SCHOOL OF ENGINEERING
DEPARTMENT OF MINING ENGINEERING
SUBMITTED TO
: PROF. GRANT KULULANGA
SUBMITTED BY
: ELIJAH MUNKHONDYA
REG NO.
: BGEN/18/SS/062
COURSE
: PROJECT MANAGEMENT
COURSE CODE
: CIV – PRM – 512
ASSIGNMENT
: ASSIGNMENT I: PROJECT LIFE CYCLE
DUE DATE
: MONDAY, JULY 31ST, 2023
SOCIAL CORPORATE RESPONSIBILITY IN MINING PROJECT LIFE
The Synopsis of the Mining Industry
The mining industry is trade that deals with the exploration, extraction, and exploitation of
minerals (Frank et al., 2005). Speaking of minerals, they are naturally occurring crystalline
(Aydinalp, 2012) inorganic solids (Dana, 1879), formed by biogeochemical processes (Gadd,
2007) and has well defined physical properties and chemical composition (Wenk & Bulakh,
2004). They come in different sizes, shapes, color, luster (or gleam), streak, hardness, strength
or tenacity, and rarity (Mat, 2023). All these properties and more determines the value, and
usability (or exploitability) or any given mineral. The process of making minerals ready for use,
however, is complex (Jessica, 2019) and not so short, considering that they are usually deepsited. Thus, mining can be considered more of a program than a project due to the many nexible
projects (Jessica, 2019) it comprises and the length of time it takes to complete them. It involves
so many stakeholders who are affected directly or indirectly.
Social Corporate Responsibility – What’s That?
Corporate social responsibility, also known as corporate citizenship (Fernando, 2023), is the role
a production firm plays in necessitating social, economic, and environmental wellbeing of the
society it is running its operations (HBS Online, 2021). Not so long ago, companies were
measuring their success by just looking at the heftiness of their profit margin (Fernando, 2023).
Things have change over the last few decades (Fernando, 2023; Reckmann, 2023), in that the
success of a firm is also being measured now by the amount of impact it has on the community.
It is this qualitative measure that has led to the boom of corporate social responsibility (CSR).
CSR is thus somehow tangential to sustainable development goals (SDGs) (Mostert et al., 2016;
Yousefian et al., 2023), where the operations of firm “X” will not hinder the operations and
productiveness of other firms and people, both in the present and future era. If anything, a firm
must add value to the society and make its productiveness better.
Companies that pursue CSR use what is known as the “triplebottom-line” (also happens to be “triple P”) approach which
is basically the maxim, “Profit, People, Planet” (HBS
Online, 2021; Reckmann, 2023). Yes, the main goal of the
private sector is to maximize revenues and make profits
(Reckmann, 2023), but that is just one of the “bottom
lines”: for while maximizing its profits, a firm must
Figure 1: Tripple Bottom-Line (TBL) Approach
of CSR
be firm on the welfare of people and the planet (mother-nature) also. In 2010, ISO 26000:2010
Guidance to Social Responsibility (Sánchez et al., 2012) was unveiled and it focuses on guiding
companies to the implementation of CSR for their firm (Fernando, 2023).
CSR in Mining
The mining or extractive industry is one of those industries with the least reviewes, especially in
developing countries. Some have even nick-named it “dangerous civil engineering” (Engineer,
n.d.) due to the unsafe environment miners work in in these localities. This makes miners minors.
However, though mining seems to be controversial (Yousefian et al., 2023), Pons et al. (2021)
describe it as an important industry in that it provides primary materials in other industries, like
the energy, transportation (locomotive, automotive, nautical, aeronautical), construction,
agriculture, communications, and many more. Giving up on mining is hence a very unrealistic
option, however, integrating CSR in the mining industry seems to be the better (What Is CSR? |
UNIDO, n.d.). from the onset of a mining project (or more rightly, program), CSR can be
employed by mining firms for a smoother and sustainable operations. According to Fernando
(2023); Reckmann (2023); (HBS Online, 2021; BDC, 2023), which talk of the upsides of CRS
in the general industries, it can help a mining firm save its face in the community, gain and retain
employees, secure investors, acquire customer loyalty, mitigate the risk of having its license
seized.
The mining process gives more room for CSR. Jessica (2019) presents a five (5)-tier cycle of a
mining program life. It starts with mineral exploration, which is basically searching for mineral
occurrence.
Once
the
mineral
occurrence has been assessed and has
passed the pre-mining feasibility test, a
method of extracting that mineral is
chosen and a mine is designed around
the
known
mineralogical
and
geological parameters. Then enters the
mine construction project, in which
the structures to support the rest of the
projects are raised. After that, the
actual
mineral
commences,
and
extraction
this
is
the
Figure 2: The Mining Process (throughout its life)
production phase of the program. While most mining programs in the past used to “call it quits”
here, recent requirements intensified by external pressure groups, especially the
environmentalists, demands that the company reclaims and restores the land after mining.
However, a mining firm should not have to wait until the stakeholders are on their neck to react.
In fact, they can proact and buy them a positive public image all through the mining process.
This, as has been discussed already, is very significant. The following few paragraphs try to
depict ways in which a mining company can be active, even proactive in CSR, from start to
finish.
The “How” of CSR a Mining firm
For starters, a firm can offer education and training program scholarships to the local employees.
The Malawi government has just adopted this as one of the requirements of mining companies
(Global Legal Group, n.d.). Projects and programs start and finish. But when the company has
trained locals in some technical or administrative skills, its positive impact will live on, and the
nation will have benefited a lot. The trained labor force will end up in other beneficial project
after the mining. This can be done during exploration to secure a skilled labor force for the
production phase. Whatmore,
Secondly, a mining firm must embark on infrastructure development. More often than not,
mining will take place in area previously populated, owned or used by people. As one way of
respecting the locals and entering the field ethically by gatekeeping, a mining company can
construct access roads, boreholes, bridges, social service institutions, and many more. These will
serve them as they progress with their operations, while serving the society at the same time.
Thirdly, the mining company can make generous donations to the society and other stakeholders
(BDC, 2023). They can be in form of school supplies to local care givers, supporting tree-planting
organizations, volunteering to do some social work, and many more. This can be done during the
production phase with excess profits, after the company has broken-even.
In addition, afforestation and reafforestation can also be a go-to CSR of a mining firm. Bearing
in mind that mining activities are detrimental to the environment (Yousefian et al., 2023), it is
more or less of a solace to the eco-damage the firm is, has or will cause. Thus, it can be done at
either stage of mining. Mining firms must be environmental stewards.
Furthermore, investing in research and technology is one of the best in the bucket (Fernando,
2023). The profits of this will be both ways. If a company invests in new technological research
in reducing emissions and it turn out successful, it will revolutionize many industries. This can
be done by funding research projects, providing human resource from the firm, and providing
state of the art research and laboratory equipment.
To add on to the list, one way a mining firm can volunteer (Reckmann, 2023) itself or its human
resource is in disaster relief. Whenever the community has been hit, the firm can, this time, react
to help pacify the after-effects. It can provide shelter, food, medical supplies to limit casualties,
rescue crew, and so forth.
Whatmore, in doing all this, the firm must not forget that it is operating in a nation that anticipates
taxes and loyalties from it. Hence, it must not at all costs default such important remissions (Ibp,
2018). On this, Kurowski & Huk (2021) says CSR is not only focused on combating negative
externalities, but also internal malpractices, which include but not limited to fraud, bribery, tax,
and loyalty defaulting. During the exploration, designing and construction stages, the firm must
remit custom duties for every imported good, unless otherwise legally exempt. During the
production phase, it must remit all income, withholding and other taxes to the respective
government officials.
Still, a firm needs to promote, or at least lay a “welcome mat” for local investors and government
to buy shares (Mostert et al., 2016). Local shareholding will promote local circulation of money
and catalyze economic development of the locals. A mining firm can accommodate local
investors.
Last but one, a mining firm must be committed to employee rights (Sánchez et al., 2012). It must
protect the rights of those that serve it. This includes ensuring ergonomics in the workplace in
providing a safe workplace of unquestionable structural integrity. An ergonomical firm will be
economical.
Last but certainly not least, operational initiatives (BDC, 2023). This involves intentional and
deliberate moves in the production process to improve production all while saving the
environment. They include being energy efficient in mining, proper waste management,
promoting local suppliers, providing a harassment-free working environment, and many more.
To crown it all, CSR is very important in industries, more so the extractive industry. It touches
so many areas and affects all the industry’s stakeholders (the firm itself, the community, the
government, investors, shareholders, environmentalist). It is possible (Sánchez et al., 2012) and
is for every mining firm that even artisan and small-scale miners can do it (What Is CSR? |
UNIDO, n.d.).
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