Refining in the Precious Metals Sustainability Chain Michael B. Mooiman Franklin Pierce University & Argo Advisors International
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Refining in the Precious Metals
Sustainability Chain
Michael B. Mooiman
Franklin Pierce University & Argo Advisors International
Agenda
What is Sustainability and why is it important?
Mining industry and sustainability
The role of refiners
Our challenges and how to address them
Standard Economic Model
Firms Households
Factors of Production
Goods and ServicesMaterials
Energy
Economy
Waste
Problems with Standard Economic Model
World Population
Tragedy of the Commons
William Forster Lloyd -1833
Tragedy of the Commons
Tragedy of the Commons
Tragedy of the Commons
Tragedy of the Commons
Tragedy of the Commons
Tragedy of Global Commons
Overgrazing
Deforestation
Mining
Overfishing
Greenhouse
Gases
Fresh water
usagePollution
Constrained & Non-Sustainable Economic
Model
Firms Households
Factors of Production
Goods and Services
Heat
Materials
Energy
Ecosystem
Economy
Waste
Our Impact on the Planet
Holocene period – 10,000 years ago until now
Warm interglacial period - includes most of modern human development
Transitioned to Anthropocene period
Humans have a profound and permanent effect on the planet
Started with Industrial Revolution
Marked by urbanization, fossil fuel usage, industrialization, large-scale
pollution, reduction of biodiversity, and climate change
What is Sustainability?
Sustainable = able to be maintained at certain rate or level (OED)
It’s about continuation
..balancing our needs with those of future generations
…about our impact on the planet
…..shrinking resources
…….moving from shareholder to stakeholder thinking
……...interaction of business, society and environment
Finding a Balance
Business
SocietyEnvironment
Profit
PeoplePlanet
UN Sustainable Development Goals
Water
Energy
Economic
growth
Industry
Responsible
consumption
& production
Business Case for Sustainability
Happier customers - improved sales
Happier investors
Reduced risk
Lower insurance costs
Lower operating costs
Sustainability and Mining
Sustainable mining?
Minerals and metals underpin our economic development
Mining = conversion of natural resources into human, social,
financial and manufactured capital
Allows diversification of economy
Communities continue after natural resources are depleted
Mining Community – Johannesburg, S. Africa
Sustainability Embedded in Mining Industry
Social license to operate
Reduce environmental impact of mining
Post-mining remediation plans
Concerned about energy and water consumption
Build infrastructure - roads, bridges, schools, clinics
Impact on local communities
Migrant labor
Long term planning - development, mining, remediation
International Council on Mining and Metals
Principles
Ethical business practices
Sustainable development
Environmental performance
Design, use & recycling
Societal performance
Environmental, Social and Governance
Initiatives
Refinery
FabricatorsBanks
Mines Smelter
End Users
Why We Should Participate – Value Chain
Refinery
FabricatorsBanks
Mines Smelter
End Users
Collector
Why We Should Participate – Recyclers!
LBMA Initiative
Expanded responsible sourcing program to included
environmental, social and governance aspects
Alignment with UN Sustainable Development Goals
Why Should We Participate?
Reputation
Good delivery certification
Part of precious metal value chain
Work and live in impacted communities
Cost benefits
Reduced risk
Lower energy and chemical costs
It is the right thing to do!
How Do We Contribute/Participate?
Educate ourselves about sustainability
Create goals and measure progress
Talk about our programs and initiatives
Ethical business practices
Understand Your Feedstock
Lower grade materials
More complex
Better analysis of incoming material – other than just PMs
Measure radiation
Other elements - XRF
Deleterious Elements in Refining
Higher Concentrations
Copper
Iron
Zinc
Nickel
Tin
Lower Concentrations
Mercury
Selenium
Lead
Cadmium
Arsenic
Tellurium
Bismuth
Beryllium
Thallium
Examine Chemical Consumption
Refining = metals + acids + oxidants + reductants
Byproducts = metal hydroxides + salts + water
Minimize chlorine usage
“Acid-less” processes
How Do We Contribute/Participate?
Focus on energy usage and CO2 emissions
Energy efficiency
Renewable energy supply
Energy Efficiency
Renewable Energy
Cogeneration – Electricity and Heat
Engage with Artisanal and Small Scale Mining
~25% of World’s gold from small-scale mining
Concerns
Illegal mining
Use of forced and child labor
Support for armed groups
Clashes with formal mining sector
Dangerous conditions
Money laundering conduit
Environmental Concerns
Ethical Considerations
Business Considerations
We Need to Engage with Artisanal Miners
Important source of precious metals
Provides livelihoods and leads to economic development
Promotes formalization of industry
Reduces conflict mineral supply
Promotes improved environmental practices
Improved mercury use
Promote Responsible Mercury Usage
Artisanal and Small Scale Mining
Artisanal and Small Scale Mining
Diamond Diggings – Kimberley, S. Africa California Gold Rush
How Can We Serve the Artisanal and Small-
Scale Mining Supply Chain?
Educate ourselves
Find the right partners
Make site visits
Due diligence
Concluding Remarks
Refiners are part of the value and sustainability chain
Many reasons to operate more sustainably
Reputation
Business reasons
Our responsibility to our planet and society
Need to engage more with ASM supply chain
"We are shaping the world faster than we can change
ourselves, and we are applying to the present the
habits of the past."
Winston Churchill
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