Navigating the perilous digital zone

John Vagenas’s keynote presentation at the 2024 Consultants Society Forum was a provocative exploration of the risks and realities of digitisation in the mining sector—particularly where data integrity, reporting, and governance intersect with complex human dynamics.

The Perilous Nature of Digital

Digital transformation promises enhanced information flow, but John cautioned that without disciplined governance, it can introduce instability. Technology alone is not a solution. People, processes, and sustained training are essential to convert raw data into meaningful decisions.

Resistance and Organisational Barriers

Many teams resist change, particularly when internal capabilities are overestimated (“We can do that ourselves!”). Selecting appropriate software without critically examining the risks of inaction or incomplete implementation is a recurring pitfall.

Governance in a New Reporting Era

Sustainability reporting now holds equal weight to financial reporting. John outlined how mining companies must navigate emerging standards:

• IFRS S1 & S2 and Australia's AASB alignment (mandatory from January 2025)
• NGER obligations and Safeguard Mechanism reforms
• EU frameworks such as CBAM and CSRD
• Upcoming standards from TNFD and ISSB focused on biodiversity and nature

These frameworks create significant pressure for mining operations to improve disclosure and integrate non-financial performance into core decision-making.

Assurance and Inherent Limitations

Extracts from NGER assurance documentation reinforce that non-financial reporting carries inherent limitations—estimation, extrapolation, and sampling introduce uncertainty. John emphasized that assurance does not guarantee completeness or fraud detection. Transparency about these limitations is essential.

Linking Metallurgical Accounting and Sustainability

The final message highlighted a foundational truth: robust metallurgical accounting is intrinsically linked to credible sustainability reporting. The quality of technical data directly shapes the integrity of disclosures under new corporate and environmental regimes.

Key Insights

• Digital transformation without governance is hazardous
• Technology must be matched by capable people and systems
• New global and domestic standards demand more rigorous ESG integration
• Non-financial assurance requires transparency about limitations
• Metallurgical data is central to trustworthy sustainability reporting

Follow the link to watch the full presentation recording: https://player.vimeo.com/video/1059714127