Mining and hydrocarbon companies are failing to take into account the full cost of community conflicts, which are a major risk for resource projects world-wide, according to a new study released Monday.
The study, which was published in Proceedings of the National Academy of Sciences in the U.S., looked at 50 projects around the world that have faced community opposition.
Protests by rural residents and indigenous groups, often over such environmental concerns as the use of water, have derailed mining and energy projects in areas including Australia, India and Peru.
The study found the largest costs that companies face because of the conflicts are the losses when abandoning projects after sinking in a sizable part of their investment. The most frequent costs are due to lost productivity from delays.