Webber Wentzel says ESG gains will abound if miners invest in rail
Freight rail is considered key to the future of Africa’s mining sector, as it can provide efficient transportation of minerals. Law firm Webber Wentzel partner Nomsa Mbere says rail is a prime opportunity for mines to meet environmental, social and governance (ESG) targets.
She adds that ESG gains within the mining sector are becoming increasingly important and that rail initiatives can address environmental sustainability and social equity, as well as support greener mining logistics.
Mbere notes that the Carbon Border Adjustment Mechanism being introduced by the EU adds another layer of urgency and importance to the revival of freight rail in Africa.
Further, much of the continent’s minerals endowment is located in landlocked countries, making rail the most sustainable option to transport those minerals to port.
Some of the critical rail projects in Africa in which mining companies are investing include the Lobito Corridor linking Angola, Zambia and the Democratic Republic of Congo; the Tazara Railway project that links Tanzania and Zambia; the Mbalam-Nabeba line which connects Cameroon and Congo-Brazzaville; the Simandou railway project in Guinea; as well as the Saldanha-Sishen line in South Africa.
While the Mbalam-Nabeba and Simandou rail projects are in the early stages of development or construction, the Lobito project is at an advanced stage. The Tazara and Saldanha-Sishen lines are functional but are undergoing modernisation or expansion work.
Compared with road transportation, rail offers reduced carbon emissions, decreased air pollution and better land use efficiency. Rail also offers ESG gains in the form of job creation, skills development, community safety and connectivity across the continent.
Mbere avers that rail generally has easier regulatory compliance and offers greater opportunity for accountability and transparency, compared with road transportation – which mining companies stand to benefit from by investing in infrastructure and rail operations.
Moreover, rail can be integrated with ESG strategies as a commitment to sustainability and responsible resource management and serve as an opportunity for meaningful stakeholder engagement.
In the longer term, mining companies can realise cost savings through reduced fuel consumption, lower maintenance costs and fewer logistical delays, Mbere concludes.
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