The positive impact of international mining: A story in need of a makeover
By Ingrid Hibbard
*Photo: Dr Dele Alake, Nigeria’s Minister of Solid Minerals Development*
It is true. It has never been more critical to own your story. I often wonder how many people know about the gold nanoparticle used to develop rapid Covid-19 tests worldwide, or the number of mining companies in Africa working to eliminate malaria through community-based health programs? What about the number of schools, roads, hospitals, and other infrastructure that has been possible because of the mining industry? The fact is that mining does not just generate much-needed revenue in many countries around the world, it also helps contribute to the development, health, and ongoing economic stability of some of the poorest international communities.
Many mining companies feel a bit uncertain about their future, even though we need more minerals now than ever before in history. And we can meet this demand responsibly. The growing ambition around decarbonization presents a significant opportunity for ambitious players to differentiate themselves and lead the way toward safer and cleaner ways of operating.
We are now at a pivotal moment in time, presented with the opportunity to re-think how we operate internationally, now and into the future. This means increased transparency and accountability. It is not just about doing what we are legally obligated to do, it is about considering the people and the places we operate in. We need to listen to local communities and empower people to share how mining has a positive impact in their lives. We know that at times of crisis or recession, investors see minerals like gold as a haven, but for a mother living in Ghana who is just trying to send her kids to school, the stock market has little worth. Social media and the widespread adoption of reliable internet connections in remote areas have given people a voice to tell their stories and the mining industry a chance to foster a dialogue to build trust. Those lived experiences are more authentic than any press release or marketing campaign. They have the potential to help shift public perceptions of mining for the better and protect our social license to operate.
What does the impact of mining look like for communities?
Mining generates much-needed revenue in countries around the world. It is the primary source of economic activity for many of the world’s poorest countries, including Liberia, Mauritania, Uzbekistan, and Papua New Guinea. In Ghana, where Pelangio owns three properties, the gold mining sector plays a vital role in the economy, as it attracts more than half of all foreign direct investment (FDI) and generates more than one-third of all export revenues. The mining industry is the largest tax-paying sector in the country and makes a significant contribution to gross domestic product (GDP) and employment.
Although countries like Ghana have been mining for centuries, many communities, like Obuasi, would not have experienced growth and infrastructure development without the mining modern industry. Local infrastructure like roads, hospitals, sewage, airports, and schools are possible because of a growing mining industry, one that provides access to well-paid jobs for local workers as well as revenues that are returned to the people. Let us take the Obuasi mine in Ghana as an example, although the mine has existed for well over a hundred years, recent expansion and investment has resulted in the growth of the town and local communities around it. Not to mention the introduction of new health programs and education, and other spin-off industries because of the mine. For example, Anglo Gold recently held a health outreach day where everyone in the community received medicine and free treatment. This was one of several health interventions offered by the mining company to address health-related issues like malaria across its communities in Ghana. The mining company has facilitated the development of a satellite Obuasi campus for Ghana’s renowned Kwame Nkrumah University of Science and Technology (KNUST). Through the provision of training and education, this move will contribute to the long-term economic viability and resilience of the Obuasi Region. The catalyst for the university’s new outpost was the donation of several office complexes and residential properties at the north Obuasi mine.
Even in communities with a long mining history, the discovery and development of a new mine is good news, as it can help secure continued life of the community, and in some cases, even the expansion of the community. In Ghana, Newmont mines recently announced the development of its Ahafo North project, located just 30 km north of its existing Ahafo South operations. It will create approximately 1,800 jobs during construction and 550 permanent jobs in the mine. Newmont says it will “work to create lasting value for host communities through local sourcing and hiring.” Newmont also established a development foundation with ten local mine communities to establish and manage sustainable social investments, projects, and activities. The company contributes US$1 per oz. of gold sold and 1% of Newmont profits (pre-tax) to help develop projects and programs around infrastructure, education, sports, and youth development, as well as natural resources projects.
When we work alongside local companies, we can use their valuable knowledge and connections to contribute to income for communities along with local economic and skills development. For example, in Ghana, it is very difficult for locals to start their own drilling company, so we assist them in financing their business. This way, we can also bring in specialized drill rigs that leave a smaller environmental impact. These types of initiatives not only help the local community but can also help to change the global perception of the mining industry. We could also look at Detour mine in Northern Ontario as an example of this. In 2022, Agnico Eagle Mines commissioned an airfield which started a regular flight to and from Timmins and Moosonee. While the mine is not located near a town, it shows how mines can add value to remote areas and communities in Canada and internationally.
Telling the stories that matter will help encourage the next generation of miners
In Ghana, our team has started to rally their peers to restart the Ghana Institute of Geoscientists to encourage the younger generation to pursue a career in the field. This year, they organized the 2023 annual young geoscientists forum with a focus on “harnessing and safeguarding earth resources for national development.” More initiatives like this are needed to encourage a younger generation to see the opportunities mining can bring for themselves, their families, and their communities.
Just like in Canada, we will need the next generation motivated to solve complex problems around decarbonization, renewable energy, data analysis, autonomous equipment, and ventilation systems for underground mines. Are young people learning about mines like South Deep outside of Johannesburg, one of the deepest mines in the world yet operated by some of the most advanced autonomous technology? Its heavy machinery operates remotely on the surface, using consoles in a control room – helping to keep workers safe and providing new opportunities for locals and particularly women in mining. Or how one of Africa’s largest gold mines, Kibali in the Democratic Republic of Congo, harnesses the natural power of the river, using hydroelectric dams to generate electricity to power the mine and the local communities surrounding the mine? Kibali is also leading the way in biodiversity, with an assessment underway for the transfer of a further 30 white rhinos to the Garamba National Park, where 16 were re-introduced earlier this year.
Getting into schools and talking to the younger generation about how new technologies are keeping workers safe and revolutionizing the way mines operate is key for the future of the industry. Geology should be taught to schoolchildren to reinforce the importance of minerals and metals.
We need to be part of the conversation when it comes to sustainability and regeneration efforts
We rely on minerals more than we think. Imagine how public perception would change if your cell phone or electric car was able to tell the story about where its wiring and power source came from and how (and even by who) its batteries were mined. Or how gold is needed to make specialty glass for climate-controlled buildings – a small amount dispersed within the glass or coated onto the glass surface reflects solar radiation outward, helping the buildings stay cool in the summer and warm in winter. How many people really know that gold is used in billions of rapid medical diagnostic test kits – including in the Covid-19 antigen and antibody tests?
Actively building trust and participating in discussions with environmental groups and stakeholders will be key for the future of mining. We can look to Panama as the most recent example of this. Vancouver-based copper miner, First Quantum, is now facing serious challenges over their Cobre Panama contract. The mine accounts for almost 5% of Panama’s GDP and employs about 40,000 people, but the recently signed 20-year contract has been denounced by environmentalists, Indigenous groups, and labour activists. The country is now calling a referendum to let the people decide whether to repeal the law that legalized First Quantum’s new contract. This is further proof why we need ways to bring the mining industry and environmentalists together to look at ways to better understand the impact of mining through consultations and land-use planning. This can help drive multiple benefits – from creating a space for positive and productive engagement to uncovering opportunities to continue to evolve mining operations around the world. As an industry, we need to move away from the old thinking of “us versus them” to a more collaborative mindset, building meaningful relationships with the public through social media, sharing and showing the importance of mining’s place in our future.
And when it comes to the local communities we operate in, we need to recognize we are just borrowers of the land. This involves thinking about how we can bring value to the people and the communities they live in and asking questions around the benefits of the mine and what happens to the community after the mine closes. It is a commitment to the actions that matter – regenerating old mine sites, embracing new technologies to keep workers safe, partnering with local organizations, and educating the next generation of workers. The future of mining lies in being good global citizens and ensuring our fellow citizens see us that way.
Ingrid Hibbard is the CEO of Pelangio Exploration Inc
*Culled from Canadian Mining Journal
