Sustainable Mining Practices: Preserving Natural Capital for Future Generations

Sustainable mining is about reducing the harmful effects of mining activities on the environment, economy, and society. It also strives to ensure that the resources extracted are what future generations might need. These resources also include the essential things people need to live, like water, food, cleanliness and employment. 

Mining companies need to understand that being socially responsible, mining in an eco-friendly way and making profits are all connected. Therefore, a sustainable mining strategy should focus on lessening environmental damage and developing plans to track and measure different environmental indicators to help assess sustainable mining activities. Firms must also implement various strategies that improve sustainability throughout the mining process, from the initial discovery of the resource to its eventual closure and rehabilitation, restoring sites to as close to their natural state as possible.

Currently, most mining companies achieve sustainable mining by harnessing green energy and shifting from non-renewable to renewable energy sources like solar, wind, and geothermal power to reduce carbon emissions and energy usage. Employing water-saving technologies, installing water recycling systems, and utilizing reclaimed water to lessen freshwater use and prevent water pollution have also come into play.

Some companies are also employing advanced mining techniques to minimize waste and enhance the extraction of resources, while exploring eco-friendly methods such as bioleaching and phytomining, and properly rehabilitating areas affected by mining activities to support biodiversity and open up new possibilities for sustainable land use. Companies must engage with local communities affected by mining, honoring their rights to land and cultural heritage, and contributing to social development initiatives.

Pan African Resources (PAR) is one company that has embraced sustainable mining at all its operations. As a company focused on producing African gold in the mid-tier production category, its primary goal is to safely and effectively extract value from mineral assets sustainably. 

Their commitment to sustainability extends beyond just following the rules and regulations. PAR works closely with specialists in community engagement, environmental protection and sustainability initiatives to provide meaningful benefits to all stakeholders involved. Its approach prioritizes environmental, social and governance (ESG) aspects, incorporating renewable energy and water recycling into its processes. This approach affirms dedication to a more flexible, intelligent and progressive approach to mining.

Pan African Resources (PAR) is a mid-tier mining company committed to reducing its carbon footprint generated through mining activities. Consequently, the company is increasingly investing in renewable energy plants to generate a higher percentage of clean energy to conduct its operations.

The growth-focused gold producer has already revealed plans to build an 8.75MW solar facility at its Barberton Mines’ Fairview site, which is set to save electricity expenses by approximately R40 million annually for the next two decades, and even more, depending on the rate of increase in electricity tariffs through the years. The projected cost for this solar project is approximately R220 million.

Additionally, the company has signed a power purchase agreement with Sturdee Energy for a renewable energy solution that includes 40MW wheeled from Sturdee’s Bela-Bela Project Solar Photovoltaic (PV) facility in Limpopo, meaning any of its operations could utilise the power. The initial agreement is for ten years, with the option of extending for an additional five years. The Bela-Bela solar PV facility is anticipated to generate around 112,399MW/h of renewable energy annually for PAR, leading to projected savings of R646 million over a decade and R884 million over 15 years at future anticipated electricity costs.

Furthermore, PAR is in the process of evaluating options to expand Evander Mines’ existing 10MW solar PV renewable energy facility by an additional 12MW. Another evaluation is underway for constructing a solar PV renewable energy project of between 20MW and 25MW at the Mogale tailings retreatment plant in Gauteng.

Solar PV renewable energy projects are crucial in advancing PAR’s renewable energy roadmap and for meeting its sustainability goals. Beyond significantly reducing the organisation’s carbon footprint, these initiatives will help secure a steady power flow to mining activities. Moreover, they will lead to proportional cost reductions, lowering the total All-in-Sustaining Costs (AISC) per ounce of gold production over time.

In addition to engaging in sustainable mining, PAR remains committed to biodiversity conservation, focusing on protecting and managing the area’s natural biodiversity to ensure environmental sustainability. The company has undertaken several projects to assist with the conservation of land, water and other resources needed to conduct its operations.

In addition to its commitment to protecting biodiversity throughout the mining process, the company has undertaken various restoration initiatives following the completion of mining operations to bring back the natural environmental equilibrium, conserve water and encourage the re-establishment of native plant and animal life.

Consequently, the company is focused on preserving the vital biodiversity and ecological importance of the Barberton area, which includes Natural Heritage sites, by working together and forming collaboration agreements with the Mpumalanga Tourism and Parks Agency (MTPA) and the Barberton Nature Reserve.

The company also regularly monitors its tailings dams and pollution control dams to avoid harming biodiversity and to maintain compliance with the National Environmental Management: Biodiversity Act of 2004. It has also collaborated with the Care for Wild Rhino Sanctuary to adopt and care for orphaned baby rhinos. Eliminating non-native and invasive plants and trees, as well as the production of furniture as part of our community-focused Small Enterprise Development Programme (SEDP), have also come into play for PAR’s sustainability initiatives.

PAR  is an agile and adaptable mining company boasting high-quality assets and a production profile characterized by safety, efficiency and profitability in gold production. It is a firm that confidently allocates resources into research and development, as well as adopting cutting-edge, efficient technologies to achieve significant returns and sustain long-term production success.

The company has maintained its edge by adopting a progressive mindset and openness to new technologies and methods. They focus on employing the latest technology to enhance safety, ensure high-quality output, improve efficiency and pursue growth and expansion opportunities.

The gold mining firm also leverages digital advancements in managing risks to safeguard its data and prevent cyberattacks. By adopting innovative strategies, PAR adjusted its operational framework as the challenges and profitability of underground mining increased. The emphasis ultimately shifted to low-risk, cost-effective and efficient gold tailings processing.

Furthermore, the company has implemented BIOX® processing to increase gold recovery rates in sulfide-rich orebodies. This revolutionary method employs bacteria to extract gold from the surrounding sulfide deposits. This process is eco-friendly, requires minimal investment for development and operation and is ideal for remote areas and ongoing gold recovery enhancement efforts. Additionally, this multi-asset mining company has invested in Gas Chromatography-Mass Spectrometry (GCMS) technology to monitor the health of bacterial cultures at the BIOX® facility.

Sustainable mining extends beyond just reducing harm to the environment. It includes a thorough strategy to protect local communities’ environmental, social and financial aspects.

Some of the key benefits of sustainable mining to local communities include:

• Minimizing ecological harm: By adopting sustainable mining methods, it’s possible to lessen the environmental harm caused by mining, which includes reducing pollution, improving the quality of water and air and minimizing damage to the land occupied by local communities.
• Maximizing the use of resources: Sustainable mining methods can increase the use of local community resources by extracting minerals from the earth more efficiently while using less energy and water, therefore conserving the local community environment.
• Cutting carbon emissions: Sustainable mining methods can reduce carbon emissions by utilizing renewable energy sources and lowering energy usage, resulting in less stress on the grid and a reduction in load-shedding.
• Boosting social and economic advantages: Sustainable mining methods can increase social and economic advantages for nearby communities by creating employment opportunities, offering training programs, and supporting local enterprises.
• Improving public image: Mining companies implementing sustainable practices can improve their public image among local communities by contributing more to social projects and community infrastructure development, creating better living conditions and improving its ESG profile, which will increase its investment potential.

The metals and mining industry is responsible for about 8% of the global carbon emission. Consequently, Environmental, Social, and Governance (ESG) considerations have become an integral part of mining companies’ business decisions. However, the global pursuit of sustainability presents challenges and opportunities for the mining industry.

In its commitment to environmental conservation, PAR increasingly uses solar renewable energy to power its operations and lessen its environmental impact. As part of the push, the company has constructed a solar renewable energy facility that meets 30% of its energy needs at the Elikhulu site for surface sources retreatment in Evander, with additional plans to build a new facility capable of generating 8.75MW to support the Barberton Mines and to expand their capacity by 40MW through wheeling offsite from third parties.

The company has also restored over 22 hectares of land previously used for mining. Moreover, PAR is dedicated to improving water management and recycling, with a new water recycling plant recently commissioned that recycles 3 Megalitres of underground water daily for use in its processing operations.

PAR is also committed to adhering to South Africa’s human rights laws and global norms as part of the social aspect of its ESG needs. To boost safety in the workplace, a detailed strategy for safe production has been put in place. This includes improving incident reporting, enabling employees to stop unsafe practices, reinvigorating the process of observing tasks and ensuring strict adherence to safety rules through appropriate consequences.

Moreover, the company has established short-term goals to enhance safety measures by up to 4% each year from 2023 to 2030, achieving a 24% total reduction from the previous seven years. This effort is designed to further elevate the company’s leading safety statistics in South Africa.

In line with its robust governance strategy, PAR pledges to uphold the highest levels of transparency and moral conduct, adopting a strict policy against bribery, corruption, or business misconduct. The organization’s ethical guidelines and commercial integrity standards direct ethical behavior and a confidential reporting line promotes openness. The organization’s adherence to the King IV framework for corporate governance is consistently evaluated, showcasing its commitment to ethical leadership and corporate accountability.

PAR’s long-term plan is to generate increasing profits from its operations and extend the life of its assets by focusing on environmentally friendly mining and leveraging cutting-edge exploration and extraction technologies. The company plans to utilize more innovative technologies and enhance infrastructure and safety measures to access deposits that were previously unreachable, as evidenced by the installation of underground refridgeration plants at Evander Mines 24 Level.

Continuous exploration efforts at our underground locations in Evander and Barberton are also aiding the company in broadening its mineral resource portfolio. On surface remining operations, PAR produces more gold ounces through tailings retreatment methods that transform mine waste into valuable materials, lowering Group production costs and boosting the company’s earnings, whilst also rehabilitating land that will be repurposed for economic use.

Through its tailings retreatment processes, the mid-tier gold miner is extending the operational life of its mines, increasing profitability, contributing more to tax revenues, creating additional employment opportunities and ensuring the sustainability of the communities surrounding its operations. Moreover, tailings retreatment is a method of recycling mine waste that safeguards the environment and improves air and groundwater quality. 

In the long run, PAR plans to install 30 MW of solar panels by 2024, generating approximately 75,000 MWh annually, which would lead to savings of around R100 million on electricity costs and a reduction in carbon dioxide emissions by up to 80,000 tons per year. In addition to solar, the company is exploring battery technology, other renewable energy initiatives such as wind farms (which could be located elsewhere) and exporting power to the national grid through private producer partnerships that will obtain carbon credits for our activities. Its objectives extend beyond producing more energy, enhancing energy efficiency, and minimizing environmental impact.

Sustainability extends beyond the operational practices of PAR in minimizing its environmental impact. It also encompasses collaborative efforts with all stakeholders to foster sustainable development and growth. The company places a high value on establishing lasting relationships with investors who prioritize long-term commitments and are convinced of the investment potential of gold as a currency when compared with other investment categories, including the US dollar as a reserve currency.

Gold has consistently been proven to provide the highest returns over the longer term, making it an ideal investment during economic and political instability, where risks are prevalent and the future is unpredictable, especially in relation to FIAT currencies or paper money. PAR boasts a solid expansion history as a mid-level gold mining entity, with industry-leading returns to shareholders in the form of dividends.

It has capitalized on the consolidation trend in the sector by acquiring assets like Mintails Mining SA at opportune costs of some $2/ounce in situ, which will allow PAR  to boost its production by 25% once the reprocessing plant has been constructed. They have successfully tapped into the extensive gold deposits found in surface tailings through foresight and innovation and their investments in renewable energy will ensure the necessary power to achieve their long term growth goals sustainably for all stakeholders.