ICMM welcomes Boliden
Boliden underwent a rigorous independent assessment to ensure that it adheres to ICMM’s Mining Principles. Based on the recommendation of the independent review panel, ICMM’s Council, represented by the CEOs of each company member, approved Boliden’s admission.
The Boliden Group is an industry leader in sustainable metal production. The company’s core competence is within the fields of exploration, mining, smelting and metals recycling with five mining units and five smelters across Sweden, Finland, Norway, and Ireland.
Their operations are dedicated to producing metals with a low carbon footprint, with a target of reducing their CO2 intensity by 40% by 2030 through decreasing their usage of fossil fuels and improving energy efficiencies.
Tom Butler, CEO of ICMM commented: “We are delighted to welcome Boliden to ICMM. We look forward to learning from their innovative and modern approach to sustainable metal production and their circular approach to resource management. They will bring new perspectives to ICMM, where partnership, innovation, knowledge sharing, and learning are integral to everything we do.”
Mikael Staffas, President and CEO of Boliden added: “Our vision is to become the most climate friendly and respected metal provider in the world and the membership in ICMM is an important step in that direction. Our performance within sustainable metal production is strong already today, but we will continue to seek improvements and contribute to the aim of ICMM.”
Mining with Principles
By becoming a member, Boliden commits to ICMM’s Mining Principles which define good practice Environmental, Social and Governance (ESG) requirements for the mining industry through a comprehensive set of 38 performance expectations. They apply at asset level and include third party assurance and validation. Applicable to all ICMM company members, they therefore apply to around 650 sites in 50 countries.
The International Council on Mining and Metals (ICMM) is an international organisation dedicated to a safe, fair and sustainable mining and metals industry. Bringing together 28 mining and metals companies and 36 national, regional and commodities associations, it strengthens environmental and social performance and serves as a catalyst for change, enhancing mining’s contribution to society. Every ICMM company member adheres to its Mining Principles which incorporat e comprehensive environmental, social and governance requirements, robust site-level validation of performance expectations and credible assurance of corporate sustainability reports.
BHP deliberates ditching fossil fuels for greener mining
The world’s biggest miner, Australian-based BHP, is supposedly considering withdrawing from a multi-billion dollar contract, which would see the company generate more than US$2bn due to mounting pressure over aligning its business with ongoing climate concerns and ESG-compliance measures.
Exiting the agreement would mean BHP escalate its distancing from oil and gas and subsequently cut down on the amount of fossil fuels used by the company when mining.
It’s estimated that the petroleum business being debated upon could actually be worth around US$15bn but is still under talks to be put up for sale.
Global Mining Giant Considers Greener Future
BHP has made itself clear that it wants to avoid becoming unable to sell its assets. As competition within the market increases following higher numbers of oil giants wrestling with investors to deal with climate pressure, so too are the number of mining rivals looking to make environmental changes for the future.
However, BHP currently has the upper hand as a stalwart mining company that established itself back in the 1960s, allowing it the time to grow and dominate over other fast-appearing mining competition.
Mike Henry, BHP Chief Executive, has an optimistic outlook for the future of oil and gas despite worries over rising demand to align his business with the Paris Climate Agreement. Henry argues that prices remain promising due to a lack of industry-wide investment.
BHP’s petroleum business won’t be easy to say goodbye to. Forecasted to generate around 6% of profits during the ongoing financial year (US$2bn), and around US$1.6bn revenue produced by BHP petroleum in the six months leading to December 2020, BHP is due to take a hit no matter what agreement they choose.
On the other hand, distancing itself from thermal coal and petroleum would arguably aid the company’s case to possible - and valuable - investors who may be required to fund BHP’s increased output to places such as Australia and Mexico in the near future.
BHP considers cutting billion-dollar contract to aid climate
An exit away from petroleum has the potential to be “a powerful corporate catalyst,” says Dominic Kane, Analyst at JP Morgan.
“We believe an exit would likely ring-fence BHP’s exceptional cash flows for non-fossil fuel organic growth, mergers and acquisitions and generous shareholder distributions since BHP could avoid a major new capital investment phase this decade in petroleum.”
BHP is also set to sanction a giant US$5.7bn Canadian potash mine in August of this year, already seeing potash as a long-term substitute for gas and oil going into the future. The company has also previously announced plans to abandon its 80% share in its joint endeavour with Mitsui, owner of two lower-quality mines in Queensland, Australia.
BHP is scheduled to report its annual results on August 17, after which it may become clearer on whether the company will choose to focus its shift to a low-carbon economy or whether it will stay with its current contract into the coming year.