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THE RISE OF
MILLENNIALS
AND ESGs
M
ining companies have long regarded the
environment and social governance (ESG) as the
‘soft issues’ of their industry. When I started writing
for mining publications, editors made a clear distinction
between ‘hard issues’ such as geology, drilling, operational
efficiencies, equipment and financials and ‘soft issues’ like
environmental rehabilitation, community upliftment, or
health and safety, which only made it into the magazine if
there was extra space.
Today the shoe is on the other foot. ESGs are the new buzzwords
in mining, often featuring on the front cover. If any mining
executive or government official dismissed ESGs as ‘just another
fad’ before the 2020 Investing in African Mining Indaba, they
certainly would have changed their minds after the event.
Like ‘stakeholder capitalism’ became the new philosophy
after the World Economic Forum met in Davos, Switzerland, in
January this year, ‘responsible governance’ through ESG policies
has become the new system of ideas guiding the captains of
the mining industry in their pursuit to become more sustainable
and more profitable.
With the onset of the new millennium came a powerful new
force in the world economy: Millennials. Millennials have
different demands than Generation X and the Baby Boomers
before them. If they buy a diamond, for example, they want
to know where that diamond comes from, and whether it
makes a difference in the life of the person who unearthed the
stone if they do buy it. Moreover, Millennials will not invest in
any company or project that does not put the environment,
societies and responsible governance first.
Climate change, gender equality and sustainability are words
most used by Millennials and if mining companies think they
can attract the best talent by mining the traditional way, they
might as well close shop now. Millennials are innovative and
have unbelievable technological skills, and if a company is not
able to challenge them, they will look for greener pastures. This
year, ESGs were no longer simmering on the back burner, it was
the hot topic. And there was a determination in CEO speeches
that has been absent in the past. Mining companies have
realised that the world has changed, and they have to change
with it, or get left behind.
As part of the ECG discussions, artisanal and small-scale mining
was continuously in the spotlight at Mining Indaba. More
companies are starting to work with artisanal miners to improve
the bottom line, and in the process, assist local communities and
address poverty.
www. africanmining.co.za
African Mining Publication
ESGs are the new buzzwords in
mining, often featuring on the
front cover.
Mining operations in countries like Ghana, the Democratic
Republic of the Congo (DRC), Zimbabwe and Sudan attract
thousands of artisanal miners. Some countries, including
South Africa, have issued licenses in certain areas to
encourage collaboration between mining companies and
small-scale miners.
This form of mining is a means of survival for thousands of
people across Africa but also exacerbates health and safety
issues and causes adverse environmental impacts. Small scale
gold miners, for example, work with mercury which is toxic
and pollutes rivers and groundwater. Therefore, it is important
that large mining companies educate artisanal miners on
their land and warn them about the dangers involved. Some
companies have realised the benefits of empowering local
artisanal miners working on their license area.
According to Blessing Hungwe, a female artisanal miner in
Zimbabwe, Mimosa mine has leased their mining equipment
to artisanal miners in a bid to mine marginal deposits which
will not be profitable for the mine to focus on. According
to Hungwe, the artisanal miners are happy as they gain
knowledge and regain their self-respect as they are not
reliant on handouts from the mine. This is a win-win situation
for all stakeholders. Hungwe said that artisanal miners can
no longer be ignored as they will not disappear. “We should
become the solution, and not been seen as the problem,”
she said.
The message from the 2020 Investing in African Mining is loud
and clear: the world has changed, and mining has to transform,
and quickly.
Leon
African Mining
African Mining March 2020
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