Sustainability
Mining squares up to the social investor
Sustainable mines are more likely to attract investment in a changing world.
FACED WITH GROWING INVESTOR DEMAND, DELOITTE HAS ITS SIGHTS SET ON GUIDING THE MINING INDUSTRY INTO AN AGE OF ENVIRONMENTAL REMEDIATION AND DECARBONISATION. NICK ZAKHARIA WRITES.
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ncreasing pressure from stakeholders for mining companies to be transparent in their social, economic and environmental impact has ignited an industry trend of seeking socially conscious profits. As mining companies enter a new decade, stakeholders are increasingly directing their investments towards companies committed to environmental, social and governance (ESG) principles. The benefit of keeping investors satisfied while also strengthening a business’ financial position is why Deloitte Australia’s mining & metals leader Ian Sanders believes mining companies should go green. “Decarbonisation makes sense operationally. Electrified mines are easier to automate,” Sanders says “The cost benefits of decarbonisation also can’t be ignored. Although there are capital costs to setting up the infrastructure to support the generation of renewable power, the consumption costs associated with renewable energy are negligible.”
“Electrification, digitisation, automation are all going to be techniques that we need in mines to move us through into a new era.” Sanders suggests electric mining will eradicate the operational expenses of traditional mining equipment. “This price dynamic has the potential to radically alter the cost basis of mining. In traditional mining operations, energy is generally the first or second most significant spend, accounting for 15 to 40 per cent of operating expenses,” he says. The decision to undertake a sustainable approach can also boost business for mining companies through the efficiency of electric mines. “With ore grades declining and mineral deposits being as challenging
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as they are to extract,” Sanders says. “Electrification, digitisation, automation are all going to be techniques that we need in mines to move us through into a new era.” Sanders stresses that the devotion towards decarbonisation must extend down the supply chain. “Sustainability teams within our mining organisations do not have the bandwidth or depth to be able to achieve their stated objectives,” he says. “That’s not because they don’t want to, but those objectives are so significant and vast, i.e. the different
