Miners can capitalise on ‘positive disruption’
Targeting net-zero and zero harm can ensure a sustainable future for African mining
Sustainable mining is only possible if we recognise the value it creates
The theme of this year’s Investing in African Mining Indaba — “Embracing the power of positive disruption: a bold new future for African mining ”— is fitting, as the enormous demand for the batteries and critical minerals required for the green energy transition is driving explosive growth.
The agenda topics focus on how companies can capitalise on this moment to become more resilient and contribute to economic and social development across the continent. But in the agenda around sustainability the focus is more theoretical — the feasibility of net-zero emissions, the applicability of circularity and principles of nature positivity — or geared towards new technologies such as leveraging green hydrogen to power mines or the potential for digitisation. While these topics have merit, they do not correlate to the challenge the industry faces: how to implement sustainability effectively.
While intentions are important, the reality is that implementation often presents the greatest challenge for miners across the continent.
The data is clear: 2023 was the warmest year on record. Last year may have marked the moment when the Paris Agreement to limit global warming to 1.5°C became impossible. Is this something that will be top of mind for mining executives, investors and policymakers at the Indaba? Are they considering the role mining can play to contribute to a more sustainable future?
Mining accounts for only 8%-10% of direct global greenhouse gas emissions but 28% when downstream emissions are taken into account. The combustion of thermal coal is the single biggest contributor. Investors are now putting pressure on diversified miners to divest from coal and pursue net-zero targets by 2050.
An assessment conducted by dss+ on 52 mining companies indicates that the current rate of decarbonisation is only 2% a year. This places the mining sector on a trajectory of 3°C of warming by the end of the century. More than double that effort — at least a 4.5% reduction per year — will be required to align with the Science Based Targets initiative (SBTi).
While many mining companies have committed to net-zero emissions and are fully aware of the potential of the technical solutions options that exist to drastically reduce emissions across the value chain, the challenge lies elsewhere. Top mining executives consider the most significant barriers to be a lack of incentives, capital, requisite skills, conducive policy frameworks and the difficulty of developing effective procedures, mindsets and key performance indicators.
Effective decarbonisation requires a two-pronged approach: the recognition of the value decarbonisation brings and a conducive environment.
There must be a shift of mindset within the mining industry; rather than being a tick-box exercise to please investors, decarbonisation and sustainability create value for the organisation. Too often they are derided as compliance initiatives rather than being leveraged for the benefit of the business. They should be linked to practical solutions, continuous improvement, energy efficiency and cost optimisation. Mines can reduce between 4%-20% of their emissions through operational efficiency improvements that are not capital intensive.
Creating an enabling environment is the responsibility of government and regulators, but mines can play a significant role by lobbying for a more conducive operating environment.
Supportive regulatory frameworks and incentives are crucial. Governments establish policies that encourage sustainable practices and provide a level playing field for businesses. Incentives such as tax breaks or subsidies can motivate organisations to adopt more environmentally-friendly technologies and practices on a greater scale. When policy frameworks are aligned with sustainability goals, uptake becomes more feasible and attractive.
The feasibility of net-zero and the principles of circularity and nature positivity hold immense potential. But turning these concepts into actionable steps requires a comprehensive transformation of industries and societies. This requires addressing financial constraints, technological limitations, policy frameworks and societal acceptance. But by navigating these obstacles, intentions can be translated into tangible outcomes.
Many significant safety incidents — especially those resulting in multiple injuries or fatalities, environmental or asset damage — point to a common shortfall: gaps in the foundational practices related to the identification and effective control of risks. While we have made considerable progress, more work is needed to advance the industry’s safety journey towards zero harm.
In this year’s conference agenda, safety topics place a notable emphasis on technology and digitisation. Technological innovation holds promise for revolutionising safety practices and significantly mitigating risks, providing new tools to support decision-making, real-time monitoring and applying automation. However, the transformative potential of technology hinges on companies’ ability to integrate these innovations into existing systems and overcome barriers such as cost, lack of infrastructure and resistance to change.
The mining industry’s maturity in safety and risk management practices lags other high-risk sectors, such as oil and gas, where safety cultures and risk management protocols have been honed over decades of operational challenges. The lessons learnt in these industries offer invaluable insights that can and should be adapted and applied within the mining context.
Collaborative efforts can speed up the industry’s safety journey. Through the sharing of best practices, the dissemination of lessons learnt from past incidents and the collective exploration of technological innovations, mining companies can foster a culture of safety that transcends individual corporate boundaries.
We must face the reality that the mining industry still claims lives. At forums such as the African Mining Indaba, where the industry’s leaders gather, it is paramount that critical safety issues remain at the forefront of discussions. The conference presents a unique opportunity to spark a renewed industrywide commitment to safety.
While we commend the conference’s focus on several critical topics, we must not lose sight of the fundamental imperative to protect the lives and wellbeing of those who work in and live around mines. The path to zero harm requires persistent focus and the collective resolve and action of all stakeholders within the mining industry.
We are heartened to see the energy and positivity at this year’s indaba. As miners, investors and governments gather, we encourage them to discuss not just what the future of mining will be, but also how we get there practically and sustainably.