Premium Features:
A climate of inevitable change
Friday, November 30, 2007
MINING
companies who proactively manage their own resource efficiency will be
in the best position to deal with emerging climate change issues, says Partners in Performance managing director Skipp Williamson. A
report prepared by the UN Intergovernmental Panel on Climate Change
shows the long-term impact of climate change on individual countries is
a cause for alarm.
Based on research from more than 200 scientists, the report found that
countries like Australia are likely to face more intense and frequent
fires, droughts, floods and storms. Stream flows into one of the
country's most critical water sources for industry and farming, the
Murray Darling Basin, are forecast to reduce by up to 50%. Droughts are
expected to increase by 20% by 2030 and by up to 80% by 2070 in key
mining areas such as southern Western Australia.
Implications for resource companies
Companies in the mining sector can't ignore the risks associated with
climate change — doing nothing is probably the greatest business risk.
Changes in the regulatory environment will increase raw material and
energy costs.
Communities will have greater influence over whether mining operations
should be given licences to operate based on their climate impact.
Increased droughts will mean that mines are likely to compete fiercely
for scarce water.
Investment markets are already starting to re-price companies that are
poorly positioned to compete in a warming world with a carbon tax.
Their risk profiles, cost of capital and valuations are starting to
experience the impact of management's tardiness in dealing with climate
change.
It's also likely to mean less favourable terms for them when raising
capital or borrowing against vulnerable assets in areas affected by
more erratic weather patterns.
Resource efficiency is a must
As a result, survival in the mining, mineral processing and
manufacturing industries will require much greater attention to
resource efficiency. Environmental improvement initiatives such as
reductions in carbon emissions or water usage need to be 'hard-wired'
into a company's operations in order for them to be successful.
The following three pronged approach has proven successful in improving resource efficiency on mine sites.
1. Generate ideas
Establish the baseline of where your energy and/or water are used, how much and what type.
Conduct idea generation sessions with key stakeholders to identify ways to reduce or eliminate energy or water use.
Prioritise ideas based on those with the highest impact and ease of implementation.
Develop implementation plans which resolve resourcing and risk management issues.
2. Make those ideas work
Proactively review, coach and support those implementing the improvements.
Monitor their output key performance indicators to ensure the idea
works. Should problems arrive, provide problem solving support.
'Lock in' the new idea into the fabric of your business to prevent
it being abandoned over time. This can involve changing procedures,
accountabilities and staff induction manuals.
3. Get your wiring right
It's essential to ensure your organisation is hard wired to support
ongoing improvements. Wiring is basically the mechanics of management.
It's the combination of an organisation's management systems,
accountabilities, processes, staff, competencies and disciplines.
Companies who have publicly announced commitments to a reduction in
carbon emissions are at risk of missing their targets if they don't
have this wiring in place. Examples include resource efficiency KPIs,
accountabilities and targets for their people.
In the new era of climate change, resource efficiency must be an
integral part of a mining company's operations. Those businesses that
build resource efficiency into their wiring and prioritise their
improvement initiatives are likely to reap significant benefits
compared to the laggards in this space.
 Click here to read the rest of today's news stories.
| 
|
Email to a Friend 
Print This Page
Feedback
