JV article: Miners shouldn’t just follow the rules, they should stay ahead of them

As global regulations tighten and environmental, social and governance (ESG) scrutiny intensifies, mining companies are being pushed to overhaul how they manage risk.

Increasingly, that means moving away from reactive compliance and toward proactive integrated environmental management systems (IEMS), according to Cecilia Jofre, chief sales officer and business director for Atlanta-based IsoMetrix, a global provider of sustainability reporting and risk management software. The systems can mitigate issues before they escalate, she said.

“Global regulatory trends are raising the bar for risk management in mining, requiring companies to adopt integrated, lifecycle-based and transparent approaches that address environmental, social and governance risks collectively rather than in isolation,” Jofre said. ”Piecemeal compliance is increasingly untenable in the face of these comprehensive and interconnected requirements.”

In many mining operations, critical data – ranging from geological surveys and blasting records to sensor readings, maintenance logs, and financial reports – is scattered across disconnected systems and departments. This fragmentation makes it harder for mine operators to spot risks or respond quickly to issues. Change is already being driven by regulations.

Due diligence

New laws, like the European Union’s Corporate Sustainability Due Diligence Directive, the Corporate Sustainability Reporting Directive, and the Critical Raw Materials Act, require companies to conduct comprehensive due diligence across their entire value chain –including ESG. Similarly, supply chain transparency laws, such as the EU’s Conflict Minerals Regulation and the U.S.’s Dodd-Frank Act, are pushing for detailed mapping and oversight.

“These laws demand holistic risk assessments and transparent reporting, making it impossible to address risks in isolation without facing legal and reputational consequences,” Jofre explained.

There is also global pressure to consolidate mining assurance and traceability standards like the Consolidated Mining Standard Initiative, the International Council on Mining and Metals Mining Principles, and the Initiative for Responsible Mining Assurance.

“This consolidation aims to create consistent, cross-jurisdictional expectations for risk management, requiring companies to adopt sector-wide best practices rather than fragmented, site-specific solutions,” Jofre said.

An increasing number of mining companies are using integrated risk systems not just for compliance, but to improve performance, speed up permitting, and strengthen relationships with regulators and communities.

Gaining advantage

On the inverse, mining companies that take a wait-and-see approach to risk management are leaving themselves exposed.

“Environmental or safety incidents can trigger heightened regulatory attention, resulting in stricter rules, more frequent inspections, and additional compliance requirements,” Jofre said. “This can further constrain operations and increase the cost and complexity of doing business.”

However, it goes beyond financial risk. A reactive approach can erode community trust, complicate permitting, and even threaten a company’s social license to operate, the business director said. Relying on outdated systems also raises the risk of missing early warning signs – whether it’s structural failures or safety hazards – making operations more vulnerable.

Mining companies are turning to IEMS to identify potential issues earlier and reduce operational disruptions. These tools use real-time data and predictive modeling to support faster decision-making. In many cases, they're being integrated into routine operations like water management and planning to improve both environmental oversight and efficiency.

“Centralized, integrated data platforms eliminate the need for manual report consolidation, providing leaders with up-to-date, accurate insights for faster and more informed decisions,” according to Jofre. “Data integration breaks down departmental barriers, surfacing risks and opportunities that span production, maintenance, finance, and compliance – blind spots that are often missed when data remains siloed.”

Digitizing without disruption

As mining companies move towards integrated risk management, many are looking for ways to digitize outdated systems without interrupting daily operations. Modular platforms that work with existing workflows are gaining traction, helping firms modernize compliance and incident reporting while keeping crews and equipment moving.

Based on Jofre’s experience, the biggest challenges for mining companies updating legacy systems are getting teams to adopt integrated digital tools and the cost of digital transformation.

“In mining operations with aging infrastructure and legacy systems, there can often be a cultural resistance to change,” Jofre said. “Many mining employees and managers are accustomed to established, manual processes and may be skeptical of new technologies, fearing job displacement, increased complexity, or simply distrusting unfamiliar systems.”

Overcoming those hurdles will require addressing that cultural resistance with clear communication, training and a phased approach.

Many mining executives now view technology and innovation as critical to their organizations’ survival, Jofre explained. Recent findings from EY found 41% of miners surveyed have made adopting a platform to track and report ESG metrics as a priority.

“While digitalization in mining comes with high upfront costs and challenges, the financial benefits through efficiency, productivity and risk mitigation consistently outweigh these expenses over time,”  “These systems allow for real-time hazard identification, continuous improvement and better engagement with stakeholders – raising the bar for the entire sector.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by IsoMetrix and produced in cooperation with The Northern Miner. Visit www.bluemoonmetals.com for more information.