Public trust in mining industry is on the rise. Picture via Getty Images
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- Public trust in mining industry is on the rise
- Growing support for mining is tied to renewable goals
- But environmental concerns remain a challenge for investors
Australia’s mining industry has long been a key part of its economy, providing jobs, infrastructure and essential resources.
Recent findings from a national survey by CSIRO reveal significant shifts in public feelings about mining – presenting both challenges and opportunities, especially for ESG (Environmental, Social, and Governance) investors.
The survey shows that trust in the mining sector has risen from a score of 2.8 in 2014 to 3.1 in 2024 on a 1-5 scale.
This signals a growing acceptance of mining in Australia, particularly as the country aims to increase production of critical minerals needed for the shift to renewable energy.
Notably, 73% of Australians understand that more mining is necessary to access these minerals and meet net-zero emissions goals. For ESG investors, this indicates that mining companies are starting to align better with what society values.
However, it’s not all positive news.
Around 61% of survey respondents still believe mining has negative effects on the environment, especially concerning water quality and ecosystem health.
People who oppose mining by age group
This presents a challenge for ESG investors: while the demand for minerals is on the rise, so are worries about the impact of their extraction and the damage to the environment.
To secure a sustainable future and maintain their social licence to operate, mining companies must tackle these concerns directly and show a real commitment to caring for the environment, concluded the survey.
“Public trust in the mining industry has improved,” said the CSIRO report. “The industry must continue to balance its economic role with environmentally and socially sustainable practices.”
Aussies support simpler rules for renewable mining
The survey also explored Australians’ views on what’s known as energy transition minerals. These refer to the critical minerals and metals we need to help us shift to renewable energy.
Demand required to meet Sustainable Development Scenario
A big chunk of Australians (66%) supports making rules simpler to speed up the switch to renewable energy. Many believe that government policies are a key part of how quickly we can make this shift.
However, there’s a divide: about 32% think we should cut back on mining even if it takes longer to reach our climate goals. This view is particularly strong among younger people.
CSIRO asked people whether mining is necessary to achieve a net-zero emissions future, and 64% of people said yes. Similarly, 65% support increased mining in Australia if it helps us meet our climate goals sooner.
Interestingly, opinions differ on where mining should happen. Almost half (47%) prefer that critical minerals be mined locally, while some think a mix of local and imported sources is best.
CSIRO also asked what makes mining more acceptable in Australia.
People rated 13 factors, and the most important ones focused on fair working conditions and good environmental management.
Most Aussies (64%) believe it’s vital to protect jobs in industries related to fossil fuels. However, only 40% think these workers are getting enough help to transition to new jobs in renewable energy.
Lastly, CSIRO explored how people feel about research and development for renewable energy.
A whopping 85% believe it plays a vital role in this transition. Many also feel it’s important to make research findings widely available to speed things up.
Community engagement – the new gold standard
Trust in the mining industry is closely tied to how well companies connect with local communities, according to CSIRO.
The survey found that fairness in processes and local involvement are crucial for maintaining trust. Companies that build strong relationships with local communities are likely to gain goodwill.
This is great news for ESG investors who are looking for companies that make community engagement a key part of their business.
“The industry must continue to balance its economic role with environmentally and socially sustainable practices to maintain public support and ensure that the benefits of mining are fairly distributed.”
The future is bright for ESG investors
For ESG investors, the results of the CSIRO survey tell a hopeful story.
The growing public understanding of how the mining industry helps the shift to renewable energy, along with increasing acceptance of mining itself, suggests that there’s a great opportunity for investment in mining companies that are responsibly managed.
However, it’s clear that these companies need to carefully navigate public opinions by actively tackling environmental concerns and ensuring they involve local communities.
As Australia aims to balance economic growth with caring for the environment, the mining industry’s ability to adapt will shape its future, said CSIRO’s report.
For ESG investors, the message for companies is simple: the way to prosperity lies in being open and honest, engaging with communities, and genuinely committing to sustainable practices.
In the words of Australians
CSIRO also asked community members to explain in their own words the importance of critical minerals in the transition to renewable energy.
The following comments were typical:
“No critical minerals no renewable energy, simple.”
“The development of renewable energy can ensure energy security and reduce the dependence on fossil energy.”
“It’s good to know more about how mining is evolving in Australia towards renewable energy, environmental protection and sustainability, and to offset climate change.”
“The environmental/health and economic benefits of ending mining and switching to renewable alternatives far outweigh the cons.”
Comments also revealed the tension within the Australian community about increasing mining activity in this country:
“We cannot keep contributing to the climate crisis and ruining the lives of future generations by continuing to mine and rely on fossil fuels.”
“The ‘transition to renewable energy’ is used as an excuse to rip up beautiful land in pursuit of so-called critical minerals, clearly a furphy when the ‘critical minerals’ already in supply within waste streams are not being recovered or recycled.”
“If they were indeed critical, there would be a focus on recovering what has already been mined rather than destroying more ecosystems.”
“What exactly are the environmental impacts of critical minerals mining for transition to renewables; do the negatives ‘cancel out’ the future positives?”
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