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“I used to participate in Mining Indaba events at beautiful city of Cape town SA, and there is a competition in ESG category for Junior mining companies. Companies fill their nomination and then it is screened by industry experts and shortlisted companies are awarded in different category of ESG and given chance to present their submission in front of Indaba participants.”
VP & Head of Strategy, Business Planning
(An ISO & RMI Member Company)
ESG will be the major driving force behind Funding of Projects, which is critical for expansion and new initiatives for Junior mining companies. Junior mining companies should prepare themselves for immediate alignment to this compulsory requirement. ESG Implementation is not just enable them for Funding but also increases Transparency in eyes of governments, enforces good governance practices within organization and makes companies socially responsible too.
I used to participate in Mining Indaba events at beautiful city of Capetown SA, and there is a competition in ESG category for Junior mining companies. Companies fill their nomination and then it is screened by industry experts and shortlisted companies are awarded in different category of ESG and given chance to present their submission in front of Indaba participants.
Junior mining companies face several challenges in implementing environmental, social and governance (ESG) standards in their operations. Some of these challenges include:
Lack of clear and consistent ESG frameworks and metrics across different regions, sectors, and stakeholders. This makes it difficult to measure, report and compare ESG performance and impacts, and to align with the expectations of investors, regulators, and communities.
– Lack of access to capital and financing: Junior miners often struggle to secure funding for their projects, especially in the context of low commodity prices and high regulatory costs. This limits their engagement in ESG initiatives, such as reducing greenhouse gas emissions, improving water management, enhancing community engagement, and ensuring worker safety.
– Limited technical and managerial capacity: Junior miners may not have the expertise or resources to design and execute effective ESG strategies, monitor and report on their performance, or address stakeholder expectations and concerns. They may also lack the skills and tools to integrate ESG considerations into their decision-making processes and risk management frameworks.
– Complex and evolving regulatory environment: Junior miners operate in diverse and dynamic jurisdictions, where they must comply with multiple and sometimes conflicting ESG regulations and standards. They may also face uncertainty and instability due to political and social unrest, corruption, human rights violations, and environmental degradation. These factors increase the operational and reputational risks for junior miners, as well as the costs and complexity of doing business.
– Competitive and fragmented market: Junior miners compete with larger and more established players, who have greater economies of scale, market power and brand recognition. They also face pressure from customers, investors, lenders, regulators and civil society groups, who demand higher levels of ESG performance and transparency. Junior miners may find it difficult to differentiate themselves and create value in this crowded and competitive market.
These challenges hinder the ability of junior mining companies to achieve their targeted results in ESG implementation, which may affect their long-term sustainability and profitability.
In FMCG sector, where Leading companies create business environment by awareness, advertisements and promotions of new products and some advantage goes to smaller companies too (who make similar cheaper products) , which can afford marketing expenses. Ultimately it helps to grow overall market for all.
In similar way Local Governments, Associations, Leading companies in sector and other stakeholder should start helping Junior mining companies to make ESG implementation effective.