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International Finance Corporation World Bank

2005, Australian Government Department of Industry, Tourism and Resources

This document sets out principles for effective liaison between the resources sector, the community and stakeholders. It is intended as a guide for anyone associated with the exploration and development of mineral, coal, oil and gas resources. Genuine engagement with stakeholders is essential for promoting and achieving sustainable development. Further information on principles, strategies, toolkits and practices for community engagement are listed in further reading.

The principles (and the corresponding elements under each) are general statements of good practice for use by governments, industry and communities. These principles do not prescribe specific ways to engage; many factors, including the type, scale and location of each individual operation, create unique conditions requiring a specific application of the principles to achieve the most practical outcome. The principles are intended to help people in the resources sector improve their engagement skills. They should also help companies recognise when they need to get help from outside experts in community consultation.

The nature of operations in the resources sector, whether they are in exploration, mining, or in the petroleum and pipeline industries, mean they have economic, environmental and social effects. The sector is the source of a significant proportion of the materials and energy on which society depends. It supports regional communities, creates employment, provides facilities and enhances services, including health, education and welfare, through its contribution to local, regional and national economies. The industry’s commitment to sustainable development includes minimising any possible adverse effects on the community or environment.

The resources sector has long recognised that, to maintain its social licence to operate, it must engage constructively with communities and stakeholders, and has developed the expertise and skills to do so. The Ministerial Council on Mineral and Petroleum Resources (MCMPR) recognises the importance of the sector to the community and also the value of effective engagement and has developed this agreed set of principles in collaboration with industry and other stakeholders.

It is becoming increasingly important that all parties learn to use public participation effectively, given limited community capacity, to ensure that engagement with the community and stakeholders goes beyond simply meeting the formal requirements of legislation.

These principles draw on the understanding of ‘community’ and ‘stakeholders’ outlined in the Guidance for Implementation of Enduring Value — the Australian Minerals Industry Framework for Sustainable Development, launched by the Minerals Council of Australia in October 2004.