“The group meets regularly to discuss how the industry can collectively advance key shared priorities — from climate action and responsible sourcing to addressing challenges in artisanal and smallscale mining. The aim is not only to raise awareness, but to encourage practical action and mutual support across the value chain. By working together, different parts of the industry can use their influence more effectively and support one another in driving meaningful change.” Gold mining and climate change According to Mulligan, climate change remains a defining issue across the gold value chain. “Most of the sector’s emissions are concentrated at the mining stage. In that sense, this represents both the risk and the opportunity. If gold miners can successfully decarbonise their operations, they have the potential to significantly reduce emissions across the entire value chain.” Energy lies at the heart of this transition. Around 60–80% of mining emissions are energy related, meaning the challenge is largely about how mines source and use power. In this respect, gold mining mirrors the wider global economy: decarbonising energy systems is essential to decarbonising industrial production. “Gold mines often operate in remote locations and, in many cases, must take responsibility for their own energy transition. This has sometimes produced positive outcomes. South Africa provides a good example. The large solar installation at the South Deep Gold Mine demonstrates that industrial-scale solar can successfully support a major mining operation. Importantly, it also helps show policymakers that encouraging self-generation through renewable energy can be a viable industrial strategy.” Locally, several mines are investing in renewable energy to reduce both emissions and energy costs, including Pan African Resources, which has installed solar capacity at Evander and Barberton, and Harmony Gold, which is developing a large- scale project at Moab Khotsong.
Gold mines often operate in remote locations and, in many cases, must take responsibility for their own energy transition.
consolidated standard relevant to producers across the whole sector, irrespective of size or geography. The aim is to create clear and credible benchmarks that investors and industry stakeholders can use to assess sustainability performance across minerals supply chains.” Collaboration across the value chain One of the most notable shifts in the gold market in recent years has been the move towards greater collaboration and
convergence across the value chain. “Historically, the industry was highly fragmented, with different parts of the market operating largely in silos. Gold miners typically interacted with refiners only at the point of sale and had limited visibility over where their gold ultimately
Similar developments are taking place globally. Solar installations are becoming increasingly common at mining operations, often as part of hybrid systems that combine renewables with existing power sources. Many mines initially rely partly on fossil
The World Gold Council is exploring ways to encourage responsible actors in the ‘grey’ market to enter the formal supply chain, with much of the discussion centred on artisanal and smallscale gold mining (ASGM).
fuel generation, before gradually integrating solar, wind and battery storage to increase the share of renewable energy. Mulligan points to Western
ended up. At the same time, jewellers and fabricators rarely looked far upstream or asked detailed questions about source and provenance. In many respects, the two ends of the value chain — mining and jewellery — were barely connected.” That dynamic is now beginning to change. Increasingly, the industry is creating forums and collaborative platforms where stakeholders meet regularly to discuss shared challenges and opportunities. A primary example is the Gold Principles Group, which brings together 14 industry associations, including the World Gold Council and the London Bullion Market Association, alongside organisations such as the China Gold Association, several Indian trade associations, and major jewellery industry bodies.
Australia, where some operations have progressed from solar installations to incorporating wind generation and battery storage, enabling a significant proportion of energy demand to be met by renewables. “Where grid supply is unreliable or insufficient,
companies have strong incentives to develop their own energy solutions. Renewables offer multiple benefits: they support decarbonisation, improve energy security and can reduce costs. Once installed, renewable systems often deliver attractive long-term economics, with cost savings becoming apparent relatively quickly. This combination of lower emissions, greater energy independence and improved cost stability is helping to drive the growing adoption of renewable energy across the sector,” Mulligan concludes. n
May 2026 | www.modernminingmagazine.co.za MODERN MINING 13
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