AAMEG Event Recap: Social License to Operate (SLO) in the SADC Mining Sector – 18 March 2025, Perth

INSIGHTFUL DISCUSSIONS ON SLO IN AFRICAN MINING

On 18 March, AAMEG member RSM Australia hosted an in-depth event in Perth, focusing on the challenges and opportunities surrounding Social Licence to Operate (SLO) in the Southern African Development Community (SADC).

Industry experts explored key barriers to sustainable mining in Africa, including socio-economic challenges, political uncertainty, and underdeveloped infrastructure. Speakers included Devika Shivadekar (Economist) and Karien Erasmus (Director, ESG & Climate Services) from RSM, alongside Marcus Birch (Executive Sustainability & Business Support) from Orion Minerals Ltd. Together, they provided valuable insights into achieving long-term success in the mining sector.

KEY TAKEAWAYS FROM THE EVENT

Australia’s Role in African Mining

Australia continues to be a major player in Africa’s mining industry. According to the Australian Department of Foreign Affairs and Trade (DFAT), two-way trade between Australia and Africa reached $9.6 billion in 2021. In 2023, Australian mining companies had a collective capital investment of $60 billion in Africa, accounting for 29% of total exploration spending. Africa’s vast reserves of critical minerals—such as cobalt, nickel, and rare earths—are essential for the global energy transition. However, unlocking this potential requires addressing governance, community relations, and sustainability challenges.

The Role of ESG and SLO in Mining Projects

While ESG and SLO are integral to mining operations in Africa, junior miners often struggle with financial constraints when transitioning projects from exploration to production. To achieve a strong SLO, mining companies must address:

• Community Relations & Revenue Distribution – Effective engagement with local communities ensures trust and long-term partnerships.
• Land Rights & Indigenous Concerns – Ethical land use and respect for Indigenous rights are crucial to project sustainability.
• Government & Regulatory Frameworks – Navigating policy landscapes to ensure compliance and operational efficiency.
• Labour Relations & Social Unrest – Addressing workforce concerns and maintaining social stability.

Strategies for Securing Social Licence to Operate

To successfully establish SLO in SADC nations, companies must adopt a proactive approach:

• Long-Term Impact Over Short-Term Gains – Sustainable planning mitigates risks and strengthens community trust.
• Stakeholder Collaboration – Engaging with local authorities, industry leaders, and community representatives fosters stronger relationships.
• Sustainability Metrics in Project Development – Tracking key sustainability indicators supports responsible operations.
• Community Engagement as a Competitive Advantage – Prioritising community involvement enhances project viability and resilience.
• Adapting to Global Economic Shifts – Factors such as China’s influence in Africa and US policy shifts impact economic conditions, requiring adaptive strategies.

The Future of Mining in Africa

Africa stands at a critical juncture in the global energy transition. While socio-economic conditions present challenges, the region’s resource wealth positions it as a key player in the sustainable energy shift. Mining companies must balance short-term operational challenges with long-term sustainability to secure investment, stability, and growth.

For more insights, connect with ESG Director, Karien Erasmus or visit RSM website for further resources.