Effect of Local Community’s Environmental Perception on Trust in a Mining Company: A Case Study in Mongolia

Lavdmaa Dagvadorj, Bolorchimeg Byamba and Mamoru Ishikawa
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Lavdmaa Dagvadorj: Graduate School of Environmental Science, Hokkaido University, Kita 10, Nishi 5, Sapporo 060-0810, Hokkaido, Japan
Bolorchimeg Byamba: Graduate School of Environmental Science, Hokkaido University, Kita 10, Nishi 5, Sapporo 060-0810, Hokkaido, Japan
Mamoru Ishikawa: Faculty of Environmental Earth Science, Hokkaido University, Kita 10, Nishi 5, Sapporo 060-0810, Hokkaido, Japan

Sustainability, 2018, vol. 10, issue 3, 1-12

Abstract: While the mining industry is booming globally, local communities resist mining operations. It is crucial for mining companies to maintain trust within these communities to prevent conflicts. This research investigated local community’s trust in a mining company in Mongolia using a questionnaire survey. We assessed the residents’ perceptions of the company’s effort to maintain environmental protection, as a determinant of trust, in addition to the determinants of motivation and ability. The results showed that the trust level varied within the different respondent groups and the determinants of trust differentially explained the state of trust. The nomadic herders who lived close to the mine site had low trust while being sensitive to the environmental effects. Other herders had neutral trust. Town citizens had high trust, which was mainly related to positive perceptions of motivation. Communicability of the information provided by the company influenced formulation of positive and negative perceptions. Overall, low trust likely leads to conflicts. Therefore, mining companies are advised to conduct surveys with different groups in the local community, especially those sensitive to environmental changes, and take measures to maintain trust.

Keywords: trust; mineral extraction; environmental perception; local community; herders; Mongolia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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