The Social License

The concept of a Social License has recently developed as a necessary condition for any exploration or mining project .  It represents part of the evolution of the mining industry to meet changing social, political, economic and environmental aspects of doing business.  

The Social License is that web of approvals, both formal and informal, that are required for any project, ensuring equity for all stakeholders impacted by the changes.  Broadly speaking it is a combination of legal approvals bound together with community buy-in. The whole concept is held together by the essential element: of communication

Esperanza's management team has been part of the global evolution in developing the exploration and development models of the Social License and it has woven its principles into a network of guidelines that express our corporate values.  These provide a clear framework for our exploration and development activities.

The primary element in Esperanza's implementation of the Social License is when our geologists first contact the local communities - they are our ambassadors. The initial contact is of fundamental importance as it sets the stage for all future activities. Since Esperanza operates in rural areas of Peru and Mexico, the local communities are often populated by indigenous peoples. This requires specialized knowledge and keen sensitivity to their cultural differences.  

While keeping local communities' issues and sensitivities as a foundation, Esperanza takes a broader view of the license, encompassing those people  "down-stream" that will feel some effect from our projects.

Esperanza's concept of the Social License provides its team with a framework in which to base its decisions and activities. The framework consists of an overlapping set of legal, cultural and business concepts.  

• Esperanza always operates within the spirit and letter of all applicable local and national laws, and within the scope of international guidelines.
• Esperanza typically employs national geologists and staff who have an intimate knowledge of the customs, culture and local dialects. Their experience provides for a heightened sensitivity and an ability to anticipate issues before they develop.
• Esperanza's personnel operate through the company's set of core values and principles that include commitments to:
  • act with transparency;
  • open and on-going communication with local and external stakeholders;
  • employ the best practices in our operations to assure minimal disturbance and provide capable industrial and environmental safety; and,
  • effectively explain what local stakeholders can expect, including our capabilities to deliver on undertakings.

There is no simple set of guidelines that will steer a company to receiving a project's Social License and consequently its legal approvals and permits. It is a course of action built on the company's fundamental principles and local experience. The process is successful when it is implemented with the right combination of understanding, patience and flexibility.