Pressure continues to mount within the mining industry across the African continent, as expectations to adapt to healthy environmental practices grow.
The mining stakeholders and lenders are demanding that the mining industry do away with greenhouse gas emissions and pollution reduction, to improve worker and community welfare.
It is well documented that it’s in the best interest of the mining sector to adopt a healthy and more responsible way of doing things and avoid negative publicity.
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The mining industry in its rights requires a lot of energy which plays a vital role in environmental pollution.
The industry over the years recorded a large number of workplace accidents and fatalities. Investors see it as befitting to condemn the whole industry to push them to fast-track the total migration to save lives and be more sustainable.
According to the Mckinsey report, the mining industry is responsible for about 4-7% of the greenhouse gas emissions across the world.
“Mines theoretically can fully decarbonize through operational efficiency, electrification, and renewable-energy use. Capital investments are required to achieve most of the decarbonization potential, but certain measures, such as the adoption of renewables, electrification, and operational efficiency, are economical today for many mines,” says the report.
The report further argues that coal accounts for 50% globally in the mining market, and will come under pressure as it is the contributing factor to environmental pollution.
“Niche commodities probably will not be able to replace the magnitude of earnings from coal, but they could help manage losses.
For miners, a rebalanced portfolio would require agility, sophisticated market intelligence, and flexible assets – which could become a competitive advantage in enabling responses to mineral-demand shifts,” the report added.
Should the mining industry migrate to do things differently, it will open new business opportunities.
BY ADMIRE MALULEKE