PERTH, WA (MiningIR) — Mining has always been a pillar of global industrialization, providing the essential materials needed for technological innovation and economic growth. However, it has also been associated with environmental degradation and social conflicts. As the world moves towards greener, more sustainable practices, mining must evolve. The recent report from the Mining 2030 Commission, released ahead of the UN PRI Summit in Toronto, highlights the importance of sustainability in the mining sector and the role that both investors and operators must play in shaping the industry’s future.
Nicholas Boyd-Mathews, Executive Director ESG 🌱 and Chief Investment Officer, Eden Asset Management, emphasized the urgency of this transformation, stating, “We need to hardwire effective sustainability standards into management systems, and the institutional investment community is ideally placed to do so.”
Aligning Capital with Responsibility
One of the most significant points in the Mining 2030 Commission report is the focus on aligning institutional capital with responsible operators. Historically, the mining industry has struggled with its environmental and social impact. Now, there’s a growing push to change that narrative by directing capital towards companies that prioritize sustainability, safety, and community engagement.
This shift represents more than just a moral or ethical decision—it’s becoming a financial imperative. Barend Peterson, Vice Chair of the Mining 2030 Commission, noted: “Investors have a crucial role in encouraging the adoption of best practices, which helps mitigate environmental and social risks while also increasing capital allocation.” This alignment will lead to more resilient investments, helping to buffer the sector from the regulatory and social risks it has traditionally faced.
A Call for a Reset in Investor-Industry Relations
Adam Matthews, Chair of the Global Investor Commission on Mining 2030, summed up the challenges and opportunities ahead in his statement: “This far-reaching landscape report lays out the many positive and negative impacts of the mining sector and its fundamental role in the global economy and in the low carbon transition. Most importantly, it provides a direction of travel for investors to collectively address the sector’s systemic risks from conflict to climate, and the need for a different approach by investors to the sector if it is to leave a positive legacy for host communities and the environment whilst meeting global demand. It calls for a reset by investors of their relationship with the industry.”
This quote encapsulates the essential need for a new approach, not just in operations, but in the way, investors engage with the mining sector. The report calls for a comprehensive reset in the investor-mining relationship, one that prioritizes long-term sustainability over short-term gains. This reset would focus on balancing the industry’s contributions to the global economy with its responsibility to mitigate environmental and social risks.
Junior Mining: A Key Player in Sustainable Growth
The report also highlights the crucial role of the junior mining sector in driving the future of sustainable mining. Unlike larger, established mining companies, juniors are often on the frontlines of exploring new deposits and opening new mines. This positions them not only as pioneers of future growth but also as potential leaders in sustainable practices.
Junior miners, unburdened by decades of entrenched practices, are in a unique position to adopt and champion modern sustainability standards. With the right investment and support, these smaller operators can lead the charge in building greener, more responsible mining operations. Their flexibility and innovative approaches can serve as a model for larger companies to follow.
Challenges Ahead: Access to Capital and Social License
Despite the promise of a more sustainable future, the mining industry still faces significant challenges. Chief among them, as identified in EY’s recent report, is access to capital. Smaller companies, in particular, struggle to secure the funding needed to launch and sustain new projects. Mid-sized and larger operators, while better positioned, still face the high costs associated with sustainable practices and regulatory compliance.
Access to capital is directly linked to a company’s social license to operate—a growing concern as communities and regulators demand higher environmental and ethical standards. Companies that cannot demonstrate responsible operations are at risk of losing this social license, leading to delays, cost overruns, or even project cancellations.
The Road Ahead: Solutions and Collaboration
The Mining 2030 Commission has laid the groundwork for a more sustainable future, but this is just the beginning. Part 1 of the report sets the stage; Part 2 will focus on implementing solutions that bring together best practices, new investment, and improved social and environmental outcomes. Collaboration between investors, operators, and regulators will be key to driving this change forward.
Nicholas Boyd-Mathews adds, “The transition towards a more sustainable mining industry is not just about setting goals; it’s about action and collaboration across all stakeholders. It’s time for the industry to embrace change, innovate, and deliver lasting value.”
As the mining industry moves forward, it must embrace sustainability not just as a trend, but as a core pillar of its operations. With the right investment, leadership, and commitment to best practices, mining can play a critical role in building a greener, more sustainable future for all.
Conclusion
The path to sustainability in mining is complex, but it is necessary. The work of the Mining 2030 Commission and the growing emphasis on responsible operators signal a shift in the industry’s priorities. By supporting junior miners, aligning capital with sustainability, and addressing access to capital and social license challenges, the mining sector can move towards a future where economic growth and environmental responsibility go hand in hand.
For more info on the Mining 2030 Commission report, you can download HERE
Nicholas Boyd-Mathews, the Executive Director and Chief Investment Officer at Eden Asset Management, brings over thirty years of experience in the funds management and financial services industry. With a significant portion of his career spent in London at firms like Morgan Stanley, NatWest, and Killik & Co., he has extensive experience in UCITS, global institutional sales, corporate advisory, research analysis, and capital markets. Nicholas founded Eden in 2014, offering portfolio management and corporate advisory services. He has a strong record in managing funds, notably outperforming peer group fund managers and the S&P 300 Australian Natural Resources Index as the founder and manager of the ACD Australian Natural Resources UCITS III Fund. His professional affiliations include the Chartered Institute for Securities & Investment, Financial Services Institute of Australasia, Stockbrokers and Financial Advisors Association, WAAMH, and the WA Mining Club. He is also a columnist on Livewire Markets, providing insights on global equity markets, commodities, energy, and agriculture.
Eden Asset Management
Name: Nicholas Boyd-Mathews
Phone: +61 8 6391 0107
Email: [email protected]
Office: Level 41, 108 St George’s Terrace, Perth, WA 6000, Australia
Postal: PO Box Z5467, St Georges Terrace, Perth WA 6831
Web: www.eden-asset.com
