Case Study | 25 August 2025
How a Mining Company Managed its Environmental, Social, & Governance Risks and Paved the Way Towards Sustainable Growth
Posted by : Ipseeta Dash
A multinational mining company that had rapidly expanded over two decades became a leading supplier of coal, lithium, and oil shales across continents. However, its relentless focus on revenue growth came at the expense of environmental, social, and governance (ESG) responsibilities. Years of neglected operations resulted in ecological degradation, displacement of communities, and, lastly, heavy penalties from regulators. This crisis hampered the company’s reputation and destroyed investor trust. In an effort to recover, the company collaborated with Research Nester analysts, who developed a detailed ESG compliance and sustainability approach. This measure not only restored trust but also placed the company on a long-term path toward responsible and sustainable growth.
An overview:
The company had been supplying minerals globally for more than 20 years, serving industries in Asia, Europe, and North America.
It specialized in coal, lithium, and oil shale mining, which were crucial to the global energy and manufacturing sectors.
Over time, the company overlooked ESG obligations, leading to soil erosion, water contamination, and the destruction of biodiversity.
Regulators revealed systemic non-compliance with ESG standards, including unsafe working conditions and poor community engagement.
The company experienced fines, declining investor confidence, and loss of market share.
Its leadership contacted Research Nester to create a roadmap that addressed compliance gaps, improved governance, and aligned the business with international ESG practices.
The Story
Established in 1999, the company rapidly grew into one of the world’s largest mining companies. Operating over South America, Africa, and Asia, it supplied important raw materials such as coal, lithium, and oil shales to global markets. For years, this growth was applauded as a success story, fueled by increasing profits and expanding shareholder returns.
But behind the impressive financial performance, a different reality was appearing. The company’s mining activities caused very severe water pollution, soil erosion, and deforestation, while also driving away indigenous communities living near mining areas. The environmental impact was huge as groundwater contamination exploited farming communities, while deforestation threatened the local biodiversity.
As the environmental pressure surged, social unrest began to rise. Communities organized protests against unsafe working conditions, displacement, and insufficient compensation. Yet, the company continued to emphasize on short-term profits, disregarding warnings and the long-term effects of neglecting ESG responsibilities.
In 2018, environmental groups reported formal complaints, prompting a government investigation. The inquiry revealed huge violations of ESG protocols, including breaches of the Environment Protection Act of 1986 and non-compliance with international labor standards. Regulators imposed heavy fines and introduced restrictions that disrupted operations. The fallout was immediate:
- Reputation Damage: The company’s global image was affected, with top buyers moving to competitors that followed sustainable sourcing.
- Investor Distrust: International investors reported the company as a high-risk venture, cutting off critical funding for expansion projects.
- Revenue Decline: A 15% fall in annual revenues was recorded within a year of the penalties.
The leadership realized that unless corrective measures were taken, the company risked long-term decline and exclusion from international markets. In a critical step, they approached Research Nester analysts for a comprehensive ESG analysis and a pathway to rebuild trust, comply with regulations, and secure sustainable growth.
Our Solution:
After an in-depth review of operations, Research Nester consultants found three key problem areas, i.e., environmental negligence, weak governance structures, and strained community relations. To solve these challenges, a phase wise strategy was implemented, balancing immediate corrective actions with long-term reforms.
Environment-Focused Solutions
- Sustainable Mining Techniques: The company was advised to change from conventional open-pit and underground mining methods to in-situ leaching and controlled blasting, minimizing land degradation and deforestation.
- Waste Management Innovation: Mining byproducts like waste rocks and tailings were repurposed for construction and backfilling voids, while contaminated water was redirected for dust suppression and agricultural irrigation after treatment.
- Carbon Reduction: Diesel-powered mining trucks and equipment were gradually substituted with electric mining vehicles and conveyor systems to reduce carbon emissions.
- Soil Restoration: Application of biosolids and organic fertilizers was suggested to recover fertility in topsoil and rehabilitate mined lands.
Governance Reforms
- Transparent Reporting: Adoption of international frameworks such as the Global Reporting Initiative (GRI) and SASB Standards, assuring accountability and transparency.
- Independent ESG Oversight: Formation of an internal ESG committee composed of independent directors and sustainability experts to track compliance.
- Investor Relations: Development of a clear communication strategy to reassure investors about corrective actions and future ESG commitments.
Social Responsibility Initiatives
- Community Development: Created investments in healthcare, education, and livelihood projects for displaced and affected populations.
- Improved Labor Practices: Enhanced worker safety standards, regular health screenings, and skill development programs for employees.
- Stakeholder Dialogue: Establishing open communication channels with local communities, NGOs, and government bodies to match mining operations with societal needs.
Technology & Digital Transformation
- IoT and AI Monitoring: Use of real-time monitoring systems to track air and water quality near mining sites.
- Blockchain Traceability: Use of blockchain to verify responsible sourcing, giving clients and retailers confidence in the supply chain.
The strategy provided both a short-term recovery plan and a sustainable growth model, addressing immediate compliance failures while creating a framework for long-term competitiveness.
Results
The transformational journey was challenging yet rewarding. Just within three years of following Research Nester’s suggestions, the mining company faced remarkable changes across multiple fronts.
Regulatory Compliance Restored
- Cleared multiple audits executed by local and international authorities.
- Won certifications such as ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health & Safety).
Financial Performance Recovery
- Revenue bounced back with 10% growth in 2019, followed by 20% in 2020 and 29% in 2021.
- Built back investor confidence, received funding for advancements, and expansion into cleaner mining technologies.
Reputation Reformation
- The company resumed contracts with top international buyers.
- Recognition in sustainability forums enhanced brand visibility and credibility.
Environmental Impact Reduced
- Carbon emissions were decreased by 25% after two years through the adoption of electric vehicles and clean technologies.
- More than 5,000 hectares of mined land were rehabilitated with reforestation and soil restoration projects.
Effective Community Relations
- Over 10,000 individuals benefited from community programs in healthcare, education, and employment.
- Displaced indigenous groups were granted with fair compensation, housing, and alternative livelihood opportunities.
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