How This Company Reports Prioritizing Environmental, Social And Governance Concerns In Its Exploration Operations

How This Company Reports Prioritizing Environmental, Social And Governance Concerns In Its Exploration Operations

From all indications, there can’t be a low-carbon energy future without copper. Over the years, the metal has proven to be one of the most vital elements in an ever-growing drive to advance renewable energy.

To achieve this clean energy future, however, tons of copper are reportedly needed, and junior mining companies like Max Resource Corp. MAX (OTC: MXROF) could be helping the world meet the demand for the metal.

The company uses a different strategic model when searching for copper. It looks for deposits that it says have been either misunderstood or overlooked by larger companies, reevaluates the assets, adds value by advancing them, and then sells them.

ESG Concerns

But this may not be Max Resource’s only forte. The junior mining company says it also prioritizes environmental, social and governance (ESG) concerns in its operations.

More than ever before, consumers, employees and investors are choosing companies that prioritize ESG concerns, and Max Resource might have taken a leap when it comes to that.

Ernst & Young Global Limited (EY) notes that shifts in global climate, geopolitics, capital and workforce are transforming the mining and metals industry, presenting risks and opportunities.  

EY, one of the largest professional services networks in the world, observed that:

  • Long-term mining projects must consider the impact on local climate and communities, balancing the bottom line with societal value.
  • ESG-driven business models mean embracing big data, supply-chain automation and artificial intelligence (AI) and learning from other industry sectors.
  • Struggling to attract new talent to a legacy industry, mining companies look to technology and environmental stewardship.  

Bouncing back from the difficult COVID-19 pandemic and disasters that have damaged the entire industry’s reputation, mining companies are under enormous pressure to demonstrate their ESG credentials and prove they can be a trusted partner in fighting climate change.

When Tesla Inc. TSLA signed a deal with Australia’s BHP Group Ltd. BHP to secure nickel supply in July last year, the two companies revealed that they would work together to make the supply chain cleaner.

The deal activated a metal industry ESG trend with companies now expected to pledge and demonstrate their commitment to promoting and contributing to a cleaner planet.

ESG Compliance

Max Resource says its mining activities — including exploration of copper in the newly discovered district-scale Cesar copper-silver project in Colombia — are not only ESG compliant but also contribute to a cleaner energy future.

The previously overlooked Cesar project sits along the Colombian portion of the world’s largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors Glencore Glencore Plc. GLEN and Chevron Corp. CVX nearby.

The company has discovered a potentially district scale copper deposit at a time the metal has become the most sought after in the electric vehicle (EV) industry because of its super conductivity, efficiency and recyclability.

Several renewable energy sources like wind and solar technology and energy storage also need copper. But EVs alone need three times more copper than fossil fuel-powered vehicles.

While finding more copper to meet the growing demand of the renewable energy sector, Max Resource says being ESG conscious means being mindful of the regions it operates in. Max Resource is currently exploring in northeast Colombia, a region prolific for coal, oil and gas, but overlooked when it comes to copper as the country embraces an agenda to move toward cleaner metals.

The move looks like it has given the company an advantage, especially because it has discovered large quantities of copper in a region with significant mining infrastructure that guarantees no negative environmental impact in relation to moving to copper mining.

This could be good news for clean energy — especially as more EVs are expected to hit the streets in the coming years as players like Lucid Group Inc. LCIDNio Inc — ADR NIORivian Automotive Inc. RIVN and Tesla ramp up production.

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Posted In: Max ResourcesPartner ContentESGMarkets