O3 Mining (OIII) - Why Activism is Good for Investors and Mining

O3 Mining Inc, an Osisko Group company is a gold explorer and mine developer. The company is well-capitalised and owns a 100% interest in all its properties (137,000 hectares) in Quebec. The company is focused on delivering superior returns to its shareholders and long-term benefits to its stakeholders. 

Matt Gordon caught up with Myrzah Tavares Bello, Vice President, Sustainable Development, O3 Mining. Ms. Bello has over 20 years of experience in sustainable development providing consulting services to mining, oil, and gas along with other sectors. She has facilitated various consultations with different stakeholders in several projects. Ms. Bello managed multi-disciplinary teams when she worked as Director at SNC-Lavalin. She held various roles that include leading the climate change group of experts for over 6 years and managing the environment division in Brazil for over 14 years. She holds a Bachelor’s degree in Business Administration, a Master’s in business delivered jointly by Sherbrooke University and ESCEM Poitiers in France, and a Master's in Environment from Sherbrooke University. 

Company Overview

O3 Mining is a gold explorer and mine developer ready to produce from its highly prospective gold camps in Quebec. It is listed on the Toronto Stock Exchange (TSX-V: OIII) and the OTC Markets (OTCQX: OIIIF). OrCan Oilfield Services Ltd. and Harricana River Mining Corporation Inc. are the company’s subsidiaries. 

The Importance of Sustainability in Mining

O3 mining is focused on ensuring that all its projects are developed responsibility in order to get the social acceptance which is crucial in today’s day and age in order to advance mining projects. The company’s business fundamentals are based on 5 major pillars, namely governance and ethics, health and safety, the environment, talent and culture, and community. 

As the world moves toward a greener future, it is important for mining companies to take a sustainable approach to their projects. This is because the demand for metals and commodities continues to grow and companies should look for greener ways to conduct operations.

According to O3 Mining, there needs to be a balance in the society between projects that do not take sustainability into account and mining activists. At the same time, developing a greener operation also promotes innovation. 

A common problem with companies and investors is confusion between various sustainability standards such as SASB (Sustainability Accounting Standards Board) and GRI (Global Reporting Initiative). Developing a more common standard would help the industry immensely. O3 Mining believes in complete transparency, it has made the details of emissions across properties publicly available. 

ECOLOGO Certification

In 2021, O3 Mining was successful in acquiring an ECOLOGO (Environment Canada’s Environmental Choice program) certification which is focused on exploration. This certification covers all major aspects of an ESG (Environmental, Social, and Governance) operation. The company considers ESG’s social aspect the most important pillar for a sustainable operation. The social aspect accounts for the company’s people and talent along with the First Nations community, the health and safety of the workers, and the community. 

The ECOLOGO certification helps ensure that all processes are in place and the ESG standards are being followed. Furthermore, the certification also mandates third-party auditing in order to ensure that the set standards are met. 

What makes ECOLOGO stand out is that a company needs to document and accumulate proof of various steps of the operations. A document audit is conducted on a yearly basis. Additionally, the certification issuance authority verifies whether all processes are being followed as per the norms. This includes verification of communication with the First Nations,  taking care of spills from diesel-powered drills, and more. 

In comparison, when greenhouse gas inventories used to be analysed, the reporting of emissions was only mandatory in case they were audited. The Auditing process here was voluntary. In Quebec, it is mandatory for all facilities that produce over 25,000t of carbon dioxide emissions equivalent to be audited. O3 Mining anticipates that the evolution from voluntary disclosure and auditing to mandatory disclosure and auditing would be an integral part of ESG norms in the coming years. 

Interestingly, the ECOLOGO certification is also offered for service providers in exploration. O3 Mining has hired drillers that are certified as it helps meet and maintain requirements for ECOLOGO, in terms of health, safety, and the environment. 2 of the 3 drilling companies working with O3 Mining have been ECOLOGO certified in the past few months, and the third company is currently going through the process. As a result, both the exploration companies and service providers are involved, leading to a more efficient and sustainable operation. 

According to the company, working with non-certified drilling companies leads to an increase in overall work. For instance, a non-certified drilling company would have more spills and accidents, causing new issues that the management would need to solve, leading to a less efficient workflow. Although hiring certified drilling companies has a slightly higher cost, it reduces the chances of a spill, which would require the company to stop drilling for clean-up operations, which ends up costing more. 

O3 Mining’s business strategy is based on ESG. The company wants to build projects responsibility and is looking for social acceptance. A responsibly-run operation is less likely to have permitting issues. 

Looking After the Workforce

O3 Mining prioritises the health and safety of its personnel. It is looking to build and advance projects that have the least amount of impact on the environment. Conservation of the environment cannot be measured in money, as opposed to greenhouse gases, which often end up costing the planet more. Last year, O3 Mining planted 19,000 trees as part of its sustainability efforts. It also made changes to the employees’ work schedules in order to provide a better work-life balance. The company is looking to attract more talent by being the best-in-class employer. 

O3 Mining’s employees take pride in the fact that the company is taking initiatives to develop a greener operation. The mining industry hasn’t had a good reputation when it comes to the environment. There is an ongoing shift in the industry towards ESG-compliant operations. In fact, the Mining Association of Canada has published protocols for sustainable mining, which are similar to ECOLOGO but is focused on mining. The company and its team members take pride in doing things the right way. 

Reaching Out to the Local Communities 

At the Marban project, O3 Mining has local residents and businesses that are based around the area where the project will be built. Before development started, the company had a first information meeting with the local community. Integrating the community early in the project development cycle allows the company to include feedback in the project’s development. 

Even though certain aspects of a project can’t be changed, such as the relocation of an open pit, the company still considers alternate ways in which the feedback can be integrated into its operation. 

Notably, despite the strict pandemic restrictions in Quebec last September, the company chose to conduct the first information meeting. This was done in order to ensure complete transparency and full disclosure. It is looking to conduct at least 2 more meetings this year with the business and residents around the Marban project. 

O3 Mining has already had conversations with the First Nation community on the impact and interest generated by the project. It has hired one of the First Nation community contractors, helping build the initial relationship. The company is looking to include the community in various aspects of the project. 

The company’s stakeholders consist of the municipal government, the provincial government, and the federal government. It has had very early-stage meetings with the ministries in relation to the project. This is a part of the company’s strategy for community relations and social acceptability. 

Sustainable Development Committee

O3 Mining’s Board has a committee that is specific on sustainability and sustainable development. Ongoing operations are reported to the committee on a quarterly basis. The decision to get the ECOLOGO certification was supported by the committee. Since the company’s board fully supports the ESG initiatives, implementing lasting changes becomes easier. 

Over the past year, Myrzah Bello, Vice President of Sustainable Development at O3 Mining provided extensive training to all levels within the organisation. In fact, the board was also provided training on ECOLOGO. She met with all the employees, and contractors, helping them understand the importance of these initiatives, making sustainability the company’s top priority. 

O3 Mining anticipates that projects that don’t include ESG as a pillar of the overall strategy would find it increasingly difficult to gain acceptance. Communities, governments, and investors are significantly more informed now, and projects that do not focus on the ESG component will have a major impact on their reputations. This can halt a project’s progression, which could potentially lead to a failed investment. 

Over the past 2 decades, climate change has come to the forefront. This is because the damage it’s causing to the environment is much more visible than 20 years ago. The number of natural calamities such as forest fires, and flooding are increasing every year. This has made a lot more people conscious of the impact on the environment that is a direct result of human activities. If these aspects are not taken care of, mining projects won’t be able to move forward. 

To find out more, go to the O3 Mining website