Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Lithium producer SQM’s operations in the Salar de Atacama salt flat have achieved IRMA certification, it said on Wednesday, meaning all Chile’s lithium mining facilities have now completed the evaluation process preferred by numerous EV manufacturers.
IRMA measures the environmental and social performance of mine sites under the rigorous standards set by the Initiative for Responsible Mining Assurance.
SQM scored 75 out of a possible 100 on its scale, receiving low marks from IRMA for its security arrangements and emergency preparedness, but high marks for its respect for biodiversity, fair labor standards and noise mitigation.
Its rival Albemarle was IRMA certified earlier this year, receiving an overall lower ranking of 50 due to low marks for community health and safety but high marks for greenhouse gas emissions abatement, among other factors.
SQM CEO Ricardo Ramos said in a statement the company’s decision to share the results of the audit “reflects our desire to improve and have an open dialogue with all affected stakeholders”.
IRMA provides third-party verification and certification of mining practices to protect human rights, communities and the environment along the supply chain. Ford and BMW are some of the companies which have joined the initiative.
(By Ernest Scheyder and Natalia Siniawski; Editing by Jan Harvey)
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