The African mining industry has great potential to show the world how to meet global sustainability targets, such as those set out in intergovernmental organisation the United Nations’ Sustainable Development Goals, highlights collaborative investor-led initiative the Global Investor Commission on Mining 2030.

The commission is supported in its work by a dedicated secretariat, managed and led by corporate sustainability consultancy Chronos Sustainability CEO Dr Rory Sullivan, biodiversity and nature head Gemma James, and chaired by non-profit organisation Church of England Pensions Board chief responsible investment officer Adam Matthews.

The commission notes that Africa has significant mineral resource reserves and showcases some leading companies and mining talent, coupled with well-written mining legislation, illustrating examples of projects with good social and environmental performance.

However, despite these laudable building blocks, the commission notes that the continent’s mining sector faces significant challenges to deliver on its full potential, as there is, generally, a rush to exploit resources without properly engaging mine-affected communities.

In some instances, social and environmental performance standards are not being met, mining regulations are not properly implemented in some jurisdictions, local communities are not benefiting from mining and there are only a few mechanisms to ensure that mine sites are shuttered safely and rehabilitated appropriately, Sullivan says.

Indaba Insights

The commission held three roundtable sessions at this year’s Investing in African Mining Indaba 2030 – held in Cape Town, last month – with every session being attended by representatives from mining companies, industry bodies, investors, civil society and government.

“The common theme across all of the roundtables and our discussions during the conference was that the industry is interested in working with the commission, to learn from [its] research and wider engagement . . . and to get insights into how long-term investors and other capital providers view the industry and what their expectations are.”

While issues such as conflict, legacy and consent are significantly challenging, Sullivan says industry representatives understand that these issues will persist and that addressing them is central to ensuring the industry’s social licence to operate.

Another theme that was thoroughly emphasised during the roundtable discussions was that the future of the mining industry must be inclusive of all stakeholders across the mining value chain.

In this regard, Sullivan says the commission is well placed to engage and provide a platform for these multistakeholder dialogues throughout the organisation’s work programmes.

The discussions also cast a spotlight on the industry’s need to properly align the numerous mining-related tools, standards and guidance documents, as it can be difficult for investors to differentiate between those that are rigorous and robust, and those that are not.

Further, Sullivan highlights that ensuring the right level of information and data is shared with investors, while enabling them to understand the nuances of the industry, is a key goal for the commission.

There remains a need to address the power imbalances in terms of access to information and the ability to influence decision-making across the mining industry, with affected communities often having limited influence over the decisions that affect their lives.

“The single most important action that companies can take is to closely look at their assessments and modelling of climate-related risks and critically reflect on whether their business risk management and business continuity strategies are sufficient.”

For example, he points out that, in the design of tailings storage facilities, changing temperatures and abnormal rainfall patterns might have a different effect on their stability.

Sullivan notes that the commission is developing workplans to address these challenges and adds that the industry should engage further with the organisation and actively support the implementation of its workplans, thereby ensuring that the proposed actions are meaningful and effective.

These workplans will form the basis for the priority strategies and actions of African mining stakeholders, as the plans will be developed in partnership with them.

“Overall, the Indaba has reaffirmed our views on the critical role that investors can [play] and should be playing in encouraging the development of an industry that is successful, socially and environmentally responsible, and delivers a positive legacy for all.

“It has also reaffirmed the importance of investors taking the time to understand the realities of mining, including the competing pressures of time, cost and meeting the needs of different stakeholders, [as well as] the practicalities and challenges of implementation.”

The commission also reaffirms the importance of investors, companies, governments and communities working together to deliver a more sustainable mining industry, Sullivan concludes.