Merafe Resources

Our Business / Natural capital

Natural capital

Merafe's approach to natural capital includes monitoring its own use of energy, energy use in its investments and the production of greenhouse gas emissions (GHGs) by both Merafe and its investment, the Venture.

The issues we have identified as being most material to Merafe in terms of natural capital and its investment in the Venture, are energy pricing and the availability of electricity supply, investing in new technology to increase energy efficiency and reduce GHGs, climate change, health and safety, environmental aspects of climate change, the Venture's production of significant quantities of indirect and direct greenhouse gas emissions (GHGs) and the carbon budgeting process.

Through our representation and participation in the Venture's Joint board, Exco and Sustainable Development Committee we monitor the natural resources and processes used by the Venture to produce its products. We also monitor its efforts to manage its Resources and Reserves, maintain and enhance its natural capital by reducing its dependence on fossil fuels, eliminating waste by reusing or recycling it whenever possible, protecting biodiversity and eco-systems and, wherever possible, using renewable resources from well-managed and restorative eco-systems. Information on our natural capital is available below.

Natural capital

This includes renewable (timber and water) and non-renewable (fossil fuels and minerals and metals) resources and processes such as energy consumption, waste creation, emissions, etc. Without access to the natural capital contained in our mineral reserves and resources our business would not exist.

We maintain and enhance natural capital by:

The risks associated with climate change

Material issues


  • Pricing and the availability of electricity
  • Business continuity and profitability
  • Investing in new technologies to increase energy efficiency
  • Climate change

    • Environmental aspects of climate change
    • The Venture's production of significant quantities of indirect and direct greenhouse gas emissions ("GHGs")
    • Investing in new technologies to reduce emissions

    Climate change remains a key longer-term risk for the Venture. The potential risks it faces from climate change are both physical and financial. They are complex risks as they include operational risks such as business continuity, health and safety, environmental aspects and regulatory aspects. The Venture needs to constantly engage with legislators, researchers and industry bodies, track and evaluate the situation and develop an improved awareness of and preparedness for the risks associated with climate change. It works with members of its industry and other stakeholders to understand the potential impacts of climate change and take action to minimise them where climate change is likely to have the most effect and where the Venture can make the greatest difference.

  Possible physical and financial impacts

The Venture's operations could be damaged by flooding and extreme storms which could cause business interruptions. The reduced availability of water could also interrupt its business and could have health impacts. Some of the Venture's operations are located in arid areas where prolonged drought conditions could limit production growth or prevent it from operating.

Material issues

  • Water
  • Environmental incidents
  • NOx SOxemissions
  • Waste
  • Biodiversity and land use

View our
latest Integrated Report 2023