Socioeconomic value creation and the role of local participation in large-scale mining projects in the Arctic

Abstract

This paper examines socioeconomic value creation and the role of local participation in decision-making and negotiation processes during the planning phases of two operational large-scale mining projects: Red Dog Mine in Alaska and Diavik Diamond Mine in Canada. The analysis is conducted using a proposed life-cycle framework adapted for mining projects. Local socioeconomic value creation is realized through direct employment, training, integration of supporting industries, and taxes and royalties. Further, at both mines, there was a high level of local participation during the planning phase. The phases of the life-cycle model are interrelated, and thus actions and the level of participation in the early phases have influenced socioeconomic value creation later in the life cycle. The participation of communities throughout the planning phases of mining projects is a key to facilitating sustainable development outcomes at the local level.