Managing ESG Risks in a Large Mining Operation
This mining operation produces much of the Cobalt required in almost all lithium batteries. Over the past 5+ years, the local population has grown from 600,000 to 1,200,000, primarily due to the availability of Artisanal and Small scale Mining (ASM) opportunities. This therefore places huge pressure on the Large Scale Mining companies attempting to operate in the area who are beholden to international law and expectations of shareholders and customers.
Satarla were asked to support the large scale mining operation in their assessment of risk posed by them to ASM and vice versa. The ESG risks associated with the interaction between ASM and LSM are significant, as are the financial and technical risks. By including ASM experts in the Satarla risk management team, a balanced view of the risks faced by the large mining operation was presented and assessed.
The result was a significant alteration in understanding of and approach to the interaction with ASM by not only the parent company of the large scale mining operation, but also a change in the approach to the management of security for the mining operation and social engagement.
Therefore, the management of ESG risks is now being undertaken in a far more mature manner, planning for the long term future of both the mining region and also responsible provision of cobalt required in so many different renewable energy technologies.