MINING CONSULTANTS
“ We are embedding ESG into all our traditional mining services , creating a seamless connection between a client ’ s ESG values and operational decisions ,” WSP ’ s André-Martin Bouchard says
bridge the two , who also have our depth of understanding of the mining sector ,” he claimed .
WSP , prior to the acquisition , had expertise in power , processing , pipelines and grid infrastructure supporting mine sites , while Golder ’ s mining consulting nous spanned across mine engineering , geology , waste , water , rock , closure and environmental services .
“ This means , together , we can develop roadmaps that reflect the unique considerations of the mine plan along with the ability to execute on the goals ,” Bouchard said .
The combined group has exposure and expertise across the commodity segments , but Bouchard said there is an increasing awareness among consumers and technology producers around source materials and their origins .
“ Examples such as Apple partnering with Rio Tinto and Alcoa on developing a carbon-free aluminium smelting process , or Elon Musk putting a call out for more nickel and offering lucrative contracts for companies who mine in an environmentally sensitive way , demonstrates the tech industry ’ s focus on ESG within their supply
WSP ' s broad range of technical ESG expertise includes tailings , water management , permitting and air quality ( photo : Golder ) chains and meeting end-user expectations ,” he said .
“ Beyond the public arena , there are other shifts for battery mineral producers , such as more detailed stakeholder questions on benchmarking and water efficiency being asked of our lithium clients .”
In addition to carbon accounting being added to the ESG mix , climate change risk is now assessed as part of the stage-gating process for most of the major miners , according to Sean Capstick , Sustainable Development & Climate Change Specialist for Golder , a member of WSP .
“ This information is used in the capital allocation process , where the competition for capital is both internal and external ,” he said . “ For example , access to low intensity electricity can make the difference in obtaining funding to move a project from feasibility to detailed design .”
When asked where the greatest need for consultancy input in the ESG market is – the ‘ E ’, the ‘ S ’ or the ‘ G ’ – Capstick addressed all three considerations in turn .
“ The mining industry has been focusing on environment for a long time now and there remains a strong demand for support in this area as companies rely on consultants to not only maintain current standards but continually raise the bar in environmental performance ,” he said .
Mines also have robust risk registers and are used to operating with some uncertainty given the need to take a long-term view on life of mines that can span decades . This means the framework for governance is stronger than other sectors , according to Capstick .
“ We ’ re working closely with our clients in areas such as meeting requirements around standardised reporting and disclosure and translating local risks to investor statements ,” he added .
The social aspect is where the industry is now turning its attention to , according to Capstick .
“ Moving beyond just acceptance to a true partnership , where the legacy mining leaves for a post-closure community is a positive outcome , requires the combined expertise of owners , operators , consultants and communities ,” he said . “ Although mining companies are the ones driving engagement with communities , the
“ Although mining companies are the ones driving engagement with communities , the support that consultants can offer throughout the process , including developing strategies to address the identified needs and priorities of the community , can be invaluable ,” Golder ' s Sean Capstick says
support that consultants can offer throughout the process , including developing strategies to address the identified needs and priorities of the community , can be invaluable .”
These priorities often factor into the design of certain assets and the need to establish a continual improvement process that can be integrated into both the asset-level engagement and business unit planning activities , Capstick explained .
And even with different regulations governing ESG considerations across the globe , Capstick said the sector is coming round to following global frameworks , like the ICMM or the Mining Association of Canada ’ s Towards Sustainable Mining .
“ Of course , the level of ESG consulting support required varies by site based on factors such as the stage of development and the strength of in-house teams ,” he added .
When it comes to M & A , WSP sees ESG risk assessment becoming a much bigger part of the due diligence process .
“ In recent years , we have been seeing a clear trend in our M & A work to expand the screening and materiality assessments to cover ESG issues ,” Capstick said . “ There have been a number of high-profile examples where natural hazards and water variability have interrupted mining operations . These risks are top of mind for operators , who are developing these assessments internally and as part of the stagegate process , which results in an increased focus on these topics in an M & A scenario .
“ We expect that this type of risk assessment will become a standard part of the due diligence process , much like the Phase I / II assessments are pro-forma in real property transactions .” IM
OCTOBER 2021 | International Mining 59