The call for mining

As we transition toward a greener economy, mining plays a crucial role in providing the raw materials needed for renewable energy technologies, electric vehicles, and other clean energy solutions. The team at Projects RH is seeing a steady demand for mining companies heading down the project development path in response to the increase in prices across the so-called batteries minerals sector.         

The shift away from fossil fuels toward clean energy technologies (such as wind turbines, solar panels, and electric vehicles) relies heavily on minerals and metals. These critical materials are essential components of these technologies. Realistically change will cause the need for new infrastructure. For example, in Australia, there is much debate over the fact that 10,000 kilometers of new power transmission lines will be required.  This will need steel towers, copper cables and transformers across the eastern part of the country. All these will call for mining.

Over the next three weeks, we will prepare 3 articles on what this will mean for:

• The minerals markets
• The capital markets and
• International trade

What are the key minerals for transition

These are minerals that play a pivotal role in our transition toward a more sustainable and renewable energy future:

• Copper: Used in electrical wiring, motors, and renewable energy infrastructure.
• Lithium: Key for lithium-ion batteries in electric vehicles and energy storage systems.
• Rare Earth Elements (REEs): Essential for power generation magnets in wind turbines and electric vehicle motors. REEs are also essential for the computers and systems that will manage the energy infrastructure systems.
• Cobalt: Used in lithium-ion batteries.
• Nickel: Used in batteries and stainless steel.
• Silver: Used in electronics and renewable technologies
• Gold: Also used in electronics and renewable technologies
• Silicon: Used in computer chips and solar panels.

The Challenges

1. Supply Chain Risks: Ensuring a stable supply of these minerals is crucial for a successful energy transition. These minerals need to be available and affordable worldwide. This is essential for all countries to facilitate the transition.
2. Environmental and Social Impacts: Mining can have adverse effects on ecosystems, communities, and human health. People and nations worldwide must have access to necessary materials. This implies that power prices will need to increase and likely be similar globally. This should not be as challenging as it initially seems, as oil has long had a global pricing structure.
3. Balancing Demand and Sustainability: We need to mine more and earlier to support the transition, but it must be planned with minimal impact and executed with sustainable technology.

While increased mining is necessary for a greener economy, we need to find a balance between meeting the demand and cost-effectively minimizing environmental and social impacts. It must be at a scale that all counties can afford to be part of the transition. We need to remember that the environment does not recognize national borders.

What will be the Drivers of Standards?

Being a miner increasingly demands having a social license. This social license requires miners to behave in line with community expectations not only to how they mine but in their dealings with communities and nations. Miners do need to behave commercially as we need them to be in business for the long haul, but they need to enter, operate and leave communities in a socially responsible manner. Frankly, if they do not, they will be punished by the markets and shareholders but more importantly, they will face fines in their home countries and run the risk of being excluded for other concessions they see.

What are the Standards

Our mining community is global and operating in line with a mix and global and local standards is something that they are used to. They will need to develop whole-of-mine-life approaches to who they enter, operate and leave a mine site. We can expect to see large environmental bonds and longer responsibility for what they do to the environment. For example, where a river is moved to allow mining, it will need to be returned to where it was. The areas mined will need to be rehabilitated to make them useful. All these responsibilities will add to the cost of production and the price of minerals.

The key areas to be considered for environmentally sustainable mining are:

Responsible Minerals Initiative (RMI): Provides an ESG Standard for mineral supply chains, covering environmental, social, and governance aspects. Miners will need to comply with this.

• 17 Sustainable Development Goals – Since 25 September 2015, community and government leaders have set a standard which are called the 17 Sustainability Goals (See Appendix A). There is an expectation that companies will comply with and locally contribute to the achievement of these goals.
• Environmental Criteria: Address impacts on the environment, biodiversity, and adjacent communities. The local community cannot be worse off.
• Occupational Health and Safety: Ensure safe working conditions for miners and employ/train locals were possible.
• Social Obligations: Cover fair labor practices, diversity, and community engagement.
• Governance Requirements: Ensure compliance with laws and regulations.

The Best Practice Response

Communities are expecting from mining companies:

• Waterless and Zero-Waste Mines: Innovations that minimize environmental impact.
• Responsible Mining Practices: Companies that prioritize environmental and social responsibility.
• Renewable Energy: Transitioning mining operations to renewable energy sources (solar, wind, etc.).
• Energy Efficiency: Improving energy efficiency in mining processes.

The New Challenge

For mining companies and their EPC contractors, there are now clear behavioral expectations. These include working with the local communities to create jobs and a better life for all.

At Projects RH we commonly see 3-5% of the capital cost of the project allocated to building a better life for the community. We have seen this spent on:

• Expanding systems such as water and power to include the villages that the staff will be drawn from.
• Building accommodation for community support staff e.g. community nurses.
• Build schools and hospitals.

The key is listening and then providing the community what they want.

Mining for Progress: Balancing Opportunity and Responsibility

Globally the majority of people understand that mining will be necessary to deliver the infrastructure and tools of transition to a zero-carbon economy.

While some communities will not want mining, many more will want the opportunities and benefits it brings to their local community.

As a global community, we need to acknowledge that mining will be essential to help us progress to the next stage of our community's evolution, which will involve sharing some of the wealth generated from this change.

For the Projects RH team, numerous new opportunities are being observed in different locations as mining prospects. The development process has slowed down in many countries over the past few years as regulatory and compliance procedures have become more stringent. Most mining companies cannot simply relocate to less developed countries because they are accountable not only for their actions abroad but also to their local community. While upfront costs have risen, so have the selling prices. Mining has always had to adapt to changes in community expectations, and there is no doubt that this is just a natural part of the business.

The decarbonization of our world requires the products of the mining industry, and the mining industry relies on the social acceptance it gains from meeting community expectations.

If you have a mining project…

Please send you materials to paulraftery@projectsrh.com and then book a time to speak at https://outlook.office365.com/owa/calendar/PaulRafteryProjectsRH@projectsrh.com/bookings/ Please allow me 24 hours to send a link and read your summary. 

Gain Investor Confidence with Projects RH: Effectively prepare your mining project for success in securing the funding you require. Unlock the power of eco mining and join the exciting journey toward a more sustainable tomorrow!

Disclaimer: The ideas and underlying gist are original and generated by a human author, and reviewed by a human editor. The organization, grammar, and presentation may have been enhanced by the use of AI.

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Appendix A

The United Nations Sustainable Development Goals (SDGs) are a set of 17 interconnected global goals aimed at addressing urgent challenges and creating a more sustainable and equitable world by 2030. Here they are:

1. No Poverty (SDG 1): End poverty in all its forms everywhere.
2. Zero Hunger (SDG 2): End hunger, achieve food security, and promote sustainable agriculture.
3. Good Health and Well-Being (SDG 3): Ensure healthy lives and promote well-being for all at all ages.
4. Quality Education (SDG 4): Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
5. Gender Equality (SDG 5): Achieve gender equality and empower all women and girls.
6. Clean Water and Sanitation (SDG 6): Ensure availability and sustainable management of water and sanitation for all.
7. Affordable and Clean Energy (SDG 7): Ensure access to affordable, reliable, sustainable, and modern energy for all.
8. Decent Work and Economic Growth (SDG 8): Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
9. Industry, Innovation, and Infrastructure (SDG 9): Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
10. Reduced Inequalities (SDG 10): Reduce inequality within and among countries.
11. Sustainable Cities and Communities (SDG 11): Make cities and human settlements inclusive, safe, resilient, and sustainable.
12. Responsible Consumption and Production (SDG 12): Ensure sustainable consumption and production patterns.
13. Climate Action (SDG 13): Take urgent action to combat climate change and its impacts.
14. Life Below Water (SDG 14): Conserve and sustainably use the oceans, seas, and marine resources.
15. Life on Land (SDG 15): Protect, restore, and promote sustainable use of terrestrial ecosystems, manage forests sustainably, combat desertification, halt and reverse land degradation, and halt biodiversity loss.
16. Peace, Justice, and Strong Institutions (SDG 16): Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
17. Partnerships for the Goals (SDG 17): Strengthen the means of implementation and revitalize the global partnership for sustainable development.