RISK MANAGEMENT
Mining companies will not only
have to adapt to climate change
but will need to consider the risks
associated with extreme weather
conditions in their business plans,
writes Leon Louw.
W
ith extreme weather events becoming more
common, mining companies will have to decide
on how to deal with the most severe impacts of
climate change in the future. Many countries within which
mining companies operate are not necessarily geared to
deal with the consequences and are at the receiving end of
extreme weather events.
Geology determines where mining will take place, not the
prevailing weather conditions. Therefore, mining companies
will naturally be exposed to extreme events, and it will be
beneficial for them to consider climate change as an external
risk when developing the company’s business plan. But how
real is the threat of climate change and is it something mining
companies should be concerned about? African Mining spoke
to three experts at SRK Consulting (SA): Andrew van Zyl (AvZ),
director and principal consultant; Ashleigh Maritz (AM),
senior environmental scientist; and Estie Retief (ER), senior
environmental scientist, to find out why climate change should
be a prime consideration for mining executives when venturing
into new territories.
How serious is the issue of climate change and should we
start thinking about managing the impacts?
(AvZ): It is the unexpectedly high rate at which climate change
is taking place that is a key concern. Based on historical weather
data, it has been observed that rapid temperature increases,
and extreme weather events, have raised risk levels in most
economic sectors including mining. The scientific evidence is
overwhelming. For example, global temperatures are now at
their highest since records began; of the 18 years since 2001, 17
have been the warmest on record. In terms of extreme weather
events, the city of Houston has experienced three 1-in-500-year
floods since 2016.
The seriousness of the issue, and the predicted impacts for the
future, is indicated by the proactive response of the mining
industry itself. Mining companies have implemented not just
mitigation measures but also adaptive strategies to help them
respond to current and potential disruptions linked to climate
change. Some of their practices protect the value of assets,
while others create value through technological innovation,
new market opportunities or collaborative initiatives with
communities affected by climate change.
Managing the impacts requires changes in mindset and
behaviour in every sector. The world is witnessing some extreme
responses to climate change by communities and movements
– some of which have disrupted daily economic activities. While
this is not necessarily the best way to influence changes in
mindset, it does reflect how seriously many people globally are
responding to climate change issues.
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African Mining
African Mining February 2020
29