Risk management Social licence again topped the EY global risk list.
Licence to operate Australia’s biggest risk ALMOST HALF OF GLOBAL MINING COMPANIES RANK LICENCE TO OPERATE AS THE BIGGEST ISSUE FOR BUSINESS IN THE TOP 10 BUSINESS RISKS AND OPPORTUNITIES 2020 REPORT. BUT WHAT IS AUSTRALIA MOST CONCERNED WITH? SALOMAE HASELGROVE INVESTIGATES.
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ith more than 150 global mining executives surveyed for the Ernst & Young (EY) report, spanning across every major mining region, this is the second straight year it has ranked licence to operate as the biggest concern. But what is Australia’s view on the global scale? According to EY Oceania mining and metals leader Scott Grimley, Australia’s perspective is extremely significant globally, so it is closely aligned with the rest of global opinion. The top 10 has changed in recent years, which Grimley attributes to the high-level of distraction by public
opinion regarding the Australian mining industry. Grimley worries the Australian public has less of an understanding of the industry than in decades past, meaning there is negative but misinformed commentary on the industry as a whole. “It used to be the case that pretty well every person in Australia had a family member or someone else they knew working in the mining sector,” Grimley says. “This is not the case now, so large amounts of people don’t know anything about the industry, this is especially so for those living in urban areas. “These people have a negative but very loose perception of the industry,
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and miners recognise there are many people with a negative perception of their work, hence licence to operate continuing to rank highly. “The Australian public don’t understand how fundamental mining is to everyday needs; whether it’s the house you’re living in, the transport you’re using to get to work every day or in the mobile phone you’re using. These items all come about because of commodities that need to come out of the ground that are accessed by mines.” Grimley believes the mining industry needs the support of the Australian public and government to back it as a key industry, ensuring it has the required capital to invest in technology