The big reversal — how Trump 2.0 may harm the mining industry

In the past decade, environmental, social and governance (ESG) concerns have risen to the top of the global mining sector’s corporate agenda.

Historically, few industries have left such a trail of environmental destruction and social dislocation in their wake, and 21st-century governments, investors and the wider public have called it to task to clean up its act.

The concept of diversity, equity and inclusion (DEI) – ESG’s cousin – has also become a feature of an industry that has long been linked to notions of hypermasculinity and, in South Africa’s case, was a bedrock of white rule. However, is US President Donald Trump and his far-right administration now detonating explosives at the coalface of these initiatives?

Mining executives who spoke to Daily Maverick on the sidelines of the recent Mining Indaba in Cape Town said this is not the case, noting that the decarbonisation drive to contain rapid climate change is global and major markets such as the EU are still forcing the issue with regulatory frameworks such as green tariffs.

“The reasons that mining companies have embarked on various ESG initiatives are as true today as they were before and as they will be in the future,” said Rohitesh Dhawan, chief executive of the International Council on Mining and Metals (ICMM).

“These are things that are immune to short-term political cycles. And the commitments that people made were not based on the current political climate. They were made on the basis of what made business sense and what will make business sense in the future.”

The ICMM has two dozen company members that represent about a third of the global metals and mining sector, and these members commit to certain principles.

About DEI, which has become a swear word to Maga Republicans, Dhawan said: “The reason our companies have committed to leading actions on DEI is because it makes good business sense and it happens to be the right thing to do. By having a more diverse workforce, by increasing the participation of women in mining, you are seeing benefits to the business.”

It just makes sense not to exclude half of your potential labour pool and this extends from the C-suite to the mining shafts.

“We have anecdotal evidence – we don’t have the firm data yet – that coal trucks driven by women perform better when it comes to safety and the efficiency of tyres and brakes than coal trucks driven by men,” Dhawan said.

His views were echoed by other mining executives at the indaba. Said Gold Fields chief executive Mike Fraser: “I think what you have to be very clear about is why you are doing ESG, why you are managing diversity, why you are decarbonising your business. It’s about managing risks and taking advantage of opportunities to create a better ecosystem for the business.

“For us at Gold Fields, we are very clear about why we are doing it, why we are making these investments and decisions. It’s not about satisfying anybody externally – it is about running a good business.”

In South Africa, for example, Gold Fields’ solar power plant at its South Deep mine makes economic sense as Eskom’s tariffs surge. This is a key reason the country’s mining sector is on a renewable energy drive – a reflection of global trends.

Rich dividends from green energy

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.