“Mahatma Gandhi once said, “Earth provides enough to satisfy every man’s needs, but not every man’s greed.” More effort is being expended in sharing the benefits rather than growing the benefits.”Mike Elliott
Global Mining & Metals Leader, Ernst & Young

As the mining sector continues to flourish while other sectors flounder, a wider range of stakeholders are looking for a greater share in the perceived profits.

These stakeholders feel entitled to a portion of the profits and balancing these varied and competing expectations is challenging.

• Governments are placing pressure on mining and metals companies to take a greater role in supporting the broader community through social and logistical infrastructure, community developments, and local hiring and procurement Practices
• Local communities are not just looking for minimal disruption but also to share the economic and social benefit from local mine operations. They have a lot of power to disrupt projects if their needs and interests are not met
• Employees are seeking higher wages and greater workplace benefits and can incite industrial unrest if they are not achieved
• Suppliers can charge greater premiums as mining and metals companies are dependent on their goods and services to increase production output
• Shareholders are expecting a greater return on their investments for the perceived risk of owning mining and metals stock, squeezing the profits already shared amongst the other stakeholders

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Contacts

• Ernst & Young’s Global Mining & Metals Center