Head of Corporate Affairs and Social Responsibility Shane Goodwin tells The Capital Network's Lelde Smits why mining companies have realised they need to change their reputations. Speaking at the Super Pit, amid the Diggers and Dealers Mining Forum in Kalgoorlie Western Australia, Shane explains how the role of mining companies is changing to include corporate social responsibility. He explains why a social licence to operate is mandatory and details what investors should be looking at to determine potential community and social risks and the company's plan for addressing these risks.
Lelde Smits: Hello, I’m Lelde Smits for The Capital Network. Joining me here at Kalgoorlie’s Super Pit in Western Australia is Shane Goodwin. Shane, welcome.
Shane Goodwin: Hi, thank you.
Lelde Smits: Now, Shane, the role of mining companies is changing globally. In Australia, why do you think mining companies have started to realise they really need to address corporate social responsibility and also, their reputations in the community?
Shane Goodwin: I think for some time, the mining industry has really looked at its social licence to operate and community’s responses to their presence as a real challenge and a risk to them and have spent quite some time thinking about what they need to do to address those concerns and they’ve been looking for methodologies and for partners to help them to improve in that way. That’s why New Century’s model of economic rehabilitation has really helped with that in delivering end of mine life outcomes that will deliver benefits for communities at the same time as achieving rehabilitation outcomes.
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Lelde Smits: So we are now seeing we need this social licence to operate and clearly, this is something that a mining company’s management need to embrace but from an investor perspective, looking outside into the company, what are things you would be looking for that would give you comfort that the company you are invested to is also considering the community?
Shane Goodwin: In the same way that an investor looks at a company to determine whether or not they have addressed financial risks, and to determine that they have addressed safety risks and environmental risks, investors are really, and they already are, looking at whether a company has made an assessment of what their community and their social risks might be and has a plan for addressing them as well. And, if an investor looks at a company and can’t see that a company has looked at those things and has a plan for addressing them in the same way that they might address safety concerns or financial concerns, then that’s going to represent a real risk profile for those potential investors.
Lelde Smits: Shane Goodwin, thank you for your insights today.
Shane Goodwin: Thanks very much.
The views and opinions expressed in this article are those of the interviewee and not of S3 Consortium or Maven Capital. As always, you should undertake your own due diligence with regards to these views and opinions and seek professional financial advice if considering this stock for your portfolio.