Social KPIDr Urzua said an increasing number of private companies were focusing on the value they can create for broader society rather than just shareholders. In future, Dr Urzua said mining executives were going to be held more accountable for the social value, or lack thereof, generated by business decisions. Pressure to change is also coming from customers and governments around the world, according to Dr Urzua.
“We are seeing the markets are already reacting, the car manufacturing industry is requesting minerals with low carbon footprint,” Dr Urzua said.Alan Bye is the Director of Digital Value Chains at Curtin University and former chief executive of the Cooperative Research Centre for Optimising Resource Extraction. Dr Bye said large superannuation funds were already changing investment decisions in the resource sector based on environmental stewardship and carbon emissions.
Market pressuresDr Bye said the mining industry was under increasing pressure to evolve the way it does business.
“Quite often total shareholder returns, and the focus of business improvement initiatives, is about the lowest cost of operation,” he said. “As we move over the next 10 years, the licence to operate within our ecosystem is going to be the most important factor.”However, Dr Bye said addressing social licence and maintaining the bottom line were not mutually exclusive. For example, production costs could be reduced by finding efficiencies in water and energy use. Dr Bye said reinvesting and upskilling the local community and supply chain would, in time, create better services and support for the technologically-advanced mine sites of the future.
“The mining industry needs to collaborate, we need to work with other industries to build the capabilities to bring the bright future in 2030,” he said.
Green miningRising concerns for the environment pose a challenge for social licence, however, the decarbonisation of economies around the world also represents one of the mining industry’s biggest opportunities of the next decade. Australian Industrial Transformation Institute Professor Goran Roos studies sectorial changes occurring in mining because of the decarbonisation of economies and the material demand that will drive. “There will be an increasing demand in some metals and a decreasing demand for other raw materials,” Dr Roos said. Dr Roos said mining company portfolios would increasingly shift to metals used for batteries and digital technology, such as lithium, cobalt and what is known as “rare earth” minerals like neodymium and scandium. “All their importance will increase, and the reason is that these new materials, of which we’ll have increasing demand and dependency on, are much more concentrated in where you can find them,” he said. Originally published by ABC News.
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