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By B. A. Filas, H. N. Lammers

Responsible environmental, social, and governance (ESG) practices are not new to mining. It is the ESG acronym that has become the “flavor-of-the-day” with the stock markets, accounting firms, and investment strategists. This increased interest from the financial sector has heightened executive awareness and accountability to where corporate leadership and directors are proactively prioritizing ESG issues from the top down within their companies. This paper aims to convey what the authors believe one needs to know to be able to conduct and prepare effective ESG audits and reports. The emphasis is on how ESG fits within the mining sector, some of the ways that many mining companies have been practicing ESG responsibility for decades, the importance of effective communications with stakeholders, and the roles that regulatory and international lending institutions play in enhancing ESG practice on a global scale as a precursor to the discussion on ESG auditing and reporting. Without this background, the ESG audit may become a purely academic exercise.

Feb 1, 2023

By Morgan Schauerte, Laura Raimondi, Mariel Palomeque

Executives in the mining industry are facing dramatically changing market expectations on reporting and transparency regarding the environmental and social impacts of projects, supply chains and products. Companies increasingly need to disclose the governance procedures they have in place to ensure communities, investors, employees, and Indigenous partners are effectively managing social and environmental risks. These disclosure requirements begin during exploration and carry through to all stages along the project life cycle. This type of environmental, social and governance (ESG) disclosure is referred to as ESG performance by the investment community. ESG is not a new concept, and it builds on and is intertwined with many concepts such as corporate sustainability, corporate social responsibility, eco-efficiency, triple bottom line thinking, life cycle management and many others. This paper will explore how mining companies can develop a credible ESG governance approach and strategy that will reduce risk, open opportunities, and create value. This paper will summarise ESG trends and drivers, discuss the economics and investors’ perspective towards ESG, and outline leading ESG standards and guidelines of interest to investors, regulators, communities and other stakeholders. Linkage of ESG to global sustainability efforts such the United Nations Sustainable Development Goals and Global Compact will also be addressed.

Jan 1, 2023

By H Arvidson, V Chamberlain, J Joughin, N Pollock, F Cessford, T Flitton, T Rowl

Environmental, social and governance issues (ESG) have become a defining feature in the marketplace to differentiate preferred investments. With the sustainability commitment and reporting landscape anticipated to evolve exponentially, it is now imperative to rapidly develop the approach taken by mineral companies to adequately identify and address ESG risks and opportunities in the reporting of Mineral Resource and Mineral Reserve (MRMR). MRMR cannot be effectively reported as technically and financially assured and realistically executable, if ESG is not integrated into the strategy, business model, input assumptions and process that defines and drives robust MRMR public reporting. Regulatory reporting codes across the globe are presently in various stages of being updated and modified to ensure ESG factors are appropriately covered as a key part of diligent and transparent disclosure. Security exchanges are making it clear that companies must not omit ESG risks from reports to investors. This paper discusses associated challenges for MRMR reporting and suggests avenues for improvement. Key themes include: the importance of procedure rather than prescription and checklists; how ESG criteria impact Modifying Factors and determination of Reasonable Prospects for Economic Extraction (RPEE); the need for financial models to account for material ESG commitments; the uniqueness of each mineral asset; the need for education, upskilling and accreditation of both ESG experts about MRMR reporting and equally Competent Persons in ESG matters; and the need for clear and balanced reports that meet the needs of end users. (RPEE is adopted here for simplicity and consistency, recognising that some reporting codes still include ‘Eventual’ in the term (ie RPEEE). Whilst RPEE and RPEEE are subtly different the intent is to point to the process of assessing ESG factors in determining reasonable prospects.) The principles of transparency, materiality and competence remain paramount when considering the impact of ESG matters on MRMR reporting, and this necessitates an inclusive, cohesive, and integrated approach to assessing ESG issues to ensure the necessary expertise and diligence is applied.

May 24, 2023

By H Arvidson, Rondinelli Sousa, Nic Pollock, Cesar Carrasco, Boz Elloy

Global public mineral reporting codes have driven strong governance of public disclosures of minerals information. Recently, we have seen an increase in disclosure of information related to Environmental, Social and Governance (ESG) issues, and governance of ESG information in mining companies has arguably reached a similar level of governance and diligence afforded mineral reporting. We define Resource Governance as the conjunction of environmental, social and minerals governance. A modern systems approach to Resource Governance, which combines mineral and ESG information, would provide not only reporting and governance capability, but also has the potential to sense/respond, predict, and manage ESG risks.

Feb 1, 2024

By L Schürmann, R Kendall

Social licence to operate is becoming part of a mining company’s DNA in the same way as health and safety. Consequently, mining companies are receiving increasing pressure from their shareholders to ensure that they add enduring value to the local communities in which they operate. Apart from the shareholders, a company has responsibility to suppliers, customers, employees, the government and the community, which means under the social responsibility model they must be accountable to the other stakeholders. External and internal challenges in mining are increasing the difficulty and complexity of mines to operate. The external mining environment has a big impact on mining operations and is driving matters such as the focus on safety, responsible mining and resource management, sustainability issues, profitability and productivity. Considering this, it is expected that the widespread implementation of Environmental, Social and Governance (ESG) related practices across the mining industry in the next ten years will increase, not just for the big players but for juniors as well. Companies, investors, governments and insurers who fail to act on ESG matters are to likely face greater risks. Demonstrating leadership in ESG will ultimately become a differentiating factor and market participants have much to gain from embracing ESG stewardship as part of their competitive advantage. Stock Exchanges have an important role to play in advancing sustainability in the capital markets. It is for this reason that the Sustainable Stock Exchanges (SSE) initiative was founded to serve as a global platform for exploring how exchanges can enhance performance on ESG issues and encourage sustainable investment. The SSE initiative provides an effective platform for dialogue between the United Nations, stock exchanges, investors, companies and regulators in the mining industry. The paper will explain why ESG reporting is crucial for the survival of a mining company and how the lack of transparency could be detrimental to its public image and shareholder relations. The paper will also identify bodies that regulate ESG reporting, as well as the available tools that provide guidelines on reporting ESG matters. Key ESG reporting parameters (at a global scale) will also be highlighted.

Jun 22, 2022

By Casandra Gamez Gonzales, Angelina Anani

Copper, the newest addition to the critical mineral list, is an essential metal whose electrical and heat conductive properties label it as a vital mineral for the creation of renewable energy sources and the reduction of Greenhouse Gases (GHGs). However, despite copper’s leading role in the transition to sustainable energy and mining practices, the mining industry has faced various battles in the extraction of this valuable material. These challenges are based on mining’s negative reputation and extensive impact on the environment, nearby communities, and human rights. To ensure the survival of mining in the future and achieve mineral demands, an emerging topic that has initiated the revolution of the traditional sector into a more environment- friendly and transparent industry, is Environmental, Social, and corporate Governance (ESG). ESG has motivated companies to seek growth opportunities and standardize risk accountability and transparency based on its collective framework that creates, modifies, and implements local, national, and international standards. These standards focus on improving environmental, social, and governance issues faced by companies and their projects. ESG has served as a guideline that investors utilize to assess companies and promote sustainability, responsibility, and disclosure to create positive and balanced relationships with stakeholders and the environment. Nonetheless, concerns have been rising which state that ESG is negatively impacting the mining industry by targeting what fuels the industry and world: ore deposits and their resources. Therefore, this research focused on answering the following research questions: what are the impacts of ESG on the copper supply chain and how will stricter ESG standards affect future copper production?

Feb 1, 2024

By L H. G McClean

Environmental, social and governance (ESG) factors have always been important to the minerals industry and is now considered one of our most important opportunities (and risks). Getting it right from the beginning is critical for the minerals industry, and that starts with mineral exploration. Exploration, or the process of investigation of an economic mineral deposit, is generally low impact and short-term. Exploration operations vary in size and scale and often shift priority, focus and location relatively quickly. Australia is a highly regulated jurisdiction with different regulatory systems and requirements in every state and territory. Most mineral exploration is undertaken by junior exploration companies or ‘explorers’. Exploration companies are lean operations with limited staffing and resources, traditionally with no income apart from funds raised or work through partnerships. Funds are tight and administrative investment is minimised so that investment into activity on the ground is maximised. All these variables mean that understanding and implementation of ESG frameworks for an exploration company can be challenging. ESG is a fast-moving sector with currently multiple frameworks and reporting standards. Interest from community and government stakeholders as well as investors and off-take partners has been growing, with mandatory reporting soon to be implemented. The upcoming changes to the JORC Code will ensure that ESG considerations will be a key component of all public reporting. Resources have been developed to support explorers implement, manage and report on ESG considerations. Due to their scale, agility and direct importance of land access and social licence, many explorers are not the ‘cowboys’ (or ‘cowpersons’) of the industry, but industry leaders in ESG. Strong interest and leadership have led to innovative practices and strongly embedded vertical frameworks that directly contribute to social licence to operate.

Sep 1, 2024

By Robert Walker

Agenda ? Investment thesis ? Engagement ? Competitive advantages Corporate engagement ?The ESG Services team carries out engagement activity with the companies in the Ethical Funds portfolio on behalf of investors ?Each year about 50 companies (20% of our assets) are placed on our Focus List based on assessment of significance and severity of ESG risks and the extent of our portfolio exposure ?We engage in direct discussions on material ESG issues ranging from climate change to human rights to executive compensation ?This enables the team to gain insight into how management is addressing various risks to the business and encourage positive change where gaps exist

Aug 1, 2013

By Cayo Soto

Mining activity is important for the development of humanity. This development must be understood from the Academy where it allows showing alternatives for the industry performance. Likewise, these mining companies need to improve their results. Historically, a few years ago the application of the ESG (Environmental, Social and Governance) criterion was verified, which is positioned as a factor/regulator in the design of the performance of industries in general. ESG as an integral part of the concept of sustainability serves as a tool to conceive mining without conflicts and with a reputation based on trust in the interrelation of the university, industry and society. Therefore, the academy must strive for new knowledge in a way that allows it to continue in the virtuous circle of constantly feeding it. In this context, the best mining practices are implemented in constant questioning of their activities. The scientific essence of the industry supported by the academy developed in an operational dynamic is addressed. Finally, the objective of this research work is to interrelate 3 variables: ESG, Academia, and the Mining Industry, where the transition of knowledge and the role of each variable in relation to each one can be understood. This allows for an additional understanding of mining in the future with new mental attention.

Feb 1, 2025

By Adriana Aurazo

Actualmente, el Perú cuenta con una minería del primer mundo, más sostenible en su desarrollo productivo y con mejores práctica en tecnología e innovación que contribuyen al cuidado del medio ambiente, así como respecto de su interrelación con los actores de su entorno y el Buen Gobierno Corporativo. Luego de analizar algunas consideraciones generales en materia de estándares medioambientales, sociales y de gobernanza (ESG, por sus siglas en inglés) para el sector minero, se destaca la importancia de la automatización de datos así como de plataformas de sistematización integrada que permiten realizar un seguimiento de las métricas ESG y la presentación de informes de sostenibilidad. Por ende, la inversión digital minera en dichas materias, será el foco en los próximos dos o tres años.

Sep 29, 2023

By H Arvidson, B Spence, S Helm

Mining is the art of disturbing ground. All phases of a mine’s life cycle from exploration to building and operating a mine, through closure, has a physical impact on the earth. There is currently increasing public and stakeholder awareness owing to a wide range of issues including heritage protection, environmental stewardship, and social impacts therefore ground disturbance must be conducted in a way that honours and respects all agreements, regulations, legislation, and social expectations. A comprehensive ground disturbance permitting process has been developed through consultation with major mining companies and Traditional Owner groups. It operates from strategic business planning through to closure and rehabilitation. Adherence to the principles and process of permitting helps to minimise risk by ensuring that mining companies conduct their business in an inclusive, professional, reliable, and consistent manner that stakeholders reasonably expect, and that mining companies can be proud of. Built on a geographical information system, supplemented with a specialist database, this process allows request, review, and approval by subject matter experts, to operate in a common environment that is transparent, facilitates collaboration, improves efficiencies, and reduces the risk of error or omission. The application of new technology can effectively highlight changes that naturally occur in today’s dynamic ESG domain and provides the perfect platform to record actual disturbance against authorised and planned allowances. The social license to operate demands that strong governance of the ground disturbance process, described herein, can be demonstrated to any interested stakeholder, and mining companies recognise that this principle is central to the betterment of the mining industry.

Sep 18, 2023

In-Country Business Development Agenda ?Siting/Permitting/Operational Planning ?Securing, maintaining, enhancing social license to operate ?Biodiversity conservation and ecosystem services ?IFC Performance Standards ?Environmental, Social, Risk Governance (ESG) ?Climate change plan

Aug 1, 2013

By J D. Tolley

The shift towards clean energy technologies is having a significant impact on the mining industry, with the demand for minerals such as copper, nickel, cobalt, lithium, manganese, and graphite increasing exponentially. To meet the goals of the Paris Agreement, mineral requirements for clean energy technologies would need to quadruple by 2040, and to achieve net-zero globally by 2050, mineral inputs in 2040 would need to be six times more than today. The most significant driver of mineral demand is electric vehicles (EVs) and battery storage, with lithium seeing the fastest growth, and copper demand doubling over the same period due to the expansion of electricity networks globally. The demand for these minerals is expected to rise significantly as investments in clean energy technologies continue to grow in the future. As the world moves towards a decarbonised economy, the minerals industry is under increasing pressure to reduce its environmental and social impacts and meet the increased demand for minerals. Mining companies are facing additional challenges due to the depletion of near-surface mineral deposits globally, with more mines transitioning from open pits to underground. The transition to underground mining requires the right strategy to economically access deeper mineable inventories and to keep up with future clean energy technology demands to achieve net-zero globally by 2050. One key way to achieve this is through decarbonisation using ‘green’ mining technologies such as replacing current primary diesel mining fleets with battery electric vehicles (BEVs). However, these measures through electrification overlook the bigger opportunity to maximise the socio-economic returns from the mine while also reducing the overall carbon footprint. Corporate cut-off grade policy is one of the most significant influencers on the total environmental and social impacts of the mining industry. The purpose of a corporate cut-off grade policy is to implement strategies aligned with achieving all the mining companies’ corporate goals, with decarbonisation targets becoming a primary driver for mining companies. Table 1 shows the evolution of cut-off theory with the increasing number of dimensions and driving inputs per iteration.

Aug 2, 2023

By R Valenta

Most developing projects face a range of technical and non-technical challenges, and examination of development histories can potentially provide insights into improved approaches to project development. The Kestanelik project in the Canakkale region of Western Turkey was acquired by Chesser Resources Ltd in 2008. Turkey is a significant and growing source of gold production, with sector participation by both domestic and international companies. While the broad ranges of challenges faced by developing projects is well known, there are relatively few case studies in which the range of technical, environmental, social and governance challenges are presented in a single contribution. Recent studies of undeveloped complex orebodies have particularly shown the extent to which environment, social and governance (ESG) complexities contribute to project delays and failures. The Kestanelik project faced a full range of technical and ESG complexities, and provides an illustrative example of the associated challenges. CITATION: Valenta, R, 2018. A case study of technical, social and environmental challenges for a gold project development in Western Turkey, in Proceedings Complex Orebodies Conference 2018, pp 73–74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By CIM Environmental, Social Responsibility Society

Within the mining industry, the pathway from exploration, to planning, construction, operation and closure has become more complex over the last few decades. The current financial, environmental and social influences present the mining industry with unprecedented challenges and opportunities. In addition, international environmental and social reporting standards and codes are becoming increasingly robust. The reporting requirements provide an added impetus for issuers to effectively manage environmental and social impacts and risks. Reporting requirements also provide the opportunity to be transparent. The intended audience for these Environmental, Social and Governance (ESG) Guidelines for Mineral Resource and Mineral Reserve Estimation includes practitioners, industry participants at all levels of skill and experience, corporate management and board members, government agencies, academic institutions and interested parties. For practitioners, this document provides underlying key principles of environmental, social and governance practices. The ESG Guidelines provide guidance for those using environmental, social, governmental and governance information when preparing and implementing mineral exploration programs and contributing to the preparation of mineral resource and mineral reserve estimates for mineral properties that are either at the study stage (i.e., scoping / preliminary economic assessment, pre-feasibility, or feasibility studies) or in operation. The guidelines can also be used to help mineral resource and mining companies apply good practice to manage their environmental and social risks and opportunities. Companies can identify and retain appropriate professionals to prepare environmental and social materials to support company studies. The guidelines are also a resource for companies developing effective environmental and social management strategies at any project stage. This document is not intended to be prescriptive and is not intended to provide exhaustive guidance on what to consider in terms of environmental, social, legal and governmental modifying factors in the preparation of MRMR estimates. Rather, it is intended as general guidance to assist companies and practitioners in considering and applying these modifying factors for MRMR estimates. This document is also not intended to guide environmental and social impact assessment (ESIA); however, the measures needed to manage impacts help inform the constraints and costs for defining mineral resources and mineral reserves and inform the costs and schedules of mineral project studies. All documentation of MRMR estimates made by an issuer and intended to be, or reasonably likely to be, made available to the public in a jurisdiction of Canada must comply with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), as amended from time to time (Canadian Securities Administrators, 2016a and 2016b). Disclosure is not addressed in these ESG Guidelines. Determination of what to include in disclosures is defined in the applicable Securities’ legal frameworks. Appendix A presents a summary table showing the linkage of the principles and topics in these ESG Guidelines to the potential effects on project costs, schedules, government permits and approvals, social licence to operate and financing.

Sep 8, 2023

By R Valenta, J Owen, D Kemp, E Lebre, G Corder

Copper plays an essential role in our society. It is one of the key materials supporting economic growth and human development in emerging economies, for its common use in construction, power generation and transmission. It is also a critical metal for the transition to a low carbon future, particularly for its uses in renewable energy and electric vehicles. As a result, global demand for copper has been increasing steadily and is predicted to continue in the future. The demand-supply gap is currently growing, and new mines will be needed to fill it. This project observes the current pipeline of copper mining projects, which are characterised by technical complexity (lower grades, deeper deposits, complex mineralogy etc.) but also environmental, social and governance (ESG) complexities. A common assumption in the mining industry is that a rise in copper prices will unlock these deposits. However, while most technical complexities are price sensitive and are likely to be overcome in favourable economic conditions, the influence of ESG complexities is more difficult to evaluate. CITATION: Lebre, E, Valenta, R, Kemp, D, Owen, J and Corder, G, 2018. Accounting for social and environmental complexities in mining project developments: the case of copper, in Proceedings Complex Orebodies Conference 2018, pp 39–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By B. Genc, V. J. Mahadeo, S. Ramparsad4, U. Govender

The study was intent on assessing the socio-economic impact of a zinc mine in South Africa through the application of people-centric digital tools using a case study research methodology. The global mining industry is undergoing significant technological shifts to modernize, improve operational sustainability, and align with the environmental, social, and governance (ESG) agenda. While the case study mine is a more modernized mine, continuous improvement around the ‘social’ pillar becomes critical, and to this end application of people-centered digital tools presented as the vehicle to understand community needs and impacts. Despite considerable annual corporate social investment by mines annually, the overall impact or social return on investment is marginally understood. Towards contributing to addressing this gap, digital ESG ‘social-related’ data gathering tools for mines decision-making were developed, including the training-needs assessment tool, community-social needs assessment, small, micro, and medium enterprise (SMME) communications and engagement tool, digital leadership competencies gap assessment tool, and change management blueprint, which further allowed for customization to the mining context. Hence, the novelty of this paper relates to applying digital tools to provide real-time information of the needs of a community, both socially and economically. The findings suggested that these digital tools enabled gathering of information for the establishment of regional and operational baselines towards enabling of social investment returns in relation to socio-economic transformation development interventions. These tools have been applied to a zinc mine context, with lessons and experiences obtained through this study, invaluable to the application of these digital tool in other mines in South Africa. The study was conducted in September 2023 across five host communities, surrounding the zinc mine, in the Northern Cape region, with 120 participants involved in the application of three relevant community-related digital tools, which included the training needs, community-social needs, and SMME communications and engagement tools. It was evident that the digital ESG tools could be used for data gathering for the mine’s informed decision-making and allowed for securing of insights on community needs in near real-time, and further proved practical for community use.

Dec 11, 2024

By Pavel Vasak

Microseismic monitoring is becoming standard practice in the Canadian mining industry, particularly as mines get deeper. Full-waveform microseismic systems allow the operator to distinguish the event source mechanism, e.g., blast, shear slip or stress-induced fracture. At mine sites that heave a microseismic system operator blasts are manually identified by comparing the event waveform traces to the morning blast logs. However, this procedure is not routinely done at sites where a system operator is not present and this can lead to misinterpretation of the data at a later stage, particularly where the interpretation is outsourced, often many years later. It is critical to improve the microseismic data quality and consistency for processing and interpretation with a reliable technique to filter out blasts and blast related seismicity. This paper presents the development and implementation of a simple blast identification and filtering routine. The routine was developed specifically for Vale?s Creighton Mine about a decade ago, but is made sufficiently general so that it can be used at any mine site with an ESG (Engineering Seismology Group Canada) based full-waveform microseismic systems. The routine is strictly a post-processing procedure developed for use with the Access database data structure used by ESG. The algorithm was tested at Creighton Mine and a success rate of 80 to 90% was achieved, when compared to manual blast picks.

Oct 1, 2010

By A Atkins

Six recent case studies were selected based on the eight main causes of mine disasters (Table 1; Quinlan, 2014) and where credible information sources, such as Royal Commission Reports, Coronial Investigations and textbooks, were available. The six case studies are listed below. Details are available via this link or the conference PowerPoint accompanying this paper. 1. Beaconsfield, Tasmania – 2006 Fall of Ground/Seismic Event (Chandler, 2009; Melick, 2007; Wright, 2012). 2. Bingham Canyon, USA – 2013 Manefay Slide (Ross, 2017). 3. Bronzewing, WA – 2000 Hydraulic Fill Inrush (Hope, 2002). 4. Brumadinho and Samarco, Brazil – 2015 and 2019 Tailings Storage Facility (TSF) failures (Bowker, 2019; Darlington et al, 2019; Demajorovic, Lopes and Santiago, 2019; Morgenstern, 2016). 5. Northparkes, NSW – 1999 Cave Air-blast (Bailey, 2003; Hebblewhite, 2003). 6. Pike River, NZ – 2010 Methane Gas Explosion (Macfie, 2013; Panckhurst, Bell and Henry, 2012.

May 5, 2022

By Ronney Rodrigues Silva, Renata Mendonca, Gabi Knesel, Cathrine Monyake

Locus Mining is working side-by-side with a prestigious iron ore company to evaluate the addition of Locus ESG-friendly green flotation reagents with the primary goal of improving recovery and grade. In this paper, we will focus on the cationic reverse flotation application. The most “established industry” reagents for cationic reverse flotation are amine as the collector, starch as the depressant, and in some cases frothers are also used (among them MIBC, pine oil, others). Here, we evaluate the synergies of different classes of eco-friendly biosurfactants and industry-standard reagents during the cationic reverse flotation method. Exploratory research was done first with an analog sample under different pHs, eight different biosurfactants with starch and no-starch, and a customized DOE was used to perform 145 microflotation tests. The results show Separation Efficiency from 20% (baseline) to 50% (biosurfactant), and Selectivity from 3.27 (baseline) to 5.67 (biosurfactant). Optimized result conditions were then applied to the iron ore samples received from our client to perform flotation tests on a Denver Lab cell. Similar results were obtained by improving Separation Efficiency and Selectivity, which corroborate with the previous work.

Feb 1, 2025