ABSTRACT
In preparing for this, I asked ChatGPT how to explain “trusted mining” as an oxymoron and the simplicity of the response was quite confronting for someone who’s been in the mining industry for some time (openai.com).
“Trusted mining” can be considered an oxymoron because the two words seem to contradict each other. “Trusted” implies that something is reliable, honest and dependable, while “mining” refers to the extraction of minerals or resources from the earth, often with little regard for environmental impact or ethical concerns. The word “mining” can also bring to mind images of unscrupulous individuals or corporations exploiting natural resources for their own gain.
Combining these two words, “trusted mining”, suggests that it is possible to extract resources from the earth in a way that is both trustworthy and sustainable, which can be seen as paradoxical or contradictory.”
So, let’s start by taking a look at what trust is. Trust is the belief, or confidence, that someone has in another person, organisation or institution that they are honest and reliable – capable of fulfilling their commitments or promises. It is a fundamental aspect of all relationships as it allows people/organisations to form close connections and collaborate and cooperate with each other.
According to the Mayer et al. (1995), there are three fundamental elements of trust – integrity, benevolence and ability, and that trust truly exists where these three converge. In this context, Zenger and Folkman (2019) describe ability as having the knowledge, skills and competencies to have influence in a specific field; integrity as the perception that a set of acceptable principles is adhered to; and benevolence as a measure of the want to do good (aside from monetary profit).
From the broader public’s perspective, there are several obstacles blocking this view of trust in the mining industry. To highlight a few:
- Environmental failures: The long-term impacts mining has on local communities and ecosystems in the environment can include deforestation, soil erosion, water pollution, etc.
- Social failures: Mining has been known to involve human rights violations.
- Governance failures: We don’t have to cast our minds too far back to recall the considerable corruption charges levelled against mining executives and companies relating to mining operations in Africa.
- Supply chain failures: The mining industry has faced criticism for failing to address human rights abuses throughout their supply chains.
- Safety failures: Using Western Australia as an example, improvements implemented over the years have reduced the number of deaths associated with mining from 114 in the 1970s to 23 in the 2010s.
It’s difficult then, to conjure up a vision of trust in the mining industry when what I’ve just described. But it is fundamental that we develop this if we consider the raw materials needed for a net zero world. In order to not be solely focussed on the failures and give a balanced view, some of the trust successes of in the raw materials value chain include:
- Environmental successes: Mining companies have taken steps to reduce their greenhouse gas emissions, improve water management and use renewable energy sources.
- Social successes: Several organisations have also taken steps to address human rights and labour rights.
- Governance successes: Mining companies have made important progress in improving governance, transparency and anti-corruption.
- Supply chain successes: Some mining companies have taken deliberate steps to ensure the responsible sourcing of raw materials throughout their supply chains.
- Safety successes: Technological advances continue to bring the number of deaths in mining down.
Although it’s still tempting to let the failures overshadow the successes, the balancing act can be made easier by finding ways to build this trust. In their article “Begin with trust”, Frei and Morriss (2020) suggest that trust has three drivers; authenticity, logic and empathy. They imply that when trust is lost, it can usually be traced back to the breakdown of one of these components and that small changes in behaviour can trigger a “trust wobble”. Trust wobbles can be balanced by focussing on five key elements: reliability, competence, empathy, honesty and authenticity.
- Reliability: Consistently doing what you say you’ll do – day after day and year after year;
- Competence: Displaying a deep understanding of the relevant subject matter and listening actively with a bias for action, incorporating feedback into plans;
- Honesty: Telling the truth, always and not just communicating what you think people want to hear;
- Authenticity: Being willing to acknowledge mistakes and taking responsibility for your actions; and
- Empathy: Showing stakeholders that you hear them and establish solid relationships built on mutual respect and understanding.
In practical terms, some of the things we can do to build trust in ESG in the mining industry are:
- Show commitment: Actively demonstrate that you are committed to ESG.
- Be transparent: Be open and honest about your company’s ESG successes, challenges and goals.
- Take accountability: Take responsibility for your ESG performance.
- Listen actively: Engage with your stakeholders and listen to their concerns and feedback.
- Collaborate: Work with other organizations, NGOs and government agencies to address ESG issues.
In conclusion, although “trusted mining” might have been considered by some to be an oxymoron initially, there are significant efforts underway around the world to follow more responsible and safer mining practices, eradicate corruption, more ethically source raw materials and improve environmental stewardship and social responsibility. And while it may be difficult to imagine a future where the goal of “trusted mining” is reality, trust is a two-way street, so we must continue to find successful ways to work together to achieve more sustainable and equitable resource extraction practices.
References:
Frei, F., and Morriss, A. (2020). Begin with trust. Harvard Business Review.
Mayer, R., Davis, J. and Schoorman, F. (1995). An integrative model of organizational trust. Academy of Management Review, 709-734.
Zenger, J. and Folkman, J. (2019). The 3 elements of trust. Harvard Business Review.
BIOGRAPHY
Vanessa Lickfold (PhD, FAusIMM)
Vanessa started her career as a geologist in 1991 at one of South Africa’s open pit coal mines after graduating with a BSc (Hons) in Geology and Earth Science. She moved on to being a base-metals exploration geologist and then, while finishing her MSc in Exploration Geology, managed a mineral sands development project in South Africa before moving to Australia in mid-1998. Her move to Hobart was to complete her PhD in Economic Geology on the copper-gold deposits around Parkes in New South Wales, Australia.
On returning to South Africa in 2002, Vanessa joined Kumba Resources as a senior and then principle Mineral Resource Geologist before taking on the role of Head of Geosciences for Anglo American’s Kumba Iron Ore company in 2006. She moved into iron ore Business Development in West and Central Africa in 2011 and then relocated to London to lead Early Studies for Anglo American’s Group Technical and Sustainability function in early-2014.
In early-2017, Hatch Associates appointed her as their Metals and Mining Director for Europe before she joined BHP in March 2018 as Head of Geoscience for Western Australian iron ore. Before leaving BHP at the beginning of 2022 to start her own business focussed on targeted mining strategy with a circular economy mindset, Vanessa spent 18 months as Chief of Staff to BHP’s President of Minerals Australia.
Vanessa has authored and co-authored 11 journal and conference papers and is a Fellow of the Australasian Institute of Mining and Metallurgy and the Society for Economic Geologists. She is also college member of the Minerals Research Institution of Western Australia and a long-standing mentor in the International Women in Resources Mentoring Programme. She is a graduate of the Stanford Executive Program, Anglo American’s Advanced Management Program and the Australian Institute of Company Directors. She was voted as one of the 100 most inspirational women in mining in 2016.
Previously, Vanessa was a Non Executive Director for the listed company South African Coal Mining Holdings and more recently, she was elected to the Board of the Australian Battery Industry Association as an independent director in November 2022.