Mineral Exploration

20 Mineral Exploration | amebc.ca PHOTO: SCOTT PETSELŠAME INTEGRATED SOCIAL RESPONSIBILITY Social Chain of Custody Project success relies on ensuring social performance throughout the exploration phase By SPENCER DURANT "S ocial chain of custody" is a term that refers to documenting or creating a paper trail of meetings, dialogue and agreements of any form (verbal or written) with local communities during the full life of a mineral property. Maintaining records through the social chain of custody is especially important for mineral exploration companies because this documentation provides a record of what has, or has not, been done in terms of engagement with a community. Throughout the exploration phase, property management and ownership typically changes hands multiple times over decades, while the nature of activities can change drastically, leading to increased anticipation and expectations about perceived risks and benefits from future mining operations. In addition, there can be personnel changes, as well as shifts in the style and intensity of the work being done, which is generally accompanied by variations in company attitudes – which can range from real enthusiasm to pessimism about a project. While corporate leadership sees these fluctuations in the exploration phase as normal, communities are often left in a state of confusion. Even the smallest lapse in communication can threaten a future property owner's ability to secure a social licence to operate. Mending a misunderstanding or filling a gap in the engagement process can be very dižicult and costly for a company trying to advance the development of a mine. "Management of socio-political risk arising from corporate transitions: the Mt. Milligan experience," a study by Garth Thomson, research co-ordinator at the Canadian International Resources and Development Institute, speaks directly to the importance of ensuring a continuous chain of engagement and documentation from start to finish of the pre-development phase. The study reveals that for the properties in production in the province of British Columbia at the time the research was completed, ownership changed an average of seven times from the first claim being staked to the commencement of production, and this process took an average of 55 years. So how does a mining company ensure that what was originally communicated or achieved with regard to community engagement is understood and maintained nearly a generation later? At the heart of the engagement process is the need to build and maintain trust and to cultivate relationships that remain strong throughout the entire exploration phase, which will limit social risks in perpetuity. As a foundation for establishing a link in the social chain of custody, a question to consider would be, "What has the prior engagement experience been for the communities of interest with the mineral exploration industry or previous property owners?" Records are important for several reasons, such as conducting due diligence, meeting regulatory requirements, and building transparency and accountability in community engagement processes. AME's Aboriginal Engagement Guidebook, released in 2015, recommends that "explorers continue to provide updates as exploration activities progress over time. In addition to geological findings, and to show how the explorer is living up to its commitments, updates can include reports on activities such as environmental performance, hiring and contracting." While there are various forms of documentation, continual updates of the engagement process are the surest way of guaranteeing the social chain of custody. Guaranteeing social performance does not just happen on its own. It Children ready for the camera during a NovaCopper community visit in Kivalina, Alaska, in 2013. Community engagement is a key to successful exploration, and documentation is especially important.

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