Gold miners worldwide have been warned that they must continue to mitigate risks against climate change in the years ahead.
A report released by the World Gold Council, in conjunction with engineering firm Stantec (TSX:STN), found several “key physical climate-related vulnerabilities” across the gold mining industry.
It outlined nine key vulnerabilities for gold mines around the globe, from water management and ground stability to biodiversity protection and worker health.
The report also made clear the disastrous potential impacts of climate change on the communities that support gold mines, which are often located in remote and diverse geographic locations and have a strategic, pivotal role in local economies.
Good work, but more to be done
World Gold Council’s climate change lead John Mulligan said the gold mining industry had “demonstrated substantial awareness of the challenges imposed by physical climate impacts”, though more must be done - and soon.
“The gold industry has made significant steps to introduce greater resilience at mine sites and in local communities,” Mulligan said.
“However, these steps will need to accelerate as our collective understanding of climate impacts continues to develop at a rapid rate.
“Our findings emphasise the opportunity for the sector to share knowledge, identify convergent and consistent methodologies, and define innovative adaptive solutions.
“Building on the substantial foundations identified in the report, the gold mining sector is ready to extend its capacity for greater future climate resilience.”
The report outlined seven key recommendations for gold miners:
- Strive for greater sectoral consistency and knowledge sharing in defining methodologies for assessing climate vulnerability and adaptation;
- balance consideration of acute risk with a longer-term view on chronic risks;
- incorporate an acknowledgement and understanding of combined compound risks;
- integrate community risks into local vulnerability appraisals and resilience plans;
- use local and indigenous knowledge of climate change and weather impacts to inform climate risk assessment processes;
- share knowledge and resources with local communities, and adopt a multi-stakeholder approach to adaptation planning and designing for climate change resilience; and
- plan for innovation, using data and technology to produce a more dynamic approach to managing climate-related vulnerabilities and potential physical hazards.
What does it mean for Australian miners?
It’s hot enough as it is in Australia, and climate change has been on the agenda lately, with the Centre for Policy Development urging the Reserve Bank of Australia to play a more active role in the country’s mitigation efforts.
The CPD’s sustainable economy director Toby Phillips said financial stability could only be assured with an orderly climate transition.
“Australian wellbeing depends on an orderly transition to a steady net-zero economy and a sustainable natural environment,” he said.
“Updating the RBA toolkit so it can protect Australian wellbeing with a stable financial system and a smooth transition is the most sensible reform we can make.
“An orderly transition to a net-zero economy requires alignment across all aspects of policy-making, including the Reserve Bank’s control of monetary policy."
Several Australian gold companies are seeking to get ahead of the game; Bellevue Gold Ltd (ASX:BGL) is set to become the ASX’s first net-zero gold miner, while Riversgold Ltd (ASX:RGL) and Southern Gold Ltd (ASX:SAU) are both partly belying their names by moving their exploration efforts into other metals.
- Daniel Paproth