National Standard intends to launch a Sustainable Mining Private Debt Impact Fund by the end of 2023 for purposes of investing in sustainable primary mining, mineral processing and mineral trading operations undertaken by small to medium-sized mining entities in Africa in line with its impact investing objectives. This has the effect of creating employment, wealth and sustainable communities, thus improving the quality of life of people through reducing the triple challenges of unemployment, poverty and inequality.

There is a recognition that, although the act of mining itself is unsustainable given that minerals are a finite resource and destroy the environment, mining growth can contribute to sustainability by providing raw materials for a cleaner, more efficient and more prosperous human societies and generating wealth and employment that can serve as a bridge to sustainability. Mining investment into responsible and sustainable mining activities can, therefore, not be ignored given Africa’s great mineral wealth that can change the fortunes of communities.

Apart from purely economic benefits, sustainable mining is defined by some experts as the minimisation of negative environmental, social, and economic impacts associated with mining and processing activities while limiting extraction to rates that do not exceed capabilities to establish new sources, substitutes, or recycle any particular material.

A common sustainable mining framework is focused on reducing the environmental impacts of mining. Some experts propose strategies for assessing the sustainability of mining operations that include measuring, monitoring, and working to improve various environmental performance metrics that are used to determine whether a mining operation is sustainable. They submit that the key metrics for environmental sustainability in mining relate to efficiencies in resource consumption, minimizing land disturbance, pollution reduction, as well as closure and reclamation of exhausted mine lands, commonly known as mining rehabilitation.

Funds need to be provided for these activities to ensure responsible mining and sustainability, job creation, wealth creation, and poverty reduction, hence the need for a Sustainable Mining Private Debt Impact Fund to harness Africa’s mineral resources for the benefit of its people and environment.