What exactly are you digging?

Let’s not forget that large mining operations are financial speculations focused on mineral assets rather than mineral production (“In a hole”, February 24th). Big mining companies remain fixed on accessing sizeable deposits, even when the grades of the deposits are notably low. Such large, low-grade deposits necessitate substantial investments in infrastructure and capital, generating significant waste in the form of large storage facilities for tailings (the by-products of a mine). Consequently, these projects become mired in intricate permitting processes.

We need a paradigm shift to embrace the concept that responsible mining extends beyond environmental and social considerations. This means adopting a new corporate vision prioritising production over asset speculation. What if the future of mining pivoted towards smaller, more manageable deposits, rather than a handful of massive ones?

Dr Davide Elmo

Professor of rock engineering

University of British Columbia

Vancouver

You bemoan the fact that mining companies are investing insufficiently in new capacity, putting the energy transition at risk. Yet for decades the industry has over invested, resulting in falling real mineral prices and the industry barely meeting its cost of capital.

Mineral markets are remarkably self-correcting. Although higher prices will be a consequence of mining companies reinvesting a smaller proportion of their free cashflows, new supply will eventually be incentivised. The mining industry will then be able to generate higher returns for shareholders and make larger tax and other payments to host regions and countries. With the right governance, this should go some way to help the industry tackle the many real ESG (environmental, social, governance) pressures it faces.

Neal Brewster

Mining consultant

London