YOUNG Miners Foundation (YMF) chief executive officer Payne Kupfuwa has urged small-scale miners to adopt Environmental, Social and Governance (ESG) principles to gain a competitive edge in the market.
The government of Zimbabwe has taken steps to ensure that mining policies, including those supporting small-scale miners, align with ESG principles.
In a report on the artisanal and small-scale mining (ASM) sector submitted to Parliament last week, it found that the sector was also causing substantive damage to public infrastructure such as roads, schools and health facilities, among others.
Further, illegal miners were damaging the natural environment in activities ranging from the pollution of rivers to the degradation of farming areas as well as wildlife and conservancy areas.
The report was conducted by the Parliament Portfolio Committee on Mines and Mining Development.
“The government aims to develop a national ESG policy for the mining sector, which will integrate social, environmental, and economic goals to drive sustainability,” Kupfuwa told NewsDay Business in an interview.
“Small-scale miners who adopt ESG practices can differentiate themselves and gain a competitive edge in the market. And, of course, access to finance.”
The adoption of ESGs improves relationships with both the community and government and paves the way to better financing access as well as investment opportunities for small-scale miners.
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Back in August, Lands, Agriculture, Fisheries, Water and Rural Development deputy minister Davis Marapira revealed at a workshop that environmental damage has surged to over US$747,6 million, largely driven by mining activities.
“ESG-compliant small-scale miners may have better access to financing and investment opportunities. And of course, you may want to look at improved relationships,” Kupfuwa said.
“Implementing ESG practices can help small-scale miners build trust in the local communities, our governments, and other stakeholders.
“Miners should practice ESG to enhance their business and make it more profitable by building trust with the community.”
He said the potential benefits would include enhanced reputation.
“Small-scale miners who practice ESG can enhance their reputation and build trust with stakeholders. This then grows the business, and this then makes it all more profitable,” Kupfuwa added.
If a community accepted the miner’s way of doing business, he said, the artisanal miner could gain even more access to mining rights, land, and even support from the locals in the area.
“Implementing ESG practices can help mitigate environmental and social risks associated with mining.
“So, when there are no accidents and no environmental degradations at your mining operations, you are guaranteed profit, and the risk is reduced.
“So, when you are compliant, you don’t spend much of your time trying to pay my licence like I highlighted before.”
Kupfuwa said ESG practices can lead to cost savings and improved operational efficiency.
EMA, as the main government agency tasked with the protection of the environment told the parliament committee that it issues fines for pollution or degradation of the environment by offenders, including the ASM sector.
At times, the agency issues suspension orders so that corrective action can be taken before a company resumes operation.
The Environmental Management Agency (EMA) informed the parliamentary committee that its main challenge was with the fines in terms of dissuading offenders, as the highest penalty is pegged at US$5 000.
EMA is struggling to enforce ESG compliance, as 85% of Zimbabwe’s over one million ASM players are not registered.
