A study published by researchers at the University of Queensland’s Sustainable Minerals Institute shows that some significant metal ores have the potential to face Environmental, Social and Governance (ESG) challenges, which may impact the global supply of metals. The scientists studied the ESG context of more than 600 individual copper, iron and bauxite ore bodies before coming to a conclusion.
Iron, copper and bauxite represent 95% of all industrial metals produced annually and demand for it is expected to double by 2050. They analysed each ore body against eight risks: waste, water, biodiversity, land uses, indigenous peoples, social vulnerability, political fragility, and approval and permitting.
“The majority of the 296 copper orebodies, 324 iron orebodies and 50 bauxite orebodies we examined are in complex ESG contexts which could either prevent, delay or disrupt mining operations,” Eléonore Lèbre, one of the researchers involved in the project, said in a media statement.
The study categorized those ore bodies with more than one risk as complex. Each of the three metals varies in their risks as they are mined in different parts of the world with different characteristics.
Bauxite is the worst-performing of the three commodities in context of ESG as almost all bauxite ore bodies are located in high-risk areas. Lèbre said that major innovation in project design and development is required to handle ESG risks.
“Even now numerous mining projects stall or are abandoned due to materialised ESG risk,” she said.
The research team has suggested government, investors and mining companies to change their methodology in order to de-risk their projects.
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