Australian metals miner South32 announced this week the successful refinancing of a US$1.4 billion sustainability-linked revolving credit facility.
The new, five-year loan is among the mining industry’s first sustainability-linked credit facility. The facility, which includes an option to extend by two more years, includes benchmarks for reducing emissions and improving efficient use of electricity and water resources.
South32’s Chief Financial Officer Katie Tovich said in a press release that the new financing agreement is one part of the firm’s multi-faceted approach to sustainability.
“We are taking meaningful action to benefit our stakeholders, our planet and our business. Our new revolving credit facility provides South32 with continued access to substantial liquidity and is one of the first in the mining sector to be directly linked to sustainability performance, aligning our action and access to capital.”
“Together with the recent changes to our remuneration framework to align with our commitment to decarbonise and reshape our portfolio, the new facility strengthens this alignment between our business and stakeholders,” she continued.
South32 says the new credit facility dovetails with the International Council on Mining and Metals (ICMM) Mining Principles, the United Nations Sustainable Development Goals and the United Nations Global Compact Ten Principles.
Based in Perth, Western Australia, South32 began in 2015 as a spin-off of BHP Billiton. The firm operates mines in Australia and South Africa, and markets aluminium, manganese, silver, zinc, lead, nickel, coking coal, and thermal coal.