SRK was honored to participate in Mining Journal’s Future of Mining 365 webinar on ESG at the earliest stages of project conceptualisation.
Hosted by Chris Cann, Head of Aspermont Research and Intelligence, SRK’s Fiona Cessford (Corporate Consultant ESG) was joined by Rio Tinto Venture’s Managing Director, Kevin Fox, and BMO Capital Market’s Managing Director Commodities Research, Colin Hamilton. The webinar was targeted at junior and mid-tier mining companies keen to get advice on the priority that they should place on sustainability/ ESG in the planning of their projects (exploration, PFS and FS) and company strategies.
The session recognised that sustainability needs to be a key driver of project planning decisions. Opportunities to deliver positive ESG outcomes are arguably highest at the earliest stages of planning. Among the motivations for pushing ESG up the planning priority list are that sustainability is determining whether:
• Projects are permissible (whether permits to proceed can be obtained);
• The project will be acceptable to the communities in which it is located (social license to operate).
• Deposits are extractable, and projects are technically feasible based on accurate characterisation of bio-physical and socio-economic risks and opportunities;
• Projects are financeable – whether debt finance can be obtained and what interest rates will apply (loan interest rates are being linked to ESG KPIs);
• Companies, projects and operations are investible.
• Companies, projects and operations are insurable and what premiums might apply;
• The mineral products are tradeable and, in future, what premiums might apply to products with lower embodied carbon and other ESG credentials.
These priorities came through loud and clear during the webinar. All contributors re-enforced the need for ESG professionals to be involved as early as possible in new projects so that sustainability considerations can be embedded in project designs and implementation plans right from the start. In summary, you don’t start a new development project without a geologist to advise you, you shouldn’t be starting one without an ESG professional on board as well!
Watch the webinar recording.
