At the Investing in African Mining Indaba, a central theme was the mining industry’s increasing focus on Environmental, Social, and Governance (ESG) risks, underscoring the complexity of evaluating mineral assets and companies. Sabine Anderson, a Principal Mining Engineer at SRK Consulting in Cardiff, highlighted the sector’s shift from merely mitigating ESG risks to actively creating value through these measures.
This transformation aligns with SRK Consulting’s 50th anniversary, showcasing its longstanding commitment to responsible mining practices. Anderson pointed out that the industry’s valuation metrics are evolving, with a greater emphasis on achieving mutual prosperity for all stakeholders. This approach integrates financial, manufactured, intellectual, human, social, relationship, and natural capital, reflecting a broader understanding of value creation beyond traditional shareholder returns.
The trend towards ESG integration marks a significant shift in how companies approach mining projects, with stakeholders’ growing concerns over ESG credentials taking precedence. This has led to an increased focus on people, biodiversity, and ecosystems, alongside technical due diligence, in assessing mineral resources and reserves.
Backing these trends are emerging disclosure and performance standards, placing added pressure on companies to align their operations with their ESG commitments. Anderson stressed the importance of incorporating ESG considerations from the early stages of mineral project development, ensuring alignment with relevant standards and transparent carbon reduction plans.
Innovation in mining practices, such as optimizing mine plans to reduce carbon emissions and adopting electric mining equipment, exemplifies the industry’s commitment to integrating ESG deeply into projects. SRK Consulting’s proactive stance nearly 30 years ago in hiring its first social and development specialist underscores its dedication to addressing the now widely recognized ESG issues.
As the mining industry navigates the challenges and opportunities presented by ESG integration, SRK Consulting continues to innovate, aiming to achieve economic optimization while aligning with decarbonization goals through strategic mining design and equipment selection.
Source: Mining Review
