The new norm for gold miners and how change in mine waste management could help
|
Authors: Karajeh, I Open access courtesy of:
|
DOI https://doi.org/10.36487/ACG_repo/2355_63
Cite As:
Karajeh, I 2023, 'The new norm for gold miners and how change in mine waste management could help', in GW Wilson, NA Beier, DC Sego, AB Fourie & D Reid (eds), Paste 2023: Proceedings of the 25th International Conference on Paste, Thickened and Filtered Tailings, University of Alberta, Edmonton, and Australian Centre for Geomechanics, Perth, pp. 799-811, https://doi.org/10.36487/ACG_repo/2355_63
Abstract:
The gold mining industry has been out of favour with institutional investors in the last decade as major mergers, acquisitions and other shapes of restructuring took place right at the height of the commodity cycle, leaving the gold mining companies laden with debt. At the same time, institutional investors have observed a new trend in heightened emphasis on environmental, social and governance (ESG) related matters. As institutional investors have a lot of influence on gold mining companies through their significant majority shareholding positions, alignment with their ESG investment criteria is critical to gold mining companies for financial sustainability. This paper explores the ways alternative mine tailings management practices could help gold miners align with institutional investors’ ESG criteria. Maximising the application of thickened tailings, paste, filtered tailings, and underground and open pit backfill directly translates into reductions in land use and hazardous waste, increased water efficiency, and potential increases in energy efficiency; hence, reduced GHG emissions. A reduced waste footprint has indirect benefits related to other ESG aspects like biodiversity and potential social impact. The paper provides a qualitative to semi-quantitative assessment of the impact on lifecycle return on investment in these seemingly more elaborate and costly mine waste management approaches by improving ESG scores and enhancing the chances for access to more favoured and affordable financing.
Keywords: ESG, water use, land use, mine tailings
References:
Batten, JA, Ciner, C, Kosedag, A & Lucey, BM 2017, ‘Is the price of gold to gold mining stocks asymmetric?’, Economic Modelling, vol. 60, pp. 402–407.
Baur, DG & Lucey, BM 2010, ‘Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold’, Financial Review, vol. 45, no. 2, pp. 217–229.
Baur, DG, Prange, P & Schweikert, K 2021, ‘Flight to quality – gold mining shares versus gold bullion’, Journal of International Financial Markets, Institutions & Money, vol. 71, no. 101296.
Blose, LE & Shieh, JC 1995, ‘The impact of gold price on the value of gold mining stock’, Review of Financial Economics, vol. 4, no. 2, pp. 125–139.
Bredin, D, Conlon, T & Potì, V 2017, ‘The price of shelter - downside risk reduction with precious metals’, International Review of Financial Analysis, vol. 49(C), pp. 48–58.
Bredin, D, Conlon, T & Potì, V 2015, ‘Does gold glitter in the long-run? Gold as a hedge and safe haven across time and investment horizon’, International Review of Financial Analysis, vol. 41, pp. 320–328.
Brennan, MJ & Schwartz, ES 1985, ‘Evaluating Natural Resource Investments’, The Journal of Business, vol. 58, no. 2, pp. 135–157.
Chen, Q, Zhu, L, Wang, Y, Chen, J & Qi, C 2022, ‘The carbon uptake and mechanical property of cemented paste backfill carbonation curing for low concentration of CO2’, Science of the Total Environment, vol. 852, no. 158516.
Chen, T, Dong, H & Lin, C 2020, ‘Institutional shareholders and corporate social responsibility’, Journal of Financial Economics, vol. 135, pp. 483–504.
Dar, AB, Bhanja, N & Paul, M 2019, ‘Do gold mining stocks behave like gold or equities? Evidence from the UK and the US’, International Review of Economics & Finance, vol. 59, pp. 369–384.
De Los Reyes, JA 2017, ‘Mining shareholder value: institutional shareholders, transnational corporations and the geography of gold mining’, Geoforum, vol. 84, pp. 251–264.
East, D & Fernandez, R 2021, ‘Managing water to minimize risk in tailings storage facility design, construction, and operation’, Mine Water and the Environment, vol. 40, pp. 36–41.
Ghosh, AR 2021, From the History Books: The Rethinking of the International Monetary System, viewed 1 November 2022,
Grasa, A, Beaudoina, G, Molsona, J & Plante, B 2020, ‘Atmospheric carbon sequestration in ultramafic mining residues and impacts on leachate water chemistry at the Dumont Nickel Project, Quebec, Canada’, Chemical Geology, vol. 546, no. 119661.
Klohn Crippen Berger 2017, Study of Tailings Management Technologies - MEND Report 2.50.1, Klohn Crippen Berger, Ottowa.
Lu, H, Qi, C, Chen, Q, Gan, D, Xue, Z & Hu, Y 2018, ‘A new procedure for recycling waste tailings as cemented paste backfill to underground stopes and open pits’, Journal of Cleaner Production, vol. 188, pp. 601–612.
Power, IM, McCutcheon, J, Harrison, AL, Wilson, SA, Dipple, GM, Kelly, S, … Southam, G 2014, ‘Strategizing carbon-neutral mines: a case for pilot projects’, Minerals, vol. 4, pp. 399–436.
Qi, C & Fourie, A 2019, ‘Cemented paste backfill for mineral tailings management: review and future perspectives’, Minerals Engineering, vol. 144, no. 106025.
S&P 2022, Standard & Poor Capital IQ Market Data - COMEX, HUI, SPX, New York: S&P Market Intelligence.
Shahzad, S, Rahman, M, Lucey, BM & Salah Uddin, G 2021, ‘Re-examining the real option characteristics of gold for gold mining companies’, Resources Policy, vol. 70, no. 101890.
Siegrist, M, Southam, C, Bowman, G, Wilson, SA & Southam, G 2017, ‘Analysis of the potential for negative CO2 emission mine sites through bacteria-mediated carbon mineralisation: evidence from Australia’, Energy Procedia, vol. 114, pp. 6124–6132.
United Nations 2022, Principles for Responsible Investment - Signatory Update, July to September 2022, United Nations, New York.
Watson, AH, Corser, PG, Garces Pardo, EE, Lopez Christian, TE & Vandekeybus, J 2010, ‘A comparison of alternative tailings disposal methods — the promises and realities’, in R Jewell & AB Fourie (eds), Mine Waste 2010: Proceedings of the First International Seminar on the Reduction of Risk in the Management of Tailings and Mine Waste, Australian Centre for Geomechanics, Perth, pp. 499–514,
data/demand-and-supply
© Copyright 2024, Australian Centre for Geomechanics (ACG), The University of Western Australia. All rights reserved.
View copyright/legal information
Please direct any queries or error reports to repository-acg@uwa.edu.au
View copyright/legal information
Please direct any queries or error reports to repository-acg@uwa.edu.au