The risk-based approach to water management, and major challenges in the mining industry - ESG and the economics and ethics

The risk-based approach is the only approach that views the full spectrum of risk, following transparent international guidelines (ISO 31000) which can add value. It is also the only truly holistic approach that includes all stakeholders. Mining is now under the spotlight as never before owing to open-pit and tailings failures, and also general activist perceptions that can affect investment and operations. It must be seen to reduce the range of risks and the effects that are the consequences of its operations. The key lies in the integrated solution that includes risk management, new and resilient technology, effective procedures, the provision of real-time ground truth, and the ability to act fast. This is now possible due to advances in the IoT and automation. The display of actionable ground truth-based data that can trigger a tested and speedy response is not a luxury, but a necessity. There is now the ability to automate that response, reducing risk even further. A leading authority has recommended that the most effective approach is risk-informed safe design. The issuing of the Global Tailings Standard in August 2020 will also exert pressure for this matter to be addressed more effectively than hitherto. The risk-based approach is cost-effective and can deliver added value, not only for more effective operational management, but also with regard to oversight for ethical investment following IFC Guidelines and the Equator Principles, as well as any other compliance requirements. This paper describes the methodology to be followed and the possible solutions that could result. The technical communications element was developed in conjunction with providers. It also covers the economic and ethical benefits of following this course of action, and implicitly the costs of not doing so.