MechChem Africa November-December 2023

⎪ Minerals processing and materials handling ⎪

A circular approach to ESG in mining Verushka Singh, principal associate for climate change at WSP in Africa, argues the case for taking a circular approach to transitioning the mining industry towards climate change mitigation and helping them to operate according to environmental, social and governance (ESG) standards.

M ining is one of Africa’s larg est industries and contribu tors to GDP. It has long been under scrutiny from an Environmental, Social and Governance (ESG) point of view, and this scrutiny has increased as societies move to a low carbon future and demand that companies change the way they do business. Though the extent to which mining companies are addressing ESG concerns – and actively working to improve their credentials – varies across the industry, with some mining companies making significant strides in improving sus tainability practices. Taking a circular approach is key to sup porting the mining sector as it transitions from developing good plans and strategies, to implementing these strategies and mak ing meaningful headway in ESG pursuits. There are three principles that underpin circularity, and the same principles play a key role in improving ESG performance in the mining sector. First, renewable inputs such as the use of renewable energy solutions in mining operations is key. Second, the lifespan and use of the mining operation must be maxi mised to extract the highest possible value, which must include responsible retirement of assets during mine closure. And lastly, by-products and waste in a circular economy must be recovered and reused as far as possible. The most common application of this last principle in mining involves reprocessing tailings materials to extract left over miner als. The responsible management of water resources is critical here, too. WSP has designed an ESG scorecard, which captures and quantifies ESG metrics directly linked to a mining company’s proj ects. The scorecard has been incorporated on several projects for which the company has consulted, unlocking opportunities for other ESG-related improvements to allow for the assessment of its deliverables. The scorecard uses a combination of generally accepted ESG metrics, drawn largely from internationally recognised ESG and sustainability frameworks, including the Taskforce on Climate Related Financial Disclosures, the CDP and the Sustainability

Standards Accounting Board. WSP also considers the mandatory reporting obli gations of publicly traded companies and mining-specific frameworks, such as those of the International Council on Mining and Metals and the World Business Council for Sustainable Development. The knowledge gained through these as sessments enables the company to produce better solutions and improved designs while helping clients to reduce environmental impacts, increase social value and align with their governance structures. Climate change, water stewardship and renewable energy services are obvious direct contributors. In addition, geotechni cal engineering contributes significantly to improved ground conditions and reduction in enterprise risk (governance), both of which can have a huge impact on worker and community safety (social). Each of our mining services contributes to our clients’ ESG KPIs. As an example, our tailings storage facility (TSF) design and construction services reduce enterprise risk (governance), reduce carbon emissions and conserve water resources (environment), while protecting human health and local communities (social). And, in keeping with the principles of a circular economy, we work with mining clients to focus their closure planning, and concurrent contaminated land rehabilita tion planning, beyond ensuring they have the financial means to implement the condi tions of environmental authorisations, and towards limiting or reducing adverse effects

on the receiving environment. For mining clients to retire their assets responsibly, closures must be thoroughly planned with sufficient financial provision made for the retirement of industrial assets. An appropriate integration of ESG into a mining company’s practices fosters positive relationships with stakeholders and reduces environmental impact. An ESG-focused ap proach can also help identify and address potential risks early, including regulatory changes, community opposition or potential reputational damage. As investors increasingly favour compa nies with robust ESG practices, embracing a circular approach to ESG and showcasing transparency can attract responsible inves tors who prioritise sustainable and socially responsible investments. This in turn can re sult in the mining company’s having access to more capital and, potentially, at a lower cost. We believe the global mining industry has an important role to play in the transition to a green economy, and perhaps nowhere more so than in Africa. We are working with mining companies that must contribute to the international demand for critical min erals, while also taking action to meet their ESG commitments. www.wsp.com

Taking a circular approach is key to supporting the mining sector as it transitions from developing good plans and strategies, to implementing these strategies and making meaningful headway in ESG pursuits.

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