Gem Diamonds is committed to responsible, safe and sustainable mining. In support of this commitment, the Board adopted the TCFD framework in June 2021, and a three-year TCFD adoption roadmap (outlined below) was completed by the end of 2023.
In Q1 2023, the Group committed to a 30% reduction of its Scope 1 and 2 emissions by 2030, using 2021 as a baseline. This commitment followed the Board’s adoption of our decarbonisation strategy, which sets out our ambitions to reduce energy consumption, improve our energy-use efficiency and transition to appropriate renewable energy sources. This strategy is underpinned by our carbon-pricing model. For information on carbon pricing and the Gem Diamonds model, refer to Our Approach to Climate Change Half-Year Report 2022.
Our TCFD roadmap
01
2021
completed
02
2022
completed
03
2023
completed
Phase 1 2021
Establish the necessary governance, strategy and risk foundations to support meaningful, science-based decision-making.
Phase 2 2022
Understand the climate-related risks Gem Diamonds faces to reassess our organisational resilience.
Identify climate-related opportunities available to the Group and establish clear metrics and targets for decarbonisation.
Phase 3 2023
Monitor and manage our climate-related exposure and measure this against our decarbonisation targets.
Our TCFD roadmap
Phase 1 2021
Establish the necessary governance, strategy and risk foundations to support meaningful, science-based decision-making.
Phase 2 2022
Understand the climate-related risks Gem Diamonds faces to reassess our organisational resilience.
Identify climate-related opportunities available to the Group and establish clear metrics and targets for decarbonisation.
Phase 3 2023
Monitor and manage our climate-related exposure and measure this against our decarbonisation targets.
2023 Highlights
Completed the implementation of the three-year TCFD adoption strategy
Decarbonisation strategy finalised and adopted by the Board
Set target of 30% reduction in Scope 1 and 2 emissions by 2030, using 2021 as a baseline
Achieved 2 629 tonnes of carbon dioxide equivalent (tCO2e) annual reduction in Scope 1, 2 and 3 emissions compared to 2022
Achieved a 25% decrease in diesel consumption-related emissions compared to our 2021 baseline
Transitioned Ghaghoo to solar power (fully commissioned in January 2024)
Governance
How we govern climate-related risks and opportunities
Board
The Board, supported by the Sustainability and Audit Committees, is ultimately responsible for the governance of climate-related risks and opportunities, and for ensuring that our decarbonisation strategy (to mitigate potential negative impacts on the climate) is implemented in a manner that is in the best interest of the Group.
To ensure effective oversight, the Group has adopted the Governance structure set out below. The Board and relevant Committees receive regular updates on climate change-related matters and, following the full adoption of the TCFD, on the monitoring and managing of our climate-related exposure and the tracking of progress against our decarbonisation targets. The climate change-related data and performance information presented to the Board and relevant Committees informed the 2023 reviews of the Group strategy, risk management framework and annual budgets.
Oversight
Board
Ultimately responsible for the Group strategy, risk and governance of climate-related risks and opportunities.
Governance
Audit Committee
Reviews and monitors matters concerning strategy and governance and reports to the Board on these issues.
Sustainability Committee
Reviews matters regarding existing and planned metrics and targets, and performance and operational objectives.
Responsibility
TCFD Adoption Steering Committee
Management forum responsible for the adoption and implementation of the TCFD framework and ensuring climate change-related risks and opportunities are appropriately identified and subsequently elevated through the established governance and operational structures.
Following the successful completion of the three-year TCFD adoption strategy, the TCFD Adoption Steering Committee was dissolved at the end of 2023. Climate change-related risks and opportunities will continue to be identified by the appropriate management forums to ensure they are elevated to the established governance and operational structures.
Energy and Decarbonisation Committee (EDC)
Management forum responsible for identifying, assessing and overseeing the implementing of energy-related opportunities to improve energy security and access to renewable energy sources. Drives focus on opportunities for decarbonisation across the value chain.
Following a review of our decarbonisation governance structures at the end of 2023, the responsibility of identification, assessing, and overseeing energy-related opportunities was operationalised. Management receive progress reports on a quarterly basis through a technical review forum.
Top-down approach – sets the risk appetite and tolerances, strategic objectives and accountability for the management of the framework
Bottom-up approach – ensures a sound risk management process and establishes formal reporting structures
Management
The Group COO has overall executive accountability for sustainability, including climate-related issues, decarbonisation and energy-related matters. The COO acts upon the most material risks and opportunities to successfully transition business models for maximum benefit lower-energy consumption and higher efficiencies leading to reduced costs and decarbonisation. The Group CFO holds overall executive accountability for integrating climate-related issues into annual budgets, business plans, financial disclosures and risk management.
Through the three-year TCFD adoption project, the Group has embedded the consideration of climate-related risks and opportunities within the appropriate internal functions (i.e. enterprise risk management, communication and reporting, insurance, financial planning and disclosure, project management, internal audit, engineering, mining and treatment) to bolster the integration of climate change, energy and decarbonisation strategies throughout the business. Management reports to the Gem Diamonds and Letšeng Boards and their respective Audit and Sustainability Committees, on a quarterly basis, on the identification and response to climate-related risks and opportunities.
Climate education and training
Climate science is constantly evolving. As the Group navigates its transition to a low-carbon economy, it is imperative that knowledge, understanding and skills in this field are simultaneously kept up to date and improved. Management is responsible for identifying and responding to emerging climate-related risks and opportunities. An understanding of these risks and opportunities are imperative to ensure that appropriate levels of mitigation are developed and responsibly elevated through established governance structures, as appropriate. Gem Diamonds adopted a bottom-up approach to embed decarbonisation awareness across the Group, with a series of workshops and presentations to explain the concept of carbon footprint and importance of carbon reduction to employees. Education around climate change and decarbonisation continued throughout 2023, we have embedded energy reduction and decarbonisation awareness across the Group, with a series of workshops and presentations to explain to employees the concept of carbon footprint and the importance of carbon reduction.
Strategy
The impacts of climate-related risks and opportunities on our businesses, strategy and financial planning
Our Group strategy to sustainably maximise stakeholder value goes hand in hand with our commitment to be responsible stewards of our natural resources. Our climate and decarbonisation work is integral to our objective to operate efficiently and further reduce costs. We expect to realise additional reductions in our carbon footprint together with further cost savings through focused initiatives to reduce energy consumption and improve efficiencies. Gem Diamonds identified three strategic priorities that underpin how the Group creates value for our stakeholders. We believe that effective management of climate-related matters contributes to the Group’s performance in line with these strategic priorities.
Climate considerations
Operational efficiency initiatives reduce operating costs, minimise resource wastage and ensure future availability of resources for all stakeholders
2023 integration
We further optimised our mining fleet over the period, resulting in reduced fossil fuel consumption and associated carbon emissions and costs.
We reduced diesel consumption per carat recovered by 38%, against our 2021 baseline.
We installed technology to improve lighting-related energy use efficiency, resulting in reduced fossil fuel consumption, related costs and carbon emissions.
We reduced Scope 1 and 2 energy consumption per carat recovered by 29%, against our 2021 baseline.
Climate considerations
Bolstering our resilience to the physical impacts of climate change while working with our PACs to improve their readiness and resilience ensures that Gem Diamonds can protect its social licence to operate and continue to operate responsibly within our environment and with our stakeholders
2023 integration
We recorded a 26% decrease in our Scope 1 and 2 emissions when compared to our 2021 baseline carbon emissions footprint.
We completed the implementation of the three-year TCFD adoption roadmap.
We constructed a 300Kl bioremediation water treatment plant.
We worked with PACs to provide water and sanitation infrastructure.
We integrated climate change considerations into our GISTM dam safety management framework.
Climate considerations
The Group has established structures for the identification and implementation of climate-related opportunities and existing business continuity and disaster management plans include considerations for natural weather events, which we have successfully managed at our operations for many years
2023 integration
We committed to reducing our Scope 1 and 2 emissions by 30% by 2030, against our 2021 baseline.
We piloted a priority controlled electrical load management system.
We commissioned an energy feed assessment for viable future alternative energy solutions.
We transitioned the Ghaghoo operation to solar energy.
Decarbonisation strategy
We are aware of the importance of committing to practical, enforceable and realistic decarbonisation targets. Therefore the Group committed to a 30% reduction of its Scope 1 and 2 emissions by 2030, using 2021 as a baseline. We will regularly communicate our progress against this commitment, which is aligned with internal performance metrics, including specific key performance indicators and remuneration.
Our decarbonisation strategy considers the socio-economic environment in our host countries and the well-being of our workforce and surrounding communities. We acknowledge the importance of a just transition from fossil fuel reliance, and we intend to target decarbonisation projects that take into consideration economic, societal and climate impacts.
The Group adopted a bottom-up approach to identify decarbonisation risks and opportunities and consider potential implementation pathways for resource use efficiency and carbon-reduction initiatives. Since 2021, Gem Diamonds has commissioned independent energy and carbon subject matter experts to identify opportunities to improve energy efficiency and reduce the energy use associated with Scope 1 and 2 emissions. We continuously assess and implement initiatives to progressively reduce our overall demand for energy and, where possible, switch to lower-carbon and renewable energy sources. Reducing the overall demand for energy means that implementing renewable energy sources and offsetting residual emissions becomes as efficient and cost effective as possible.
Our decarbonisation strategy targets two key levers for reduced carbon emissions within both Scope 1 and 2:
reduce our energy use and associated carbon emissions by improving the efficiency of our processes and equipment; and
replace our dependence on fossil fuel-based energy sources with lower-carbon and renewable energy sources.
Letšeng draws its power from the South African power grid, supplied by Eskom. A 2021 study by the Centre for Research on Energy and Clean Air found Eskom to be the world’s most polluting company. This is as a result of Eskom’s 15 coal-fired power stations, which produce 80% of the country’s power. Eskom-supplied grid electricity is currently the only grid power that Letšeng has access to and accounts for all our Scope 2 emissions. As of 2023, no renewable or alternative electricity sources are available to Letšeng to replace the existing grid-supplied electricity. Mobile (mining fleet and equipment) and stationary (diesel-powered generators) combustion activities account for 98% of our Scope 1 emissions emanating from the diesel consumed through these activities.
Scope 1
What we learnt
The extremely low temperatures at Letšeng eliminate the possibility of biodiesel to replace traditional mineral diesel. This is because biodiesel thickens in the fuel systems of the mining fleet and equipment at low temperatures.
While we are actively reducing our diesel consumption, we are assessing alternative energy sources for our mining fleet and equipment that could potentially replace traditional diesel combustion engines in the future.
How we responded
Frequent load shedding has increased the use of generators at Letšeng. These energy interruptions are potentially damaging and costly as machinery should be shut down safely and not abruptly in mid-use. Restarting machinery also consumes more power and increases the risk of damaging equipment.
We ensure that load shedding schedules are integrated into our production planning to facilitate an effective changeover to generator power. In the short term, we are assessing lower-carbon energy for our generators.
Scope 2
What we learnt
The remaining life of open pit mining at our Letšeng operation impacts the feasibility of any capital-intensive projects.
The Letšeng mine operates in a region that is protected as a nesting zone for endangered vultures. As a result, traditional turbine-driven wind power development is not possible within a 40km radius of the mine.
The location-specific irradiance of the Letšeng mine indicates that a maximum of 5.5 hours a day are available for energy yield through solar photovoltaics.
How we responded
We are continually optimising the mine plan for extended life and simultaneously assessing the possibility of hybrid power solutions and partnerships to bolster the viability of large-scale renewable energy projects.
We are assessing bird-friendly wind power technology that poses no danger to endangered or other bird species in the region.
We commissioned a study to assess the viability of solar power as part of a hybrid model that includes other renewable energy sources.
We have integrated energy efficiencies, alternative energy sources and decarbonisation into our overall business strategy, and prioritised these as critical workstreams. In 2023, our Scope 1 and 2 carbon footprint comprised 48% direct Scope 1 emissions (2022: 49%) and 52% indirect Scope 2 emissions (2022: 51%). For more information on the decarbonisation initiatives implemented during 2023, refer to the Targets and Metrics section below.
Risk management
How we identify, assess and manage climate-related risks
Gem Diamonds has a robust risk management process and framework to identify, assess, manage and mitigate current and emerging risks and uncertainties. Our risk management framework combines a top-down and bottom-up approach to ensure appropriate governance and oversight. It ensures that all material risks are appropriately identified, assessed, mitigated and monitored. Risks are assessed and prioritised in terms of potential impact, probability of occurrence and effectiveness of controls across short, medium and long-term timeframes.
We have collaborated with experts in insurance, decarbonisation, energy and climate change to identify emerging risks and potential opportunities for improvement or mitigation, with the aim of assessing our readiness for responding to these. Our collaboration with external experts enabled us to bolster our organisational system readiness and plan appropriately for the mitigation of future risks to the business.
01
Manage and monitor
02
Assess
03
Identify
Top-down approach
Board
Audit Committee
Sustainability Committee
Bottom-up approach
Management
Manage and monitor
The Board has ultimate responsibility for climate-related risk management.
The Audit Committee regularly receives reports on risk, strategy and governance processes related to climate change and the associated financial disclosures.
The Audit Committee has oversight of climate-related risks and potential financial, strategic and business planning impacts, which are presented to the Board during quarterly risk meetings.
The Sustainability Committee oversees that appropriate systems are in place to identify and manage climate-related Health, Safety, Security and Environment (HSSE) impacts.
The Sustainability Committee oversees energy and decarbonisation risks and opportunities, and monitors performance against carbon and water footprint parameters.
Assess
Management assesses the materiality of climate-related risks identified through the risk identification process.
Based on this assessment, a risk management plan is developed and presented in quarterly meetings to the Audit and Sustainability Committees and, ultimately, to the Board for approval.
Emerging and existing regulatory requirements related to climate change issues are monitored and addressed by the Audit and Sustainability Committees. The Group HSSE and Sustainability Manager attends these meetings by invitation.
Management assesses energy and decarbonisation risks and opportunities. Progress against risk mitigation opportunity improvement plans are presented to the Sustainability Committee.
Identify
Gem Diamonds has established internal and external processes to identify climate-related risks.
Quarterly risk workshops for department heads provide management oversight of climate-related risks. The outcomes of the risk workshops inform updates to the Group risk register and mitigation measures to be implemented. These are presented to the Board at the quarterly risk review meetings.
Approved risk management plans are implemented by management at Group and operational level. This is monitored and managed through quarterly technical reviews, management risk workshops, quarterly risk reviews, and Board and Committee meetings.
The Board has ultimate responsibility for climate-related risk management.
The Audit Committee regularly receives reports on risk, strategy and governance processes related to climate change and the associated financial disclosures.
The Audit Committee has oversight of climate-related risks and potential financial, strategic and business planning impacts, which are presented to the Board during quarterly risk meetings.
The Sustainability Committee oversees that appropriate systems are in place to identify and manage climate-related Health, Safety, Security and Environment (HSSE) impacts.
The Sustainability Committee oversees energy and decarbonisation risks and opportunities, and monitors performance against carbon and water footprint parameters.
Management assesses the materiality of climate-related risks identified through the risk identification process.
Based on this assessment, a risk management plan is developed and presented in quarterly meetings to the Audit and Sustainability Committees and, ultimately, to the Board for approval.
Emerging and existing regulatory requirements related to climate change issues are monitored and addressed by the Audit and Sustainability Committees. The Group HSSE and Sustainability Manager attends these meetings by invitation.
Management assesses energy and decarbonisation risks and opportunities. Progress against risk mitigation opportunity improvement plans are presented to the Sustainability Committee.
Gem Diamonds has established internal and external processes to identify climate-related risks.
Quarterly risk workshops for department heads provide management oversight of climate-related risks. The outcomes of the risk workshops inform updates to the Group risk register and mitigation measures to be implemented. These are presented to the Board at the quarterly risk review meetings.
Approved risk management plans are implemented by management at Group and operational level. This is monitored and managed through quarterly technical reviews, management risk workshops, quarterly risk reviews, and Board and Committee meetings.
Physical and transitional risk exposure assessments
In 2023, we expanded on the comprehensive physical and transition risk exposure assessments we conducted in 2021, determining the materiality of potential impacts on financial performance and production. We took a science-based approach to identify potential exposure events associated with our climate-related risks and materialisation, enabling us to better plan for their management, mitigation and financial impact.
Climate-related transition risks are incorporated into our risk management framework. Our resilience to physical climate-related risks is robust, and we continue to improve our understanding and materiality of the potential physical risks under various future scenarios.
The table below provides a high-level overview of some of the Group’s climate-related risks and opportunities.
Timeframes
01
Short term: 1 to 3 years
02
Medium term: 3 to 5 years; long term: 5 to 10 years
Short term: 1 to 3 years
Short-term processes include annual business and financial planning, performance reporting, short-term capital allocation and contract negotiations.
Climate-related risks
•
Increase in occurrence of moderate precipitation
•
Enhanced emissions reporting obligations
•
Enhanced ESG obligations
Potential financial impact
•
Increased operating costs
•
Increased capital investment
Climate-related opportunities
•
Increased resource efficiencies and reducing our reliance on fossil fuels
•
Enhanced water use strategies
•
Waste reduction and recycling initiatives
Potential financial impact
•
Reduced operating costs
•
Increased capital investment
Medium term: 3 to 5 years; long term: 5 to 10 years
Medium to long-term processes include strategy development, social and environmental management plans, rehabilitation planning, capital management plans, financing and capital investments and operational planning, including contract negotiations and future-focused projects.
Climate-related risks
•
Increase in occurrence and severity of precipitation
•
Rising mean temperature
•
Strong winds
•
Increased frequency and duration of droughts
•
Failure of electricity providers to move to a low-carbon economy
•
Substitution of technology with lower-emission alternatives
•
Social risks due to resource constraints, particularly in developing countries
•
Evolving regulatory context regarding carbon tax
•
Increased costs of carbon-intensive products (such as diesel)
•
Reputational risk
Potential financial impact
•
Increased capital investment
•
Increased operating cost
•
Reduced revenue from decreased production capacity
•
Increased insurance premium or insurance unavailability
•
Research, development and implementation costs of new technology
•
Inappropriate investment decisions
Climate-related opportunities
•
Identify opportunities to transition to renewable energy sources
•
Position Gem Diamonds as an ethical and responsible producer of low-carbon-footprint diamonds
•
Use of new technologies
•
Reputational benefits
Potential financial impact
•
Reduced exposure to carbon and fossil fuel pricing
•
Increased capital availability
•
Decreased operating costs
•
Increased capital investment
Timeframes
Short-term processes include annual business and financial planning, performance reporting, short-term capital allocation and contract negotiations.
Climate related risks
• Increase in occurrence of moderate precipitation
• Enhanced emissions reporting obligations
• Enhanced ESG obligations
Potential financial impact
• Increased operating costs
• Increased capital investment
Climate-related opportunities
Increased resource efficiencies and reducing our reliance on fossil fuels
Enhanced water use strategies
Waste reduction and recycling initiatives/li>
Potential financial impact
Reduced operating costs
Increased capital investment
Medium to long-term processes include strategy development, social and environmental management plans, rehabilitation planning, capital management plans, financing and capital investments and operational planning, including contract negotiations and future-focused projects.
Climate related risks
Increase in occurrence and severity of precipitation
Rising mean temperature
Strong winds
Increased frequency and duration of droughts
Failure of electricity providers to move to a low-carbon economy
Substitution of technology with lower-emission alternatives
Social risks due to resource constraints, particularly in developing countries
Evolving regulatory context regarding carbon tax
Increased costs of carbon-intensive products (such as diesel)
Reputational risk
Potential financial impact
Increased capital investment
Increased operating cost
Reduced revenue from decreased production capacity
Increased insurance premium or insurance unavailability
Research, development and implementation costs of new technology
Inappropriate investment decisions
Climate-related opportunities
Identify opportunities to transition to renewable energy sources
Position Gem Diamonds as an ethical and responsible producer of low-carbon-footprint diamonds
Use of new technologies
Reputational benefits
Potential financial impact
Reduced exposure to carbon and fossil fuel pricing
Increased capital availability
Decreased operating costs
Increased capital investment
Unpacking our climate change scenario analysis
Understanding climate-related risks and opportunities allows us to align our business strategy with stakeholder demands of the industry, enhance sustainability efforts throughout the organisation, create resilience to climate change-related impacts and maximise value for all stakeholders.
Putting a price on
carbon
Internal carbon pricing is a globally recognised tool to guide decision-making when assessing climate change impacts, risks and opportunities, by forecasting a future world under various climate-change scenarios.
Targets and metrics
The targets and metrics used to assess and manage relevant climate-related risks and opportunities
The Group monitors various metrics to inform its assessment of climate-related risks and opportunities. We conduct semi-annual carbon and water footprint assessments, which provide shorter-term monitoring of our progress against set goals and the associated immediate risks and opportunities. This allows us to respond rapidly to climate and energy-related matters such as consumption rates, carbon emission trends and opportunities to improve usage efficiencies.
The following metrics and trends are measured and monitored as part of our normal operations:
Carbon footprint
Water footprint
Freshwater dam levels
Precipitation patterns
Energy consumption trends
Environmental expenditure
Land use and rehabilitation activities
For more information on our carbon emissions, including Scope 1, 2 and 3 emissions and other climate-related metrics, refer to our Sustainability Report 2023.
Our carbon, energy and water footprints
The Gem Diamonds' carbon footprint is calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, an accounting tool developed by the World Resources Institute and the Business Council for Sustainable Development to manage GHG emissions. The standard includes Intergovernmental Panel on Climate Change GHG inventory guidelines for specific heating values, carbon content, densities and emission factors.
Our total 2023 carbon footprint for the Group was 110 198 tCO2e, 2% lower than 2022 (112 827 tCO2e). This includes direct carbon emissions (Scope 1), energy indirect carbon emissions (Scope 2) and material Scope 3 emissions.
The reduction of Group-wide carbon emission, since 2021, has been driven by the reduction of our ore and waste profile as well as the implementation of initiatives to reduce energy consumption, improve energy use efficiencies and transition to renewable energy sources. Mining optimisation initiatives implemented during 2021, such as reduced hauling distances, steeper slopes and reduced mineral waste mining were advanced further during 2023. Relooking at these initiatives to assess and implement further improvement opportunities not only contributed to a reduced carbon footprint, but also mitigated the impact of significantly increased diesel usage and associated cost to power the plants during increased frequency and periods of grid power load shedding experienced in 2023.
We have implemented the following operational measures that have contributed to the reduction of our carbon footprint and associated energy costs:
Reviewed the basic maintenance processes and purchased a mobile maintenance vehicle for the mining fleet to reduce tramming in and out of the pits
Designed a priority controlled electrical load management system for Letšeng for implementation in 2024
Transitioned the Ghaghoo operation from diesel powered generators to renewable solar power
We further reduced our waste rock hauling distances, resulting in a reduction of our carbon emissions, diesel consumption and associated costs
Relocated diesel depots to reduce the distance mining equipment needs to travel to refuel
We replaced all lighting infrastructure at Letšeng with energy efficient technology
The above measures, and reduced ore and waste profiles, have resulted in a 41% reduction of mobile diesel consumption (that is the diesel consumed by our mining fleet and support equipment) since 2021. As a result of the reduced diesel consumption, we have also seen a 25% reduction in our Scope 1 carbon emissions over the same two year period.
While the Group has been working to decarbonise the Letšeng operation, our most material carbon emissions contributor, the reliability of the South African electricity grid has deteriorated and load shedding worsened to unprecedented levels during 2023. The South African grid was affected by load shedding on 335 days in 2023, up from 205 days in 2022, 75 days in 2021 and 54 days in 2020. Letšeng relies on diesel powered generators to power the operation during periods of load shedding or other grid power outages. Since 2021, there has been a 215% increase in generator hours and 245% increase in the volume of diesel consumed for generator power. The increase in diesel consumption by the generators has been offset by the reduction in diesel consumption by the mining fleet and support equipment as a consequence of lower volumes mined.
Letšeng carbon emissions related to diesel consumption (tCO2e)
2023
2022
% change
Diesel: Mobile combustion
33 955
38 035
(11)
Diesel: Stationary combustion
11 671
8 667
35
Total emissions related to diesel consumption
45 626
46 702
(2)
Scope 2 emissions of 49 975 tCO2e in 2023 is a 26% reduction since 2021 (67 473 tCO2e), this reduction was driven by a combination of load shedding and energy efficiency initiatives implemented at Letšeng to reduce energy consumption.
The Group monitors intensity indicators to assess and appropriately responds to carbon emission changes. Although our emissions intensity for tonnes mined (ore and waste) increased slightly in 2023 from 2022, this is directly related to the significant reduction in waste tonnes mined being offset by a relatively smaller reduction in overall emissions. However, our intensity indicators for carats recovered and ore tonnes treated showed a 22% and 9% improvement from 2021 to 2023.
Carbon emissions
Unit
2023
2022
2021
Performance against 2021 baseline (%)
Scope 1 (direct)
tCO2e
46 964
48 219
62 672
(25)
Scope 2 (indirect)
tCO2e
49 975
51 092
67 473
(26)
Total Scope 1 and 2
tCO2e
96 938
99 311
130 145
(26)
Scope 3 (indirect)
tCO2e
13 259
13 516
23 718
(44)
Total Scope 1, 2 and 3
tCO2e
110 198
112 827
153 863
(28)
Total tonnes mined (ore and waste)
tonnes
14 260 661
15 886 339
24 395 986
(42)
Ore tonnes treated
tonnes
5 024 665
5 506 576
6 172 428
(19)
Carats recovered
carats
109 656
106 704
115 336
(5)
Intensity indicator: Scope 1 and 2 (tCO2e)/Tonnes mined (ore and waste)
ratio
0.007
0.006
0.005
27
Intensity indicator: Scope 1 and 2 (tCO2e)/Tonnes ore treated
ratio
0.019
0.018
0.021
(9)
Intensity indicator: Scope 1 and 2 (tCO2e)/Carats recovered
ratio
0.884
0.931
1.128
(22)
The Group will continue to measure and report on our carbon footprint performance as we work towards our goal of reducing our footprint by 30% by 2030, using 2021 as a base.
In 2023, as part of our ongoing efforts to reduce our energy consumption, associated emissions and operational costs, we implemented the following initiatives:
Diesel usage was reduced through route optimisation, reduced hauling distances, relocated support infrastructure, reduced idling of fleet, improved maintenance programmes and improved driving behaviours;
We replaced existing mine area, workshops and conveyor belt lighting with energy-saving LEDs, reducing lighting power requirements by 70%, from 234kW to 68kW;
A priority-controlled electrical load management system was designed for implementation in 2024, enabling low priority power usage to be curtailed during load shedding;
Heating, used in office and accommodation buildings on-site, was automated to relieve the pressure on generators during load shedding.
Group-wide energy consumption (for Scope 1 and 2 activities) in 2023 was 217.7 million kWh (2022: 219.6 million kWh). 99% of Scope 1 and 2 energy consumption in 2023 is attributable to Letšeng, where our principal energy sources are grid electricity and diesel powered generators. The reduction in the Scope 1 and 2 energy consumption resulted in an improvement of energy use efficiencies for ore tonnes treated (refer to the table below). This illustrates an improvement in energy consumption across the board, from mining to treatment to site services. The increase in energy intensity for tonnes mined is primarily driven by the significant reduction in waste tonnes mined as the actual energy consumption for both Scope 1 and 2 reduced by 1.9 million kWh in 2023 from 2022.
Energy consumption
Unit
2023
2022
2021
Performance against 2021 baseline (%)
Scope 1
kWh
166 709 905
167 643 889
251 743 229
(34)
Scope 2
kWh
50 994 991
51 975 278
68 637 800
(26)
Total Scope 1 and 2
kWh
217 704 896
219 619 167
320 381 029
(32)
Total tonnes mined (ore and waste)
tonnes
14 260 661
15 886 339
24 395 986
(42)
Ore tonnes treated
tonnes
5 024 665
5 506 576
6 172 428
(19)
Carats recovered
carats
109 656
106 704
115 336
(5)
Intensity indicator: Scope 1 and 2 (kWh)/Tonnes mined (ore and waste)
ratio
15.27
13.82
13.13
16
Intensity indicator: Scope 1 and 2 (kWh)/Tonnes ore treated
ratio
43.33
39.88
51.91
(17)
Intensity indicator: Scope 1 and 2 (kWh)/Carats recovered
ratio
1 985.34
2 058.21
2 777.81
(29)
Gem Diamonds acknowledges the impact climate change will have on reshaping the future of freshwater, changing precipitation patterns are shifting seasons and affecting the timing and quantity of freshwater recharge. The impact of unmitigated industry on water quality will further exacerbate an already vulnerable global water supply system and water stewardship has therefore been integrated into our business strategy as a responsible mining company and good corporate citizen.
Our water stewardship strategy is informed by nature-based solutions that offer synergies between ecosystem health and human well-being, while ensuring adequate water supply for operational activities. At Letšeng, ongoing water analysis over the years has indicated an increase in nitrates in our water. Elevated nitrate levels are often associated with mining activities but are also attributed to the application of fertilizers, human and animal waste and other sources. Nitrates may also be naturally present as a result of soil nitrification processes from the mineralisation and mobilisation of nitrate from natural soil or host rock lithologies. In 2014, in response to the increase in nitrate levels, Letšeng commissioned a nitrate management study to find and implement solutions to prevent nitrate infused water leaving the lease area. The study was extensive, and the solutions put in place have been far-reaching and effective. An official nitrate task team, which works in collaboration with the relevant government departments in Lesotho, was also established. Since the commissioning of the nitrate management study, the operation has implemented the following solutions to protect and maintain water quality:
Commissioned a wetland construction and rehabilitation programme.
Changed blasting practices and procedures to limit the volume of nitrates from explosives released into the environment.
Partnered with water conservation experts to trial the feasibility of fertigation and bioremediation as treatment methods and conducted leach testing to better understand the management options.
Following the successful trial of a passive treatment technology with leading experts, iWater, the results from two pilot plants tested at Letšeng indicated that bioremediation was an effective denitrification process for our unique operating environment. In 2023 we commenced with the construction of a bioremediation treatment plant, with capacity to treat ~300 kilolitres of water per day. The first module of this plant was commissioned at the end of 2023, with the remaining five modules commissioned in February 2024.
In 2023, Letšeng completed the design of an artificial phytoremediation (plant-based filtration) wetland to be located downstream of the bioremediation treatment facility. Wetlands have proven to effectively offset environmental impacts, contribute to rehabilitation of the environment,increase biodiversity, and acted as a natural source of water treatment and we have previously successfully established a wetland within the mine lease area to improve denitrification of the run-off water.
We are very mindful of our PACs’ access to sufficient potable water. Letšeng has, through its CSI department, provided access to clean water and sanitation infrastructure to multiple villages in Lesotho to assist communities in dealing with the issue of coliform contamination of surface water which is not related to mining activities, but rather as a result of livestock fouling. At Ghaghoo, we continue to provide potable water to the Gope Community, with a potable water storage facility situated at the nearby police camp.
In 2022 and 2023, Lesotho received significant rainfall, recharging our freshwater storage facility. The water currently held in the Mothusi freshwater facility ensures adequate water supply, at current usage rates, for the next eight years. The lower treatment volumes in 2023 and the implementation of water stewardship initiatives resulted in a 30% decrease in our Group-wide net water usage and a 44% decrease in water withdrawal.
The management of our response to more dynamic weather patterns will continue to evolve alongside our understanding of the impacts of climate change.
Water consumption
Unit
2023
2022
2021
Net water usage
million m3
2.3
3.3
7.1
Water withdrawal and capture
million m3
0.8
1.5
3.8
Water recycled
million m3
4.5
6.4
8.9
Water loss through evaporation, entrainment, and seepage
million m3
1.7
3.6
3.1
Total tonnes mined (ore and waste)
tonnes
14 260 661
15 886 339
24 395 986
Ore tonnes treated
tonnes
5 024 665
5 506 576
6 172 428
Net water use (m3)/Tonnes mined (ore and waste)
ratio
0.16
0.21
0.29
Net water use (m3)/Tonnes ore treated
ratio
0.46
0.60
1.15
Recycled water (m3)/Tonnes mined (ore and waste)
ratio
0.32
0.40
0.36
Recycled water (m3)/Tonnes ore treated
ratio
0.90
1.16
1.44
Find out more
Annual Report and Accounts 2023
We implemented several initiatives to reduce the impact of significant cost increases, to drive efficiencies and effectively manage operating costs in a highly volatile and uncertain economic environment.
We are held in high regard across Lesotho for the community work we do. We will continue to foster this respect and constantly refine our contributions by listening closely to the people who need our assistance, enabling us to find practical solutions for the greatest possible benefit.
