In this InvestorIntel interview during PDAC 2023, Melissa Sanderson talks with Trevor Jones, Founder and CEO of Lynx Global Intelligence about its business intelligence (“BI”) software platform that collects data from various sources such as sensors, satellite images, and field data, and puts it into one centralized database. This allows both people on the ground and managers in the C-suite to see all the data that pertains to compliance, ESG, health and safety, security and risk, and other monitored aspects of the business.

Trevor mentions that the platform uses artificial intelligence (“AI”) tools to help its users query large amounts of data and support teams around the world. He also says that the platform can help mining companies comply with various ESG reporting by aligning data to pre-configured standards with a click of a button, saving clients time and money.

To access the full InvestorIntel interview, click here.

Subscribe to the InvestorIntel YouTube channel by clicking here.

About Lynx Global Intelligence

Lynx Global Intelligence is a software provider helping mining explorers and producers capture ESG data at the asset level.

To learn more about Lynx Global Intelligence, click here.

Disclaimer: This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

It is my style to attempt to personalize my writings by adding historic anecdotes from my past resources or finding more topical news to add spice to the theme of the day. So last week my mind was searching for the right “insert” to the Environment, Social, and Governance (“ESG”) theme. To my absolute amazement, last week became a very special, somewhat magical week. I was introduced to Watson!

Now by introduced I don’t mean up-front and personal, shaking hands type of first meeting. That would be difficult because a) Watson has paws, and b) Watson lives in Toronto (more than 10,000 miles / 16,000 km away). No, it was an across-the-airwaves type of introduction. Now, I have needed to reference the Canadian Privacy Laws to ascertain what I can and cannot say about Watson and I think what I am about to say is OK. Watson is a dog, owned by a professional colleague of mine. I do not know Watson’s breed, his colouring, or anything really, but I do know he is definitely male. A couple of reasons will soon be revealed.

Watson was taking his owner for a walk through the Toronto snow when he discovered something interesting in a three-foot snow drift. In he went! My recollection of the phone conversation at this point is: “Watson has just dived into a three-foot snow drift and all I can see are his ‘nads!” So, with those two attributes taken as a given, Watson is male! What that has to do with ESG and Critical Minerals is coming up.

The silence of ASX-listed critical minerals companies on ESG

Now, for those of you who frequently scan my writings to review the updates of the ASX-listed Critical Minerals companies you will have noticed that there are no tables. This is simply because there are no updates!

To date, I have contacted 16 of the 36 Rare Earth related companies for nada response. I have contacted 13 of the 60 Lithium companies. And again, thanks Ian Bucknell of Ioneer Ltd. for your reply. And again it is well worth taking the time to review their “Towards Sustainable Mining” work. That’s 1. Plus 14 of the 19 Vanadium companies and 13 of the 28 Cobalt companies. So, I am 56 reach outs and only 1 reply. What does this have to do with Watson?

Well, I am hoping that the ASX-listed Critical Minerals companies would respond to general queries on their ESG programs and progress. Guess not yet! And be careful of our North American friends who may be thinking things about Aussies. I have yet to receive a proactive North American Critical Minerals company pounding at my door to tell the story of their ESG prowess! Back to Watson. So instead of writing about the ESG performances, I guess I’ll have to talk about why I have no responses. This is where Watson fits in. Watson realized there was something valuable in that snow drift and in chasing it he went. He was prepared to leave his ‘nads exposed. That’s how I am feeling now. Not that exposed, but in looking at why people haven’t responded, I may upset someone. Is it worth postulating? Here goes!

It was suggested that all of my queries have been captured by Spam-ware and have disappeared before being given any serious consideration. But you would have thought that references to the Critical Minerals Institute and InvestorIntel would have piqued some interest?

Is it me or you?

Then I thought that maybe it was me! However, I don’t think I know enough people in the space for that possibility to be real. Although, I have presented at many conferences, seminars, and the like, and my presentation style can sometimes be seen as a little non-conventional, but I don’t think that was the reason.

No. I am sure it is the company’s approach to ESG that is preventing public disclosure other than what is necessary in ASX rules and then only available on websites. Why? Can it be our (Aussie) tall poppy syndrome, where if you raise your head someone will shoot it off? Makes some sense not to be seen as an early target for the woke ESG warriors. However, as I raised in the last article, by not being proactive, you run the risk, no, you have already lost control of the agenda. Remember the superannuation funds asking for “disclosure of time-bound climate transition plans”. Still makes me cringe! As I clarified:

1. You have to have a climate transition plan,
2. That plan is time-bound, and
3. The plan has to be disclosed.

And heaven forbid if this Investor Group (and its lobby groups) isn’t satisfied with the details in the plan. It gets worse.

Now for my ultimate Watson. I am going to put myself into the position of a CEO of a Critical Minerals company looking to raise funds but having to face the woke ESG brigade. How do you relate to the audience that the technology you are using is state of the art, best in class, minimizes power usage, presents products into the world of renewables, BUT, does not achieve anywhere near net zero carbon? I’ll leave you with that question and trust when it is your turn to present, your audience appreciates your Watson moment!

The article below provides some insight into the questions raised in the Sustainability Program at PDAC 2023 and the price of “losing control” of a company’s Environmental, Social, and Governance (“ESG”) agenda as well as continues my series (now on part 4) on contacting Australian Stock Exchange-listed Critical Minerals companies to get their views on ESG.

ESG and Critical Minerals Development – The Price of Lost Control

I was wondering how to answer a key question proffered in the Sustainability Program from PDAC 2023:

• How do you “Differentiate your company and attract investment through ESG performance and reporting?”

This is all around my previous concerns about losing control of the agenda by not being proactive with ESG; not being bold with ESG; others have taken control. This is pointedly identified in an article by Geoff Chambers, Chief Political Correspondent and Simon Benson, Political Editor in The Australian newspaper, Tuesday, March 7th, 2023. “Investor Groups seek certainty on Labor safeguard mechanism”. This is about an aggregation of some of the largest superannuation funds in Australia banding together to dictate woke ESG policy direction. Talk about lost control. This is the price of lost control. What that will eventually cost, I’ll try to discuss later, but to the point.

“Australian investor groups representing members with $US43 trillion in assets under management want the government to bolster the safeguard mechanism and avoid “greenwashing” by forcing heavy emitters to disclose time-bound climate transition plans.”

I want you to think about “disclosure of time-bound climate transition plans”. Made me cringe!

1. You have to have a climate transition plan,
2. That plan is time-bound, and
3. The plan has to be disclosed.

And heaven forbid if this Investor Group (and its lobby groups) isn’t satisfied with the details in the plan. It gets worse.

“Where technology is not yet available, carbon credits will play a vital role in helping facilities meet their obligations and remain competitive,…”

The cost of this lost control of the ESG agenda? I find it impossible to predict the timing of when the whole Net Zero process falls apart and we wake up to some sort of new, post-climate apocalypse awakening, new-normal. But it will. But in the meantime, you have to be ready to “disclose time-bound climate transition plans” that are acceptable to the Investor Group. Sounds impossible? Does to me. That means your finance has dried up. That’s the cost of losing control. How long? Well, that depends.

Achieving Operational Net Zero

So, you and I know that you cannot achieve net zero in your operations. You and I also know that you thought you only have two options going forward. One is to plug the gap by buying carbon credits. The other is to hope this whole movement will come to a true sense of realization and fall apart. Any thoughts on how you are going to include “not yet available technology” in your plan? There are also politicians who don’t want carbon credits allowed since “real” emissions reduction isn’t occurring.

You have to ask yourselves the question: “Am I prepared to regain control of the agenda?” If your answer is yes, then go back through my articles where I have told you what to do to demonstrate your ESG credentials. And if you need a good operating example, look at Ioneer Ltd posted in Article 3 of this series. You need to get going. How much time (and hence money) do you have? Well, until the key part of the Net Zero program fails and its failure is seen as a death knell to the 2050 target. What is the key part?

The HR Dilemma

Human Resources. The western world will come to a point where it will realize that it has taken 2 generations to completely overwhelm our education system with anti-STEM, pro-end of the world cataclysmic theories where fossil fuels are bad, development is bad, the future of the planet is at risk. OK, we have a self-induced climate change awareness revolution. But see the irony here? Who is going to fix it? Where is STEM? By creating the environment for the outrage around climate change we have decimated the education system that is needed to provide the resources required to fix it.

The following article by Simon Packham, Foreign Affairs and Defence Correspondent, again from The Australian newspaper, Tuesday, March 6th, 2023. “Submarines ‘need 108 Ph.D. level nuclear scientists per year’”. Not sure if this situation rings true in the US, but it should certainly be ringing alarm bells for those people who think that developing approximately 10 times our current world outputs for rare earths, lithium, vanadium, cobalt, copper, etc is a simple walk in the park. Where are the Human Resources coming from? So, the answer to when is the announcement that the Net Zero program failed is the timeline of acceptance of the Human Resources issue.

Oh, the Price of the Lost Control? Your unrealized profits during this period. And more, much more.

ESG and ASX-listed Cobalt Companies

The process of contacting key Australian Stock Exchange-listed Critical Minerals companies to get their views on ESG has continued this week. The table below for Cobalt will complete the first round of contacting key players. Future articles will hopefully cover the responses coming in, and possibly then contacting some of the lesser players. We will see how that goes. Previous articles 1-3 provide context for anyone who has missed that.

I have updated the Rare Earths reference table and am still to receive any responses. (See Appendix A: ESG in Rare Earths development)

I have updated the Lithium reference table to include the response of Ian Bucknell of Ioneer Ltd. (Thanks Ian.) (See Appendix B: ESG in Lithium development.)

I totally recommend people interested in ESG to read the Ioneer 2022 Sustainability and ESG Report. Their approach using the Towards Sustainable Mining (TSM) framework is first class and looks to have today’s ESG needs well covered.

I have updated the Vanadium reference table and have received no responses to date. See Appendix C: ESG in Vanadium development)

Below is the Cobalt reference table. In the next issue, we will allow access to the tables via links and similarly with the ESG responses from the queried companies.

Cobalt Companies

Appendix A: ESG in Rare Earths Development

Appendix B: ESG in Lithium Development

Appendix C: ESG in Vanadium Development

With the Prospectors & Developers Association of Canada (“PDAC”) convention back in Toronto, Canada, I’ll discuss the four days Sustainability Sessions agenda as I view Environmental, Social, and Governance (“ESG”). I’ll include these comments in each weekly update of my “ESG and Critical Minerals Development” series. See after the Vanadium table.

The process of contacting key Australian Stock Exchange-listed Critical Minerals companies to get their views on ESG continued this week. I am looking to assuage the concerns of some of our stakeholders as to the ESG credentials of those Australia-based organizations that are in a position to supply and add value to the Critical Minerals shortage the world is now facing. The questions are not designed as a platform for investment decisions, but as an important step towards letting you know what their values are, what their achievements have been, and where they see our industry heading. The reference table will include the company name, the ASX Ticker code, their website reference, their current Market Capitalization, and their response to the ESG questionnaire.

The reference table will include all of the Australia-based companies that qualify for the Australian Critical Minerals Strategy.

The questions were:

1. A brief description of your activities
2. How do you define ESG?
3. What should stakeholders be aware of in your approach to ESG?
4. How do you see ESG becoming an important function in the future?
5. Do you have any ESG lessons learned that you may wish to share?

I have updated the Rare Earths reference table and am still to receive any responses. (See Appendix A: ESG in Rare Earths development)

I have updated the Lithium reference table to include the response of Ian Bucknell of Ioneer Ltd. (Thanks Ian.) (See Appendix B: ESG in Lithium development.)

I recommend for people interested in ESG, they should read the Ioneer 2022 Sustainability and ESG Report. Their approach using the Towards Sustainable Mining (TSM) framework is first class and looks to have today’s ESG needs well covered.

Below is the Vanadium reference table. In the next issue will be the Cobalt table. Each issue will allow access to the tables via links and similarly with the ESG responses from the queried companies.

Again, as an aside, if I was responsible for responding to the above query, I would also publish that response to the ASX and include it on the website for an ongoing reference.

PDAC 2023 – The World’s Premier Mineral Exploration & Mining Convention

Sustainability Program

“The Sustainability Program aims to facilitate multi-stakeholder dialogue and peer-learning on key issues related to responsible exploration and mining.”

“The Sustainability Program features presentations and dialogue that examine the innovative ways in which mineral exploration and mining companies are working to improve their sustainability performance, presenting challenges and successes, as well as lessons learned. Topics discussed at the Sustainability Program are both current and critical to the continued improvement of the performance in the industry.”

Sunday, March 5, 2023

• Operationalizing the “S” in ESG: Does it matter to investors?
• Negotiating agreements in early exploration: Best practice MOU’s and EA’s

Monday, March 6, 2023

• Differentiate your company and attract investment through ESG performance and reporting
• Leveraging agreements for Indigenous economic inclusion: Practical implementation
• The amazing race to decarbonize
• Is the future nuclear? Community and industry perspectives

Tuesday, March 7, 2023

• Planning for sustainable mineral development 101
• Navigation complex waters: Tools for security, conflict and human rights
• Changing global rules? The impact of EU’s raw materials strategy

Wednesday, March 8, 2023

• Addressing sexual harassment: Exploring obligations, risks and solutions in Canadian mining

Looking at the articles to be presented they can also be considered as sub-sets of the 5 questions that I have forwarded to the ASX listed Critical Mineral companies. I would be very interested if any of you attend PDAC 2023 and are part of the Sustainability Program. Could you comment as to their articles and the appropriateness and coverage of my questions?

ESG and Critical Mineral Development

Question 2: How do you define ESG?

I want to get something off my chest that has been brewing for the last few years. I am so disappointed in our Corporate world. They have lost control of the ESG agenda. Instead of leading, they have stayed mute and allowed the left-wing woke brigade to establish their agenda. Let me explain.

In my career building management systems in the resources industry, I used a term called SEQ management. That was Safety, Environment, and Quality. Done properly, it totally covered the now ESG agenda, but with a key difference. And what is the difference, you may ask? Simple. We were in control of the agenda. You see, I see ESG (then SEQ) not as your social license, since that is undefinable, but as your social credentials.

Environmentally, you certify your systems to the ISO standard. In Safety and Health, again the ISO standards are available. The Quality systems look after your production processes. Supported by improvement groups working on the key issues, you are set up to handle any issue that may arise. Or that you may want to stay in front of. You are in control. But you may say that the new issues such as climate change, inclusion, or equality are not covered. Well, they are. Climate change is controlled by having the lowest power consumption in your industry group. You may wish to include CO₂ emissions equivalent if you wish, and it makes economic sense to do that. Inclusion can be treated under your health management systems and processes. Equality can be dealt with similarly.

Had the Corporate world been in front of SEQ then the ESG wave would have stayed a ripple, instead of a tsunami, as some folks see it. And you would be in front of it, instead of seeing it reactively as a challenge. Still, it’s with us now. Get in front and be public about your results. Have a read of the Ioneer report referenced earlier. It can be done.

Appendix A: ESG in Rare Earths development

Appendix B: ESG in Lithium development

The process of contacting key Australian Stock Exchange-listed Critical Minerals companies to get their views on ESG continued this week. I am looking to assuage the concerns of some of our stakeholders as to the ESG credentials of those Australia-based organizations that are in a position to supply and value add to the Critical Minerals shortage the world is now facing.

The questions are not designed as a platform for investment decisions, but as an important step towards letting you know what their values are, what their achievements have been, and where they see our industry heading. The reference table will include the company name, the ASX Ticker code, their website reference, their current Market Capitalisation, and their response to the ESG questionnaire.

The reference table will include all of the Australia-based companies that qualify for the Australian Critical Minerals Strategy referenced below.

2022 Critical Minerals Strategy

The survey questions were:

1. A brief description of your activities
2. How do you define ESG?
3. What should stakeholders be aware of in your approach to ESG?
4. How do you see ESG becoming an important function in the future?
5. Do you have any ESG lessons learned that you may wish to share?

I have updated the Rare Earths reference table but have received no responses as yet. (See Appendix A: Rare Earths Table.)

Below is the Lithium reference table. In the next issue, we will add the Vanadium table, followed by the Cobalt table. Each issue will allow access to the tables via links and similarly with the ESG responses from the queried companies.

Lithium Company Table

As an aside, if I was responsible for responding to the above query, I would also publish that response to the ASX and include it on the website for an ongoing reference.

Appendix A: Rare Earths Table

As I mentioned in a previous article, I am contacting key Australian Stock Exchange-listed Critical Minerals companies to get their views on Environmental, Social, and (corporate) Governance (“ESG”). I am looking to assuage the concerns of some of our stakeholders as to the ESG credentials of those Australia-based organizations that are in a position to supply and value add to the Critical Minerals shortage the world is now facing.

The questions are not designed as a platform for investment decisions, but as an important step toward letting investors know what their values are, what their achievements have been, and where do they see our industry heading.

The reference table will include the company name, the ASX Ticker code, their website reference, their current Market Capitalization, and their response to the ESG questionnaire.

The reference table will include all of the Australia-based companies that qualify as part of the Australian Critical Minerals Strategy referenced below.

2022 Critical Minerals Strategy

The survey questions were:

1. A brief description of your activities
2. How do you define ESG?
3. What should stakeholders be aware of in your approach to ESG?
4. How do you see ESG becoming an important function in the future?
5. Do you have any ESG lessons learned that you may wish to share?

I will update the reference tables regularly and highlight any new responses received. As this is the first time, here is the Rare Earths table. The next issue will be the Lithium table, followed by the Vanadium and Cobalt tables. Each issue will allow access to the tables via links and similarly with the ESG responses from the queried companies.

Note: At the time of publication, there have been no ESG responses to those Rare Earth companies queried.

As an aside, if I was responsible for responding to the above query, I would also publish that response to the ASX and include it on the company’s website for ongoing reference.

Net Zero Carbon – Article 4. A possible way towards meeting an ever-expanding ESG agenda.

Wow. Article 4 is here already and this will finalise my thoughts on how ESG Concerns are going to have an influence on the Net Zero Carbon goals. And as a reminder, this is only two points off the list. Further articles will address the issues of Technology, Power Requirements, and Human Resources.

In my first article, I introduced a planning dilemma that I had been tasked to look into. Mining in a First Nations National Park. Sounds daunting but there are planning/decision steps you can control and others you cannot. This ESG response that follows was part of my solution to that dilemma. It is also a major part of the ESG issues that will be faced as we attempt to advance on a Net Zero Carbon future. It is also my generic model for any resource business.

As we move into an age where accountability looms large, it would seem obvious that our systems, our processes, and our outputs need to be transparent, understandable, and very importantly defensible. You may think of your systems as your legal defence should things go astray or as your curriculum vitae (CV) to attract/impress your stakeholders.

Step 1. International certification of your management systems.

The International Standards Organisation (ISO) is an independent, international organisation with a membership of 167 national Standards bodies. Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market relevant International Standards that support innovation and provide solutions to global challenges.

OK. That’s the official words but what is it to us? It’s independent. It’s internationally accepted. It’s certification of your management systems through thorough independent, industry-experienced professionals who audit every relevant aspect of your business. So, your environmental management system can get the ticks (ISO 14000 series). As can your safety and health system (ISO 45000 series). This is where you can address the recent EID (Equality, Inclusion, Diversity) inclusions as a mental health related issue. You can also include your risk management systems (ISO 31000 series). And it will also be wise to include your quality systems (ISO 9000 series) as the internationalisation of the Net Zero Carbon solution progresses. That may seem like a lot of expense (it isn’t if you do it properly). I prefer to define it as the cost of doing business. It’s your instruction manual. It’s the way we do business. It’s also a line of defence should anyone challenge your credentials. I prefer to see it as a starting point to excellence. Remember the First Nations National Park.

Step 2. Becoming a Best-in-Class operation.

Now you may think that ISO certification is a pretty good standard to reach. As it is. And it’s cost effective if you think of it as a type of corporate insurance policy. I use it as the glue of the business. Operation to the Standards, verified by independent audit, is a foundation that maintains the status quo, while capturing any gains your business can attain through commencing the journey to best-in-class. The Standards don’t really help here in the way of further improvement. The Standards encourage a continuous improvement ideal but of themselves do not provide the mechanism to get to a position of excellence. I will introduce a suite of tools which when used properly provide an excellent road map through regulatory compliance, ISO certification and onwards to best-in-class.

I would like to introduce DNV. Det Norske Veritas. (The Norwegian Truth).

DNV are an independent expert in assurance and risk management. Driven by their purpose, to safeguard life, property and the environment, they empower their customers and their stakeholders with facts and reliable insights so that critical decisions can be made with confidence. As a trusted voice for many of the world’s most successful organisations, they use their knowledge to advance safety and performance, set industry benchmarks, and inspire and invent solutions to tackle global transformations. For us, though I would like to reference three of their system development products.

The International Safety Rating System (ISRS).

ISRS consists of 15 key processes, each embedded in a continual improvement loop. Each process contains sub-processes and questions. It is designed as a measuring tool but I have used it in reverse by utilising the questions within the sub-processes to design the steps and activities needed to build the management systems itself. So your progress through regulatory compliance, ISO certification and progress to best-in-class can be planned effectively and rolled out as part of your normal business planning process.

The following is an extract from the DNV website.

An ISRS assessment is a thorough evaluation of these questions and involves interviews with process owners where the questions are scored and commented. The scope of the assessment is entirely flexible determined by the size and complexity of the organisation and the management team’s requirements. Detailed verification is conducted and organisations must be prepared to offer evidence to support their answers. The process scores determine an overall level of performance between one and ten. The results provide a detailed measure of performance and a gap analysis against the organisation’s desired level of performance. This becomes the planning basis for improvement during the next period. ISRS seventh and eight editions are structured with 15 processes embedded in a continuous improvement loop:

1. Leadership
2. Planning and administration
3. Risk evaluation
4. Human resources
5. Compliance assurance
6. Project management
7. Training and competence
8. Communication and promotion
9. Risk control
10. Asset management
11. Contractor management and purchasing
12. Emergency preparedness
13. Learning from events
14. Risk monitoring
15. Results and review

During my early years of developing ESG systems, the ISRS protocol was extensively used around the world and is available today. To expand the ISRS concept, DNV further developed IERS (environmental) and IQRS (quality). I used these protocols to fully integrate ESG into the normal business planning process. And then the benefits can be clearly seen and achieved (My next series of articles: Better business outcomes using ESG principles).

Step 3. Communicating with stakeholders

Having developed your systems and implementing best-in-class processes, you want a return. This clearly comes by effective communications with your stakeholders. Everyone should know about your efforts and achievements. How else do you think you will be trusted/selected to do that First Nations National Park project? How else do you think the Critical Minerals developments necessary to attempt to reach Net Zero Carbon will continue to get effective and expeditious approvals from the regulatory bodies? How can you provide a response to the eco-challengers that are surely lurking ready to cancel you? And very importantly, how to convince prospective employees that you are the industry that they wish to base their careers around?

Here are some promised references you may wish to peruse to help your thinking on the Net Zero Carbon quest. You may think I am biased towards the negative on this issue. Nothing could be further from the truth. I have sufficient solar power installed such that I require no annualised input from the grid; I am self sufficient in water supply; I am an active recycler and my property has been developed with full ESG aspirations in mind. The fact that I haven’t provided more fact based pro-Net Zero articles is purely to do with, well, they are not available, compared to the numerous pro-nuclear and negatively focused anti Net Zero Carbon debate. I will keep you posted.

The Australian newspaper, January 11^th 2023

Ted O’Brian. Federal Government opposition energy spokesman.

Nuclear Energy? Who better to ask than Japan, whose history is inextricably linked to it.

Comment: Part of the Australian proposed debate on the future of nuclear power.

The Rice Video – CO2 in perspective, Malcolm Roberts. The Galileo Movement.

One Australian view of the issue of anthropological climate change.

Comment: A little old, but the numbers used are factual.

Till next article, stay safe.

The Critical Minerals Institute (CMI), an international organization for professionals and companies involved in the critical minerals sector, is pleased to publish the first of the monthly CMI Virtual Summit Series — InvestorIntel Hosts Battle of the ESG Titans: Does ESG Work or Matter In Critical Minerals Mining? 

The CMI virtual summit, which was held on December 14^th, featured ESG and critical minerals expert Melissa “Mel” Sanderson head to head with critical minerals expert and Hallgarten & Co Analyst Christopher Ecclestone. The theme of the debate was whether ESG (Environmental, Social, and Governance) principles work or should be applied to the mining sector. Moderated by CMI Board member Peter Clausi, the majority of viewers responded favorably to Mel’s position and deemed her to be the people’s choice winner.

Mel starts this debate by saying that ESG implementation is not only important but essential for the resource industry to minimize risk and attract investment capital, she concludes with “Getting ESG right isn’t easy, but it sure is worth doing right.” Moderated by CMI Director Peter Clausi, this debate “…even took on the third rail of ESG, which is anthropomorphic climate change.”

On the other side, Christopher starts with how ESG is just “old wine in new bottles”, and exits with “For the emperors with no clothes of the US asset management industry, ESG is the figleaf of last resort.”

To access this full debate, click here

For more information on the Critical Minerals Institute, contact Christine Segram at [email protected] or +1 416 792 8228 for more information.

There is a word in the Navajo language, in English written as: “hozro.” This one word encapsulates an important philosophy for the Navajo people, as it translates to mean putting oneself in harmony with one’s surroundings. “Hozro” has helped the Navajo, one of the largest Tribes in the US, to coexist more harmoniously than many other Tribes with the dominant White culture. The Navajo reservation is the largest in the US and hosts many natural resources essential to the economic development of the country.

These resources have not always been developed either harmoniously, respectfully or conscientiously by companies. Uranium mining on the Navajo reservation remains a disgraceful episode in US history, with radioactive contamination of essential water sources and soil and associated human sickness and death still a reality, not a memory, for many Navajo families. As a consequence, many Navajo are adamantly opposed to new uranium mining anywhere on or near the reservation.

Despite this, coal mining has a much more successful history with the Navajo. Until 2019, when the Navajo Generating Plant closed, many Navajo worked both at the coal mine feeding the Plant and in the Plant itself for 45 years. The Navajo Nation initially attempted to purchase just the coal mine, but then pivoted to a much more ambitious vision, establishing the Navajo Transitional Energy Company (NTEC). NTEC’s website states its mission is: to be a reliable, safe producer of coal, while diversifying the Navajo Nation’s energy resources to create economic sustainability for the Nation and the Navajo People.  One visible effort by the company is the large solar panel array near Kayenta on the reservation.

Less visible efforts include building a mining portfolio, until recently heavily focused on coal. NTEC owns and operates the Antelope and Cordero Rojo coal mines in Wyoming, Spring Creek in Montana, and Navajo Mine in New Mexico (the latter located on the reservation). Utilizing its multi-generational mining expertise, NTEC has built a sound operational foundation and increasingly is being recognized for its efforts. In November of this year, the National Mining Association, in conjunction with the Department of the Interior’s Office of Surface Mining Reclamation and Enforcement recognized NTEC with two awards, for Mine Safety and for Stewardship of National Resources through Reclamation.

But while building on its strengths NTEC also kept an eye on its mission to develop sustainable energy sources. In 2019 NTEC took an investment position in both Texas Mineral Resources Corp. (OTCQB: TMRC) and its USA Rare Earth project in Round Top Texas. More recently, NTEC has entered a more active partnership with Arizona Lithium Limited (ASX: AZL | OTCQB: AZLAF) to develop the Big Sandy lithium project near Wikieup, Arizona. This latest agreement may pose potential difficulties for NTEC, however.

NTEC’s December 5 announcement of the strategic alliance states that “NTEC has committed to lead the operational development of Big Sandy, which will include everything from Bureau of Land Management (BLM) project permitting, mine design, drilling environmental assessments, and construction and contract mining operations. The agreement provides for AZL and NTEC to commence work towards development of the Big Sandy project while at the same time continuing due diligence and negotiation of a definitive agreement.”

The announcement goes on to say that when NTEC meets certain mining development milestones with respect to Big Sandy, it (NTEC) will receive remuneration in cash or AZL shares and options to purchase additional ordinary shares. Importantly, the announcement notes that “NTEC understands the cultural significance of the land near the mining site. The company plans to work with the Navajo Nation and other Indian Nations to ensure the development at Big Sandy prioritizes appropriate cultural and environmental safeguards throughout the process.”

This latter statement appears to be a reference to the opposition of the Hualapai Nation to the Big Sandy project, which abuts the Hualapai lands in one area but does not lie within the Hualapai reservation. A December 15 interview on KNAU News Talk noted that “In April of 2021, the Hualapai Tribal Council passed a resolution strongly objecting to the proposed mining claim area, citing devastating impacts to significant cultural and spiritual resources.” Likewise, the Environmental Justice Atlas registers the Hualapai opposition, with the Hualapai claiming that exploratory drilling has affected a sacred spring on their land. According to the Atlas, the project also faces opposition from some residents of nearby Wikieup, Arizona.

It would appear that the Navajo, as part of the strategic agreement with AZL, may be about to become entangled in trying to resolve a pre-existing conflict between AZL and the Hualapai. If so, this could pose problems for not only the two Tribes but also BLM and the broader Department of the Interior, whose permitting processes require it to take into account objections from Native peoples to mining projects. BLM also is supposed to give priority to critical materials projects, including lithium, which is essential to the development of the electric vehicle industry, a growing component of the Arizona economy.

Kudos to the Navajo Nation for focusing on cooperation instead of conflict, and for taking the standard model of indigenous involvement in mining to new and more lucrative levels. In this particular case, let us see if “hozro” can prevail.

So, Florida Governor Ron DeSantis announced last week that he was, via executive fiat through the State Board of Administration, ordering that “social, political or ideological interests” be banned from consideration when making decisions for the State’s pension fund. Now, this is noteworthy for several reasons, but before I get to those, let me just quote the astonishing insight behind this decision. Here it is:

“Corporate power has increasingly been utilized to impose an ideological agenda on the American people through the perversion of financial investment priorities under the euphemistic banners of environmental, social and corporate governance and diversity, inclusion and equity.” 

Some might say that other institutions, such as the Supreme Court, are doing a much more direct and vigorous job of imposing an ideological agenda on the American people than corporations – but, laying that aside, let’s take a look into a couple of aspects here.

At least the Governor knows his enemy, correctly spelling out what ESG and DEI stand for. But does he know what they represent?

E is for Environment. Increasingly fragile in the Southern Coastal States, where rising oceans, more deadly hurricanes and more prolonged and destructive rainfall are imposing billions of dollars in actual costs and threatening to create a tide of “climate refugees” forced to relocate from formerly prime real estate. Seems like a responsible political leader would laud corporate efforts to reduce the climate impact of operations, especially if your state has 1,350 miles of coastline.

S is for Social, i.e., people (otherwise known as voters or constituents, in this context). To save time, and because they flow together, let’s also discuss diversity, inclusivity and equity (DEI) in this space. Aside from the human impacts mentioned above under environment, all these elements taken together represent important decisions by businesses to try, within reasonable constraints, to ensure that their workforces more closely resemble the faces seen in America – and other countries – in all their varied skin hues, genders and philosophies. In other words, to value and respect each human individual for what they contribute to advancing the business. Funny – seems like a politician or a political leader should be very interested in a bigger tent filled with more – and more diverse – supporters.

G is for governance. Following laws, doing the right thing, having clear procedures, and being bound by ethics and morality… seems like those all are good things. Or maybe not, for some.

If nothing else, however, Governor DeSantis also may be threatening the well-being of State retirees with this decision, by reducing the return on the State’s investment portfolio. Why? Studies have shown a positive relationship between ESG and financial performance. In other words, ESG-conscious companies earn more returns for investors.

One such study, conducted in 2021 by the NYU Stern Center for Sustainable Business and Rockefeller Asset Management, looked at performance metrics from 2015-2020 and found a 58% positive relationship between ESG and financial performance. This study also notes: “In addition, in a recent study by Rockefeller, top quintile ESG improvers (based on Rockefellers’ proprietary ESG Improvers Score) outperformed bottom quintile ESG decliners by 3.8% annualized from 2010 to 2020.”

Large institutional investment houses such as Schwab also recently have developed ESG investment portfolio recommendations for their clients, as well as establishing its own ESG ETF. This is unlikely to happen unless ESG investing is at least potentially profitable and provides individual as well as institutional investors the option of allocating investments in a way aligned with their personal or corporate values. Nothing about that seems to smack of “corporate imposition” to me.

But then, what can you expect from a man who has gone to war with Mickey Mouse?