Mining

Mining smarter: Synergy’s path to green funding success. (Image source: Synergy Consulting)

Achieving ESG targets: How Synergy Consulting supports miners in reducing emissions and securing finance

As the world pivots towards prioritising environmental, social, and governance (ESG) standards, mining companies are under increasing pressure to align their practices with corporate sustainability goals. 

With the elevated scrutiny around their carbon footprints as well as the global call towards a cleaner future, miners have been presented with the formidable challenge to adopt innovative strategies to not only enhance their ESG credentials but also ensure long-term operational viability. This is where Synergy Consulting, an international financial advisory firm with deep expertise in helping firms create actionable emission reduction roadmaps using financial products and investments, comes into play.

Understanding Scope 1 and Scope 2 emissions

Scope 1, 2 and 3 emissions are different ways of categorising the sources of a company’s greenhouse gas (GHG) emissions.

Scope 1 emissions are direct GHG emissions that occur from sources owned or controlled by a company, such as diesel combustion in mining equipment. On the other hand, Scope 2 emissions come from the generation of purchased energy, which is often significant in mining operations due to their high energy demands. Scope 3 emissions effectively comprise of all the emissions not included within Scope 1 and Scope 2 emissions (thereby encompassing a company’s whole value chain).

Synergy Consulting’s role

Synergy Consulting specializes in helping miners achieve their targets through tailored strategies aimed at emissions reduction. Synergy’s comprehensive approach leverages its vast experience of providing financial advisory services and combines its technical expertise, industry experience and access to financial resources to provide an executable blueprint to mining companies to overcome both environmental challenges and capital hurdles.

1. Identifying emission reduction opportunities

Our team of sustainability experts conducts a holistic assessment to pinpoint specific improvement areas for emission reduction within your operations. Synergy’s approach includes a bespoke analysis of the business model to ascertain the right framework and approach to further your ESG objectives. Based on the thorough business-model analysis, Synergy shall provide an implementable strategy towards achieving your emission objectives whether it's through transitioning to renewable energy sources, upgrading equipment to more efficient technologies, or implementing carbon capture solutions.

2. Developing and implementing a roadmap

At Synergy Consulting, we understand that each mining operation is unique. We collaborate with your team to create a customized emission reduction roadmap that shall establish tailored KPIs which shall facilitate the emission reduction goal in a structured and constructive manner. Our experts shall help you set clear targets (at different organizations levels) and timelines to guide the entire process. This systematic approach not only simplifies the implementation process but also helps garner buy-in from all stakeholders.

3. Leveraging financial solutions

Synergy Consulting excels in arranging finance for mine development, valuations, and mergers & acquisitions (M&A). We facilitate access to various funding sources, including green financing, private equity, and institutional investors specifically interested in supporting companies committed to sustainable practices. Our strong network as well as track-record of executing projects across different geographies can help you secure the capital needed to implement your emission reduction strategies effectively.

4. Valuation and M&A advisory

As the market for sustainable mining practices grows, the interest in environmentally responsible investments has surged. With investors around the world starting to add a “green premium” to their valuations, it is becoming imperative to miners to showcase their ESG capabilities to attract investors’ interest. Synergy Consulting provides expert advisory services in mine valuations and M&A and can help you navigate the complexities of acquisitions or divestitures with an emphasis on ESG performance. This not only enhances your attractiveness to potential investors but also ensures that your strategic decisions align with broader sustainability goals.

With the mining industry facing an inevitable shift towards climate-friendly practices, its future is inextricably tied to effective ESG strategies, particularly in reducing emissions. Synergy Consulting is dedicated to helping miners navigate this landscape by providing tailored solutions that drive efficiency, secure the necessary funding, and achieve meaningful sustainability targets within designated timelines. Together, we can pave the way for a mining industry that is not only profitable but also responsible and sustainable.

For more information on how Synergy Consulting can assist your mining operation in achieving its ESG goals, please contact us today.

GTMI ensures mining tailings safety, environmental protection, and independent facility assessments. (Image source: Adobe Stock)

The Global Tailings Management Institute (GTMI), an independent organization dedicated to improving the safety of mine tailings facilities globally, have been recently launched

Established by the International Council on Mining and Metals (ICMM), the United Nations Environment Programme (UNEP), and the UN-supported Principles for Responsible Investment (PRI), the GTMI is a multi-stakeholder initiative with a mission to advance safe and responsible tailings management.

Headquartered in South Africa, the GTMI will focus on ensuring zero harm to people and the environment by overseeing independent assessments and certifications of tailings facilities. Its efforts will span the entire lifecycle of these facilities, providing a robust framework for safety and accountability.

A primary responsibility of the GTMI is to manage the implementation and adherence to the Global Industry Standard on Tailings Management (GISTM). This Standard requires companies to prioritise safety and improve transparency through public disclosures. The GTMI will coordinate an assurance framework through which qualified third-party assessors will audit and certify tailings facilities against the GISTM.

The GTMI’s creation was guided by an international advisory panel comprising diverse stakeholders.

Mission and Objectives of the GTMI

The GTMI’s core mandate includes managing the assurance framework, raising awareness, encouraging GISTM adoption, and promoting best practices in tailings management. It will also provide transparent updates on auditing outcomes.

“The GTMI is an essential component of the global framework to achieve zero harm from tailings dams,” said Adam Matthews, chief responsible investment officer at The Church of England Pensions Board, representing PRI. “The credibility of the GISTM depends on stakeholder confidence in facility compliance. Updates to the Standard will incorporate lessons learned from implementation, and public disclosures will ensure ongoing transparency.”

“UNEP is committed to minimizing the environmental and health impacts of the mining and metals value chain,” said Elisa Tonda, chief of resources and markets at UNEP. “The multi-stakeholder governance of the GTMI is vital for fostering transparency, accountability, and trust, contributing to a more responsible mining industry.”

Call to Action for Stakeholders

The GTMI invites all mining companies to sign on as participants, committing to implement the GISTM and undergo independent audits and certifications. Other stakeholders are encouraged to support these efforts and collaborate on advancing tailings safety.

Becoming a signatory demonstrates a strong commitment to responsible management, potentially improving relationships with regulators and communities, enhancing investor confidence, and offering better access to insurance options.

The FLS HPGR Pro takes grinding to the next level of efficiency. (Image source: FLS)

Driven by its MissionZero strategy, FLS invests in sustainable technology development to underpin increased mining output – especially of those minerals in growing demand by economies moving toward a lower carbon future

One such mineral is copper, which is essential for a vast array of decarbonising technologies, according to Alistair McKay, FLS vice president for capital sales in Europe, Arabia and Africa. The European Union has recognised the importance of these commodities in its Critical Raw Materials Act, which defines both strategic and critical minerals.

“In the category of critical minerals, there are 16 commodities which are vital,” said McKay. “A shortage of these minerals could derail economic activity, so we have put our weight behind industry efforts to raise levels of sustainable production.”

FLS therefore commits over 50% of its substantial research and development budget to technology that will have a noticeable impact on reduction of carbon emissions, as well as on water and energy consumption whilst improving plant performance.

Efficiency-focused solutions

Among its innovations is the rail-running belt conveyor, which has proved itself to be a gamechanger in energy efficiency and operational flexibility. It can reduce the carbon footprint of operations by between 20% and 90% – with commensurate savings in energy costs.

“The key to this technology is the way it overcomes the friction losses that are inherent to conventional belt conveyor systems,” McKay explained. “While a traditional belt conveyor has friction losses of between 0,070 and 0,110 kilowatt-hours per tonne per kilometre (kWh/t/km), our rail-running conveyor can reduce these to between 0,015 and 0,030 kWh/t/km.”

In the primary crushing circuit, FLS’s Eccentric Roll Crusher (ERC) is another efficiency-focused technology – reducing energy consumption by up to 40% while able to increase throughput by as much as 20% for the same product size. Key to its success is the design integration of grizzly and crusher, and its high reduction ratio of 1:6.

Improving site performance

FLS has also taken its High Pressure Grinding Roll (HPGR) solutions another step forward, with the release of the HPGR Pro. McKay pointed out that HPGRs have gained considerable popularity for their energy savings, which the HPGR Pro has enhanced.

“The key attribute of the HPGR Pro is the innovative rotating side plates, which can also be retrofitted onto equipment already in the field,” he remarked. “This advance has allowed the improved feeding of material onto the rolls, to ensure a uniform pressure profile across the full width of the roll. This not only improves throughput but reduces the concentrated wear in the mid-sections of the grinding roll, thereby improving throughput and further cuts energy consumption.”

Coarse particle flotation is also making a contribution to efficiency in production, through FLS’s coarseAIR technology. Floating coarser particles means that minerals can be liberated with less grinding, saving on energy and grinding media, he noted. Importantly, mill capacity can be enhanced at the same time – by more than 30%.

“We are continuously progressing our technologies, leveraging the power of innovations of the REFLUX Classifiers – which are incorporated in the coarseAIR as well as our REFLUX Flotation Cell (RFC),” said McKay. “The RFC reduces residence time of material from an average of over 30 minutes to between three and four minutes – while achieving an increase in recoveries of 1 to 3% and using around 27% less energy.”

He concluded that FLS’s MissionZero drive continues to support mines’ carbon emissions and sustainability goals while allowing more ambitious production targets.

This article was authored by FLS.

Linda Omara-Koledade, founder & CEO of Mustard Seed. (Image source: Mustard Seed)

Linda Omara-Koledade, mining and metals dealmaker at Industrial Development Corporation and founder & CEO of Mustard Seed, an organisation dedicated to engaging, equipping and inspiring professionals and entrepreneurs, discusses the challenges and opportunities facing the next generation of miners ahead of her participation at Investing in African Mining Indaba

African Review (AR): From your perspective what are some of the greatest challenges currently facing young professionals entering the mining sector?

Linda Omara-Koledade (LOK): On the surface it is easy for one to assume that the mining industry is an attractive sector for young professionals due to generous salaries, variety of career path options and lucrative business opportunities.

However, penetrating the industry is not as easy as one would assume; for starters there is a perception that the mining sector is elitist or exclusive, with very high barriers to entry (technical expertise required and high capital and regulatory requirements for entrepreneurs). These factors make it challenging for the average young person to consider venturing into mining.

Secondly, there are negative associations the mining sector has when it comes to environmental impact, safe working environment and community impact. I believe this makes it challenging to attract young talent (specifically millennials and Gen Zs) who unlike their predecessors, seek purpose over money and prefer work that aligns very closely with their personal values.

Lastly, there are practical aspects that may increase the reluctance to join the sector; mining being male dominated naturally limits female interest and participation. Another practical aspect is the location of mines; mines by their nature are usually based in isolated locations (far from urban cities), and the work typically requires long shift working hours. These may contribute as discouraging factors, as one considers social life in the city versus living in a far off mining town and the compounding impact that this has on ones’ mental health and close relationships.

AR: Do you see the evolving technology environment as a help or hindrance to them?

LOK: I see it as twofold; on the one hand technology and innovation has improved operational efficiencies and productivity across the mining value chain right across exploration, mining and beneficiation. The upside is the reduced downtime, improved occupational health and safety, reduction in machine human interactions, environmental reduced lead times and overall improved competitiveness and environmental conservation.

On the other hand, technology is perceived to be somewhat of a hindrance; the cost of acquiring, learning and adopting new technology can be quite significant and onerous. And hand in hand with that concern is the view that technology is ultimately replacing human jobs.

AR: Do you believe young professionals are being sufficiently empowered/supported by industry players to enter and excel within mining?

LOK: For the most part I would say yes, specifically when one looks at the large, more established mining houses that offer well-structured graduate programs, professional in training programs that map out a clear career path and mentorship opportunities that offer leadership support.

However, when one looks at mining entrepreneurs, breaking past the gatekeepers into what is perceived to be an exclusive industry remains challenging. A lot more can be done to better support mining entrepreneurs; more funding opportunities, more platforms to educate up and coming miners about various regulatory requirements, technological advancements etc.

AR: What do you think the industry could do better to support the next generation of miners?

LOK: My thoughts regarding ways to better support the next generation of miners:

• The large mining corporates can take the lead in corporate venturing; invest in mining focused venture funds, take minority equity stakes in mining start-ups of interest. This avenue can unlock new sources of growth and potential high returns for corporates whose growth has plateaued.

• Invest in mining focused entrepreneurship platforms such as incubators and accelerators. These platforms can offer support that has the potential to break negative stereotypes and elitist bias.

• Government to consider a structured approach to empower and allow young people better understand the plethora of opportunities that exist in the mining sector. (ie. numerous opportunities that exist in the mining sector do not involve actual going underground to extract ore).

• Allow miners to gain access to various technologies to increase awareness and appreciation of the benefits of innovation.

AR: What are your hopes for Mining Indaba this year in relation to this topic?

LOK: I look forward to engaging with the selected panel of mining experts to unpack and deeper understand what it takes to attract more young people into the mining sector and also gain insights on the extent to which technologies such as AI are being adopted and what impact they are having on day-to-day mining operations.