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2016/17
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LEXPERT 35
Vaughan ticks off examples of how mine companies have
flubbed even basic CSR concepts since the term "social
licence to operate" was first coined in 1997, by, as it turns
out, a Canadian mining executive.
"ere have been a whole bunch of mine failures
throughout the world caused by the inability of mines
to relate well with the local communities," he says. "at
is, by not giving them jobs, not giving them training,
not getting them involved in any way, shape or form.
Not buying locally or using local companies. In a lot of
countries they have been running foreign companies off
title and told them to get the heck out of their country,
because there was no benefit."
In today's activist atmosphere, where environmental-
ist and human rights NGOs will agitate and assist lo-
cal communities to stand up to mining operations that
don't consult with them or ignore their concerns, even
the Chinese, at last, have figured out that enlightened
CSR practices are critical to their bottom line.
e China Chamber of Commerce of Metals, Miner-
als & Chemicals Importers & Exporters (CCCMC) re-
cently published its Guidelines for Social Responsibility in
Outbound Mining Investments. It calls on Chinese min-
ing firms to implement CSR strategies "such as improv-
ing production efficiency, ethical and fair operations,
labour conditions, providing safe working conditions,
minimizing environmental pollution, avoiding contrib-
uting to armed groups or sourcing 'conflict minerals.'"
And, it adds, they should strive for "improvements in
the lives of the local community."
Looking at the guidelines spelling out how Chinese
mine companies should comply with ethical business
practices, strive for transparency and respect human
rights and the environment, Vaughan concludes "in my
humble opinion they are the highest CSR standards that
any country in the world has." Whether the Chinese will
practise what the guidelines preach remains to be seen.
Meanwhile, the Canadian mining sector, while gener-
ally leagues ahead of the Chinese in terms of the evolu-
tion of CSR practices, still struggles with how it is sup-
posed to achieve social licence to operate. David Bursey
doesn't particularly care for the term, first used 19 years
ago by a former executive of now-defunct Canadian
mining company Placer Dome. Bursey, Co-head of the
Aboriginal Law Practice Group at Bennett Jones LLP in
Vancouver, says the term is misused and misunderstood.
"You can use terms like public acceptance and public
trust, or corporate social responsibility," says Bursey. But
for him the word "licence" in social licence to operate
implies a kind of official permission to do something.
And the reality is SLO is really an unwritten social con-
tract with no legal status or specifications for companies
seeking to develop such things as mines.
"One of the challenges of social licence, since it is by
definition outside of the legal framework, is there is no
Selley, David J. Farris, Vaughan, Wills & Murphy LLP
(604) 661-1718 dselley@farris.com
Mr. Selley practises corporate and commercial transactions, securities,
corporate finance, M&A and banking law. He has experience drafting and
negotiating securities offering and finance documents, including stream-
ing agreements and security. Mr. Selley's mining clients include gold and
uranium explorers and gold and copper producers. He represents publicly
traded companies and venture issuers.
Shishler, Melanie A. Davies Ward Phillips
& Vineberg LLP (416) 863-5510 mshishler@dwpv.com
Ms. Shishler advises clients on public and private M&A transactions, both
negotiated and unsolicited. She has extensive experience in the mining
sector, regularly advising mining clients on their joint ventures, financings,
governance and proxy contests.
Smith, John Lawson Lundell LLP
(604) 631-9120 jsmith@lawsonlundell.com
Mr. Smith has assisted established as well as developing mining companies
with mine development, financing, M&A and broader commercial matters,
including directing litigation and arbitration when required. He has exten-
sive experience with the coal industry, including terminal operations.
Stefaniuk, John D. Thompson Dorfman
Sweatman LLP (204) 934-2597 jds@tdslaw.com
Mr. Stefaniuk engages in a broad practice with emphasis on mining,
natural resources, energy and environmental law, real estate development
and municipal law, and government relations. He has particular experi-
ence in mine development, permitting and licensing, regulatory approvals,
agreements with government, mineral tenure, Indigenous consultation,
negotiation, mine closure and rehabilitation.
Stein, Paul M. Cassels Brock & Blackwell LLP
(416) 869-5487 pstein@casselsbrock.com
Mr. Stein's securities practice focuses on M&A and corporate finance.
He advises mining clients in the negotiation of joint ventures, farm-in
agreements and financing of exploration and development projects,
both domestically and internationally.
Tardif, Philippe Borden Ladner Gervais LLP
(416) 367-6060 ptardif@blg.com
Mr. Tardif specializes in securities law and capital markets transactions,
including Canadian and cross-border corporate finance transactions,
mergers & acquisitions and governance matters involving Canadian
and international mining companies.
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