INDUSTRY OUTLOOK
A LOOK THROUGH THE CRYSTAL BALL: MINING IN 2022 FOLLOWING A WHIRLWIND START TO THIS DECADE, ONE CAN ONLY GUESS AT WHAT TRANSFORMATIONS MIGHT OCCUR ACROSS AUSTRALIA’S MINING INDUSTRY IN 2022. BUT THAT’S EXACTLY WHAT THESE INDUSTRY EXPERTS THRIVE ON. HENRY BALLARD WRITES.
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he past 12 months have seen record gold exploration, Chinese trade bans, rollercoaster iron ore prices, fly-in, fly-out (FIFO) lockouts, vaccine mandates, skilled labour shortages and more ‘green’ initiatives than you could poke a stick at. Environmental, social and governance (ESG) credentials began each annual report and the transition from coal to clean energy was highlighted brighter than ever at the United Nations climate conference, COP26. Investors placed increasing pressure on mining companies to clean up their act in a shift that may change the way big business operates forever and through it all the industry just kept on keeping on. Looking forward, Austmine chairman emeritus Alan Broome tells Australian Mining he sees ESG as more than just a fad. “The biggest single priority for every mining company now is ESG,
it’s the big deal,” Broome says. “I chair three smaller mining companies and all my boards are looking at this issue very carefully. “It’s going to have an increasing impact on our mining industry for the next few years. Some people think it’s just going to be a shortterm trend, but it’s here to stay because it’s an integral part in making sure we are responsible for how we access our mineral endowment.” These credentials extend from emissions regulation to issues of cultural heritage, as both continued to make headlines in 2021. The Western Australian Chamber of Minerals and Energy (CME) director for Policy and Advocacy, Rob Carruthers, says he sees companies taking real care in the way they manage interactions with Australia’s Traditional Owners. “There’s been a lot of strong investment and support from industries to host communities wherever that may be,” Carruthers AUSTRALIANMINING
says. “That’s not only so that the communities benefit from the operations they host, but also to engage and consult with them on future plans to make sure they’re supportive and understanding of developments. “We’re seeing a lifting of all boats on the tide in consultation with communities and Traditional Owners to make sure the benefits are spread from new mining activities.” And while the mining industry has seen some self-inflicted blows to its ESG reputation, many mining companies have been putting in a significant effort to create lasting relationships with their investors and their host communities. In 2021, PwC Australia released its 16th annual edition of the Aussie Mine report which details the progress of Australia’s mid-tier miners – categorised as the top 50 mining companies outside the top 50 companies (MT50) on the Australian Securities Exchange (ASX50).
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Considering this report, PwC partner Marc Upcroft believes Australian mining companies have made a lot of progress in responsible operations. “They were already pretty clear on their ESG credentials overall. But if you narrowly focus on energy and emissions reductions, they’ve come a long way in recent months and a really pleasing thing is we’re starting to see the same in the mid-tier space as well,” Upcroft says. “There’s still a large group of mining companies that are yet to jump on board but there is still tremendous opportunity for the others to be fast followers.” More importantly for mining companies, PwC has shown that it’s well in their interests to operate more responsibly going forward. “The analysis that we do shows that it’s worth it, as better ESG credentials leads to more investment,” Upcroft adds. The Aussie Mine report also found that the E in ESG is being
