ENVIRONMENT

ESG Mining Company Index: Are miners doing enough to reduce land degradation?

More efforts are needed from the mining sector to slow the rate of land degradation

According to the ESG Mining Company Index, the cumulative total land disturbed by mining companies reported in 2023 – and yet to be rehabilitated – covered 1.11 million hectares. 

As mining companies face increasing pressure from stakeholders to improve their environmental footprint, how are they working to limit land degradation, and are they moving at a quick enough pace? 

The ESG Mining Company Index assessed data from 61 of the top mining companies and found that that the rate of new land disturbance significantly outpaced land rehabilitation efforts. 

Among the 21 companies for which we found comparable data, the new land disturbed at the end of 2023 totalled 10482ha, while a mere 5369ha was rehabilitated. Three companies conducted the bulk of the 2023 rehabilitation: Rio Tinto (2200ha), Peabody Energy (1294ha) and Vale (1100ha). 

Growing disturbance

As well as the slow pace of land rehabilitation, the ESG Mining Company Index identified an upward trend in land disturbance since 2021. Using comparable data from the 21 companies we have 2021-2023 data for, the total land disturbed at the end of 2023 was 788,551ha, up from 765,252ha in 2022 and 785,593ha in 2021 (figures are affected by acquisitions and divestments as well as new disturbance and rehabilitation programs). 

Lundin Gold leads on low land disturbance 

The ESG Mining Company Index ranked Lundin Gold as the most efficient land user in 2023, reporting only 408ha of total land disturbance. 

Lundin Gold's strong performance in the land disturbance category is largely due to the less damaging nature of underground mining compared to open-pit mining

In its 2023 Sustainability Report, Lundin Gold stated its commitment to reducing its environmental footprint and restoring land to its natural state after a mine's closure. In 2023, Lundin Gold restored 3.5ha, bringing its cumulative total to 13.2ha and nearing its 2025 goal of 14.5ha. 

To access the full list of company rankings, click here

More about the ESG Mining Company Index   

The inaugural ESG Mining Company Index covers more than 7000 data points, evaluates 61 of the world's largest mining companies through nine weighted indicators across six critical pillars: Carbon emissions, Water, Land disturbance, Safety, Diversity and Social investment. 

To access the full report today click here and/watch the free recording of our webinar.

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