How a Mining Company Managed its Environmental, Social, & Governance Risks and Paved the Way Towards Sustainable Growth?

A mining company that extracted minerals for years, became the largest mining industry transporting minerals globally. The company focused extensively on revenue and neglected the environmental degradation that mining was causing. As a result, the company faced fines from regulatory bodies. This negatively impacted the company’s reputation and position in the market. The company approached Research Nester analysts to draw out a plan of action through detailed ESG analysis and reporting.

An overview:

The mining company was a global transporter of minerals for a decade. The ESG rules were overlooked by the company over time and this cost them their reputation at present.

The company was primarily into mining coal, lithium, and oil shales.

The company’s productions had adverse effects on the environment.

An inquiry into its facility led to the discovery of its non-compliance with ESG goals and practices.

The company was fined by the regulatory bodies for the same, which dented its reputation and also resulted in a loss.

The company authorities approached Research Nester to look into the matter and provide needful changes that could help with compliance with the ESG goals of the mining company.

The Story

The mining company came into existence in 1999. The company was committed to mining iron ores, coal, lithium, and oil shales. The company went on to neglect the environmental harm caused by the mining and extraction of the minerals. This resulted in soil degradation, water pollution, and land loss in its surrounding areas. The extraction of minerals in the forests leads to deforestation and displacement of the indigenous communities residing in the forests. This started affecting the wildlife and people residing in the forests. This was further detected by regulatory authorities. Since the company had entirely neglected the environmental, social, and governance protocols, the company was charged under the Environment Protection Act, of 1986. As the news of its penalty spread, the company’s reputation suffered a significant blow. Concerned buyers including retailers began shifting their preferences towards more sustainable and ethically extracted minerals. They started turning to competitors who prioritized long-term sustainable ESG practices. The company had been flouting all environmental, social, and governance norms which raised red flags for investors, hindering the company’s expansion and restricting the funding for innovations and sustainable initiatives. Finding themselves cornered and totally at a loss, the company leadership sought the services of Research Nester analysts to conduct extensive ESG analysis and report the best solutions for the sustainable growth of the company.

Our Solution:

The major hindrance to the company’s growth was its resistance to following ESG goals and rules for coal mining, and lithium mining that were imposed by the government. Research Nester consultants conducted a detailed ESG analysis of the company and the present scenario and laid down the following strategies:

Traditional mining techniques such as open pit and underground mining can cause severe harm to the environment. Instead new and alternative techniques can be used such as in-situ leaching to reduce environmental impact.
Mining produces waste of rocks, water, and tailings. The waste rocks can be used in the construction for backfilling voids. While water can be used for agriculture and on-site dust suppression.
Electric mining equipment can be used instead of diesel engines as they may reduce the carbon dioxide produced by mining operations.
Increased use of biosolids to replenish depleted topsoil.

Results

The growth was derailed when the company faced heavy penalties for ignoring to follow ESG protocols. With the incorporation of strategies suggested by RNPL analysts, the company was able to transform its market standing and gradually build its reputation. The company reflected a market share growth of 10% as compared to 2019 and gradually grew to 20% and 29% in 2021 and 2022 respectively. The company was finally able to bring its production and growth back on track and move towards sustainable and long-term expansion.

How a Mining Company Managed its Environmental, Social, & Governance Risks and Paved the Way Towards Sustainable Growth?

An overview:

The Story

Our Solution:

Results

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