Responsible Mining Cost/Benefit Study: “Economically Rational and Strategically Important”

The Rocky Mountain Institute (RMI) has published a first of its kind assessment of the costs and benefits of responsible mining practices. Using the IRMA system as a basis for the study, Responsible Mining for the Energy Transition finds that, on average, responsible mining costs 0.4% of overall capital expenditures over the life of the mine.

The study’s authors conducted in-depth interviews with four mining companies currently in the IRMA system to explore the internal and external costs associated with the IRMA system. Interviews with the miners, purchasers of mined material, and investors also reveal the benefits of responsible mining and find that the costs of implementation are modest relative to the financial exposure from operational disruptions caused by stoppages or catastrophic events.

Beyond these tangible risks, responsible mining can improve more intangible but no less real challenges by helping to drive collaboration among different teams within a mining company and, through multi-stakeholder engagement and robust and accessible grievance mechanisms, improve relationships with mining-affected communities. Across stakeholder groups and rights-holders responsible mining provides transparency and accountability thus building more robust and durable social licence to operate.