Reclaiming the future: Innovative paths for post-mining prosperity

The mining and metals sector ranked lowest in the 2021 Globe-Scan report of attitudes toward all major sectors in 31 countries. Some U.K. universities have banned mining companies from recruiting on campus, and the number of geology and mining engineering graduates continues to slide.

Much of the issue stems from some newsworthy poor historical performance, including the sector’s impact on land, air, water, and biodiversity, as well as a perceived inability to prepare communities to thrive after operations close. Environmental, social, and governance (ESG) concerns ranked #1 for a third year in a row in EY’s top ten business risks facing mining companies report for 2024, highlighting that local community impact, tailings, waste management, water management and mine closure are utmost concerns within the ESG focus.

This article will examine three of the key areas identified in the ESG topic: innovative mine closure projects that benefit local communities, pioneering design approaches for end-of-life mine planning, and advancements in water stewardship that contribute to sustainable industry practices.

Mine closure is an opportunity to create a legacy of value

Mine closure is extremely complex, impacting a wide range of stakeholders with different, and increasingly high, expectations. An inadequate closure creates a negative legacy that is extremely difficult and costly to remediate. Many mining companies are strengthening their focus on the issue, aiming to repurpose sites, establish secondary businesses, and create long-term value for communities.

The concept of waste-to-value is transforming waste as a liability, into as something beneficial, such as extracting additional minerals and metals from closed mines. An intriguing case is the potential to meet the demand for rare earth metals, by reprocessing tailings left from former or ongoing operations.

Creating long-term value for communities post-mining can be achieved through innovative approaches to mine closure. The closed Kidson mine in Australia is being transformed into a renewable energy power hub. With the implementation of pumped hydro storage systems within the old pits surrounded by solar panels and wind turbines, these sites capitalize on the existing topography to generate green electricity. By utilizing two water reservoirs situated at different elevations, water can flow from the higher to the lower reservoir, turning turbines and producing electricity. This is especially appealing where energy costs are high, offering a sustainable source of local power. Wind and solar installations complement this setup, further enhancing the renewable energy output.

Additionally, the principle of “design for closure” focuses on integrating landscape architects and mining companies in the early stages of a mine’s development. Their collaboration is aimed at utilizing the natural surroundings and landscape of the mine site efficiently, leading to a more effective production and closure plans. This forethought ensures that the environmental footprint is minimized, while also providing a sustainable, long-term legacy for the local community once mining operations cease.

Miners are seeking innovative solutions to tailings and waste management

The past 10 years have seen more tailings dams built than in any previous decade. Today, safe storage of tailings is a key focus for stakeholders who are demanding mining companies do more to prevent failures that can devastate local communities and the environment and cost billions of dollars to fix. With over 200 billion tonnes of existing tailings under management and an additional 40 billion to 50 billion tonnes expected in the next five years, this is a critical risk to manage.

Fifty-five per cent of respondents to a survey expected tailings to receive investor attention, compared with less than 5% last year. In August 2023, members of the International Council on Mining and Metals (ICMM) released tailings disclosures to demonstrate ongoing commitment and provide transparency on the Global Industry Standard on Tailings Management (GISTM). But Mining companies need more innovative solutions to design, build, monitor, and manage tailings, especially if we are going to also extract value from waste.

Another innovative approach involves employing mine tailings as a carbon sink through the process of carbon mineralization, which sequesters CO₂ from the atmosphere and stabilizes it within the mine waste. This technique, however, is applicable only to specific types of tailings. Studies have demonstrated that great potential exists in Canada and elsewhere to make this ambition a reality.

The Mining Microbiome Analytics Platform project is an exciting example of progress. This collaboration between the University of British Columbia, industry players, and other partners maps naturally occurring microbes at various mine sites to accelerate the development and application of microbial biotechnologies throughout the mining life cycle. For example, remediating slag containing residual copper could be made profitable by introducing microbes that bind with the copper and enable extraction.

Investors and governments scrutinize water stewardship

Over half of the EY survey of the top ten business risks facing mining companies report for 2024 respondents said water stewardship was one of the top risks with significant increased scrutiny from investors. It is an issue top of mind for many governments as well. For example, the Chilean National Mining Policy 2050 mandates that continental water makes up no more than 10% of total water used in all copper production. Other drought-affected regions are likely to adopt similar restrictions, as it is critical that hydrology is managed end-to-end given water impacts soil composition and, therefore, the ability to regenerate land.

Many mining companies have set targets around their commitment to drive good water stewardship and improve disclosure to stakeholders.

In conclusion, the metals and mining sector, once viewed skeptically because of its environmental impacts and community disengagement, is actively seeking redemption and transformation. By focusing on innovative mine closure strategies, repurposing waste to value, and addressing water stewardship concerns, the sector is charting a course towards a sustainable and responsible future. Accelerating novel technologies commercialization and collaborations is proof of the industry’s commitment to improving its legacy and mitigating its footprint. As mining companies increasingly incorporate cutting-edge solutions to manage tailings, promote renewable energy, and engage in thoughtful design for closure, they are not only responding to investor and government scrutiny but are also creating new opportunities and lasting benefits for the communities they have been a part of. This pivot toward responsible mining demonstrates the sector’s potential to be a driving force in the global transition to a greener and more sustainable economy. While challenges remain, the strides taken towards a positive closure legacy and improved water stewardship signify a forward-looking approach that may very well redefine the industry’s role in the world.

Chih-Ting Lo is a strategist, board member, and entrepreneur who’s committed to making a global net-zero carbon future a reality by focusing on industry decarbonization. A professional engineer with deep sector knowledge in ESG performance, Chih-Ting brings a data-driven approach to EY Americas Mining and Metals Centre of Excellence. To learn more, visit: https://www.ey.com/en_ca/mining-metals/mining-and-metals-centre-of-excellence.

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