By Minerals Council South Africa
Mining matters to society and domestic and international economies, deeply embedded in impact and relevance to every facet of life. As we look to the future, minerals and metals are fundamental as the globe adjusts to a low-carbon future to address climate change. As some commentators note, never before has more been expected of an industry which is trusted so little.
Mining has at best a chequered history regarding communities, environmental impact, safety and health. To attract finance and institutional investors, mining companies are now measured and held accountable to ESG (Environmental, Social and Governance) standards to address and avoid repeating its history.
In EY’s survey of the mining industry, the number one risk for 2024 was ESG, with its complexity and increased scrutiny from investors and other stakeholders on compliance with these standards.
In the World Economic Forum’s Global Risks Report released in January 2024 ahead of Davos, the top five long-term risks during the next decade were identified by more than 1 400 policymakers, industry leaders and global risk experts. The top four risks in ascending order were: a shortage of natural resources; a loss of biodiversity; critical changes to the Earth’s systems; and extreme weather events at the top of the list. Extreme weather events were listed at number two in the short-term risks, with misinformation and disinformation the leading risk.
For the mining industry, the long-term global risks present opportunities as much as a threat to their operations. The risk around natural resources, which the report describes as water and food in this particular category, can be mitigated through the use of fertilisers which are largely comprised of minerals needed to enhance crop yields and nutritional values of plant-based foods. Crops need the macronutrients of phosphorus, magnesium, potassium, calcium and sulphur. Micronutrients include iron, manganese, copper, zinc and molybdenum.
Improved crop yields in poor soils could reduce the need for slashand-burn agriculture destroying carbon-sink forests and grasslands. Technological advances in mining to reduce the use of water in mining and processing, and recycling water to keep a closed loop within the operation are in progress.
CEO Dr Nombasa Tsengwa emphasised the company’s commitment to its people: “Our safety is a moral imperative that underpins the sustainability and efficiency of our operations.” Supplied by Exxaro Resources Limited
The top three risks of the loss of biodiversity, critical changes to earth systems, and extreme weather events are closely interrelated. The role of critical minerals in addressing climate change by shifting the globe into low-carbon, renewable energy sources cannot be understated.
EY’s 2024 report ranked climate change at number four on the list of risks mining companies face.
If climate change is not urgently, comprehensively and sustainably addressed, with global temperatures rising by 1.5 degrees from the end of this decade, there could be fundamental changes to the planet with detrimental impact on peoples’ lives and livelihoods. Melting ice sheets causing rising sea levels, permafrost melting and releasing carbon, and disrupted ocean and atmospheric currents resulting in altered weather patterns are the potential results.
The mining industry is scrambling to access the metals of the future, a term that incorporates metals and minerals used in renewable energy applications for mobility or industrial-size projects. To ensure these minerals and metals have green credentials, mining companies are decarbonising their operations.
In South Africa, mining companies are at the forefront of initiatives to build embedded renewable energy projects, with a project pipeline of more than 7GW worth in excess of R100-billion out of a total private sector pipeline of 10GW.
The rapidity of the adoption of renewable energy since June 2021 when President Cyril Ramaphosa lifted the cap on embedded energy projects speaks to the urgent need to decouple electricity supplied by Eskom’s coal-fired power stations as much as possible, reduce the risks associated with erratic and expensive supply from the parastatal, and to minimise carbon taxes and threats to exports from carbon border taxes on carbon-intensive products.
South Africa already produces the metals needed for the transition to alternative energies, including platinum group metals for green hydrogen, manganese, copper, cobalt, vanadium, iron and minerals sands containing titanium.
For South Africa and Africa to play a role more fully in the supply of critical minerals and the manufacturing of products needed in renewable energy industries, the fundamental starting point is increased exploration for these minerals.
Africa is not attracting the investment it should in exploration. The latest S&P report into world exploration trends shows Africa attracted just USD1.3-billion out of USD12.8-billion of global spending. The decline on the previous year was more than 3%, which is counterintuitive when the mineral riches of Africa are considered. Africa represents 10% of global exploration spend compared to 16% a decade ago.
Mongezi Veti – Chief Sustainable Impact Officer, Exxaro. Supplied by Exxaro Resources Limited
Investor-friendly and consistent regulations are the best point of departure to make the continent attractive to investors, while certainty that mine development and mining operations will be encouraged with regulatory and fiscal stability will give confidence that economic deposits will be brought to account.
For Africa to address the climate change challenges, it has the minerals to supply the needs for today and into the future. The development of strong mining industries will serve as a catalyst for infrastructure development, which brings downstream economic and value-chain stimulus. As economies grow, so do jobs and living standards.
With emphasis on a comprehensive commitment to safety, prioritising Exxaro’s zero-harm vision where all employees can make it home safely after a day’s work – Exxaro Resources Limited hosted its annual CEO Sustainable Impact Summit at Matla Mine, in Kriel Mpumalanga on 15 April 2024.
Although the company has been fatality free for one year and eight months, the mining industry in South Africa as a whole suffered 53 fatalities – 11 more than in 2022, reflecting a 20% regression. This highlights that the industry has a lot of work to do to ensure the safety of employees.
The mining giant’s CEO Sustainable Impact Summit serves as a platform for the company, its employees, union representatives, and key stakeholders to reaffirm their commitment to safety as not only a duty, but a collective responsibility to ensure that each man and woman gets home safely at the end of their shift.
This year’s theme, “Leave the world a better world than we find it” serves as a call to action that underscores the importance of the mining industry’s willingness to act within its sphere of influence to improve safety outcomes. The ethos of the summit is Exxaro’s commitment to its responsibility of ensuring a safe work environment and a more sustainable and resilient world for all.
Addressing over 5 000 employees from all levels of the organisation, CEO Dr Nombasa Tsengwa emphasised the company’s commitment to its people: “Our safety is a moral imperative that underpins the sustainability and efficiency of our operations. All of us must strive to achieve our ultimate safety goal of zero-harm by proactively managing safety risks through the strict and consistent implementation of our five Safety Focus Areas. Before we are coal miners, we are people – and as an organisation whose heart is its people, safety is paramount. We will only achieve the objectives of our Sustainable Growth and Impact strategy by managing safetyrelated risks and preventing incidents as part of our overall all objective of social impact. The impetus is to solidify our commitments to the Environmental, Social and Governance (ESG) goals we have set at Exxaro to ensure that we meet our future aspirations.”
The summit featured panel discussions led by Exxaro frontline employees and specialists who delved into critical topics surrounding mental health and workplace safety, aiming to reduce Lost-Time Injuries, accidents and fatalities.
Harnessing diverse talents, innovative ideas, and collective resources, employees walked away with a reinvigorated commitment to a singular purpose: safety always, all the way.
Source: Supplied by Exxaro Resources Limited