408
T. L. Cruz
indicates intense social dissatisfaction, manifested through semi-organized disruptive activities such as strikes, and riots that disrupt production and logistics, besides
increasing social tensions (Hoelscher and Rustad 2019).
Several negative impacts and social conflicts are associated with mining industry
in Brazil (Cruz et al. 2020), despite its huge importance in national economy (a share
of 4.69% on Brazilian GDP in 2017). Located in the northern state of Pará, Carajás
region, Parauapebas and Canaã dos Carajás are the two main Brazilian mining municipalities, home to the largest iron ore mine in the world (Duddu 2018). However, this
region hosts frequent conflicts between mining companies and the local inhabitants,
due to environmental impacts, human rights violations and land possession struggles. Mining activities and logistics are usually interrupted during such commotions
(Santos and Michelotti 2017; Cruz and Congilio 2017).
Public opinion regarding mining in the region may have worsened significantly in
2019, due to a tailings dam breach in a Brazilian mining venture in Brumadinho—
Minas Gerais. This disaster gravely damaged the environment and killed around 270
people (BBC 2020). Prno and Slocombe (2014) and Hoelscher and Rustad (2019)
identified that current social perceptions are significantly influenced by negative
experiences with mining in other locations or in the past.
Considering the huge importance of the Carajás region for Brazilian mining
production, and the intensification of social conflicts between industry and local
communities in the area, the present research aims at quantitatively and qualitatively assessing the SLO of mining industry in Parauapebas and Canaã dos Carajás,
expanding previous works in the region. It assessed how the following factors
interact and influence the SLO: procedural fairness, company-community communications, improvements in social infrastructure, economic benefits, economic and
environmental impacts, trust in companies and governance.
This paper is divided into six sections. The second section reviews the literature on
SLO and relates the license to social conflicts in northern Brazil. The methodology
of data collection and assessment is explained in the third section, and the results are
described and analyzed in the fourth section. Finally, the fifth section presents the
concluding remarks.
2 Social License to Operate (SLO) and Social Conflicts
in Brazil
2.1 Understanding the SLO
Although the SLO is neither formal nor tangible and originated as a metaphorical
concept, some works attempted to quantitatively measure the license and incorporate
it into business strategies and government’s reports (Black 2013; COAG Energy
Council 2013; Faria et al. 2019). Boutilier and Thomson (2011) modelled the SLO
T. L. Cruz
indicates intense social dissatisfaction, manifested through semi-organized disruptive activities such as strikes, and riots that disrupt production and logistics, besides
increasing social tensions (Hoelscher and Rustad 2019).
Several negative impacts and social conflicts are associated with mining industry
in Brazil (Cruz et al. 2020), despite its huge importance in national economy (a share
of 4.69% on Brazilian GDP in 2017). Located in the northern state of Pará, Carajás
region, Parauapebas and Canaã dos Carajás are the two main Brazilian mining municipalities, home to the largest iron ore mine in the world (Duddu 2018). However, this
region hosts frequent conflicts between mining companies and the local inhabitants,
due to environmental impacts, human rights violations and land possession struggles. Mining activities and logistics are usually interrupted during such commotions
(Santos and Michelotti 2017; Cruz and Congilio 2017).
Public opinion regarding mining in the region may have worsened significantly in
2019, due to a tailings dam breach in a Brazilian mining venture in Brumadinho—
Minas Gerais. This disaster gravely damaged the environment and killed around 270
people (BBC 2020). Prno and Slocombe (2014) and Hoelscher and Rustad (2019)
identified that current social perceptions are significantly influenced by negative
experiences with mining in other locations or in the past.
Considering the huge importance of the Carajás region for Brazilian mining
production, and the intensification of social conflicts between industry and local
communities in the area, the present research aims at quantitatively and qualitatively assessing the SLO of mining industry in Parauapebas and Canaã dos Carajás,
expanding previous works in the region. It assessed how the following factors
interact and influence the SLO: procedural fairness, company-community communications, improvements in social infrastructure, economic benefits, economic and
environmental impacts, trust in companies and governance.
This paper is divided into six sections. The second section reviews the literature on
SLO and relates the license to social conflicts in northern Brazil. The methodology
of data collection and assessment is explained in the third section, and the results are
described and analyzed in the fourth section. Finally, the fifth section presents the
concluding remarks.
2 Social License to Operate (SLO) and Social Conflicts
in Brazil
2.1 Understanding the SLO
Although the SLO is neither formal nor tangible and originated as a metaphorical
concept, some works attempted to quantitatively measure the license and incorporate
it into business strategies and government’s reports (Black 2013; COAG Energy
Council 2013; Faria et al. 2019). Boutilier and Thomson (2011) modelled the SLO