< PreviousVisit us online at www.CanadianMiningMagazine.com21 FEATURE couple of years ago, a vice president at a precious metals company told our team that environment, social, and governance (ESG) had been central to its thinking and strategy for nearly 20 years. But suddenly, external pressure on the bottom line was beginning to mount. The financial community had become much more involved in the mining and metals industry, and with that involvement – and investment – came much higher expectations, creating both challenges and opportunities within the industry. Fast forward to 2024, and ESG is paramount. While mining companies have been identifying, assessing, and managing ESG aspects like health and safety, water and wastewater, waste management, corporate governance, and supply chain practices for decades, solutions now must be identified for climate change, GHG emissions, and decarbonization. Not to mention, biodiversity and land stewardship. And the future of work and social implications. And other vital topics. The list goes on. Consider this: International Council on Mining and Metals (ICMM) members have Managing risk while meeting the ESG mandate By Ward Metzler, Director, dss+ Blindly adopting new technologies to meet ESG targets will create more problems than solutions. Companies need to establish a risk management plan that will provide a road map for successful implementation. 22Connect with us on Facebook and Twitter committed to be net zero for Scope 1 and Scope 2 emissions by 2050. Setting these targets is easy. Making them a reality won’t be. Technology breakthroughs and changes in process take time. For instance, water removal from a mine site could entail billions of cubic metres and take more than a decade. Companies will need to change. They’ll need to utilize new technologies, and their leadership, culture, and capabilities of their people will need to evolve. All of this will bring a variety of new risks. How a company manages its risk as it embraces ESG strategies is as critical as the improvements themselves. In reality, the biggest challenge our industry is facing in regard to the lofty emissions goals is managing risk throughout this 25-year journey. Identifying the risks Before we move forward, let’s first take a look back. In the 1990s, not long after the Montreal Protocol was signed to protect the ozone layer by phasing out ozone-depleting substances, companies manufacturing chlorofluorocarbons were forced to make a choice. They needed to decide if they wanted to continue to produce refrigerants or use their capital elsewhere. Making difficult choices has resulted in the phaseout of 98 per cent of substances depleting the ozone when compared to 1990 levels. We’re now in a similar situation. The commitment made by ICMM member organizations appears firm, and ICMM members recently published guidelines for the calculation of Scope 3 emissions. The upshot of this commitment means that our industry will encounter an array of risks, among them technology, schedule / timeline, financial, human resources, and environmental health and safety (EHS). These risks – and others – will be exacerbated by the fact that, although the mining industry traditionally has evolved over time, it’s now facing massive changes that will require significant technological advances in a short period of time. Couple that with the tendency of many companies to manage risk within their organizational silos (e.g. financial, supply chain, human resources, and safety), and this makes their drive to ESG much more perilous. Consider this example. Years ago, I was working on a team during the introduction of a chlorofluorocarbon replacement product. Company leaders responsible for managing the overall risk miscalculated by assuming that the technology development would follow their timeline. Unfortunately, new technology doesn’t always follow expected timelines. By working in silos, and not having a robust process to adjust the plan, a demonstration unit that was planned to operate for five years ended up being a plant that operated for 25 years. Managing the risks It’s essential that once all the risks have been identified, they must be managed in an integrated manner. When organizations separate risk by internal division (finance team, project team, safety team, etc.), they ultimately will be left with residual risk. Some mining companies have set ambitious targets for net zero on Scope 1 and Scope 2 emissions by 2030, rather than 2050. At a time when the demand for metals to help reduce our dependence on fossil fuels is attracting financial investment at historic levels, these aggressive timelines only put more pressure on the companies to deliver. Will the technology follow the timeline? Or will individuals feel pressured to make decisions about risk in order to meet the timeline? Will leadership continually reinforce to the team that the values of the organization are more important than the project timeline? Or will the timeline dictate everything? Mining companies should take the time to conduct comprehensive risk assessments and risk reviews. Among the challenges that will require a holistic approach as they embark on meeting ESG mandates are the introduction of new technologies; the net present value (NPV) of projects; the use of new chemicals; safety risks; technology transfer; and human resources. New technologies will be required for the industry to meet emissions goals. One of the first places many operations will focus is on their energy supply, and we’re already seeing companies launch new operations in locations where they can access clean energy. As they introduce new technology into their operations the mining industry can turn to the chemical industry for best practices, such as how a new technology goes from the laboratory Visit us online at www.CanadianMiningMagazine.com23 to a pilot plant, to a demonstration unit, to a commercial operation. As we have already seen, scaling up new technologies too quickly can lead to major operating challenges – and additional risk. From a financial standpoint, the NPV of a project is a critical factor. For major projects, achieving the expected NPV is dependent on the time it takes for the operation to reach its operating capacity. By focusing on the capital cost or scheduled start date, the success rate of how the plant will operate could be at risk. Companies can conduct operational readiness assessments throughout the project, which can help ensure a safe operation of the plant and achieve nameplate capacity. Chemicals such as hydrogen, seen as a replacement for coal in many instances, are being introduced into the mining industry. In the case of hydrogen, it has unique properties that need to be considered when designing or operating a facility. Understanding these – and other safety risks – has to be a part of the risk management plan. Conducting hazard analyses during the facility design stage will identify major unwanted events, which in turn allows time to design for critical controls that do not fall to the lowest level of control. Additional risks may only become apparent through operating the facility. The expertise of those who develop the technology is extremely important as the technology is transferred to an operating environment. Establishing clear decision- making processes is necessary to ensure that all changes are assessed from a risk perspective. And when it comes to human resources, we’re all very aware that our industry must address the ongoing issue of attracting young professionals. Over the next 25 years, we will need our teams to be well trained to successfully – and safely – implement new technologies. The opportunity ahead As mentioned, it’s easy to set the targets for emissions in mining and assign a Chief Sustainability Officer to manage the process. However, solving this challenge is a business issue, and strong leadership at the top of the company is required. This leadership will ensure that the entire company works together and historic organizational silos do not become a problem. It’s much more difficult to calculate the risk of each step of the process. By proactively establishing a plan to manage all the risks in an integrated manner, business owners will be better equipped to react as needed when a problem arises. When the first domino falls, will another follow? Or will it be the only one to fall? Preparing your team to not only embrace the new technologies and challenges that come with them, but also providing the road map and skills to execute your plan and retaining your company values will create an organization that respects risk but is not blinded by it. Instead, it sees the opportunity ahead. M WARD METZLER IS DIRECTOR, INDUSTRY LEADER, NORTH AMERICA OF THE MINING AND METALS INDUSTRY AND CANADIAN OPERATIONS AT DSS+, A LEADING PROVIDER OF SUSTAINABLE OPERATIONS MANAGEMENT CONSULTING SERVICES. AN INTERNATIONALLY RECOGNIZED OPERATIONS PROFESSIONAL, WARD’S EXPERTISE INCLUDES PROCESS SAFETY MANAGEMENT (PSM) AND OPERATIONAL RISK MANAGEMENT (ORM) WITH A FOCUS ON THE MINING AND METALS AND OIL AND GAS INDUSTRIES. 26Connect with us on Facebook and Twitter FEATURE ungsten (or Wolfram) is a metal that is helping drive global innovation, modernization, and transformation. It may come as a surprise to you, but beyond its placement as Element 74 on the Periodic Table, this naturally occurring grayish-silver metal is a key ingredient in manufacturing in the aerospace, defense, heavy manufacturing, technology, and resource industries. Its unique chemical structure makes tungsten a highly sought ingredient for innovation technologies across these industries. Tungsten has the highest melting point of all metals (3,422˚C (+/-15˚C)) and a boiling point of 5,700˚C (which is similar to the temperature at the surface of the sun). Tungsten also has the highest tensile strength of any pure metal and, with a density of 19.25 g/cm 3 , it plays beside Iron Maiden as one of the Earth’s heaviest metals [bands]. Tungsten is extremely hard, has the lowest vapour pressure of all metals, and has high thermal and chemical stability. Notwithstanding other attributes, tungsten is truly a unique metal that has pervasive uses entrenching its importance in global industrial development. Many of tungsten’s sound bites in the metals arena come from its traditional uses in cemented carbides (cutting tools that are resistant to abrasion and impact), steel (alloys), electrical (e.g. filaments in lamps, etc.), the electronics industry (electron emitting devices such as smartphones and microwaves), and chemical applications (catalysts and reagents). 1 Tungsten is seemingly everywhere yet highly By Andrew Ing, President, CEO, and Director, Northcliff Resources Ltd. Eighty per cent of tungsten production is currently from China. A feasibility level project in New Brunswick, which will benefit the aerospace, defense, and manufacturing industries, has the potential to be a major Canadian-sourced critical minerals supplier. Hard rock project is music to industry’s ears understated in its importance and presence when compared to higher profile base and precious metals. In some places, tungsten is an integral, and largely irreplaceable ingredient for fabrication or manufacturing in: • Aerospace: Counterweights for satellite, helicopter rotor blades, and aerospace gyro control. • Defense: Ammunition, warheads, equipment, missiles, and fighter jets. • Heavy industries: Cutting tools and super alloys. • Manufacturing: Cutting tools, super alloys, and light bulb filaments. • Technology: Battery anodes, radiation shielding, and x-ray tubes. • Resource industries: Drilling tools. Beyond its traditional uses, tungsten also plays a critical role in building sustainability into global innovation, modernization, and transformation. Because of its high electrical conductivity and resistance to corrosion, tungsten has been identified as a potential ingredient in electric vehicle (EV) batteries. These batteries would be faster charging, 2 degrade more slowly 3 , and would lower the risk of fire, translating to an eco-friendlier electrification of the automotive industry. Once again, it is tungsten’s unique chemical structure that researchers have identified as a critical ingredient in the global EV battery revolution. Tungsten also plays a part in the global development of renewable energy space, for example, wind energy. Growth in wind power helps to diversify the energy mix and reduce our reliance on fossil fuels. As mentioned earlier, tungsten is hard – tungsten carbide is second to only diamonds on the Mohs Hardness Scale, and therefore it is durable. This and other properties make it an important component of alloys used in wind power technology. 4 This harnessed wind energy could then be stored in lithium-tungsten oxide batteries, which have potential Visit us online at www.CanadianMiningMagazine.com27 for higher energy storage capacity and enhanced stability. To take this one step further, because of its high thermal / electrical conductivity and melting point, tungsten is the ideal ingredient for numerous electrical applications, including enhancements of electrical grid infrastructure to support the efficient delivery of wind generated electricity. Impressive potential for Canadian tungsten project Northcliff is advancing the Sisson Tungsten-Molybdenum Project (Sisson Project) located in New Brunswick; it’s near tidewater and easily accessible to markets in the United States, Europe, and elsewhere. Through development of its Sisson Project, Northcliff has the potential to be the largest tungsten producer outside of China; over 80 per cent of global tungsten production currently comes out from China. Amidst ongoing geopolitical issues, Northcliff’s Sisson Project would be a domestic, reliable, and long-term supply of tungsten in a favourable jurisdiction surrounded by existing infrastructure. This supply of tungsten would support the aerospace, defense, heavy manufacturing, technology, and resource industries, and help in the revolution of how energy is generated, stored, and used, all of which advances a green future. Numerous governments, including those in Canada and the United States, have taken notice of tungsten’s importance by designating it as a critical mineral. 5 The European Commission has further recognized tungsten as having the highest economic importance of all raw materials (metals) used in the European Union. 6 Northcliff’s Sisson Project would also be a significant source of molybdenum (Element 42 on the Periodic Table), which has also been designated as a critical mineral in Canada. It has a high melting point (2,623˚C), excellent electrical and thermal conductivity, and high resistance to corrosion. 7 Like tungsten molybdenum has many traditional uses. It is often used as an additive in alloys (steel), catalysts and lubricants (engine use), and pigments (paints and dyes – stabilizer, corrosion inhibitor). In the case of steel alloys, molybdenum is used to increase the steel alloys’ durability (wear and tear), strength, electrical conductivity, and resistance to corrosion. Due to its high resistance to corrosion, oxidation, and heat, molybdenum is also used in the production of solar panels. Recent research on its chemical structure has identified the potential for molybdenum to improve certain capabilities of existing lithium batteries and, as such, it could play a pivotal role in an electrified, green, and digital future. Molybdenum is being used to, potentially, better design cathode / anode hosts in these batteries which, because of the element’s inherent conductivity and reactivity towards lithium polysulfides (LiPSs), could modify the battery’s overall performance. 8 Moreover, the molybdenum- based materials’ tunable crystal structure, adjustable composition, and variable valence show strong indications to further improve a potential alternative to lithium- ion batteries. In my view, the successful development of any mineral project is reliant on working collaboratively with government, but the success of critical metals projects – those with a pervasive impact on global development in a way to advance green transition goals in a timely way – is also reliant on the support of government. Northcliff’s Sisson Project would create a reliable near-term supply of two critical minerals, providing valuable commodities to end-users in North America and globally, while also advancing the green transition. Having received all its major provincial and federal governmental permits, the feasibility level project is currently being advanced towards construction. Additional details can be found at www.northcliffresources.com/blogs. M ANDREW ING IS PRESIDENT, CEO, AND DIRECTOR AT NORTHCLIFF RESOURCES LTD. HE IS A CHARTERED PROFESSIONAL ACCOUNTANT, HOLDS THE DESIGNATION OF CORPORATE FINANCE, AND HAS CERTIFICATIONS IN CORPORATE GOVERNANCE AND THE STRATEGIC MANAGEMENT OF INFORMATION TECHNOLOGY. ANDREW’S FOCUS IS ON CORPORATE DEVELOPMENT ACTIVITIES WITH AN EMPHASIS ON CAPITAL FINANCE, AND HE HAS WORKED IN SENIOR POSITIONS FOR MINING PROJECTS IN ASIA, EUROPE, AND THE AMERICAS. References: 1. Tungsten Brochure (2009), by the International Tungsten Industry Association. www.itia.info/news-2- title.html 2. www.cam.ac.uk/research/news/new- class-of-materials-could-be-used- to-make-batteries-that-charge- faster 3. https://vir.com.vn/tungsten-battery- lets-businesses-grab-billion-dollar- market-share-97197.html 4. https://www.zgcccarbide.com/news/ Tungsten-Carbide-Tips%3A-the- Driving-Force-behind-Renewable- Energy-41.html 5. https://www.northcliffresources. com/criticalmetals 6. https://h2020-nemo.eu/why- tungsten-niobium-and-tantalum- are-critical-raw-materials/ 7. https://www.imoa.info/ molybdenum/molybdenum- properties.php 8. https://spj.science.org/ doi/10.34133/2021/5130420 Ws2 Mos2 nano sulfide powder lubricant, which is high purity tungsten molybdenum.Visit us online at www.CanadianMiningMagazine.com29 FEATURE he Canadian mining sector, a stalwart of the national economy, is pivotal in the global shift towards a net-zero greenhouse gas (GHG) emissions economy. The intensifying demand for “critical minerals,” indispensable for renewable energy technologies, underscores the sector’s critical role in enabling this transition. Junior mining companies, especially, are at the vanguard – their exploration work for critical minerals like copper, lithium, and cobalt being fundamental to the energy transition from traditional infrastructure to electrical grid expansion, batteries and battery energy storage systems, and alternative energy projects. In these times of challenging capital markets, and scrutiny from investors, regulators, and communities alike, those junior companies that consider the impacts of climate risk management and disclosure have an opportunity to set themselves apart from those who do not. Although junior resource companies are characterized by relatively low emissions, they are still coming under intense scrutiny from both investors and regulatory bodies. The call for transparent disclosure of strategies for decarbonization reflects a broader recognition of their essential role in securing a sustainable supply of minerals vital for renewable technologies. With nearly 60 per cent of the companies listed on the Toronto Stock Exchange Venture Exchange (TSXV) belonging to the mining sector, the impact of these junior companies is significant, rendering them integral to Canada’s strategic commitment to a net-zero future. Navigating net-zero: Opportunities and challenges Mining companies across Canada are facing intensifying scrutiny from executives, investors, and the public. This magnifying glass will create significant opportunity – for juniors, in particular – to strategically position their companies as social leaders. By Suzanne Davis-Hall, Founder and Principal, Genesg, and Mona Forster, Strategic Advisor, Mining Industry Regulatory and investor landscape Amid the evolving landscape, junior mining companies are navigating new regulatory terrains demanding greater climate-related disclosures, adapting to the expectations of investors who prioritize environmental accountability. This shift presents both challenges and opportunities in climate governance, particularly for junior companies whose operational profiles differ markedly from larger entities. In Canada, the Canadian Sustainability Standards Board (CSSB) is currently reviewing the recently released International Financial Reporting Standards (IFRS) General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and Climate-related Disclosures (IFRS S2). Currently, there is no requirement for Canadian companies to apply these standards, however work is underway by the CSSB to determine whether and how these standards will be adopted. Directors and officers bear the fiduciary responsibility to act with diligence, integrity, and in the corporation’s best interests. Canadian corporate laws mandate this conduct as a standard for assessing director and officer actions. They are entrusted with the task of identifying and managing material climate-related risks, ensuring that robust governance strategies are in place for climate risk management, revising business plans to incorporate emission reduction across the supply chain and in the future, when preparing pre- feasibility and feasibility studies. The Canada Climate Law Initiative’s publication of A Guide to Effective Climate Governance for TSX Venture Issuers in the Mining Sector 1 in March 2023, underscores the urgency for executives to be well- informed about effective climate risk governance. This guide aims to support TSXV-listed boards, management, and professionals in their path to effective climate risk governance, offering insights Next >