RISK MANAGEMENT
and conflict with local communities. Mines may even find their
transportation routes affected. Water and electricity supply may
become unreliable and more expensive. felt, so it is also vital to apply adaptation measures. This includes
designing infrastructure to cater for impacts such as more
frequent and extreme storm events.
Mining companies themselves are already designing for
natural disasters like floods; we are seeing this planning and
design taking place in study phases, as mines acknowledge
the growing frequency of these disasters. In one example, a
mine’s infrastructure is being designed for 1-in-200-year flood
event, where previously a 1-in-50-year design may have been
considered sufficient. This implies a higher cost for insurance, to
cover these extreme weather events. (ER): A company’s climate change strategy also needs to be
built into its SLP, as the communities surrounding a mine are
not usually well placed to adapt to climate change effects.
We are seeing some mining companies even building climate
change considerations into their social development spending
– assisting local communities to apply water-saving farming
techniques. This is an important adaptation that raises the
resilience of communities to climate change.
Efficient water management is already a concern receiving
constant attention at most mines; with further impacts from
climate change, there will be a significant investment in water
treatment options. Will climate change directly impact the actual operations of
mining companies? I’m thinking especially in dry regions
where water will be a scarce resource, or the heat in a pit,
or more lightning as a result of severe thunderstorms. Will
technology be able to solve these challenges, and how?
(ER): Financing is a vital aspect of the mining industry that
is already affected by climate change considerations. Large
international funders like the International Finance Corporation
now require a climate change assessment with science-
based targets, before it considers financing a
mining project. This is one factor behind
the growing demand for environmental
engineering in the sector.
(AM): Climate change will definitely impact on the operations of
mines, particularly in drier regions. Mining is a water intensive
industry, so mines need to re-use their water and generally
reduce water consumption. Communities may also
have the perception that mines are taking
their water, as water becomes more scare
due to climate change.
Excessive heat in mining areas
"There is potential
could accelerate the application
of alternative technologies – like
to use ‘bio-mining’ as a
remote and driverless operation
of mining equipment.
strategy, involving the growing
Some mines are looking at new
of fibrous plants on old tailings
technologies to reduce their
carbon footprints, especially
dams to extract valuable metals with
the introduction of carbon
tax. Electric vehicles could be
and chemicals that might
part of this drive, potentially
including autonomous functions.
This could enhance safety and
leach into groundwater." would
in turn impact on the level of
As significant energy users, mines
will be substantially affected by
carbon tax, although the carbon
tax rate for 2021 onwards
(phase 2) is currently unknown.
The current (phase 1) carbon
tax rate is R120 per ton of
carbon dioxide equivalent
(CO2e); however, global rates
are far higher, suggesting that
South Africa will start by under-
taxing in global terms – creating
the possibility that increases
in future phases will be high.
Increasingly, mines will be required to
report on their downstream and upstream
suppliers’ carbon footprints as well as their
own. Mines may even need to build the capacity
of their small-scale suppliers to comply, as the use of these
suppliers is a requirement of the Mining Charter and the Social
and Labour Plan (SLP) commitments.
(AvZ): Mining and exploration opportunities are likely to open
up for minerals used in large energy storage solutions – such
as platinum, cobalt, vanadium, lithium and copper – as this
technology evolves and gains ever-growing markets. Mines
themselves are likely to make increasing use of renewable, off-
grid energy as battery storage solutions become more effective
and affordable. Demand, and hence price, is likely to remain
volatile while new technologies are developed and optimised.
How big a role should climate change play in the strategic
planning of mining companies and how should they make
provision for its possible negative affects?
(AM): Strategic planning for climate change cannot allocated
to a specific group within a mining company. It is a function
that needs to be integrated across all business units within
the company. This will allow both mitigation and adaptation
measures to gain traction. Mitigation measures can be put
in place to reduce the carbon impact that business has, for
instance; but the impacts of climate change are already being
32
African Mining February 2020
skills required to operate and maintain.
In the same way, how would these challenges
affect the rehabilitation and closure of mines?
(ER): When temperature and rainfall patterns change, this
affects the assumptions that mines can make about their
closure design. It may also increase their financial liability and
monitoring requirements. For example, insufficient water and
high temperatures make it harder to re-establish the necessary
vegetation in rehabilitation efforts once mining has ceased in
a specific area. On the other hand, heavy rainfall could create
risks like tailings dam failure or discharge of contaminated water
into surrounding areas. This could lead to remediation costs,
greater environmental liability, impacts on community health
and safety, and possible reputational damage. There are also
concerns that climate change could undermine the success of
past rehabilitation of legacy mine sites; these sites might need
extra protection measures to ensure stability of waste rock and
tailings covers.
(AM): The mine closure planning process must factor in
climate change predictions, so that the closure design and
infrastructure can withstand these effects in the post-closure
phase. Even the selection of which plants and vegetation to
use for rehabilitation must ensure resilience to climate change.
They might need to be drought-resistant, for example. There is
potential to use ‘bio-mining’ as a strategy, involving the growing
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