Mining with Purpose: Redefining the Social Contract Between Industry and Community

Madhurii Sarkar-Amoda

Across the globe, mining is undergoing a necessary transformation. The industry stands at a crossroads. For too long, its narrative has centred on extraction—companies arrive, take what they need, and leave communities to face the consequences. This model is not only outdated; it is unsustainable.

True prosperity in mining begins with a commitment to host communities and a vision of shared value — a truth today’s leaders can no longer afford to ignore.

At Segilola Resources Operating Limited (SROL), we believe in a new path forward—mining with purpose; this means recognising that our long-term success is tied to the well-being of our host communities. It’s not sentiment; it’s strategy. Here’s how we implement that strategy through tangible, community-centred practices.

Community-Centered Imperative

Traditional mining often treated community engagement as a checkbox exercise—secure the licence, extract the resource, and manage the fallout. But this approach breeds mistrust and long-term instability.

At SROL, we inverted the model. When we began operations in Osun State, we didn’t just consult communities—we embedded ourselves within them. We listened to traditional rulers, market women, youths, and voices rarely reaching the boardroom. We also conducted a comprehensive needs assessment. What emerged wasn’t a CSR programme—but a strategic community development agenda that involved relevant Community Development Agreement (CDA) projects, CSR and Livelihood Restoration Programmes (LRPs).

Strategic Investment, Not Charity

We distinguish between charity and strategic community investment. Charity creates dependency; strategic investment builds capacity and is sustained.

Take our infrastructure work in Imogbara. Constructing a palace for the Oba wasn’t just a construction project but a restoration of cultural pride. Our 2.4-kilometre interlocking road project improved transport but also signalled our long-term commitment to quality, sustainable projects and permanence in community relations. These investments are not peripheral. They directly strengthen the business environment—by fostering trust, improving mobility, and attracting complementary development.

Empowering Women, Building Economies

Our Segilola Women’s Initiative Programme (SWIP) illustrates how development should go beyond infrastructure. Over 200 women have been trained in digital literacy, marketing, and financial management, and 120 benefited from the entrepreneur and startup project. These are not aid beneficiaries—they are emerging entrepreneurs ready to build generational wealth and uplift their communities.

This kind of empowerment has ripple effects—stronger families, growing local businesses, and increased resilience against economic shocks.

Investing in the Future: Youth and Innovation

Just as empowering women strengthens households and local economies, engaging youth builds the foundation for long-term societal growth.

Our annual football tournament builds bonds between our staff and local youth, and the recent commissioning of our Host Community Mini-Bus Transport Scheme underscores our continued commitment to fostering economic growth and development within our host communities. But we go further—our university innovation competition challenges students to tackle illegal mining, offering rewards for implementable solutions.

We provide merit-based scholarships to outstanding students from our host communities in secondary and tertiary institutions. To further support their academic journey, top scorers in the scholarship examinations receive laptops to aid their studies. We have also invested in upgrading key schools—renovating classrooms, providing ergonomic furniture, and equipping science laboratories with state-of-the-art equipment. These efforts are designed to promote STEM education and create a learning environment that nurtures curiosity, critical thinking, and innovation.

We’re not just supporting education—we’re cultivating future industry leaders, grounded in innovation and community insight.

The Business Case for Purpose

Establishing robust relationships with host communities is a strategic imperative that yields tangible business advantages. Research indicates that proactive community engagement can significantly reduce operational disruptions.

Moreover, community engagement fosters trust and social acceptance, which is crucial for the social license to operate. Studies have shown that positive dialogue experiences between companies and communities lead to stronger relationships and increased perceptions of fairness, enhancing trust and acceptance of mining operations.

Other examples further illustrate these benefits. In Ghana, AngloGold Ashanti implemented a comprehensive malaria control program in Obuasi, reducing malaria cases by 74% over two years. This initiative improved public health and enhanced workforce productivity and community relations.

Similarly, in Australia, the Carey Group’s partnership with AngloGold Ashanti at the Sunrise Dam mine exemplifies the positive impact of Indigenous engagement. By incorporating Indigenous businesses into its supply chain, AngloGold Ashanti supported local economic development and strengthened its operational stability and reputation.

These cases underscore that investing in community relationships is a strategic approach that enhances operational efficiency, mitigates risks, and fosters sustainable development.

It’s Time to Lead the Transformation

The world is changing—climate concerns, ESG expectations, and social activism are rewriting the rules for mining. Companies stuck in archaic extractive models will fall behind. Those who intentionally embrace mining with purpose will unlock new sources of resilience, competitiveness, and goodwill.

At Segilola Resources, we have seen what’s possible. We believe the future of mining is not just about what we take from the ground—but what we leave behind in the hearts, minds, and livelihoods of those around us. The question is no longer if this transformation will happen—but who will lead it.

QUOTE

“Establishing robust relationships with host communities is a strategic imperative that yields tangible business advantages. Research indicates that proactive community engagement can significantly reduce operational disruptions. Moreover, community engagement fosters trust and social acceptance, which is crucial for the social license to operate. Studies have shown that positive dialogue experiences between companies and communities lead to stronger relationships and increased perceptions of fairness, enhancing trust and acceptance of mining operations.”

.Madhurii Sarkar-Amoda, is the Community Development and Stakeholder Manager at Segilola Resources Operating Limited

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