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ver the next 200 years however, the
Osector’s reputation gradually eroded
until, by the start of the 21st century, min-
ing was perceived as a dirty, backward,
unconscionable industry which took more
from society, and the planet, than it gave.
This public image has prevailed even
as the industry turned its ethical perfor-
mance around. Over the past 20 years,
mining has made remarkable strides on
workplace safety, environmental man-
agement, social engagement and a host
of other perceived issues. However,
industry leaders, brought up with the
mantra of maintaining a small target for
detractors, have been reluctant to com-
municate this progress. Like the veteran
boxer, it has taken the critics’ punches
round after round, all the time unwilling
to fight back by asserting its own positive
skills.
At the start of a new decade, there is a
sense the mining sector is now prepared
to prove its capabilities as a participant in The dynamics of mining’s interaction with the wider society has shifted
the 21st century world of ethical, sustain-
able global development.
February’s Investing in African Mining “Companies have done a lot to en- view that it didn’t have engagement with
Indaba was the clearest demonstration hance disclosure,” he said. “The frustra- end-users and consumers. But, in this
yet that the world’s leading miners are tion is that it is not clear how investors new age of full transparency, people as-
intent on changing the narrative around are using the information now being pro- sume the worst and the only news stories
the industry’s role in the world and place duced. we see about mining are tragedies.”
it back at the forefront of global develop- “Investors often use risk methodology Major consumer brands such as Apple
ment. for companies working in challenging and Tesla are coming under increasing
“We are not here to help; we are here countries. But there are more risks in pressure to confirm the integrity of their
to play our part,” Anglo American plc these jurisdictions to take into account, entire supply chain and are subsequently
chief executive Mark Cutifani stated on so it is a different score [to Tier 1 jurisdic- demanding greater transparency from
the opening morning of the conference in tions]. I believe there should be positive raw material suppliers.
Cape Town. weightings for the social impact a com- “The sentiment from end-users is re-
The major mining companies have pany is having in a developing jurisdic- flected in the mandatory and voluntary
been producing annual sustainability re- tion.” codes which are starting to kick in,” Baker
ports for nearly two decades but Cutifani The ICMM has moved to bring clarity McKenzie London partner Richard Blunt
believes this alone has not been enough to ESG performance by establishing a explained to Paydirt. “Consumer brands
to shake the impression among stake- toolkit designed to assist miners, inves- are demanding transparency through the
holders that the change is genuine. tors and other stakeholders compare value chain; for example, Tesla’s require-
“We [Anglo American] are the lead- ESG performance across different com- ments to prove exactly where metal is
ing resource company on the FTSE100 panies and projects. coming from.”
Responsibility Index but the bad news is “The ICMM has a new programme/ini- Governments are also coming un-
we are only No.33 overall,” he said. “We tiative to assess ESG performance at a der increased pressure from civil soci-
believe the industry does a lot more than site level against 30 performance expec- ety groups to show more transparency
the number indicates. The industry has tations, enabling fund managers to as- around tax and royalty payments, forc-
to improve its messaging but also walk sess how a company and individual site ing miners to be more open about such
the talk and improve the way we connect is doing,” Butler explained. contributions. The movement, “Publish
with society.” Why has it become imperative for min- What You Pay”, is part of a wider focus
The International Council of Metals ers to change their habits? For Investec on corporate tax minimisation strategies
and Mining (ICMM) has led the push for Asset Management portfolio manager in light of the Panama Papers and other
industrywide reporting standards around George Cheveley, the dynamics of the governance scandals.
environmental, societal and governance sector’s interaction with wider society An even greater push is coming from
(ESG) performance. Speaking at Mining have shifted. investors who are adopting an increas-
Indaba, chief executive Tom Butler said “It is a major issue for mining compa- ingly holistic view of a company’s per-
reporting standards had improved in the nies today,” Cheveley said at Mining In- formance. The recent tailings disasters
industry. daba. “Historically, industry has taken a in Brazil gave the clearest indication yet

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