Govt calls on miners to embrace ESG practices

GOVERNMENT has called on miners to develop mine closure plans to avoid destabilising communities in which they operate in.

The disclosures are part of good environmental, social and governance (ESG) practices, a set of criteria used to evaluate a company’s operations and impact on the world beyond just financial performance.

ESG is fast becoming a prerequisite for firms when seeking loans from financial institutions.

Speaking at an ESG breakfast interface meeting in Harare, yesterday, Mines and Mining Development deputy minister Polite Kambamura said the closure plans should be gradually implemented way before the mines are closed.

“Mining companies should come up with mine closure plans, which cannot be only implemented after mine closure, but can be implemented gradually as mining operations proceed. I also need not overemphasise the equally important role of social responsibility,” he said.

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“I call upon mining companies to prioritise the well-being of local communities and respect and complement indigenous knowledge systems so that we build a community that we want.”

He urged mining companies to adhere to the disclosure requirements on ESG performance which helps in the government’s decision-making and strategy formulation processes.

“Mining companies are expected to disclose their ESG performance, including envisaged environmental impacts, social initiatives and governance practices,” Kambamura said.

“This transparency helps stakeholders make informed decisions and my ministry also follows up on committed strategies. Let me say it is imperative that the mining sector continues to embrace and strengthen its commitment to ESG principles.”

He said the adoption of ESG practices needed to be taken seriously for sustainable development and long-term success.

“As a result, we need to come up with a holistic approach, that is, we need to consider the social aspect, the environmental aspect and the economic aspect of our operations,” Kambamura said.

“As we navigate through an era marked by growing environmental awareness, social responsibility and demand for transparent governance, the mining sector, considering its extractive nature, is found at a crossroads, where industry executives need to make organisational decisions as a matter of urgency.”

He said the integration of ESG principles into mining operations was not just a regulatory requirement or a corporate trend, but a requirement for sustainable development and long-term success.

“Those who attended the Chamber of Mines conference in Victoria Falls in May this year, I think you agree with me that the ESG issues were topical at the conference,” Kambamura continued.

“I am happy to report that the Zimbabwe Stock Exchange has also embraced ESG reporting for companies listed on the exchange.”

Kambamura encouraged mining companies to move away gradually from the traditional mining methods with a history of land degradation and deforestation.

“. . . the mining sector has long been associated with environmental degradation and social concerns due to its extractive nature,” the deputy minister said.

“Traditional mining practices have often led to deforestation, habitat destruction, water pollution and soil degradation. However, with the increasing emphasis on ESG, there is a significant shift towards more sustainable environmental practices.”

Kambamura added that by embracing ESG principles, risks could be mitigated, opportunities could be capitalised, which would contribute to a more sustainable future.

“I’m also happy to report that many of our large-scale operators have adopted sustainable ESG practices. ESG consideration helps us manage our environmental footprint, respect human rights and engage with the local communities,” the deputy minister added.

Kambamura said mining companies needed to adopt ESG practices to reduce Zimbabwe’s carbon footprint, implement renewable energy solutions and preserve ecosystems.

He urged all mining stakeholders to work together with the government to integrate ESG standards in any operations.-newsda