Refining in the Precious Metals

Sustainability Chain

Michael B. Mooiman

Franklin Pierce University & Argo Advisors International

Agenda

What is Sustainability and why is it important?

Mining industry and sustainability

The role of refiners

Our challenges and how to address them

Standard Economic Model

Firms Households

Factors of Production

Goods and ServicesMaterials

Energy

Economy

Waste

Problems with Standard Economic Model

World Population

Tragedy of the Commons

William Forster Lloyd -1833

Tragedy of the Commons

Tragedy of the Commons

Tragedy of the Commons

Tragedy of the Commons

Tragedy of the Commons

Tragedy of Global Commons

Overgrazing

Deforestation

Mining

Overfishing

Greenhouse

Gases

Fresh water

usagePollution

Constrained & Non-Sustainable Economic

Model

Firms Households

Factors of Production

Goods and Services

Heat

Materials

Energy

Ecosystem

Economy

Waste

Our Impact on the Planet

Holocene period – 10,000 years ago until now

Warm interglacial period - includes most of modern human development

Transitioned to Anthropocene period

Humans have a profound and permanent effect on the planet

Started with Industrial Revolution

Marked by urbanization, fossil fuel usage, industrialization, large-scale

pollution, reduction of biodiversity, and climate change

What is Sustainability?

Sustainable = able to be maintained at certain rate or level (OED)

It’s about continuation

..balancing our needs with those of future generations

…about our impact on the planet

…..shrinking resources

…….moving from shareholder to stakeholder thinking

……...interaction of business, society and environment

Finding a Balance

Business

SocietyEnvironment

Profit

PeoplePlanet

UN Sustainable Development Goals

Water

Energy

Economic

growth

Industry

Responsible

consumption

& production

Business Case for Sustainability

Happier customers - improved sales

Happier investors

Reduced risk

Lower insurance costs

Lower operating costs

Sustainability and Mining

Sustainable mining?

Minerals and metals underpin our economic development

Mining = conversion of natural resources into human, social,

financial and manufactured capital

Allows diversification of economy

Communities continue after natural resources are depleted

Mining Community – Johannesburg, S. Africa

Sustainability Embedded in Mining Industry

Social license to operate

Reduce environmental impact of mining

Post-mining remediation plans

Concerned about energy and water consumption

Build infrastructure - roads, bridges, schools, clinics

Impact on local communities

Migrant labor

Long term planning - development, mining, remediation

International Council on Mining and Metals

Principles

Ethical business practices

Sustainable development

Environmental performance

Design, use & recycling

Societal performance

Environmental, Social and Governance

Initiatives

Refinery

FabricatorsBanks

Mines Smelter

End Users

Why We Should Participate – Value Chain

Refinery

FabricatorsBanks

Mines Smelter

End Users

Collector

Why We Should Participate – Recyclers!

LBMA Initiative

Expanded responsible sourcing program to included

environmental, social and governance aspects

Alignment with UN Sustainable Development Goals

Why Should We Participate?

Reputation

Good delivery certification

Part of precious metal value chain

Work and live in impacted communities

Cost benefits

Reduced risk

Lower energy and chemical costs

It is the right thing to do!

How Do We Contribute/Participate?

Educate ourselves about sustainability

Create goals and measure progress

Talk about our programs and initiatives

Ethical business practices

Understand Your Feedstock

Lower grade materials

More complex

Better analysis of incoming material – other than just PMs

Measure radiation

Other elements - XRF

Deleterious Elements in Refining

Higher Concentrations

Copper

Iron

Zinc

Nickel

Tin

Lower Concentrations

Mercury

Selenium

Lead

Cadmium

Arsenic

Tellurium

Bismuth

Beryllium

Thallium

Examine Chemical Consumption

Refining = metals + acids + oxidants + reductants

Byproducts = metal hydroxides + salts + water

Minimize chlorine usage

“Acid-less” processes

How Do We Contribute/Participate?

Focus on energy usage and CO2 emissions

Energy efficiency

Renewable energy supply

Energy Efficiency

Renewable Energy

Cogeneration – Electricity and Heat

Engage with Artisanal and Small Scale Mining

~25% of World’s gold from small-scale mining

Concerns

Illegal mining

Use of forced and child labor

Support for armed groups

Clashes with formal mining sector

Dangerous conditions

Money laundering conduit

Environmental Concerns

Ethical Considerations

Business Considerations

We Need to Engage with Artisanal Miners

Important source of precious metals

Provides livelihoods and leads to economic development

Promotes formalization of industry

Reduces conflict mineral supply

Promotes improved environmental practices

Improved mercury use

Promote Responsible Mercury Usage

Artisanal and Small Scale Mining

Artisanal and Small Scale Mining

Diamond Diggings – Kimberley, S. Africa California Gold Rush

How Can We Serve the Artisanal and Small-

Scale Mining Supply Chain?

Educate ourselves

Find the right partners

Make site visits

Due diligence

Concluding Remarks

Refiners are part of the value and sustainability chain

Many reasons to operate more sustainably

Reputation

Business reasons

Our responsibility to our planet and society

Need to engage more with ASM supply chain

"We are shaping the world faster than we can change

ourselves, and we are applying to the present the

habits of the past."

Winston Churchill