It is no surprise that this year’s Investing in African Mining Indaba places ESG as a key theme, with industry leaders ranking ESG as the top risk in the latest EY Top 10 Business Risks and Opportunities for mining and metals in 2022.
ESG also links directly to other central issues for the industry and planet, notably energy and water. The real challenge for mining companies is therefore to integrate their ESG responses to make them more effective.
While facilitating the energy transition by increasing production of crucial battery minerals, mining is also working to reduce its own carbon footprint. Related decarbonisation initiatives include energy efficiency, self-generation through renewables, and innovative technologies like hydrogen cells.
Carbon footprint complexities
“These advances provide exciting opportunities but also considerable complexity,” said Andrew van Zyl, director and principal consultant at SRK Consulting. “The introduction of new technology into a feasibility study, for instance, impacts the confidence of the modifying factors linked to resource and reserve determination.”
Mines look to companies like SRK to help understand exactly how these solutions impact on indices like cost, productivity and mine plans. The company engages with clients on how they can measure, mitigate and reduce their carbon footprint.
“We include a range of power generation options in our technical studies and we track the technologies and their potential advantages and risks,” he said. “Our due diligence studies include a review of the energy options that the client has selected; this helps to assess questions of cost and reliability, as well as green credentials that demonstrate commitment to sustainability.
Carbon footprint is influenced not only by Scope 1 emissions from the mine site itself, but also Scope 2 and Scope 3 emissions from other phases in the mine’s supply chain. Mines are increasingly seeking to procure electricity generated from renewable energy sources.
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