Demand for critical minerals is expected to significantly increase with the shift towards renewable energy sources, leading to increased exploration for these minerals in new and remote regions. Mining companies may conduct initial exploratory investigations on mining site feasibility, yet environmental, social and governance (ESG) factors are often not prioritized. Now, Sara Bjørn Aaen and Anne Merrild Hansen from Aalborg University investigate how attention to ESG risks are accounted for in the screening process amongst junior and senior mining companies in Greenland, where all projects take place on indigenous lands.
The team identified screening factor categories (both technical and ESG related) and conducted digital surveys with mining companies operating in Greenland, followed by semi-structured interviews with key stakeholders. Survey results indicate that technical factors (mining and geological) are more decisive in the prefeasibility process for mining companies than ESG-related factors such as regulation, politics, logistics, markets, and the environment. However, the picture is not always so clear cut, with stable legislation a precondition for exploration, and environmental baseline studies sometimes conducted early in the process. Results also indicate that more senior companies tend to both pay more attention to, and invest more heavily in, the social impacts of mining activities, particularly with respect to communicating with local communities. The study provides an interesting insight on the nuances of expanding mining activity in the Arctic.
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