Sustainability series: Role of the mining industry

Renewable energy production is set for consistent growth in the coming decades as world economies seek clean and inexpensive energy sources. Today, advances in renewable energy technology have made them economically competitive or superior to traditional fossil fuel plants.

Wind and solar energy production have increased tenfold in the last 20 years¹. Similar levels of growth are expected for other forms of renewables. This is due to decreasing operating costs and the implementation of public and private sector plans for carbon reduction initiatives.

The construction of green technology such as motor windings, specialized magnets, and battery construction, uses a variety of metals. Notable metals include copper, lithium, nickel, manganese, chromium, zinc, and rare earth metals.

If Paris Agreement participants were to meet their planned climate goals over the next ten years, forecasted demand of production levels of copper, lithium, and cobalt could exceed by 25% to 150%².

The mining industry is in the position to supply the metals necessary for a sustainable future. Similar to the "going electric" approach in the broader society with the use of electric vehicles, this same approach  applies to the mining industry. Specifically, with electrification, clean power sources are being brought online either through internal renewable projects or initiatives to develop battery powered heavy equipment such as haul trucks³.

Certain residual emissions from mining activities however, will be difficult to completely remove from industrial processes. Currently mining companies can purchase carbon offsets which involve an equivalent quantity of emissions being avoided by a third party. To reach a net zero target in the future, these mining companies will need to purchase a certificate from a carbon removal project to balance the on-going emissions. These carbon removal credits can come in the form of nature based or technological solutions⁴.

Partnerships have been formed with the smelting and refining industry to support the development of technology to reduce energy consumption. This vertical supply chain approach to decarbonization can allow mining companies to optimize blending and product composition to improve processing outputs, and to develop new technology that benefits the industry.

Mining companies will continue to dedicate significant resources to ensure lasting positive and sustainable impacts of an operation. This involves establishing a social license to operate where all stakeholders are in alignment with operational practices and shared benefits. Once mine closure is reached, supporting communities in developing alternative economic opportunities and carefully follow up post-closure activities is imperative.

For many mines with mining waste stored in tailings impoundments, the dams must be monitored and maintained in perpetuity. In 2020, the Global Industry Standard on Tailings Management (GISTM) was published with the intent to "strengthen environmental, social, governance, and technical practices of the mining industry across the entire lifecycle of the tailings facility"⁵. Many companies have signed on to adhering to the GISTM standard. Maintenance protocols and technological advances in waste management will continue to improve the long-term storage of mineral byproducts.

As the mining industry further transitions to a more sustainable operation mode through reduction in emissions and use of clean technology, it continues to leave a positive social and environmental legacy where they operate. The industry aspires to be both a supplier of the materials needed to build green infrastructure and a leader in sustainable business practices.

The mining industry is playing an important role in supplying the materials necessary to build a sustainable economy. The industry is important for the growth of the renewable energy sector, a "greener" society and achieving a net zero economy.

Additionally, many mining companies have established timelines to carbon neutrality which are aligned to the Nationally Determine Contributions (NDC) plans in countries they operate in. Partnerships throughout the primary material supply chain will continue to be crucial to reduction of Greenhouse gasses (GHGs). Mining operators are also committed to advancing the need to leave a lasting and meaningful legacy in the ecosystems and communities where they mine.

Sources:

LePan, Nicholas (2021) Visualizing All the Metals for Renewable Tech (Viewed August 24, 2021) Retrieved from https://elements.visualcapitalist.com/all-the-metals-for-renewable-tech/

^{1 International Energy Agency Statistics (IEA) (2018) Electricity production from renewable sources, excluding hydroelectric (kWh). https://data.worldbank.org/indicator/EG.ELC.RNWX.KH 
2 IEA (2020) The Role of Critical World Energy Outlook Special Report Minerals in Clean Energy Transitions World Energy Outlook Special. https://iea.blob.core.windows.net/assets/278ae0c8-28b8-402b-b9ab-6e45463c273f/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf  
3 Charge On (2021). https://chargeoninnovation.com/
4 Swiss Re Institute (2021) The insurance rationale for carbon removal solutions. https://www.swissre.com/dam/jcr:31e39033-0ca6-418e-a540-d61b8e7d7b31/swiss-re-institute-expertise-publication-insurance-%20rationale-for-carbon-removal-solutions.pdf 
5 International Council on Mining and Metals (ICMM) (2020) Global Industry Standard on Tailings Management. https://globaltailingsreview.org/}