ESG Focus Lowers Environmental Impact From Gold Miners

By Yusuf Khan

A stronger focus on greener and social principles is helping the gold mining industry to lower its impact upon the environment, according to a new report by precious-metals consultancy Metals Focus.

According to the report, which covers roughly 30% of global gold production, scope one and two greenhouse gas emissions fell 1% on year in 2021 to 27,617 ktCO2e, with the industry's largest names such as Newmont Corp. and Barrick Gold Corp. aiming to cut emissions by 30% by 2030.

Despite the reduction, gold mining was estimated to have accounted for 0.3% of global GHG emissions in 2021, according to the consultancy.

Water usage fell 5% on year in 2021--particularly key in helping to ensure communities around mine sites have access. Water is key in gold production, widely used for example to recover gold from dust.

That said, energy consumption from miners had risen 6% on year, according to the report, although this was attributed to recovery from disruptions caused by the Covid-19 pandemic. Similarly, energy use from gold production was up 4% in 2021.

Metals Focus said energy usage has risen significantly since 2014 on "higher output from energy intensive mines and declining average gold grades."

The consultancy added that gold miners were coming under increasing scrutiny to improve upon environmental, social and governance principles, largely because of more investment in the area.

"Some large fund management groups are now refusing to invest in certain types of mining companies, such as coal producers, because of their environmental impact," Metals Focus said in the report.

Write to Yusuf Khan at [e-mail]

(END) Dow Jones Newswires

September 01, 2022 07:14 ET (11:14 GMT)

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