Climate and Competitiveness Border Carbon Adjustments in Action 2025

Company and sector profile African Rainbow Minerals (ARM) is one of South Africa’s largest diversified mining companies, operating in manganese, iron ore, coal, platinum group metals and nickel. The company plays a pivotal role in South Africa’s mining and metals sector while supporting international trade. Approximately 10–30% of its production is exported to regions where BCAs could apply in the future, including the EU, Canada and Australia. Exports are handled through joint ventures, exposing ARM to both direct and indirect impacts. Business exposure and response ARM perceives BCAs as a significant potential future competitiveness risk, citing concerns over rising costs, administrative complexity and potential losses in the export market. BCAs are widely viewed as creating inequities, disproportionately affecting producers in developing regions while providing limited additional global climate benefits. Market bifurcation is anticipated, with high-carbon products potentially redirected to markets without BCA requirements rather than achieving genuine emissions reductions.In response, ARM’s Sustainable Development Department elevates climate and environmental issues to board-level discussions, and the company has committed to net-zero GHG emissions by 2050 through short-, medium- and long-term pathways. Key initiatives include adopting internal carbon pricing to guide investments, accelerating low-carbon technologies and energy efficiency, and planning for Scope 3 emissions reductions throughout the supply chain. These measures demonstrate a structured approach to managing carbon risks and enhancing resilience in carbon-regulated markets.CASE STUDY 5 South Africa – ARM Key takeaways and potential actions ARM has integrated carbon considerations into its strategy, committing to net-zero GHG emissions by 2050 and implementing internal carbon pricing, low-carbon technologies, Scope 3 engagement and centralized carbon data systems. However, barriers such as high upfront capital expenditure, limited green finance, policy uncertainty and reliance on coal-based electricity constrain adaptation. Companies could: –Embed carbon considerations into strategy early, adopting internal carbon pricing to guide investments and operational decisions. –Invest in low-carbon technologies and process innovations to reduce emissions and shift towards lower- carbon products. –Engage with suppliers and customers and address Scope 3 emissions with centralized MRV systems. –Plan for financial and operational resilience in the face of policy uncertainty and evolving BCAs, using scenario planning and strategic alignment with international regulations. Climate and Competitiveness: Border Carbon Adjustments in Action 17