Table Of ContentTHE SOCIAL LICENSE
This unique book combines a colourful history of Bolivian politics with some of
the most advanced quantitative techniques yet developed for socio-political risk
analysis. This is the story of how a foreign-owned private sector mining company
(Minera San Cristobal – MSC) earned, lost, and regained its social licence to
operate (SLO).
Robert G. Boutilier and Ian Thomson, leading experts in stakeholder manage-
ment theory and practice, transform the concept of the SLO from a metaphor
to a management tool. The book traces the development of new concepts and
measures in the field of stakeholder engagement while following the narrative of a
community struggling with a fundamental change in its identity from a declining,
malnourished llama-herding village to one of the richest towns in Bolivia.
This remarkable story will inspire practitioners in the field of stakeholder
management; it will provide an invaluable roadmap for professionals working on
land re-use projects in the energy, mining, and conservation sectors; it will make
stakeholder relations concepts and techniques accessible to students through an
engaging and in-depth case study; and it will open your eyes to one of the most
fascinating accounts of how two different cultures collided and then came together
to address different but aligned goals.
Robert G. Boutilier is a strategy consultant, social researcher, and Associate of
the Centre for Sustainable Development at Simon Fraser University, Canada.
Ian Thomson is a practising social consultant, researcher and communicator with
more than 40 years of experience in the natural resource industries, most recently
as principal of Shinglespit Consultants Inc., Canada.
“An engaging and unique mix of historical context, social science theory, novel
data, visualizations and quotes from the front lines where indigenous communities
and multinationals negotiate rents, rights and right.”
Witold Henisz, Professor of Management at the Wharton School,
University of Pennsylvania, USA
“A readable and thoughtful exploration of the theories and practice of relation-
ships between mining companies and communities. Useful for anyone interested
in community development or mine development.”
David Clarry, Vice President, Corporate Social Responsibility,
Hudbay Minerals Inc., Canada
“So well written, truly a pleasure to read, not to mention absolutely fascinating.”
Pamela Lesser, Faculty of Social Sciences, University of Lapland, Finland
THE SOCIAL LICENSE
The Story of the San Cristobal Mine
Robert G. Boutilier and Ian Thomson
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX144RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
2019 Robert G. Boutilier and Ian Thomson
The right of Robert G. Boutilier and Ian Thomson to be identified as authors
of this work has been asserted by them in accordance with sections 77 and 78 of
the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without intent
to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Boutilier, Robert, 1950- author. | Thomson, Ian,
1946- author.
Title: The social license : the story of the San Cristobal Mine / Robert G.
Boutilier and Ian Thomson.
Description: Abingdon, Oxon ; New York, NY : Routledge, 2019. | Includes
bibliographical references and index.
Identifiers: LCCN 2018020051| ISBN 9781138579682 (hbk) | ISBN
9781138579699 (pbk)
Subjects: LCSH: San Cristâobal Mine (Potosâi, Bolivia) | Mines and mineral
resources—Social aspects—Bolivia—Potosâi—History. | Mineral
industries—Social aspects—Bolivia—Potosâi—History.
Classification: LCC TN39.P66 B68 2019 | DDC 338.7/62234098414—dc23
LC record available at https://lccn.loc.gov/2018020051
ISBN: 978-1-138-57968-2 (hbk)
ISBN: 978-1-138-57969-9 (pbk)
ISBN: 978-0-429-50786-1 (ebk)
Typeset in Bembo
by Swales & Willis Ltd, Exeter, Devon, UK
CONTENTS
List of figures ix
List of tables xi
Author biographies xii
Preface xiv
Mutual learning and influence xiv
Overview of the contents xvii
Acknowledgements xxii
List of abbreviations xxiv
PART 1
Historic context 1
1 In the beginning 3
Early days 3
The gift of El Tío 6
The long wait 7
Destiny delivers 11
2 The historical roots of divergent views of fairness 12
Evolutionary theory in the social sciences 13
Institutional theory and rent-seeking 16
A cultural conflict waiting to happen 20
3 Bolivian politics from the Spanish to the neo-liberals 21
The historical resentments of Potosí 21
Economic crisis and neo-liberal reform 23
vi Contents
Consolidating neo-liberal reforms 25
Popular participation and decentralisation 26
4 The anti-foreigner turn 29
The push back against neo-liberalism 29
Emblematic incidents at the time of Buchanan’s discovery 31
Opposition to neo-liberalism goes mainstream 33
The rise of Evo Morales 34
PART 2
Retrospective from discovery to operating mine 39
5 Social licence concept and retrospective study method 41
The social licence concept 41
Identification of levels of social licence 46
Methods used for the 1994 to 2008 San Cristobal case study 48
6 From geological discovery to construction: 1994–2004 51
Geological discovery 51
Resettlement 52
Waiting for jobs 56
7 Construction: 2004–2006 59
New management team 60
Big changes, rising anxieties 61
Loss of legitimacy 62
Recovery of legitimacy 65
8 Transition to operating mine: 2007–2009 68
Adjustments to start-up and full operation 68
Water worries 70
Further observations beyond the retrospective study 77
Modernisation and the prophecy about abandoning the old ways 78
9 Re-negotiation of roles and rights: 2010 and 2011 81
Adjustment to arrival of globalisation 81
Regional unrest: multiple issues 82
The 2010 mini-insurrection 85
Contents vii
Mine occupation of 2011 86
Discrimination as either inequity or inequality 96
PART 3
Stakeholder strategies from quantitative measures 99
10 Shift to quantitative risk assessment methods 101
SLSN 101
Quantification of the social licence 102
Quantification of concerns and priorities 107
Quantification of stakeholder influence 109
Changes in methods by year 111
11 Co-evolution of risk hotspots with Bolivian politics and
economy: 2009–2015 113
2009: storm clouds on the horizon 113
2011: the occupation 116
2012: horizons expanded to the capital cities 117
2013: the free market shows that it can benefit
campesinos too 119
2015: the political emergence of San Cristobal town 120
12 From findings to strategies that work 122
Issues and recommendations by year 122
Dust reduction initiatives 124
Water initiatives 124
Access to health care 126
Communications planning 127
The limits of stakeholder strategies 127
PART 4
Distinctive features and conclusions 129
13 Women and the San Cristobal mine 131
Women and mining 131
Historical overview 131
Women in the mine 134
Perspectives on women in the mine workplace 135
viii Contents
A further perspective 138
Concluding thoughts 139
14 The trouble with llamas 140
About llamas 140
Relocating the llama herds 142
The quinoa factor 148
The situation in 2015 150
15 Concluding observations 152
Story woven from many threads 152
What is the entity that needs a social licence? 157
Summary 159
References 160
Index 165
FIGURES
1.1 Los Tres Gigantes (The Three Giants) 4
1.2 Locations of the three mines in the prophecy 6
1.3 Minera San Cristobal’s region of influence 10
2.1 Different principles of justice at the root of the differences
between MSC and its Bolivian stakeholders 14
3.1 Cerro Rico, city of Potosí 22
5.1 How the social licences granted by individual stakeholders
translate into the impacts on the focal organisation 44
5.2 Hypothesised boundaries between the levels of the social licence
(Thomson and Joyce, 2008) 47
5.3 Four-level model of the social licence (based on Thomson and
Boutilier, 2011) 47
5.4 Fluctuations in project acceptance at San Cristobal 50
6.1 Map of mine operating area 57
7.1 Achopalla: sacred boulder moved to new town 64
8.1 On-street parking in San Cristobal 79
10.1 Five-year trends in standardised average rated social licence scores
and odds ratios of compliments to complaints in open-ended
verbal comments 107
11.1 MSC’s stakeholder network in 2009 based on ties of strength
4 out of 5 115
11.2 MSC’s stakeholder network in 2011 based on ties of strength
5 out of 5 116
11.3 MSC’s stakeholder network in 2012 based on ties of
strength 4 out of 5 118
