1002
Defining a Quanitative “Framework” for ESG Optimization of
Mineral Processing Plants
Landon Jackson, Connor Meinke, Rajiv Chandramohan, Kevin Erwin
Ausenco
ABSTRACT: A mining business’s Environment, Social, and Governance (ESG) profile is becoming a measure
of performance and risk for investors. One challenge of incorporating ESG into performance metrics is
quantifying it using measurable parameters. This paper explores various ESG guidelines with context to the
operation of mineral processing plants and proposes a framework for optimization studies. The framework
defines quantitative performance metrics derived from capital market mechanisms and focuses on the economic
feasibility of an operation. A strategic optimization pathway is explored to de-risk operational plants based
on the fiscal costs and incentives of ESG considerations. Methods to quantify operational baselines, correct
technical risks, and achieve sustainable practices are discussed. A simple leaching circuit is explored to exemplify
the stages in ESG optimization and potential decision pathways. Implementing an ESG-focused optimization
strategy unites environmental stewardship with stakeholder interest to set a new benchmark for the mineral
processing industry.
Keywords: ESG framework, quantitative metrics, optimization, de-risking, operational sustainability
INTRODUCING THE TERM
“ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE (ESG)”
Environmental, social, and governance (ESG) is often
thought of as putting equity and environmental stewardship
at the forefront of corporate governance. ESG is typically
accompanied by buzzwords like sustainability, responsible
investment, and circular economy, intended to signal the
good virtues of a company. This familiar usage of the term
does not accurately encompass its potential influence on
the mineral processing industry. Instead, ESG holds alter-
native meanings in both the financial and technical aspects
of an operation. Financially, ESG and report ratings have
been used as an opportunity to transfer investments into
“environmentally friendly” portfolios. Meeting ESG invest-
ment requirements is critical for greenfield sites to secure
the capital necessary for commissioning. Unfortunately,
there have been issues with the past usage of ESG regarding
the greenwashing of portfolios, lack of standardization, and
subjective fund ratings creating a degree of distrust (Doyle
2018 Tocchini &Cafagna 2022). Additional scepticism
also surrounds its novel ability to be used as a measure of
sustainability and create meaningful long-term improve-
ments (Lehmann et al., 2023 Berk &Binsbergen 2022).
However, with increased government regulations and guid-
ance in disclosure practices, the early efforts at utilising
ESG as a form of measurement are expected to be improved
upon and widely adopted (OSC 2022).
ESG also retains fundamental importance in techni-
cal applications beyond the social and financial defini-
tions (i.e., morality and investment). From an engineering
standpoint, ESG represents the ability of an organization
Defining a Quanitative “Framework” for ESG Optimization of
Mineral Processing Plants
Landon Jackson, Connor Meinke, Rajiv Chandramohan, Kevin Erwin
Ausenco
ABSTRACT: A mining business’s Environment, Social, and Governance (ESG) profile is becoming a measure
of performance and risk for investors. One challenge of incorporating ESG into performance metrics is
quantifying it using measurable parameters. This paper explores various ESG guidelines with context to the
operation of mineral processing plants and proposes a framework for optimization studies. The framework
defines quantitative performance metrics derived from capital market mechanisms and focuses on the economic
feasibility of an operation. A strategic optimization pathway is explored to de-risk operational plants based
on the fiscal costs and incentives of ESG considerations. Methods to quantify operational baselines, correct
technical risks, and achieve sustainable practices are discussed. A simple leaching circuit is explored to exemplify
the stages in ESG optimization and potential decision pathways. Implementing an ESG-focused optimization
strategy unites environmental stewardship with stakeholder interest to set a new benchmark for the mineral
processing industry.
Keywords: ESG framework, quantitative metrics, optimization, de-risking, operational sustainability
INTRODUCING THE TERM
“ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE (ESG)”
Environmental, social, and governance (ESG) is often
thought of as putting equity and environmental stewardship
at the forefront of corporate governance. ESG is typically
accompanied by buzzwords like sustainability, responsible
investment, and circular economy, intended to signal the
good virtues of a company. This familiar usage of the term
does not accurately encompass its potential influence on
the mineral processing industry. Instead, ESG holds alter-
native meanings in both the financial and technical aspects
of an operation. Financially, ESG and report ratings have
been used as an opportunity to transfer investments into
“environmentally friendly” portfolios. Meeting ESG invest-
ment requirements is critical for greenfield sites to secure
the capital necessary for commissioning. Unfortunately,
there have been issues with the past usage of ESG regarding
the greenwashing of portfolios, lack of standardization, and
subjective fund ratings creating a degree of distrust (Doyle
2018 Tocchini &Cafagna 2022). Additional scepticism
also surrounds its novel ability to be used as a measure of
sustainability and create meaningful long-term improve-
ments (Lehmann et al., 2023 Berk &Binsbergen 2022).
However, with increased government regulations and guid-
ance in disclosure practices, the early efforts at utilising
ESG as a form of measurement are expected to be improved
upon and widely adopted (OSC 2022).
ESG also retains fundamental importance in techni-
cal applications beyond the social and financial defini-
tions (i.e., morality and investment). From an engineering
standpoint, ESG represents the ability of an organization