Tag Archives: ESG

Australian Mines makes history with certified carbon neutral status

Australian Mines says it has become the first mineral resources company to be certified a “Carbon Neutral Organisation” under the Australian Government’s Climate Active program.

Climate Active is the most rigorous and credible carbon neutral certification available in Australia, according to the company, and meeting the “Climate Active Carbon Neutral Standard” means Australian Mines’ carbon neutral status is based on best practice, international standards and genuine emissions reductions.

Last month, the Queensland Government offered a conditional financial support package to Australian Mines’ 100% owned Sconi cobalt-nickel-scandium project in the north of the state. When fully developed, Sconi is forecast to be one of the most cost competitive cobalt-producing, nickel operations in the world, Australian Mines says.

The 2018 Sconi bankable feasibility study outlined a three open pit, 2 Mt/y operation that could produce some 8,496 t/y of cobalt sulphate, 53,301 t/y of nickel sulphate and 89 t/y of scandium oxide over the 18-year mine life.

“Australian Mines ability to maintain carbon neutral certification will underpin its position as a sustainable business that incorporates leading environmental, social and governance (ESG) practices,” it said. The company is already an approved member of the Initiative for Responsible Mining Assurance (IRMA), which independently verifies and certifies socially and environmentally responsible mining.

Australian Mines’ Managing Director, Benjamin Bell, said becoming the first Climate Active Carbon Neutral mineral resources company is consistent with Australian Mines’ commitment to leading on ESG.

“It follows the approval in March 2020 of our membership of IRMA and the Queensland Government recognising our commitment to the communities where we operate by granting ‘Prescribed Project’ status to our flagship Sconi project in 2019,” he said.

Australian Mines’ primary focus is to sustainably develop the Sconi project into a globally significant, ethical, reliable source of technology metals to meet the rapid growth in the electric vehicle and energy storage industries, it says.

A key part of sustainably developing Sconi is the company’s carbon neutrality plan designed to reduce greenhouse gas emissions by implementing energy saving initiatives coupled with offsetting any unavoidable emissions.

“Being certified Carbon Neutral by Climate Active is part of building a sustainable future for Australian Mines, long-term value for our shareholders and a better environment for all our stakeholders,” Bell said. “Members of the Climate Active Network are responsible for over 22 Mt of carbon emissions being offset, which is the equivalent of taking all of Sydney’s cars off the road for two years.”

BHP and Curtin University to explore ‘environmental DNA’ in latest partnership

Curtin University and BHP have joined forces in a new partnership to develop research and innovation projects and, Curtin says, support the higher education of emerging leaders.

BHP has committed to working side-by-side with Curtin to apply innovative thinking, world-class expertise and novel solutions to shape the future of the resources and energy sector and produce job-ready graduates to focus on some of the big challenges of the future, the university said.

One of the initial BHP-Curtin alliance projects involves five research studies that will use environmental DNA (eDNA) to help the preservation of species and conservation of important marine features.

Named the eDNA for Global Environment Studies (eDGES), the projects include research to improve monitoring of the endangered/rare Pilbara Olive Python and high-altitude wetlands of international importance in Chile, and develop new tests to detect invasive marine species relevant to closure of infrastructure in the marine environment.

Curtin University Vice-Chancellor Professor, Deborah Terry (pictured on the right with BHP Head of Corporate Affairs, Meath Hammond), said the wide-reaching partnership will deepen an already proven relationship.

“BHP has been a generous supporter of Curtin and Curtin students for more than a decade through a range of successful scholarship and partnership programs,” Professor Terry said. “This new BHP-Curtin alliance builds on that established mutual respect and shared commitment to innovation through collaboration.

“This partnership will allow industry to interact with students, researchers and academics to produce job-ready graduates. In partnership, we are committed to leading the world with our research and study programs to achieve sustainable, positive change across industries and sectors.”

She added: “Our researchers are already working to find solutions to our real world challenges. Our experts in science, engineering and data science are at the forefront of new materials, new manufacturing methods and artificial intelligence. It’s this expertise, innovative thinking and vision for the future that Curtin will bring to our alliance with BHP.”

BHP Acting Asset President Western Australia Iron Ore, Tim Day, said the company was looking forward to working closely with Curtin across a wide range of projects.

“We each have global footprints and proud histories of driving innovation and this partnership gives us both the opportunity to learn from each other to genuinely make an impact,” Day said.

“This is a great opportunity to advance technology together, as we look to the future of work.”

The scope of the BHP-Curtin alliance is broad and will also include scholarships and alumni programs, enabling programs to position BHP as an employer of choice and support access to education from remote areas, internships, work-integrated learning opportunities, professional development opportunities for BHP staff, as well as community programs and research initiatives focusing on mining modernisation, automation and sustainability, Curtin said.

Lost Dutchman Mine ready to tell its metal separation tale

A company out of Arizona, USA, believes it has come up with a density separation technology that could upgrade heavy metal concentrates without the need for water or chemicals.

Lost Dutchman Mine (LDM), named after the legend of a rich Arizona gold deposit discovered by an elusive Dutch prospector, never since located, is the company in question. Being supported along the way by the Centre for Excellence in Mining Innovation (CEMI) out of Sudbury, Ontario, the firm is looking to find a way into the mining sector at a time when environmental, social and governance (ESG) concerns have reached a new high.

Mark Ogram, one of three Co-founders of LDM, explained the company’s aim and name, saying: “We’ve been able to find gold where people could not find it.

“We have now come up with a solution that requires no chemicals or water to purify a gold ore.”

While gold is the company’s initial focus, the process can be applied to most heavy metals including silver, copper and tungsten, according to Ogram. Some encouraging results have also been seen removing sulphides from gold ore ahead of further processing, in addition to ‘cleaning’ coal, he added.

A gravity separation process that uses air flow rather than water to separate these materials by density, the obvious comparisons are with Knelson concentrators or other separation technologies – all of which tend to use water or another medium for their processes. Ogram says Knelson concentrators are also for free gold, not refractory gold, the latter of which the LDM technology can cope with.

allmineral’s allair® technology also comes to mind as a comparison. This is a process that leverages many of the functions of the water-operated alljig® technology but, instead, uses air as the pulsating medium. So far, allair’s applications have been confined to mostly coal and other minerals.

Like many of these technologies, it is feed preparation that will prove decisive for the application of LDM technology, with ore crush size and moisture content the two key factors.

“We don’t think we would need ball mills to get the feed down to the right size,” LDM Co-founder Ken Abbott said. “A standard crushing and screening setup should be suitable.”

While test work to date has been with material in the 30-60 mesh range, Abbott is confident the technology will work with material from 100-200 mesh.

“It will be a little more of a sensitive process, but it does work should people require it,” he said.

When it comes to moisture content, a drying process will most likely be needed ahead of feeding to the LDM unit.

“The material needs to flow freely to work well,” Abbott said.

In-field test work involved the company using a tumble-type continuous screener/dryer to reach the appropriate moisture content, but a more ‘industrial’ process will be required in commercial applications.

The best results are likely to be achieved when both factors are consistent, according to LDM.

“The system requires a steady and uniform distribution in the feed cycle that includes surge capacity and automated material flow to ensure a steady feed rate,” the company says.

Dale A Shay, a consultant with RIMCON advising LDM, said vat leaching operations were already producing material at the appropriate size for the LDM technology to be tested. “They are also reducing the moisture content to an appropriate level,” he said.

Despite this, the company feels tailings applications may be the most suitable place to start with. This harks back to the ESG concerns miners are feeling – some of which revolves around tailings impoundment areas – as well as the fact the ‘conservative’ mining industry is generally more comfortable testing new technologies on material they already consider to be ‘waste’.

For the technology to prove out, the company will have to scale up its testing.

LDM has, to date, carried out benchtop, laboratory scale and in-field tests on low-grade material, but it has only reached a 1 ton (0.9 t) per hour rate.

“We would put in a tonne and get a few grams out,” Ogram said. “That is how we developed the technology.”

Despite there being a linear progression of recoveries from benchtop to lab to the field, LDM will need to go bigger to find the widescale applications it is after.

Yet, its potential entry into the market is well timed.

Removing the use of chemicals and water in a process that will most likely come after initial crushing could prove cost-effective, as well as environmentally sound.

Yes, the air flow component and feed drying will consume power on mine sites, but this ‘upfront’ operating cost will pay off further downstream as not as much material will be transported to make its way down the process flowsheet. It is more likely to go straight to tailings or backfill material feed.

Abbott explains: “The technology drastically reduces the material that will move onto final concentration, which substantially reduces material movement on site.”

For new developments, there is a knock-on benefit for permitting; the regulatory boxes are much more likely to be ticked when the words ‘water’ and ‘cyanide’ are absent from applications.

LDM Co-founder, Wayne Rod, sums this up: “Although from a cost perspective, it is expected to be competitive with other concentration technologies, the real savings will come on the ESG front and being able to reduce any environmental issues you may have.”

This is a message Rod and the rest of the LDM team are taking to the headquarters of major mining companies, where executives and board members are treating ESG challenges like a ‘cost’ they need to reduce to stay viable.

“As that ESG issue becomes even more prevalent, I see technology becoming a much bigger focus area,” Rod says. “Taking water and chemicals out of the concentration process will help alleviate some of that pressure.”

Top 40 miners may need to de-risk critical supply chains in face of COVID-19: PwC

The top 40 mining companies are so far weathering the COVID-19 storm mostly unscathed, and certainly better than many other sectors, according to PwC’s 17th annual review of global trends in the mining industry.

In Mine 2020, the report authors said this was a remarkable feat, given that global growth is expected to decline in 2020, something that’s only happened twice in modern times: in 1944, during World War II, and, in 2009, during the global financial crisis.

The ability of the top 40 to ‘resource the future’ continues to be relevant in the current environment as many governments will appreciate mining for being a bedrock of economic recovery out of this crisis, the authors said.

“Our forecast for 2020 suggests the top 40 miners will take a modest hit to EBITDA of approximately 6%,” they said. “Capital expenditure will also slow, freeing up cash flows, and giving miners the capacity to pay dividends should they choose to do so.”

Against this backdrop, the authors did not expect many mega-deals to take place, due to the increased economic uncertainty and practical constraints of site visits and inspections.

The COVID-19 crisis has led to some positive changes around the way these companies operate, according to the authors.

“Although mining has been able to keep operating through the COVID-19 crisis, companies have also had to adapt and evolve,” they said. “Some changes have been for the better, such as remote workforce planning and greater use of automation. Many of these adaptations may become permanent.”

They continued: “In an uncertain environment, miners have focused intensely on controlling the things they can control, and it is serving them well. But the top 40 are not immune from the social and economic shocks ahead, and they cannot afford to let their guard down.

“COVID-19 is challenging long-held assumptions about the unassailable wisdom of ultra-lean principles and global supply chains. Miners may need to think about de-risking critical supply chains and investing more in local communities. A shift towards localisation in supply chains and in deals, as well as different forms of community engagement, may turn out to be enduring consequences of the pandemic.”

The top 40 miners also need to keep on top of the mega-trends that existed pre-COVID, particularly environmental, social and governance (ESG) reporting and cybersecurity, the authors said.

“We analysed how the top 40 are performing on ESG disclosure and found that a few companies are doing most of the heavy lifting, while the rest lag behind,” they said. “But ‘brand mining’ is a collective brand, and every miner needs to play its part.

“On the cyber front, the top 40 have some work to do. At a time when mining companies are becoming more vulnerable to cyberattack as they use more automation and digital technologies, CEOs are expressing less concern about such issues.”

In some respects, the mining sector is well-situated in the wake of COVID-19, the authors said.

“For example, despite recent uncertainty regarding Brazil’s ability to continue mining, iron ore prices have risen, potentially limiting the total impact on the sector,” they said. “Mining companies have strong finances and are mostly still operational, albeit with increased levels of precautionary controls.

“But the longer-term impacts remain uncertain, and ongoing disruption is likely.

“Top 40 miners should take advantage of their current position of financial stability to revisit their strategies. Doing so will ensure their businesses can enhance their resilience over the long term and meet the demands of the global economy to maximise the opportunities to resource the post COVID-19 future.”

RPMGlobal, Envitech to carry out environmental studies at Tietto’s Abujar project

Tietto Minerals says it has engaged key environmental specialists, including RPMGlobal, to advance work on baseline environmental, social and governance (ESG) studies on the Abujar‐Gludehi (AG) gold deposit, part of its 2.2 Moz Abujar gold project, in Côte d’Ivoire.

Tietto says it retained RPMGlobal Principal Social Specialist, Luke Stephens – who only recently joined RPMGlobal – to help develop the ESG work program.

In addition to RPMGlobal, Tietto has also engaged Côte d’Ivoire-based Envitech (the team pictured here on site) to conduct the baseline fieldwork necessary for the compilation of the environmental and social impact assessment (ESIA) required to obtain environmental approval. The ESIA will identify the potential social and environmental impacts of developing Abujar and outline any proposed mitigation measures, it said.

Once the ESIA is completed, expected to be later this year, Tietto will submit it to the Ivoirian Environment Minister for review and approval as a necessary step for the issuance of the mining licence.

Tietto Managing Director, Caigen Wang, said: “The appointment of these key ESG consultants is part of our strategy to advance work on project studies necessary for the grant of a mining licence and ultimately the development of a mining operation at Abujar.

“Our ESG program will run in parallel with technical studies while drilling continues on‐site as we target delivery of an updated resource in Q3 (September quarter) 2020. This updated mineral resource, and results from a metallurgical test work program also underway, will underpin a prefeasibility study scheduled for Q1 (March quarter) 2021.”

Australian Mines shoots for carbon neutral status

Australian Mines has teamed up with sustainability, carbon and energy management consultancy, Pangolin Associates, to develop a “Carbon Neutrality plan” and achieve 100% carbon neutral status by June 30.

Australian Mines, which is developing the Sconi cobalt-nickel-scandium project in Queensland, Australia, aims to become certified Carbon Neutral, under the Australian Government’s Climate Active Program, through reducing the company’s greenhouse gas emissions and offsetting its remaining carbon-generating activity, it said.

“Making the decision to become carbon neutral is part of Australian Mines’ ongoing commitment to building a sustainable business that incorporates leading environmental, social and governance (ESG) practices,” the company said.

The move follows the approval of the company’s membership of the Initiative for Responsible Mining Assurance (IRMA) in March 2020. The IRMA is an independent third-party organisation that verifies and certifies socially and environmentally responsible mining, according to Australian Mines, with the company now working towards IRMA certification specifically for the Sconi project.

Australian Mines aims to invest A$1 billion ($604,020) to build a commercial battery metals production plant on the Sconi site. The proposed plant is expected to process 2 Mt/y of ore into battery-grade cobalt sulphate and nickel sulphate, with scandium recovery and production of high purity scandium oxide, it says. Over the life of the proposed Sconi project, 1.4 Mt of nickel sulphate and 200,000 t of cobalt sulphate is due to be produced.

Australian Mines Managing Director, Benjamin Bell, said being 100% carbon neutral was an extension of the company’s commitment to taking a leading position on ESG.

“It will follow on from the approval in March 2020 of our membership of IRMA and Sconi being given ‘Prescribed project’ status in early 2019 by the Queensland Government, which is a recognition of our commitment to the communities where we operate,” he said.

Australian Mines is partnering with Pangolin, which works with the Australian Government’s Climate Active Program, to develop a Carbon Neutrality plan. Australian Mines said it expected to begin implementing its plan by June 30 and be formally certified carbon neutral by the government before the end of the year.

Bell added: “We will join more than 90 organisations across Australia that have attained certified carbon neutrality, leading to over 15 Mt of carbon emissions being offset, or the equivalent of 4 million cars being off the road for a year.”

ICMM ups the ESG ante with new Mining Principles

The International Council on Mining and Metals (ICMM) has launched its enhanced membership requirements – ICMM’s Mining Principles – which now include site-level validation and transparent disclosure.

These requirements seek to maximise the industry’s benefits to host communities and minimise negative impacts to effectively manage issues of concern to society, it said.

ICMM’s Mining Principles define good practice environmental, social and governance requirements for the mining and metals industry through a comprehensive set of performance expectations, the ICMM said. Validation of the implementation of the performance expectations takes place at the site-level for all members’ assets. Validation involves a mix of self-assessments and independent, third-party assessments, coupled with transparent disclosure of the outcomes.

The council said: “ICMM’s Mining Principles are aligned with the objectives of other responsible sourcing initiatives. They establish a high bar for sustainability practices that many of our member companies currently apply to manage a broad range of sustainability issues at the operational level.”

As a condition of membership for ICMM company members, ICMM’s Mining Principles will apply to roughly 650 assets in over 50 countries.

Aidan Davy, COO of ICMM, said: “Mining and metals are critically important to society – as a catalyst for sustainable social and economic progress and as essential materials for the technologies needed to address climate change – but they must be produced responsibly.

“Societal expectations of the mining industry encompass a broad range of environmental, social and governance challenges. Our aim has been to develop a holistic set of requirements that establish a benchmark for responsible mining practices.”

Davy explained that ICMM’s Mining Principles would support its members to supply the increasing demand for metals and minerals, while giving confidence to customers and other stakeholders that they have been produced responsibly.

“We encourage all mining companies to embrace good practice environmental, social and governance requirements,” he said.

In 2003, ICMM published its 10 Principles for sustainable development to set a standard of ethical performance for its members. Building on this, in early April 2018, ICMM launched a global public consultation on the introduction of a comprehensive set of performance expectations for how members should be expected to manage a broad range of sustainability issues.

The resulting enhanced Mining Principles strengthen social and environmental requirements on issues such as labour rights, resettlement, gender, access to grievance mechanisms, mine closure, pollution and waste.

To read more about the principles, click here.

RPMGlobal adds to ESG capabilities

RPMGlobal says it has bolstered its in-house environmental, social and governance (ESG) capabilities with the appointment of Luke Stephens as Principal Social Specialist for the company’s Consulting & Advisory division.

Stephens, a mining social performance professional with more than 20 years’ of international experience, has a strong track record in social licence, community relations, social performance, multi-stakeholder partnerships, grievance management, government and donor relations, according to RPMGlobal.

Prior to joining RPMGlobal, Stephens was the Principal Closure and Sustainability Specialist for Afrique Gold and worked with Newcrest Mining as Superintendent for Social Performance. He also spent numerous years with aid and humanitarian agency, Concern Worldwide.

Since 1998, he has implemented best-practice community programs in mining and alongside local communities across Africa, Eastern Europe, Central Asia, and Southeast Asia, according to RPMGlobal.

Philippe Baudry, RPMGlobal’s Executive General Manager – Advisory Services, said the appointment reflected the company’s increased investment in ESG capabilities.

“Environmental, social and governance matters are now at the top of the corporate agenda which is being reflected in increased demand for our environmental and social due diligence expertise,” he said.

“We are certainly witnessing more mining companies investing in building sustainable ESG opportunities that create positive outcomes and mitigate project risk with the demand from investors for transparency in these critical areas of project development only increasing.

“This new appointment is a valuable addition to our expanding ESG team and Luke’s combined skillset will prove invaluable to RPMGlobal as we continue to expand our offerings and drive positive impact for global mining communities and their investors.”

RPMGlobal’s ESG division specialises in environmental and social due diligence evaluations and audits of mining projects located throughout the world with projects completed in Australia, the Americas, Africa, Turkey, Russia and the CIS countries.

“RPMGlobal’s growing ESG team has significant experience in advising its clients in how to bring projects up to IFC-PS and Equator Principle 4 requirements, as well as in the laws and regulations applicable in most mining jurisdictions with expertise spanning environmental and social action plans, social licence, community engagement, local consultation, land acquisition, compliance with regional and national regulations, grievance redress and management,” RPMGlobal said.

Denver-based Stephens said: “To join a growing and talented team of professionals at a company which is a leader in the ESG field is a fantastic opportunity and it’s exciting to come on board at such a pivotal time of growth for this division at RPMGlobal.”

Baudry added: “RPMGlobal prides itself in providing high quality ESG services that lead to improved financial, environmental and social outcomes for our mining customers and its pleasing to be expanding the team with highly credentialed appointments alongside our commitment.”