Kumba executive sees a project’s carbon footprint assuming greater importance than size, grade

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MINING & THE ENVIRONMENT

Kumba executive sees a project’s carbon footprint assuming greater importance than size, grade

12th August 2011

By: Jonathan Faurie

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South African iron-ore giant Kumba Iron Ore, the worlds fourth-largest producer of the ferrous metal, predicts that a company’s carbon footprint will play a major role in the industry in 20 years’ time.

Addressing mining engineering students from the University of Pretoria, the University of the Witwatersrand and the University of Johannesburg at a Leadership in Mining conference, Kumba head of mining Theunis Otto said the days of the size and the grade of a resource being the determining factor when opening a mine are numbered.

Environmental Impact

“The whole world is going green and the mining industry needs to follow suit. With this in mind, in the future, carbon footprint and environmental impact will be predetermining factors that will influence decisions as to whether to open a mine,” said Otto.

This will be significant as companies will need to keep profitability at heightened levels while mining resources, which may have inferior grades to those companies are used to. Further, deep-level mining companies will need to forge even deeper underground to access potentially tricky reefs. However, with all of this come risks.

“There has always been an inherent risk in the mining industry. However, in the near future, companies will need to work smarter. Lower profitability, new mining methods, new technological advances and increased health and safety components are all future challenges that companies will need to overcome,” said Otto.

High Demand Asked whether this would affect the demands of the industry, he said, although the face of the world would change, demand for commodities would still be high.

He pointed to China and India, which are in the process of major infrastructure build programmes that will not be complete within the next 10 to 15 years. He also pointed out that most of the energy used by the two emerging Asian giants was carbon-based energy, which was coal intensive. Even when China and India moved to clean-energy-based power-generation projects, these projects would not develop by themselves and would not develop overnight.

“Although this is a look to the future and it might not be a future that mining companies like, it is a reality. Another reality is that, by nature, the mining industry is dealing with a product that is nonrenewable. However, this does not mean that, in 20 years’ time, the mining industry won’t be a key contributor to a country’s gross domestic product. The Waterberg is yet to reach its full potential and there is a lot of inherent untapped potential north of our border, in Zimbabwe. “Africa is also, by all accounts, an open page, so Kumba does subscribe to the mindset of mining being a ‘sunset industry’,” concluded Otto.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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