Consumers, globally, are becoming more and more invested in how mining companies operate. In the past, compliance was a matter of observing basic guidelines. Now, there is increasing interest in companies to be honest and transparent, and for their supply chains to be visible.
There’s a recurring issue in mining, though: transparency. And it’s one that features strongly in PDAC’s agenda this week.
Changes in mining compliance
Modern mining compliance focuses on responsibility and anti-corruption. However, this concern doesn’t just come from an ethical perspective. Compliance puts a company ahead in the mining industry. Governance and transparency are aspects which “add value and protect the company.”
Compliance focuses on several factors: environmental, political, social and economic. Due diligence frameworks revolve around these factors. A company’s practices must be transparent on multiple levels, not just to customers and also to employees within the company.
Benefit to both the company and customer
Customers might seek out compliance that incorporates environmental, political, social and economic factors. However, it also benefits the company – it’s a safer, more visible option for merging and acquisition, as well as joint ventures.
This means that the company saves money on auditing, increases long-term success, and reduces the risk of mistakes. A mistake in compliance can affect a company dramatically, both on a cost and reputational basis.
We’re in the era of transparency and accountability. Companies are in the public eye. But honest practices can help bring success.
Compliance in 2019
Mining compliance in 2019 is both easier and harder than it has been before.
However, technologies like blockchain and artificial intelligence make compliance easier.
Blockchain allows companies to:
- Trace supply chains
- Display transparency
- Save time and money
- Improve security
Platforms like STAMP can provide end-to-end visibility of mining supply chains, supported by blockchain technology.
If there’s problems with lost product, corruption or unethical and sustainable practices, blockchain can help.
AI and machine learning benefit in different ways. They can help with:
- Risk management
- Analytics
- Mineral exploration
AI can help with extraction, reduce environmental impact, save costs and increase productivity. In compliance, it can make sense of massive amounts of data. AI will therefore become vital for the future of the mining sector. There are higher expectations of mining companies than ever before. That’s why change must happen now.
Streamlined compliance, higher expectations
It’s becoming easier to demonstrate transparency and responsibility. Because of this, consumers and auditors have higher expectations of accountability.
This means making sure your company integrates social, corporate and environment policies into its mining operations. Consequently, this also means anything from contribution to the economic prosperity of a poor community to ensuring that a mine site is adequately rehabilitated.
It’s no longer enough to demonstrate some transparency and provide limited insight into operations. The future of mining prizes entire honesty and accountability in supply chains and company processes. Therefore no corruption or bribery can occur. Transparency will need to be absolute.
While this might not come about quickly, the practices that we’re implementing now will pave the way for mining’s future.
At Blockhead, we are using blockchain technology to trace mining supply chains. This helps you demonstrate better compliance and transparency, and saves time and money. Head over here to find out more.