Considering the changes in the global landscape, the mining industry is increasingly expected to play a constructive and developmental role in economic, social, environmental and governance issues. These increasing demands coupled with regulatory uncertainty drive perceptions of escalating risk. This is invariably associated with reduced investment appetite and reduced industry and Company valuations.

With the convergence between formal mining licencing requirements and the growing importance of the social licence to operate, a prerequisite for business continuity is ensuring that trust is restored in the mining sector and strengthened through the industry’s actions.

Our approach

Navigating political and regulatory uncertainty is an issue that must be proactively managed. Our approach is underpinned by the need to build trust across the stakeholder groups and continued demonstration of good citizenship by the Company.

Constant constructive engagement with multiple stakeholders is key. We continue to work with community leaders, national and local government and civil society organisations. We also support government-supported initiatives to formalise ASM in Guinea, Tanzania, Ghana and Colombia.

We are guided by the work of other intergovernmental organisations such as the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development and the Organisation for Economic Co-operation and Development (OECD).

Progress in 2022

The global economic downturn and the war between Russia and Ukraine remains a risk, with escalating costs for the business and society at large. This is creating potential for economic, social, and subsequent political risks in our jurisdictions as prices for fuel and staple goods continue to increase. It also threatens the ability of the global community and individual member states to meet the UN SDGs by 2030.

West Africa is also experiencing significant political turmoil with a series of coups d’etat across the region, including in Guinea, Mali and Burkina Faso, among others.

The Economic Community of West African States (ECOWAS) has imposed sanctions on the President of Guinea and his close allies pending a timetable for a return to democratic elections and civilian rule. Political instability in the region generally has resulted in a number of challenges, including at our Siguiri mine amid an influx of people from elsewhere in the country and from neighbouring countries, to the province of Upper Guinea.

This is exacerbated by international isolation of the country because of sanctions, endemic poverty and joblessness in the local and wider community. Regional migration has increased ASM and illegal mining activity, slowed the delivery of economic and social development projects, and increased demands for higher local benefit and employment from the mine.

In West Africa, a deteriorating economic environment is fueling inflation and higher levels of unemployment. This has led to an increasing call for employment of local community members and a rise in artisanal mining. Both issues are already a focus for us.

In Colombia and Brazil, we have seen changes of government, which may result in changed business environments. We continue to watch this closely.