Can mining be a force for good and not a necessary evil?
If the world is to electrify to meet its decarbonisation targets, we are going to need a lot of copper and that means mining. Unfortunately, mining is also one of the last of the traditional industries to see a proper revolution in terms of technology and environmental approach. Mining is currently responsible for 4 per cent to 7 per cent of greenhouse-gas (GHG) emissions globally which negatively offsets many of the potential benefits gained from the end use of the mined product. ESG (environmental, social and governance) considerations are increasingly driving investment decisions as well as company and consumer behaviours. As a result, the provenance of raw materials is also growing in importance. In other areas of our economies people and companies are willing to pay premiums for responsibly and ethically produced, traceable materials from rubber to diamonds to cotton. Get financial advice and industry news, to you help manage your money Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription. Most people probably view mining as a necessary evil. While we need materials produced in mines such as zinc and copper for our smartphones and wiring our homes as well as for the new generation of planet-saving technologies, we dont like the pollution and environmental damage associated with it. Copper and zinc are essential raw ingredients in the journey to realising our low carbon future. Copper is used throughout electric vehicles and charging stations and an essential component in the clean energy infrastructure because of the metals durability, high conductivity and efficiency. Zinc is used for powering electric vehicles. Unlike lithium-ion batteries, energy systems built around zinc dont catch fire and the longer they run, and are less costly in comparison. But the challenge lies in adapting or reimagining mining so that it remains financially viable while also being carbon neutral, environmentally benign, sustainable and safe. To be fair to the mining community many of the innovations that make this possible have been realised only in recent years, but now that they are here, we must capitalise on them. Read More When to walk away as an investor if companies are not taking proactive action on issues like climate change  One obvious barrier to the transition to cleaner, more responsible mining is the high capital costs. The upfront cost of developing any mine is high and as a result, mining investors and operators are typically risk adverse and tend prefer to stick with older, tried and tested but less environmentally minded technologies. However, recent technological innovations, mean that going green from the start actually lowers the costs to mine operators in the long run. Using renewable energy to power mine sites and fleets of electric vehicles/ trucks and electrical mining equipment is more efficient and lower cost, not to mention less impactful and kinder to the environment. Technology can also have a huge impact on other areas. Mining is gruelling, difficult and often dangerous work. The use of remote and automated technologies promises to bring high-value tech jobs to local communities and means that workers could remain offsite, operating machinery from an office and be home in time for dinner, improving the quality of life many times over. Technology also helps to reduce human error by a huge margin, a common cause of accidents in mines, making mining safer. Sensitivity to the communities  particularly to indigenous peoples  where mines are often located is also a crucial issue that requires greater partnership, co-operation, engagement and respect. Working in partnership to create joint ownership of projects with local communities ensures longevity of projects and allows communities to prosper from stable revenues and circular economies which can outlive the life of a mine. The port of Antofagasta, Chile. The increase in the price of copper, that passed $10,000 dollars per tonne gave rise to Chilean small mining (Photo: Getty/AFP/Glenn Arcos)  There remains the challenge of what to do with the existing mines that will continue to operate or be abandoned and hazardous in the transition. Operators need to engage more effectively with the environmental community to identify best practices for cleaning up dirty mines, and local and national governments must aggressively mitigate the risk from abandoned mines by removing physical and environmental hazards and reclaiming the land. The mining industry is facing a tipping point with the climate crisis, government emissions targets, investor ESG considerations, increased supply chain scrutiny, and a growing expectation of responsible corporate citizenship. These factors, coupled with recent technological innovations that mean mining can be cheaper, safer, more efficient, and kinder to the earth, makes the case for wholesale change too compelling to ignore. Just as Tesla paved the way for change in the automotive sector, mining companies need to be brave and change the way they operate because the necessary, no longer has to be evil. That is why we at Foran Mining, a copper-zinc-gold-silver exploration and development company, are planning to build the first mine  in Saskatchewan, Canada  designed to be carbon neutral from day one. Foran is creating a blueprint for responsible mining that causes the least possible harm and delivers better returns.