Enviromental impact in the mining sector

This article focuses on the mining sector and features presentations from Virginia Castellucci (Head of Sustainability), Caterina Castaman (Sustainability Specialist), and Angelo Rizzella (Head of Sustainability at Argor Heraeus). The session covers an introduction to XNatura and its main applications in mining, including how the platform supports environmental impact assessments. A live demonstration showcases analysis of a specific mine site, followed by case studies from Argor Heraeus. The final ten minutes are reserved for questions, with queries collected throughout the session and addressed at the end.

XNatura is an environmental platform that is part of the 3Bee company, combining different technologies to monitor biodiversity, nature, and climate. The company received funding from the European Union two years ago to develop Europe's first biodiversity credit system and is currently progressing toward that goal. The organization employs sixty people, with the majority working in R&D. More than ten thousand IoT devices are deployed worldwide, mapping over one million hectares globally. The client base exceeds five hundred companies, and partnerships have been established with more than fifteen research centers to advance technological development and complete the environmental platform.

The platform primarily utilizes remote sensing technology, complemented by extensive use of bioacoustic sensors and image recognition systems. All analyses can be completed with laboratory testing and on-field surveys. The client base includes companies, municipalities, and natural parks.The development of Europe's first biodiversity credit system is underway. A new ISO standard was recently released in Italy, published on September 23rd by UNI, the operational branch of ISO in Italy. XNatura contributed to this standard, which focuses on measuring a company's impacts on biodiversity and subsequently designing and creating biodiversity credits. The webinar specifically addresses platform usage within the mining sector.

The platform offers several general benefits across sectors: Risk Assessment and Scenario Analysis: The platform enables comprehensive risk evaluation and supports the creation of multiple scenario analyses to inform strategic planning. Real-Time Monitoring: When integrated with sensor networks, the platform provides continuous environmental monitoring capabilities. Environmental Impact Assessment Support: The system significantly streamlines and enhances the environmental impact assessment process. Sector-Specific Benchmarking: Users can compare their performance against industry-specific KPIs and benchmarks. Regulatory Compliance: The platform supports compliance with both general sustainability regulations and mining sector-specific requirements. Data Visualization: Comprehensive data visualization tools make complex environmental data accessible and understandable.

The platform provides sector-specific benefits tailored to mining operations throughout the entire lifecycle: Operational Phase: Real-time environmental monitoring during active mining operations helps track operational impacts. The platform assesses risks for damage prevention both at mine sites and in surrounding areas, recognizing that mining impacts extend beyond the immediate extraction zone. Mine Closure Phase: When a mine reaches the end of its operational life, the platform provides data to inform closure decisions and procedures, enabling informed choices based on comprehensive environmental data. Future Projections: Scenario planning capabilities allow for evaluation of multiple restoration and regeneration options. The platform demonstrates how KPIs will change based on different decisions through predictive modeling.

Compensation Measures: For mines required to implement compensation during operations, the platform supports the design of compensation strategies aimed at achieving biodiversity net gain targets. It enables tracking and verification that compensated areas deliver greater biodiversity value than disturbed sites, supporting overcompensation requirements where necessary. The system generates reports with quantitative KPIs demonstrating compensation efforts to stakeholders and for compliance purposes.

The mining sector plays an essential role in the green transition, providing critical raw materials for renewable energy and other sustainable technologies. However, the sector is responsible for four to seven percent of global greenhouse gas emissions. Mining operations generate substantial impacts on both climate and ecosystems across five key areas: climate change, ecosystem degradation, pollution, habitat fragmentation, and resource pressures. Key impact statistics highlight the sector's environmental footprint: approximately 100,000 hectares are lost annually due to mining activities, local water quality can decrease by up to 30%, PM 2.5 particulate matter can increase by up to 25% in mining areas, local agricultural productivity may decline by as much as 50%.

While the mining sector generates significant environmental impacts, it also depends heavily on existing ecosystem services. These dependencies include: Provisioning Services: Water, raw materials, energy, and mineral resources. Regulating Services: Water filtration, climate regulation, erosion control, and flood management. Supporting Services: Essential ecological processes that maintain ecosystem function. Cultural Services: Social and cultural benefits provided by natural environments.

Analysis reveals that more than 90% of value creation in the mining sector is moderately dependent on nature, while 50% of the supply chain demonstrates high dependency on natural systems.The industry faces both transitional and physical risks. As decarbonization and sustainability regulations advance, mining companies encounter transitional risks from shifting market demand, stricter regulations, and evolving investor expectations. Simultaneously, physical climate risks can disrupt production infrastructure and increase safety and remediation costs.

A comprehensive normative framework governs the mining sector. World Bank guidelines on extractive industries have been updated within the environmental and social framework. The Convention on Biological Diversity (CBD) and the Global Biodiversity Framework (GBF) include specific provisions addressing the mining sector. The platform follows the TNFD (Taskforce on Nature-related Financial Disclosures) approach and its specific disclosure metrics. The mining sector has core disclosure metrics particularly focused on site areas potentially impacting sensitive locations, areas where impacts are being managed according to a plan, and areas where management plans have been verified or approved by third parties.

TNFD provides the mining sector with additional disclosure metrics covering multiple aspects: Conservation and Restoration Activities: Measuring total area or species populations covered by collaborative conservation or restoration initiatives supported by companies. Circular Economy: Metrics such as the proportion of waste that is recycled. Ecosystem Services Assessment: Extent of site-level ecosystem services evaluation. Additional KPIs: Mining impact management, supplier management, capital allocation, water impact, and state of nature indicators. These sector-specific disclosure metrics address the unique characteristics and challenges of mining operations.

TNFD follows the LEAP approach, and XNatura is structured to support this methodology: Locate: Through satellite imagery and GIS analysis, land use is identified on the site and within buffer zones. Evaluate: Data is monitored via IoT sensors, field data support, and satellite data to detect changes over time. Assess: Environmental trends are analyzed to model future risks and opportunities. Prepare: The effectiveness of current strategies and KPIs is tracked in real-time. The platform supports environmental impact assessments for the mining sector and other sectors requiring such evaluations, including energy infrastructure.

Environmental impact assessments are required for specific mining projects. For large projects, EIAs (Environmental impact assessments) are mandatory, while for smaller projects they may be required but are not always obligatory. EIA requirements apply to: Quarries and open-cast mining with surfaces exceeding 25 hectares. Peat extraction where site surface exceeds 150 hectares. Petroleum and natural gas extraction for commercial purposes where daily extraction exceeds 500 tonnes or 500,000 cubic meters of gas.

The platform supports mining projects through multiple stages: Screening: Geospatial and environmental data is provided through satellite imagery and GIS analysis. Scoping: Various technologies including remote sensing, bioacoustic sensors, camera traps, and biomonitoring systems collect data, supplemented by field surveys and laboratory analysis. Reporting: Automated reports can be generated for public consultation, authority review, evaluation, and decision-making processes. The full range of technologies currently deployed for platform operations is available for mining sector projects. XNatura has been selected by clients across different sectors, with specific case studies from Argor Heraeus presented to demonstrate mining sector applications.

The demonstration illustrates how the XNatura platform operates in practice. The session begins with a general overview showing how to prioritize specific sites, then examines a copper and gold mine, focusing on risks and impacts at a unique location. The mining sector application extends beyond mine sites to include river tailings and other environments impacted by mining operations. A carbon mine with scenario analysis is also presented, along with examples of sensor applications for surveys and census activities.

The overview section presents the platform's general interface. In demonstration mode, multiple sites are visible, though in actual use, the display shows all supply chain sites, mines, and impacted areas relevant to a specific organization. The overview provides information about monitored actors and sites. In the monitoring section, all sites within a supply chain are visible on a map, with different colors indicating varying risk levels. This visualization facilitates the prioritization process according to risk assessment. The overview includes information about how many sites are currently being impacted or generating impacts in different ways, along with trends in the site matrix.

The site matrix enables comparison of two KPIs simultaneously. For example, when examining MSA (Mean Species Abundance) against hydrogeological risk, the graphs reveal that hydrogeological risk is highest for one specific site that also exhibits the lowest MSA. This analysis identifies which sites require action based on specific risk factors. When considering different KPIs, such as distance from protected areas, different sites may require prioritization. Some sites located far from protected areas with high MSA do not require immediate prioritization, while sites within or very close to protected areas with low MSA demand attention. The low biodiversity level within a protected area represents a suboptimal condition requiring intervention.

The demonstration focuses on a copper and gold mine in a unique location - situated at more than 4,000 meters elevation on a mountain in Indonesia. The site both significantly impacts the environment and is highly affected by it, particularly regarding biodiversity. The first visible element is the perimeter - the area defined for the site. Perimeters can be customized using the "add new perimeter" button, allowing adjustment of the monitored area. Control areas can also be modified to determine the extent of surrounding territory used for comparison purposes. Changes are saved once appropriate borders are established.

The map can display different layers highlighting important factors. Protected areas are particularly significant for this site, which is not only located within a protected area but is also near at least two additional protected areas. This positioning creates particular sensitivity for environmental impact. The platform follows the LEAP approach, beginning with the "locate" phase. Location information reveals the site is in an equatorial climate zone that is fully humid, with an alpine biome. The high humidity means rainfall is a critically important factor for this location. Customization options allow specification of production processes to be considered. This information is important for various analyses, including those based on ENCORE data, economic value calculations, and employment figures. General descriptions can be added and confirmed, with all information then visible in the platform. Status, impacts, and risks are presented in general overview format.

The site's conditions reflect its location in an extremely humid area, where aridity reaches its maximum level. Population density is approximately one inhabitant per hectare, with almost no MSA present. This indicates an absence of pollinators, minimal permeability, virtually no natural areas, limited animal and plant life, and significantly reduced freshwater availability compared to reference conditions. Risks are significant in terms of climate stress, as mining activities generate substantial environmental and climate impacts. The site faces particular concerns regarding protected areas, given its location within one, and hydrogeological risk, which stands at 50% - neither extremely high nor negligible. A feature displays data based on ENCORE, representing not the site's actual values but benchmark values for each production process in terms of risks. The mining sector demonstrates very high impact on invasive species, and medium impact on freshwater use.

When a site exhibits particularly high impact in a specific area, such as land use, users can click on the benchmark, add their own data regarding intensity, reach, and irremediability, and confirm the entries. After confirmation, the system displays medium, high, and higher irremediability levels, allowing comparison of the site's performance against the benchmark. If site-level impact exceeds the benchmark, this becomes a priority for resolution or compensation efforts. All these datails are visibile on the XNatura environmental platform.

The KPIs section begins with land use analysis. Land use is particularly important because the site differs completely from its control area, resulting in divergent KPI values. Numerous graphs and KPIs are available, with focus placed on the most significant indicators. Rain emerges as a critical KPI with a 17.4% value. The dashed line represents the benchmark for areas in similar conditions. Analysis reveals that rain levels are unusually high for this site type, scoring at level D on a scale from A to E. Historical trends show the rainfall pattern has increased with many peaks over time. Future projections are available, allowing comparison of different IPCC scenarios. While projections don't vary drastically across scenarios, all indicate continued increases in rainfall in coming years for both best and worst-case IPCC scenarios. Understanding these factors helps identify what must be prevented, monitored, or anticipated in the area.

MSA (Mean Species Abundance) is presented in relation to land use. Higher human impact through land use correlates with lower MSA values. The total MSA reveals that while the benchmark typically stands at 56.3, this site registers only 6.8 - significantly lower than expected. The control area, located within a protected area, is almost completely natural and scores much better than typical benchmarks, ranging around 50-53%. The platform provides regeneration objectives to pursue. The first objective, "regenerate 30%," would increase MSA from 6.8 to 30. The second objective, aligned with Earth targets, aims to reach 50%. The "match benchmark" objective would bring the site to 56%, while "full recovery" represents the ultimate goal. Achievement of these objectives depends on site conditions, site type, and the feasibility of MSA restoration, which in this case is extremely low.

The analysis extends beyond the mining site to include the tailings system, which presents a unique situation. From the mountain location, a slope gradient combined with significant rainfall contributes to transporting waste into a river selected for tailings disposal. The river was chosen because it is not navigable and has no aquaculture or fishing practices, suggesting limited impact on livelihoods. However, environmental impact remains substantial. At sea level, impacts are clearly visible from satellite data. Despite being far from protected areas, the location exhibits higher MSA than the mine site. The same analytical processes can be applied here, with the added capability of predicting outcomes through scenario analysis based on planned changes.

Two versions are compared: the base version and a slightly modified version. The modification involves adding bamboo plantings to increase soil stability, along with mangroves and other plants to enhance nitrogen fixation and other essential ecosystem services. The map displays what was planted in which locations, with one tab showing differences in absolute values or deltas between the two situations. MSA does not change significantly because this is not a mining site but rather a natural area, where MSA is already expected to be higher. Changes are slight but measurable, showing increases in pollinator abundance, nesting sites, nectar potential, and floral abundance.

A closed carbon mine provides a clearer demonstration of scenario impact. The site contains two soil types. In the land use visualization, two situations are compared: the base condition, where the main soil type consists of open spaces with little or no vegetation, and a regenerated scenario where Calluna vulgaris (heather) was planted in place of low vegetation areas. The comparison reveals significant changes even from adding just one tree species. MSA remains relatively stable because only one species was added and because the closed mine status means MSA was already recovering compared to active operations.

Comparing base conditions to regeneration scenarios reveals substantial improvements. Pollinator abundance increased from 7 to 30, nesting sites grew from 20 to 44, and nectar potential rose from 49 to 93. The platform allows creation and comparison of multiple scenarios simultaneously. An additional function called "survey and census" enables specific monitoring through sensors. Features can be added to areas for recording everything observed through camera traps, Birdy systems (for bird monitoring), Spectrum sensors, and other monitoring equipment. This section collects all observations and recordings, automatically generating statistics and allowing addition of sighting photographs.

Angelo Rizzella serves as Head of Sustainability at Argor Heraeus. With a background as an environmental engineer and occupational health and safety specialist, he worked for approximately eight years as a consultant in occupational safety and environmental protection before joining Argor Heraeus in February. Responsibilities include all sustainability-related matters, from reporting to developing internal and external strategies, projects, and initiatives. This role involves liaising with customers, NGOs, associations, consultants, and corporate entities. Co-responsibility includes conducting mine visits and managing projects aimed at creating positive impacts along the value chain.

Argor Heraeus is a precious metal refinery, not a mining company, founded in 1951. The name "Argor" is Italian, standing for argento (silver) and gold. The company has had several owners throughout its history. A significant development occurred in 2017 when Argor became 100% part of the Heraeus group and was integrated into the operational company Heraeus Precious Metals. Argor Heraeus operates in more than 60 countries. The company's footprint has grown over time and currently consists of two large refineries in Madrid and Hong Kong, two representation offices in Germany and Italy, and two employees in the US (both located in New York) established in 2022 to cover the US market.

Since 2004, Argor Heraeus has been part of a joint venture with Argor Alliba in Menderisio, covering carbon coating for various applications. Argor positions itself at the center of the value chain, explaining the company's strong interest in the mining sector. The company serves as an integral link between upstream and downstream sectors, connecting various stakeholders in the precious metal industry. In the upstream segment, engagement occurs with customers in the scrap, mining, and good delivery sectors. These relationships enable sourcing and refining of precious metals from diverse sources, ensuring a sustainable and responsible supply chain. Mining represents approximately 50% of incoming material volume refined annually and constitutes the main impactful source along the supply chain.

In the industry segment, service is provided to a diverse customer range including banks, central banks, bullion houses, high-end watch and jewelry manufacturers, chemistry industries, and institutions. A key advantage lies in functioning as a one-stop shop, offering not only refining services but also transformation services such as production of bars and semi-finished or finished products for jewelry and watchmaking. Beyond refining and transformation capabilities, comprehensive services support physical business management, including trading and hedging solutions, laboratory services for quality assurance, and secure transportation. Recently, a consulting and support service has been added to help clients both upstream and downstream understand operational and product impacts and explore less impactful solutions.

By positioning at the center of the value chain, seamless integration and end-to-end solutions are ensured for customers, backed by expertise and commitment to excellence. This strategic position enables connection of diverse stakeholders across the precious metals industry while maintaining rigorous standards throughout all operations. The responsible sourcing approach serves as a cornerstone of commitment to integrity and sustainability. Rigorous selection criteria have been established to ensure that every partner and material aligns with organizational values and international standards. This framework encompasses comprehensive evaluation of potential suppliers and materials across multiple dimensions, creating a robust system that protects both organizational reputation and stakeholder interests while advancing sustainability objectives throughout the supply chain.

Evaluation encompasses multiple factors: Risk Assessment: Country risk, business activity, compliance, and reputational risk are thoroughly evaluated. Reputational Protection: Risks that could impact organizational reputation or stakeholder confidence are proactively identified and mitigated, reinforcing confidence in sourcing practices. Environmental Responsibility: Priority is given to suppliers who minimize CO₂ emissions, protect biodiversity, and avoid harmful practices such as mercury use, with the goal of reducing environmental impact across the entire value chain. These measures create a supply network reflecting dedication to sustainability, transparency, and respect for people and planet.

The typical image of a mine - a large hole, extensive cracks, dust, exposed soil - represents only one type of mine and one part of the mine complex. Large-scale, open-pit mines include several components not visible in typical imagery: Tailings Dams: Containment structures built to store residues from mineral processing. Heap Leach Beds: Piles of crushed mineral on waterproof bases where chemical solutions are sprayed to dissolve metals. Waste Dumps: Accumulations of waste material that do not contain economically extractable minerals. Stockpiles: Reserves of extracted material, such as raw minerals accumulated on the surface for future processing, transport, and sale. Process Plants: Facilities that transform raw materials into valuable products through chemical and mechanical processes. All these functional components have environmental footprints and are common across different mine types with varying scales and impacts.

Underground small-scale artisanal mining, such as the Barranquillos operation, represents a different mining type but generates similar environmental impacts. For example, verification that artisanal small-scale miners operate mercury-free is essential. Viewing mine sites and refinery operations from above (via satellite or aerial imagery) provides perspective, but without additional knowledge or data, the view offers limited insight. Comparing a refinery's surroundings, an alluvial mine's surroundings, and a portion of large-scale mining in a desert area raises critical questions: Which operation most significantly impacts biodiversity? How can biodiversity impact be measured? Why do these impacts occur?

Reputation is fundamental in this sector. Ensuring that declarations are correct, database-supported, and replicable is essential. Answering critical questions without exposing the organization to reputational risk requires selecting a methodology aligned with organizational principles. XNatura provides partnership capable of delivering solid, data-based analysis using recognized methodology that remains current with evolving legislation. The platform measures various parameters and uses input for internal analysis. Outputs generated with XNatura support are used in decision-making processes to achieve organizational targets. Site assessments have been conducted at company facilities and at online sites of business partners.

For company sites, assessments provide the foundation for developing action plans aligned with the Global Biodiversity Framework (GBF) for restoring areas and demonstrating that nature regeneration is achievable through data-based approaches.Mine site assessments demonstrate that company efforts to restore nature can be measured and supported by technology for improved efficiency and credibility. Many mining companies take scattered actions without robust systems that allow them to demonstrate commitment based on data and track progress over time. A possible solution for tracking and adding value to commitments involves partnering with nature technology companies. Downstream actors appreciate this approach.

All presented information fits within a broader vision for 2030, synthesized as becoming the most responsible precious metal refinery and manufacturing company. A recent milestone was achieved in September with admission to the Swiss B Corporation Directory, a special Swiss program designed to support transition to a resilience economy. Five public pledges have been made: one addressing climate, one focused on water, one supporting local communities, and two promoting and guaranteeing welfare within the company.

Upcoming events are primarily in Italy. Lucrezia Palma will be present on November 20th in Milan for a conference focused on biodiversity, speaking on a panel addressing food and agricultural supply chains in the afternoon. Virginia Castellucci and Simone Mazzola will attend the Regeneration Forum of Regenerative Society Foundation in Milan on November 27-28. Lucrezia Palma will speak on December 10th in Rome at the Food and Wine Seminary, on a panel discussing lands, territories, and production. An additional webinar will be held in Italian before year-end, focusing on the greenwashing directive and specific cases sanctioned by AGCOM.