Modern Mining January 2022

TOP PROJECTS

Setting the bar high Traditionally, we have always selected our Top Mining Projects based on size, high quality nature of the assets and innovation of teams on the ground. However, this year we have gone a step further by focusing on other important metrics such as environmental, social and governance (ESG), as well as local procurement and safety.

R estored to health following an evident commodity ‘bull run’ in the face of the COVID-19 pandemic, mining companies are seeking to rationalise their portfolios and invest in assets that offer the best quality miner- als. At the same time, mining is the human activity that has been more disruptive to the environment and is linked to large social impacts and inequalities. Based on that understanding, our Top Projects for this year not only tick the size and quality boxes, but also cast the spotlight on the mining legacy and ESG remediation. These projects highlight that current mining practices need to change and contribute to community development, pro- tect the environment and be compliant with sustainable development objectives. There is a common understanding that ESG represents one of the mining industry’s most significant opportunities for long-term value creation, building trust and sustainable growth. ESG issues are the most important of this decade – with citizens, governments, regulators and the media demanding action from corporations to address these chal- lenges. Some of the projects we have chosen this year have ‘baked’ ESG into the core of their strategies. They have taken a holistic approach to sustainability, addressing all three major aspects: environmental, social and governance. Another central issue that has attracted far more attention in recent years in the mining industry is local procurement. In most cases, procurement by a mining operation is the single largest potential economic impact in a host country, more than payments in taxes, wages and community investment combined. While local procurement is not a silver bullet to defeat the resource curse, it plays an important role in supporting economic development of host communities. Safety is an essential component of any healthy work- place. Mines in particular are hazardous environments with a greater potential for large-scale environmental damage and loss of life than for many other workspaces, thus mak- ing mine safety an ever-present concern. Given the significance of these parameters in the suc- cess of any mining project, we have therefore given the nod to projects that, apart from the traditional metrics, have also set the bar high in ESG, local procurement and safety. The first project we have chosen this year is De Beers’ Venetia Underground Project . In its seventh year of devel- opment, the US2,2-billion project – the single biggest investment in South Africa’s diamond industry in decades – had at the time of our visit in November 2021 reached a 54% completion milestone. Overall, safety has been a good story on the VUP site

in 2021, with a 35% reduction in recordable incidents compared with 2020 and 29% better than the target the company had set itself the previous year. Central to this feat are a range of interventions, including a well-executed safety action plan, the commencement of a safety maturity journey and a supervisory development programme for the Integrated Owners Team as De Beers transitions some of its open-pit employees to underground. Despite the small nature of the East Manganese project , the only mine in South Africa to be launched in the middle of the COVID-19 pandemic, it deserves a place in our Top Projects list this year. The establishment of East Manganese mine has given a boost to local economic activities in the Hotazel area in the Northern Cape Province of South Africa. Kamoa Copper is regarded as one of the flagship cop- per mining projects in the world. With a shallow, large-scale, high-grade and scalable copper deposit, complemented by a small environmental footprint and a big focus on renew- able energy, the project ushers in a new era in copper production. One of the key talking points of this project is the strong focus on renewable energy. To support the continued suc- cessful performance of its mining complex, Kamoa Copper signed a public partnership with DRC’s state-owned power company SNEL to secure clean, renewable hydro-gener- ated electricity. Apart from its investment in renewable energy, Kamoa Copper has put ESG at the core of its strategies. The com- pany believes that good governance and sound corporate citizenship are fundamental to maintaining its social licence to operate and to truly embed the fundamentals of sustain- ability in its strategy, culture and operations. Last but not least is the Singida Gold Project in central Tanzania, which is tracking on schedule to start production in early 2023. With ESG issues rising up the agenda for companies in the mining and minerals industry, Shanta has placed this at the centre of its Singida project. The company has an industry-leading safety record, with zero Lost Time Injuries since 2017 – surpassing 8-mil- lion man-hours. This achievement is a result of Shanta’s employee-driven risk mitigation system, which focuses on identifying and eliminating incidents well before they occur. Beyond safety, the company is constantly seeking to reduce the impact of its operations on the environment. It is designing a best-in-class tailings storage facility dam at Singida, which has been approved by the relevant authori- ties, and will look to implement water recovery programmes and explore the use of alternative power generation sources, once the project is operational. 

January 2022  MODERN MINING  17