Just a few years ago, ESG was a buzzword that companies in industry and mining could use to present themselves in a favorable light. Today, standards for sustainable business practices are clearly defined and bring tangible benefits to all who adhere to them. For example, cooperation with local residents and adherence to high environmental standards at mining companies such as Newmont and Almonty (TSX:AII) ensure better financing conditions and motivated, skilled workers. Potential customers such as Intel also pay close attention to the conditions under which raw materials are extracted. In this article, we explain how ESG and returns go hand in hand.
This article is disseminated in partnership with Apaton Finance GmbH. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Newmont supports local communities: Stakeholder engagement for higher returns
Raw material projects are often located in remote and sparsely populated regions. This makes it all the more important to convince potential workers of the merits of your project and to secure the support of the local population. The world’s largest gold producer, Newmont, has long been committed to sustainable mining and stakeholder engagement. In 2024 alone, Newmont invested USD 69 million in community projects in the vicinity of its mines and properties. These projects primarily focus on education, health and infrastructure. For new projects, Newmont’s goal is to involve the local population in a manner that ensures they are informed about new projects and can agree to them voluntarily. This also benefits investors: In 2023 and 2024, Newmont’s ESG rating improved, as did its share price.** Newmont is included in indices such as the Dow Jones Sustainability Index and has already received industry awards for sustainable corporate management.
Almonty: Pensioner taxi and youth initiatives delight even investors
Almonty’s Sangdong mine in South Korea, set to begin tungsten production later this year, demonstrates that ESG matters even during resource project development. Almonty has been managing the project since 2015 and has worked closely with residents and local institutions over the years. When the local gas station was scheduled to close, forcing residents to travel long distances just to refuel, Almonty stepped in and purchased the station in May 2024, thereby securing not only the supply for the local population but also jobs. Today, Almonty also supports the “Silver Free Call Taxi” program for senior citizens by subsidizing operating costs, sponsors sports clubs, supports initiatives to increase the number of women in mining, and has launched a project for schools to introduce graduates to jobs at the Sangdong mine, which is considered the largest tungsten mining site outside of China.
In developing Sangdong, Almonty followed the Equator Principles, a benchmark for environmental and social compatibility set by the World Bank for project financing, which was a prerequisite for the financing commitment from the German development bank, KfW. The KfW financing has played a key role in advancing the Sangdong project. According to Almonty CEO Lewis Black, it is no longer just banks that are scrutinizing ESG guidelines: index providers and strategic investors are now also paying close attention to the commitment of commodity companies on the ground. One such potential strategic investor is chip manufacturer Intel, which also operates manufacturing facilities in South Korea.
Intel: Out of the crisis thanks to ESG?
As early as 2026, Intel committed to not sourcing the 3TG minerals – tin, tantalum, tungsten, and gold, which are urgently needed for chips, from conflict regions. But this initiative was only the beginning for Intel. As part of its RISE strategy, the Company has announced plans to ensure that all minerals and metals used are produced responsibly. To this end, Intel is surveying suppliers and participating in the decision-making process shaping new industry standards. Today, rating agencies attest that Intel has a low ESG risk and describe the Company as a pioneer within its industry. The most recent quarterly figures, showing a profit of USD 1.5 billion, also indicate that Intel may be on the right track with its sustainability focus.**
ESG creates reliability – Almonty brings all stakeholders on board
Especially in geopolitically volatile times, it pays for companies to already be well-positioned. In the mining sector, ESG begins with the selection of suitable projects. While economically viable tungsten deposits are rare in Western countries, stable jurisdictions offer investors reliability, especially in times of war or trade conflicts. In addition to its producing Panasqueira mine in Portugal where, among other things, a PV system improves the ecological footprint, Almonty has also made a good choice with Sangdong. The location in South Korea is politically stable, connects to local high-tech supply chains, and is set to be operated 100% climate-neutrally. Community engagement on the ground also ensures critical support from residents – tungsten mining in particular relies on experienced, skilled workers. Almonty has also already invested in both their safety and ongoing training. As the leading Western tungsten producer, the Company is setting the course for growth and bringing all stakeholders along for the journey.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
