The mining industry has come a long way, and green mining is the latest trend in the industry.
Many mining companies are now working to put ESG policies in place, meaning they must adhere to environmentally sustainable and socially responsible practices. This mainly stems from investors, who prefer to park their money into companies that have a positive impact on the environment.
This has put further pressure on mining companies to go green and implement environmentally-sustainable practices.
This blog post will discuss precisely what green mining is, how it helps the environment, and why green miners are worthy of your investment.
What is Green Mining?
Green mining is the cultivation of minerals and materials used to create eco-friendly products. Green mining is more sustainable, as it creates less waste, which will positively affect the environment in the long run. Green miners also use renewable energy sources such as solar power or wind power instead of diesel generators, helping reduce carbon emissions into the atmosphere!
Mining companies have been slow to adopt these practices, but that is starting to change. In fact, a recent study by the Fraser Institute showed that almost half of the world’s top mining companies are now implementing ESG policies!
How Mining Companies are Helping the Environment
Mining companies are not just helping the environment by implementing environmentally sustainable practices; they are also helping to create greener products. Mining companies are now extracting minerals and materials that help make eco-friendly tools such as electric vehicles!
Some of the top materials that miners are extracting for this purpose include lithium, cobalt, and graphite. Lithium is used in batteries for electric cars, cobalt is used to produce rechargeable batteries, and graphite is used to make the anodes for lithium-ion batteries.
These materials are in high demand due to the increasing popularity of electric vehicles. As more and more people switch to electric cars, the need for these minerals will continue to increase!
Now that we’ve explained everything to know about green mining practices, here are our top picks for Green Mining Companies to watch in the new year.
Rio Tinto Ltd
Rio Tinto (ASX: RIO) is a company that mines various materials, including lithium, cobalt, and graphite. Operating in close to 35 different countries, Rio Tinto is one of the largest mining companies in the world.
Rio Tinto is an excellent ethical investment, as they have been implementing ESG policies since 2018 and hold a fossil-fuel-free production portfolio. As a result, the mining company is a leader in renewable energy, with over 60% of its operations being powered by renewables!
Most recently, Rio Tinto entered an exciting agreement to absorb a new lithium project in Argentina. The $825 million acquisition of the project from Rincon Mining only offers positive returns, as lithium is set to significantly increase in value thanks to the electric vehicle revolution.
As a result, Rio Tinto has shot up to a market cap of AU$37 billion, with current stock prices sitting at AU$100.48.
New Age Metals Inc.
If Rio Tinto is too expensive as an investment, New Age Metals (CVE: NAM) offer promising small returns. The company holds a variety of projects in Northern America, focussing on ethical minerals such as platinum, palladium, copper, nickel, and cobalt.
These minerals all play an essential role in sustainable practices. For example, palladium is used in catalytic converters to reduce emissions! Meanwhile, nickel is an excellent material for making batteries that don’t produce harmful gases when being used.
New Age Metals are heading into 2022 with some exciting prospects. In its River Valley Palladium Project, they discovered a scarce platinum group metal called rhodium. 25 initial samples have returned assays higher than 0.050g/t of rhodium.
Considering that this metal is sitting at a price high of US$12,000/oz, this is extremely promising for both investors and the green mining company.
New Age Metals are a smaller company (currently holding a market cap of CAD$23.19 million). They are perfect for steady long-term investment.
Impala Platinum Holdings Ltd
Impala Platinum Holdings (JSE: IMP) is another great green mining company to invest in. They have multiple projects across Africa and are focused on sustainable mining practices.
Since 1975, Impala Platinum Holdings has held a wealth of experience in the industry. One of their most recent projects is called “The Unki Project” which will see them extracting platinum, palladium, rhodium, and gold! These minerals are precious due to the increased demand for electric vehicles. They will only continue to increase in value as the market share of these cars increases.
Impala Platinum Holdings has seen steady growth over the last year, increasing its market capital by 13.3% and making this green mining company a mouth-watering opportunity for ethical investors!
Glencore (LON: GLEN) is our last green stock pick to keep an eye on. The sustainable mining giant is from Switzerland and has mining projects set up across Australia, Asia, Africa, Europe, and the Americas. Glencore is one of the world leaders in the production of multiple sustainable metals and materials, including copper, cobalt, nickel, zinc, and lead.
Operating for over 50 years, Glencore is a great investment opportunity as it offers stability, diversity, and growth potential. The company’s long-life, lo-carbon, and sustainable portfolio also make Glencore an eco-friendly investment. In addition to this, Glencore was the first mining company to join the United Nations Global Compact in 2002- committing to sustainable development!
Over the past year, Glencore has seen an unprecedented rise on the London Stock Exchange, skyrocketing 40.3% in value and currently sitting at a market cap of GBX£51.19 billion. While stocks are running at a high price (opening at GBX£392.40), this is the perfect investment for those looking for steady and secure returns.
Furthermore, the mining giant’s stock is set to rise thanks to their recent acquisition of Cerrejón for $USD588 million. Cerrejón is one of the large coal mines in Colombia, making Glencore’s acquisition a fruitful addition to its project portfolio.
However, despite investing in coal, Glencore assured investors that it’s committed to reducing its total emissions by 15% in 2026 and 50% by 2035. Eventually, by 2050, Glencore aims for all of its business operations to reach net-zero total emissions.
Green Mining companies are becoming more ethical, which means investing in them can make you feel like a part of the Earth’s greater good. All four of these companies are great investments for our environment’s future and your savings!