Social license to operate of Tulu Kapi Gold Mining, Western Ethiopia

Abstract

The notion of social license become crucial in the mining sector mainly in developing countries due to rising in resource-related disputes and local community's aspirations for more participation and benefits. The context of social license to operate, and implications on mining development were assessed in this study, focusing on Tulu Kapi Gold Mining in Western Ethiopia. The qualitative methods were embedded in the statistical analysis for data collected from 116 participants from household heads, elders, women, and experts. Regardless of the expected adverse of mining, the local community supports the projects' operation in their area. However, the firms have hardly considered social acceptance that the observed trust index for most of the SLO indicators were remarkably low. The issues have dimensions along social groups that elders, women, and landless households were more concerned but are less engaged and showed maximum aversion. These conditions have been deteriorating community-companies relationships, and reducing effectiveness of mining operations. The situations have significant implications for the sector and the local community's welfare; and seek policy and practical attention in Ethiopia.