Australians' trust in miners grows, but ESG concerns remain

A survey showed that Australians' trust in miners increased from a decade ago, but environmental concerns remain.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO), along with data science and community engagement firm Voconiq, surveyed more than 6,400 Australians to discover the extent they want the critical minerals required for the energy transition to be mined in Australia, the national agency said in a report released Oct. 29. The report, "Australian Attitudes Toward Mining," is meant to guide policymakers, industry leaders and communities in navigating environmental, social and governance challenges.

Global battery supply chains increasingly require sustainable sourcing of raw materials, and investors and communities are applying pressure on miners to do things right.

The CSIRO report found that, on a scale of 1 to 5, Australians' trust in the mining industry improved from 2.8 in 2014 to 3.1 in 2024, and acceptance slightly increased from 3.6 to 3.7. "However, further improvement is contingent upon the industry's ability to address environmental concerns, engage with communities transparently, and ensure fair distribution of economic benefits," according to the report.

The report also identified a "broader tension" between the urgent need for resources key to the energy transition and the environmental and social costs of their extraction.

While 61% of the respondents agreed that mining has negative environmental consequences, 73% acknowledged that accessing critical minerals is essential for achieving net-zero emissions, 71% agreed mining is important to the Australian way of life and 72% believe mining will support the nation's future prosperity.

"With more community awareness, [Association of Mining and Exploration Companies, or AMEC] members have noticed increased acceptance of the significant role [miners] play in supporting the communities they operate in and the broader economy," AMEC CEO Warren Pearce told S&P Global Commodity Insights.

Nicholas Boyd-Mathews, executive director and chief investment officer at Eden Asset Management Pty. Ltd., said Australians are generally "in favor of sustainability and want to see more consideration from the mining industry with regards to how we treat our environment."

However, "not enough is being done in the mining industry to change the way they explore and mine commodities, and with a shortage of critical minerals this should be embraced more with government incentives," Boyd-Mathews told Commodity Insights.

Building deeper trust

The report "made it clear that the mining industry needs to continue working on building trust and confidence with the community," Madeleine King, Australia's resources minister, told an industry conference in Sydney on Oct. 29.

"The truth is we will need more mining, not less, for the energy transition" as demand for critical and strategic materials grows exponentially, King said.

Kieren Moffat, CEO of Voconiq. Source: CSIRO.

Kieren Moffat, CEO of Voconiq, said the findings challenge the mining industry "to go further, faster, to build deeper trust and acceptance to support the extractive efforts required to meet the challenge of a global transformation of our energy system."

"People really understand why [energy] transition minerals are important and that increased mining is necessary to meet the demand and to meet the challenge," Moffat told Commodity Insights.

Still, reservations over mining's environmental impacts and working conditions remain.

"While there is strong support for mining as essential to achieving net-zero emissions, considerable concern about the environmental impacts of increased mining activity, such as on water resources and ecosystems, remains prevalent," according to the report.

Incidents such as Rio Tinto Group's destruction of a sacred site at Juukan Gorge, Western Australia, in 2020 have marred the industry's reputation, but they are also "catalytic events" for introspection within the companies, Moffat said.

"What is more explicitly called out in this year's work is treating employees well and fairly, both with respect to harassment in the workplace and making sure that working conditions are fair. Those workplace and environmental components are the conditions for acceptance of increased activity in extraction of transition minerals," the Voconiq CEO said.

Trust assessments

The 2024 survey measured dimensions of community trust in the industry: integrity in acting responsibly; competency, defined as "trusting the mining industry to be the best at what they do"; and humanity, defined as "valuing your community's needs and desires."

The mining industry was trusted most for its competency, followed by integrity then humanity.

When asked to rate their trust in miners to act responsibly, participants who know at least one person working in the sector reported significantly higher trust compared to those who do not know anyone in the industry.

AMEC's Pearce said having the time and resources to communicate what miners are doing behind the scenes is sometimes the most challenging aspect of earning communities' acceptance.

"There will always be those who oppose what we do, or don't totally understand the process or the wider benefits to the community. So we just need to do our very best to convey what we are doing," Pearce said.

"Overall, the industry is making massive inroads, but there is always work to be done. It never stops, nor should it."