Licence to Operate According to EY’s 11th annual survey of 250 executives, mining companies believe the biggest risk their businesses face over the next two years is the threat of losing their licence to operate (LTO). A narrow, legacy focus on LTO may be the strategy that puts you out of business, warns EY. Applying just the social and environmental lenses, seeing it as a soft issue or allocating it to one section of the business, will directly threaten your ability to operate. The stakeholder landscape is shifting. There is more information, bigger platforms and more at stake than ever before. Underestimating the power of each and every single stakeholder would be a mistake. With the sector making efforts to redefine its image as a sustainable and responsible source of the world’s minerals, EY’s global mining and metal advisory leader Paul Mitchell said: “Licence to operate has evolved beyond the narrow focus of societal and environmental issues. There are now increasing expectations of shared value outcomes from mining projects. Any misstep can impact the ability to access capital or even result in a total loss of licence.” EY maintain mining and metals companies need to transform their business models to remain competitive and welcome all their stakeholders along on that journey. To achieve a positive outcome a new approach is required - like safety, LTO needs to quickly become part of a mining company’s DNA.
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