Responsible Mining for Responsible Millennial Investors
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Responsible Mining for Responsible Millennial Investors

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Alejandro Ehrenberg By Alejandro Ehrenberg | Journalist and Industry Analyst - Wed, 04/01/2020 - 18:08

For past generations, EBITDA was the first element to look at when deciding whether to invest in a company. Millennials and post-millennials, however, find their investment perspectives more aligned with another acronym: ESG, which refers to environmental, social and governance issues. As younger generations look to the mining industry for investment opportunities, miners need to make sure they present a squeaky-clean ESG program to the market.

Some of the world’s largest mining companies are already getting on the ESG wagon. For instance, earlier this year, Canadian giant Teck announced its commitment to become carbon neutral by 2050. To this point, Teck’s President and CEO Don Lindsay commented: “Setting the objective to be carbon neutral by 2050 is an important step forward in our commitment to reducing emissions and taking action on climate change. This reality is a global challenge that our company and industry need to contribute to solving. We will pursue technologies and measures necessary to reduce carbon emissions across our businesses, while continuing to responsibly provide metals and minerals necessary for the world’s transition into a low-carbon economy.” Also, as reported by Financial Times, the British colossus BHP will decide its CEO’s annual bonus depending on metrics related to how effectively the company reduces carbon dioxide emissions.

However, as Kendra Johnston, President and CEO of the Association for Mineral Exploration, said to Kitco News, “it is a little bit more difficult for the juniors to embark on ESG work. The work can have a smaller, less visible impact that is harder to measure compared to more visible elements like a mine's tailing facility.”

That is not to say it is impossible. A remarkable example is that of the Carrizal zinc, lead, copper and silver mine, located in Hidalgo, Mexico. The mine is on its way to become the first IRMA-certified mine in the Western Hemisphere. IRMA, which stands for Initiative for Responsible Mining Assurance, describes itself as “the answer to a global demand for more socially and environmentally responsible mining. It offers true independent third-party verification and certification against a comprehensive standard for all mined materials, providing a one-stop coverage of the full range of issues related to the impacts of industrial-scale mines.” Carrizal Mining, the company that operates the mines, teamed up with Mexican consulting firm Mineria Responsable to get ready for the IRMA audit. The results will be announced later this year.

Photo by:   Wikimedia Commons

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