RESPONSIBLE MINING
SHIFT TOWARDS SUSTAINABLE MINING INCREASES The mining industry’s shift towards a greener, more sustainable and more community-oriented business model is accelerating as mining groups seek to maintain their social licence to operate and position themselves for long-term growth. By Nigel Beck & Mark Buncombe*
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he continued focus on climate change and on the well-being of local communities, particularly in light of the Covid-19 crisis, has meant that many mining companies are responding by accelerating the reduction of carbon emissions and addressing social issues. Anglo American, for instance, said in mid-2020 that it was pushing ahead with plans to convert its mine-haul trucks from diesel to hydrogen power. The group is launching a pilot project at its openpit Mogalakwena operation in South Africa. It has already taken delivery of its first fuel-cell truck and intends to produce ‘green’ hydrogen on-site using solar energy.
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BHP Billiton said early in 2021 that it had invested in a company seeking to manufacture steel in a far more environmental way than is the norm. With the industry now acutely aware of the need to operate sustainably, Standard Bank has seen a significant rise in interest in sustainable finance products, which are used to fund improvements in a firm’s environmental, social and corporate governance (ESG) performance. Targeting high-growth industries The rise of electric vehicles, driven by consumer preferences for more environmentally friendly products, is expected to boost demand for minerals