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Over the past two decades, there’s been a significant increase in artisanal and small-scale (ASM) mining in many developing countries across the globe. The World Gold Council and its member companies have expressed continuous support in responsible mining and gold trading from legitimate sources, including ASM. When paired with sound governance, ASM can potentially deliver a wide range of social and economic benefits to the communities of developing nations.

In most cases, the nature of the orebody suggests that it may not be ideal for LSM or ASM activity. Despite that, it is important for host governments to consider the most optimal method of developing an orebody to support sustained social and economic development for the nations and the local communities

How artisanal and small-scale mining differ from large-scale mining

The social context and impact of ASM are vastly different compared to large-scale mining operations (LSM). LSM operates within a network of permits, inspections, and regulatory controls. They’re also subject to strict health, safety, social, environmental, and governance standards. Large-scale mining involves paying taxes and royalties to governments in exchange for the development of publicly-owned mineral resources. Some of the leading LSM operators also implement international standards such as cyanide management, conflict-sensitive business practices, and disclosure of payments to the government.

Furthermore, LSM typically requires significant capital investment in order to tackle some of the most geologically or metallurgically complex gold resources. LSM firms are also often required to deploy not only the resources, but also the financial and technical expertise and resources to develop a deposit for the benefit of the host country and its communities.

Diversity of ASM contexts

ASM is practiced in many forms and contexts and provides livelihoods for a significant population who may not have access to viable alternatives.  However, ASM is also often poorly policed by local authorities, either due to an absence of a regulatory framework, a lack of enforcement capacity or corruption. ASM is, as a result, often associated with social conflict, human and labour rights violations and environmental degradation. It commonly lacks adequate health and safety safeguards and there are often a high number of fatalities and injuries in the sector. Poor social and environmental practices often negatively impact local communities. 

ASM mining often occurs in locations where there is no LSM presence. Where legitimate ASM activities and LSM occur in the same vicinity, there can be mutual benefit in working collaboratively towards more positive and sustainable outcomes and in seeking to avoid conflict. 

In-migration and criminal activity associated with ASM

Lack of livelihood opportunities in a region can lead to high levels of migration in to active ASM areas, and more so if a large mine, offering the potential for formal employment, is being built or operated nearby. Such an influx increases population density, pressure on water resources and food production and may cause social tension or conflict. Although these impacts are not directly attributable to the LSM operation, companies should work with local authorities and communities to minimise these pressures.     

In some countries, illegal ASM is associated with wider criminal activities. Where there are concerns about criminal activities or about the presence of illegal armed groups associated with local ASM, the large-scale mining industry has a responsibility to ensure that it does not support or facilitate such activities. 

It is difficult for large-scale mining companies to consider co-existence models on their concessions, if the concession owner may then be held liable for environmental damage caused by ASM operators. LSM companies may also be deterred from a more proactive stance by concerns about potential liabilities and significant reputational damage arising from any association with unacceptable social and environmental practices. We urge national governments and other actors to create frameworks to address these concerns and to facilitate the engagement of large-scale mining as a partner in the improvement of the ASM sector.

Potential roles for large-scale gold mining companies

The leading role of governments in formalising ASM and in improving social and environmental practices is of fundamental importance. We recognise, however, that where a host government provides such leadership other actors in civil society and business may have an important supporting role to play. Any such role for LSM companies will vary according to the local context. However, as part of their role in supporting dialogue and engagement, large scale gold mining companies may consider a number of options including:

• advocating for formalisation and legitimising ASM activities and supporting governments and other actors in establishing legal and regulatory frameworks for the ASM sector
• working with governments and other actors to combat breaches of human rights associated with abusive ASM activities; to promote awareness of, and access to, technologies that reduce environmental and worker safety risks and improve yields; and promoting awareness of the dangers of the worst forms of child labour, modern slavery and gender-based violence
• recognising artisanal and small-scale miners as stakeholders, including when undertaking site-level impact assessments; community engagement and considering social investment priorities
• fairly compensating established artisanal and small-scale miners if they are legitimately physically or economically displaced by the development of a large-scale mine and, as appropriate, supporting alternative livelihood initiatives
• utilising the Voluntary Principles on Security and Human Rights in implementing security strategies
• implementing the UN Guiding Principles on Business and Human Rights in their interactions with ASM and local communities, including through the provision of appropriate grievance mechanisms

For the longest time, the mining industry has relied heavily on fossil fuels to meet its growing energy demands. But as the commodity prices tighten and the fuel prices increase, the mining sector is faced with a new challenge of searching for alternative energy sources.

This is where renewable energy comes in. Renewable energy has changed how we operate modern mines and is a very affordable option for powering up mining activities. Already plenty of mining companies have begun incorporating renewable energy sources into their operations with the hopes of offsetting their carbon footprint and relying on a sustainable energy source for the foreseeable future.

Not only are renewable energy sources mitigating the harmful effects of pollution, but they also drive innovation to the mining industry as a whole. Here is how the mining industry utilises renewable energy in 4 different ways:

1. Solar energy helps lower environmental risks
Mining companies are switching to solar energy in hopes of reducing environmental risks such as water pollution, nuclear waste, nitrogen oxides, and the like. Solar energy harnesses the sun’s radiation to create concentrated solar power (CSP) and photovoltaic power (PV) to power up mining operations. Considering that these power sources are among the most sustainable out there, mining companies don’t have to worry about sustainability and availability.

2. Wind energy powers up grids
One of the most common ways to generate electricity is to use wind energy to convert kinetic energy into a mechanical power source. According to the World Wind Energy Association, the total capacity of wind turbines built in 2018 reached 597 gigawatts (GW), hinting that wind energy is becoming a major pillar of power supply throughout the world.

Wind is also driven by direct sunlight which is used to lessen greenhouse gas emissions in mines. The energy produced is then harnessed and sends power to the grids to execute several different mining activities.

3. Cutting edge technology seen in water conservation
Water is a critical resource for mining uranium, natural gas, and oil, but the bad news is that extracting fuel from mine sites generates toxic wastewater. Thankfully, more water treatment technologies have been creeping up and reprocessing nuclear plants with these technologies make it safer for the environment. Beyond the tie-up between water and energy, how we’ll face the growing demands of the mining sector will rely on the methods we use in conserving our resources and limiting the production of toxic wastes.

4. Powering mine sites and operations with renewable energy
Renewable energy sources have enabled mining companies to think of ingenious ways of generating electricity. The use of renewable energy has a wide variety of applications such as powering:

• Hybrid power plants
• Electric vehicles (EVs)
• Artificial intelligence (AI)
• Microgrids
• 3D printing
• Hydraulic mining
• Bladeless wind turbines

Renewable energies help support millions of communities around the world and enabling mining companies to operate in harmony with the natural environment. As more and more mining corporations use greener energy resources, the mining sector as a whole can create smarter policies, invest in eco-friendly solutions, and support further research to fuel the cause of sustainable energy.

Examples of renewable energy projects at mines

Back on May 1 of 2019, Anglo-Australian multinational Rio Tinto announced its intention to reduce its carbon emissions coming from its Kennecott mine by purchasing renewable energy certificates and shutting down its coal plant permanently. The mine’s electricity needs will now be powered by 1.5 million megawatt-hours (MWh) of renewable energy certificates supplied by energy company Rocky Mountain Power.

“Rio Tinto is committed to playing a part in the transition to a low-carbon economy,” said Rio Tinto CEO Jean-Sebastien Jacques in a statement. “This move will significantly reduce emissions associated with our operations in Kennecott and allow us to offer customers copper, gold and silver with a reduced carbon footprint.

“The materials we produce, from infinitely recyclable aluminium and copper used in electrification to borates used in energy-efficient building materials and our higher-grade iron ore product, all play a part in this transition to a low-carbon economy. Rio Tinto will continue to work with partners and customers to develop new sustainable solutions”.

Gold Fields, a South African mining company, announced their plans on operating its Agnew gold mine located in Western Australia (WA) using renewable energy sources only. The project has received support from the Australian Government with the Australian Renewable Energy Agency (ARENA) contributing a recoupable AUD13.5m to construct the microgrid. Construction has already begun for the project to which the microgrid will be owned and operated by EDL which is a global producer of renewable energy.

“At Agnew we will be using instrumentation to detect approaching cloud cover for solar and, potentially in the future, detect changes in wind velocity,” Gold Fields Australia Executive Vice-President Stuart Mathews said. “Based on this data, the gas power station will have forward-looking systems in place to schedule gas generators in response to forecast changes in the renewable energy supply.”

As mining companies learn more about the affordable costs of renewable energy, wind and solar are set to become the new trend in powering mining operations for the next decade. For any additional information do not hesitate to get in touch with us at Oreflow who are mining equipment suppliers for more information.

You’ve seen it on television and in the newspapers — millions of Australians losing their jobs in the retail and service industries. The effects of the COVID-19 pandemic are rampant and while it generated attention-grabbing headlines around the world, it crept unnoticed in the mining sector and forced explorers to shut down their operations. Sure, the number of employees affected is significantly less compared to those of retail chains, but the disruption came at an untimely moment where Australia is relying heavily on its resources sector to sustain the country’s growing needs of mined materials.

Resource company managers are facing a tough challenge of not only facing the consequences of the coronavirus but also ensuring the health and safety of their workers. The dangers of flying in and out of states, the proximity between miners while working, and the need to protect indigenous Australians have made it a difficult endeavour to sustain operations.

Daniel Thomas, managing director of Hammer Metals (ASX: HMX), explained the impact of the pandemic during an announcement he made on suspending drilling operations.

He said, “The impact of COVID-19 presents a unique challenge for the mining industry and in particular for junior explorers. The location and spread of our activities and workforce add complexity with attempting to maintain social distancing within a mobile team.” Furthermore, travel restrictions have made things even more difficult in maintaining operations.

Internal lockdowns on Western Australia

Around 120,000 energy and mining workers are subjected to lockdown restrictions after several states and the Northern Territory have announced border controls. Mark McGowan, premier of Western Australia, is only allowing essential movement between the state’s regions. This means essential travel is limited between the regions of Kimberley, Gascoyne, Perth, Wheatbelt, Pilbara, Mid-West, South West, Peel, Great Southern, and Goldfields-Esperance.

Back in March 25, Northern Minerals Limited (ASX: NTU) announced that they’ve suspended operations at their Brown Range Project. The announcement came after the company felt that the travel restrictions have proven difficult to move workers efficiently to and from Brown’s Range in East Kimberly, WA.

Another factor that weighed heavily in the suspension of operations is the WA government’s directives in protecting the indigenous Australians, many of which are situated in the region of Kimberly. The company explained, “We have a close relationship with the residents of Broome, Halls Creek and Ringer Soak and our continued operation and movements of goods and personnel through these communities poses too high a risk.”

Concerns about FIFO looming large

Early reports back in March have revealed that several mineworkers in central Queensland have boycotted their shifts after tens of thousands of FIFO workers (fly-in, fly-out) were moved through mine sites and work camps. While the borders of Queensland have remained closed, the state has placed an exemption for FIFO workers not just in the mining sector, but other industries as well. The concerns intensified after a miner reported that thousands of workers were coming in from Brisbane, the Gold Coast, and Townsville and returning to those cities while testing positive for COVID-19. 

Companies affected by the pandemic

Some of the companies that have called in sick and ceased operations are:

• Newmont Corporation – suspended exploration at their Tanami gold project due to the Northern Territory closing its borders.
• Swick Mining Services (ASX: SWK) – ceased drilling operations at Tanami and paused two rigs in a Spain project and one in Victoria where their Fosterville gold project is located.
• Flinders Mines (ASX: FMS) – announced that the travel restrictions will “impact a significant range of activities and interaction with potential international off-takers, financiers and other relevant partners” for their iron ore project in Pilbara.
• Consolidated Tin Mines (ASX: CSD) – stood down the majority of their workforce and put their two main zinc projects on care and maintenance.
• Talisman Mining (ASX: TLM) – suspended field operations at their Lachlan and Cooper gold project and postponed their drilling project in Lucknow.
• Heron Resources (ASX: HRR) – suspended operations at their Woodlawn zinc mine and declared force majeure on all of their supply contracts.
• Trigg Mining (ASX: TMG) – suspended field operations at their sulphate of potash project in Lake Throssell due to travel restriction as well as a request from the people of Ngaanyatjarra.

Raising money at discounted rates

Warwick Grigor, financer and expert mining analyst at Far East Capital said that the majority of the mining companies are still willing to enter the market with for new equity despite being forced to deal with discounted rates. He said, “I have seen more than one email from financial groups telling their clients to get ready for what could be a great season for cheap placements,”

Grigor outlined one example which is Bellevue Gold (ASX: BGL) who managed to raise $26.5 million with a $0.30 share. Back in January, the stock ranged from $0.50-0.60. Meanwhile, Chesser Resources (ASX: CHZ) entered a trading halt and sought $1.7 million with a $0.04 share compared to the $0.11 share back in February. 

As you can see picture below, a Maxflow screen is headed out to Goldfields. As pictured below, this is one of our larger double deck screens, with two screen surfaces of 2.4mm x 7.3, each. They also weigh a respectable 12 tonne. 

Oreflow Australia Pty Ltd is proud to continue to support the Western Australian manufacturing community with its ongoing support to the resource industry. Get in touch with us today to learn how we can help your business out!