Ethical Practices in Mining Project Management

'the data reveals that artisanal mining for cobalt is a very hazardous vocation undertaken for basic survival, involving long hours, subsistence wages, and severe health impacts. The data further reveals that within the surveyed respondents, there is a high rate of forced labour and an almost 10% rate of child labour' Rights Lab, University of Nottingham recent report, Blood Batteries, The #humanrights and #environmental impacts of cobalt mining in the Democratic Republic of the Congo demonstrates the continued issues with cobalt mining. '- 36.8% of respondents met the project’s conservative criteria for forced labour - 9.2% of respondents met the project’s conservative criteria for child labour - 27.7% of respondents began working in artisanal mining as a minor - Not a single respondent was a member of a trade union, as none exist - Not a single respondent had a written agreement for their work . For those #supplychain and #procurement professionals who are able to trace cobalt to source there are potential steps to be taken: 1. Ethical and Responsible Sourcing Ensure traceability from artisanal and industrial mining sites in the DRC to final product, especially for cobalt used in EVs and electronics. Demand transparency from suppliers, require disclosure of sourcing practices, human rights due diligence, and environmental impact assessments. Prioritise suppliers who can demonstrate compliance with international labour standards and reject those linked to exploitative practices. 2. Environmental Stewardship Incorporate geospatial and water toxicity data into supplier evaluations to avoid contributing to ecological degradation. Promote circular economy principles such as battery recycling, reuse, and alternative materials to reduce dependence on high-impact cobalt mining. 3. Compliance and Governance Align with UK Modern Slavery Act, ensure supply chain mapping and annual transparency statements reflect risks in high-impact regions like the DRC. Embed environmental, social, and governance standards into tendering and contract management processes. 4. Practical Procurement Measures Use multi-quote and business case procedures to ensure value for money and ethical sourcing, as outlined in UK finance and procurement policies. Establish KPIs related to ethical sourcing, labour conditions, and environmental impact. Anticipate changes from the Procurement Act 2025 and EU Critical Raw Materials Act that may affect sourcing obligations. For the majority of buying organisations or as consumers this is a very difficult area, but as the report recommends Government's could do a lot more to reduce exploitation: 'Strengthen supply chain transparency and due diligence requirements of consumer-facing tech and EV companies with more robust legislation; laws should include strict and severe penalties as opposed to simple reporting requirements, including a potential import ban;'

🌍 Transforming Gold Sourcing for a More Responsible Electronics Industry Proud to share more about our visit to Geita, Tanzania, where we’re evaluating the Responsible Gold Credit System—an initiative designed to address the challenges of ethical gold sourcing in the electronics industry. At Fairphone, we’ve always prioritized ethical sourcing for materials like gold, tungsten, tantalum, and tin—minerals that often come from regions facing social and environmental challenges. This new system supports artisanal and small-scale miners (ASM) by offering gold credits for every gram of gold they produce responsibly. These credits finance improvement projects at the mines, even when physical traceability isn’t feasible across our extensive supply chain. Why this matters: 🔑 Artisanal mining supports over 45 million livelihoods worldwide and provides 20% of the world’s gold. Properly managed, it can be a force for good, driving economic growth and strengthening communities. 📋 Our mission is to ensure the Responsible Gold Credit System is robust and scalable, creating a replicable model for ethical gold sourcing in the electronics sector. 🤝 Collaboration with our partners—Solidaridad Network, Solidaridad East and Central Africa, The Impact Facility and Netherlands Enterprise Agency (RVO) | Partner in Sustainable Development—is central to this work, as we visit pilot mines like Nsangano and Mgusu to understand how best to support ASM practices. Being on the ground has given us a deeper appreciation of the daily realities these miners face, as well as insights into how responsible mining can empower communities and improve lives. Curious to learn more about this transformative initiative? Read the full blog here: https://lnkd.in/eUhSw-En Winifrida Kanwa Lisa Minère Kari-Anne Sandness Mary Mkonyi Stephen Kithuka Lewis Temple Calvin Laing Godwin Zimba Aron Vijzelman Gebre Marloes Philippo #ResponsibleMining #EthicalSourcing #Fairphone #Sustainability #CircularEconomy

Compliance does not equal consent. And when we confuse the two, we don’t just trigger protests — we misprice risk. That was the challenge I brought into today’s IMARC Responsible Project Development – Challenges and Rewards session. For too long, traditional NPV models have excluded the financial consequences of delayed approvals, licence revocation, litigation, Indigenous opposition or environmental pushback. This creates artificially inflated project value while burying legitimacy exposure in the footnotes. 🔍 When outrage risk is externalised, legitimacy value at risk (L-VaR) goes unrecognised — until it crystallises as a stranded or impaired asset. This is not a “social issue”. It is a valuation failure. A capital allocation inefficiency. A board-level blind spot. 📍 At IMARC, five very different voices pointed to the same conclusion — legitimacy now sits on the balance sheet: 👤 Stephen Mottram – CFO, Australian Strategic Materials (ASM) Signalled that capital markets increasingly favour projects with clearly priced risk and legitimacy assurance. 👤 Niv Dagan – Managing Director, Peak Asset Management Observed that investor sentiment can collapse overnight once ESG uncertainty becomes conflict or delay. 👤 Jyl Lawton – CEO, Aboriginal Enterprises in Mining, Energy & Exploration (AEMEE) Made clear that Indigenous partnership must be built as shared design and enduring economic presence — not as consultation in exchange for temporary approval. 👤 Dr Stephen Grocott – Group Head Processing & Legacy Management, Newmont Pointed to closure, tailings and legacy liabilities as defining long-term tests of ESG credibility and cost resilience. 👤 Dr Ana Estefanía Carballo – Head of International Programmes, Transparency International Highlighted that as most future minerals sit on Indigenous or sensitive lands, transparency and accountability expectations are intensifying — not slowing. ⚠️ The old sequencing is broken Engineering → Permitting → Engagement → Conflict Management → Rehabilitation ✅ The model that will survive the transition looks like this: Community legitimacy + environmental integrity → Engineering → Valuation (inc. L-VaR) → Permitting → Long-term partnership. ⚡ Faster and cheaper is possible — but only when risk is priced honestly Fast-tracking without legitimacy is a false economy. Fast-tracking with legitimacy creates: ✅ shorter delays ✅ lower litigation probability ✅ reduced reputational drag ✅ stronger investor confidence ✅ more resilient cashflows 📣 The call to action 💬 What happens when we treat legitimacy as a core input to valuation rather than a back-end risk? 📊 How does NPV change when L-VaR is quantified instead of ignored? 🏗️ What acceleration becomes possible when risk is resolved through design rather than challenged in court? The energy transition will happen. A just, investable transition is optional. Only one will scale.

When I was a mining executive, institutional investors visited the project. The first thing they asked for surprised us. They didn't want to see the drill cores. They wanted to meet the community opposition. The company wasn't ready for that conversation. But the investors were right. They needed to understand how the project was addressing resistance, not whether resistance existed. Every project has it. What matters is whether you have a credible process for working through it. That visit changed how I think about social performance. It is not a reporting exercise. It is a financing criterion. Over 60% of mining investors now factor ESG into their risk frameworks. Sustainability-linked financing exceeded $1 trillion globally in 2025. Lenders are reviewing grievance data and community opposition patterns before they review your feasibility study. Yet most companies still treat community engagement as compliance. Stakeholder registers, public consultations, and filed reports. When an investor asks, "What is your plan if the community blocks access?", the answer is usually silence. Proactive mediation changes the equation. When a company mediates land access, benefit-sharing, or environmental monitoring before conflict escalates, it produces something investors can actually evaluate: verified outcomes with documented community consent. Not a promise of engagement. Evidence of it. The framework is straightforward: ➡️ Identify social risks early, before they become disputes. ➡️ Open structured dialogue with affected communities. ➡️ Reach agreements with independent verification. ➡️ Report measurable outcomes to investors and lenders. Risk. Dialogue. Verified Outcomes. Investor Confidence. The companies doing this are seeing faster permitting, reduced operational risk, and stronger positions in ESG-linked financing. The ones that are not are watching capital flow to competitors who can demonstrate that their social license is real, not theoretical. Mining Indaba 2026 made one thing clear: the conversation has shifted from whether social performance matters to how you prove it to the people writing the cheques. Mediation is not a soft skill. It is a financing tool. I built a checklist for this: "Mediation to Investor Readiness," 4 phases from risk mapping to bankable social outcomes. Link in the first comment. What is the biggest ESG risk your investors are asking about right now? I read every comment. #ESG #MiningInvestment #SocialLicenseToOperate #SocialPerformance #Mediation #StakeholderEngagement #MiningFinance #CommunityMediation

"Mining companies must adopt clear and comprehensive FPIC policies, recognizing Indigenous peoples’ rights to make decisions about their lands and livelihoods with no ambiguity, caveats, or provisos. As companies look to incorporate ICMM’s guidance into their own standards, and as governments look to strengthen regulation in this booming sector, they must publicly acknowledge and accept a community’s right to say “no” to mining projects. Mining sector standards that fully embrace Indigenous peoples’ right to FPIC will help to build trust with Indigenous communities, reduce the risk of social conflict, and create a positive precedent to ensure a more just global energy system." https://lnkd.in/dq5WPwvP

📣 Earlier in September, the UN released 7 Guiding Principles and 5 Actionable Recommendations to build a future where minerals extracted, processed and manufactured into renewable energy technologies do not create or exacerbate social, environmental and political harm. "The increase in renewable energy has come with significant risks, including environmental degradation, human rights abuses, crime, and conflicts." When thinking of unsustainable critical minerals, Quartz in China, Rare Earth Elements in Myanmar, Cobalt in the DRC, and Nickel in Indonesia spring to mind. Unfortunately the list is much longer. The 7 Guiding Principles: 1️⃣ Human rights must be at the core of all mineral value chains. 2️⃣ The integrity of the planet, its environment and biodiversity must be safeguarded. 3️⃣ Justice and equity must underpin mineral value chains. 4️⃣ Development must be fostered through benefit sharing, value addition and economic diversification. 5️⃣ Investments, finance and trade must be responsible and fair. 6️⃣ Transparency, accountability and anti-corruption measures are necessary to ensure good governance. 7️⃣ Multilateral and international cooperation must underpin global action and promote peace and security. The 5 Actionable Recommendations are centered around: 1️⃣ Accelerating greater benefit-sharing, value addition and economic diversification. 2️⃣ Developing a global traceability, transparency and accountability framework. 3️⃣ Launching a Global Mining Legacy Fund to address derelict, ownerless or abandoned mines, mine closures and rehabilitation. 4️⃣ An initiative to empower artisanal and small-scale miners towards responsibility. 5️⃣ Reaching material efficiency and circularity targets to balance consumptions and production environmental impacts. Flick through the slides to take a deeper dive into what “Principle 1: Human rights must be at the core of all mineral value chains” means.

I have never been a fan of the word #exploitation, when it comes to harnessing natural resources; but then that's truly what #mining is! The term #extraction would have been more suitable if #responsiblemining is being carried out.... Extraction vs. Exploitation in Mining: A Matter of Degree and Sustainability While both "extraction" and "exploitation" are used in the context of mining, they carry distinct nuances, particularly when considering their impact on the environment and overall sustainability. Extraction: Literal Meaning: To remove something by force or effort. Mining Context: The act of carefully removing valuable minerals or resources from the earth. It emphasizes a controlled and targeted process. Environmental Impact: Extraction can have negative environmental consequences, such as habitat disruption, dust generation, and water pollution. However, responsible extraction practices aim to minimize these impacts through proper planning, mitigation strategies, and land reclamation efforts. Sustainability: Sustainable extraction focuses on responsible resource management, considering both economic needs and long-term environmental health. This includes practices like minimizing waste, using renewable energy sources, and implementing post-mining land reclamation. Exploitation: Literal Meaning: To take unfair advantage of something or someone for one's own benefit. Mining Context: Refers to the excessive or irresponsible removal of resources, often prioritizing short-term gains over long-term consequences. Environmental Impact: Exploitation typically leads to severe environmental damage due to a lack of concern for sustainability. This can include deforestation, soil erosion, water contamination, and biodiversity loss. Sustainability: Exploitation has limited to no consideration for long-term sustainability. It prioritizes maximizing resource extraction with minimal regard for environmental consequences, often leading to depleted resources and degraded ecosystems. Social Impact: Mining can have a significant social impact on local communities. Responsible extraction seeks to create positive social outcomes by providing employment opportunities, supporting infrastructure development, and investing in community projects. Exploitation, on the other hand, can have negative social impacts, such as displacement of communities, cultural disruption, and health problems. Focus on Long-Term Value: Sustainable extraction aims to extract resources in a way that allows future generations to benefit as well. Ultimately, the goal should be to extract resources in a way that minimizes environmental damage, considers ethical and social impacts, and ensures long-term benefits for communities and the planet.

Best Practices in Mine Closure and Reclamation Mine closure represents the final stage of the mining lifecycle, occurring when a mineral resource is exhausted or when operations are no longer profitable. Mining activities, being temporary in nature, require effective planning for closure and reclamation to mitigate environmental impacts and ensure sustainable post-mining land use. Regulatory Requirements & MCP In most jurisdictions, companies are required to submit a Mine Closure Plan (MCP) before receiving a mining permit. This plan details the procedures for site decommissioning, waste management, and land restoration. It is also essential to include financial assurance to guarantee the availability of funds for closure, ensuring that reclamation is completed even if financial challenges arise. Reclamation: Reclamation is an ongoing process starting from the exploration stage and continuing through post-closure. It involves activities like earthworks, soil stabilization, and revegetation to restore disturbed land to a safe, stable, and ecologically viable condition. In some cases, former mining sites can be repurposed as recreational areas, parks, or even agricultural land, benefiting local communities and ecosystems. Environmental Impact Assessment (EIA) An EIA is vital in evaluating the potential environmental risks of mining projects. The EIA identifies impacts on air quality, water resources, biodiversity, and land use, helping to develop mitigation strategies. This process is essential for ensuring that mining operations comply with environmental regulations and minimize adverse impacts on ecosystems Key Environmental Risks and Mitigation Mining operations, if not properly managed, can pose significant environmental risks, such as Underground Mining: While underground operations are less disruptive to surface environments, proper sealing of shafts and groundwater management is essential to prevent long-term environmental impacts Tailings Management: Tailings dams are critical for storing waste materials. If poorly managed, these can lead to environmental disasters, as seen in the 1998 Los Frailes Mine disaster in Spain, where a tailings dam failure contaminated surrounding water sources and ecosystems Best Practices for Responsible Mine Closure To ensure effective mine closure and reclamation, mining companies should follow best practices Conducting comprehensive EIAs at each stage of mining to identify environmental risks Securing financial assurance for the full closure and reclamation process Implementing stringent tailings management to minimize risks associated with waste disposal Establishing long-term monitoring programs to ensure that reclamation efforts meet ecological standards By following these practices, mining companies can minimize their environmental footprint, support sustainable land use, and create positive outcomes for local communities and ecosystems #MineClosure#Reclamation#SustainableMining #geology