RRM 2024 - Critical Choices - Day 2 in review

In its second day Responsible Raw Materials delved into how we approach complex systems, with the morning session focused on how we can simultaneously manage uncertainty and build trust in mining and mineral operations, and the afternoon session demonstrating the necessity and value of more engagement – with planetary boundaries, with each other and with the opportunities that arise from rethinking familiar models.

Mining, by its very nature, incurs a level of uncertainty that differs from other industries, in fact mining, and specifically exploration, has often been likened to the ultimate form of gambling.

Geertje Schuitema in her discussion of mining, ethics and trust unpacked how competence, integrity and benevolence feature in how mining is perceived and engages with various stakeholders – and also asked the all-important question: “does mining trust itself? even as it requests trust from others?”. This was echoed by Vitor Correia in his proposals to Rethink Mining: Embracing Technology and Social Responsibility, underlining the transformative process currently underway in the mining and minerals sector and the importance of catalysing novel business models capable of de-risking and redesigning responsible mineral value chains from resource extraction through to end-use and recycling. Elly Shaw expanded on this in her discussion of the mine we all want to see, traveling the road “from greenfield exploration to the green fields of a successful mine closure”. Richard Herrington masterfully demonstrated the need to “explore for mine closure”, mitigating the risks of long-term liability by defining mining as an element of a shared vision of the future. Mining’s adverse legacy features high in the drivers of fear and rejection of the sector, hindering growth and development of new mines needed to respond to critical mineral demand.

Echoing Richard Herrington ’s recommendation to “measure the value of a mining project in true terms, inclusive of potential benefit for people, planet and prosperity”, Mark Burnett discussed how to integrate a wide array of non-technical risks to determine the opportunity and value of mining, integrating responsibility to the “gambling”. Geoff Deans explored modifying factors, a term common to many industry sectors to define parameters that can affect business or product viability. In the minerals sector, this includes mining, processing, metallurgical, infrastructure, economic, marketing and legal as well as environmental, social, and governmental considerations – with the challenge being to quantify and balance these to enable truly risk-informed decision-making. Both referred to the CRIRSCO-aligned reporting frameworks, essentially a ”language of trust” between exploration ventures and their investors: per their own website, “the aim of CRIRSCO (Committee for Mineral Reserves International Reporting Standards) is to contribute to earning and maintaining that trust by promoting high standards of reporting of mineral deposit estimates (Mineral Resources and Mineral Reserves) and of exploration.“

Looking beyond the familiar models, Anita Parbhakar-Fox discussed her pursuit of critical metals potential in Australia's mine waste, whilst Guillaume de Brier advocated for new approaches to secure cobalt and have a positive impact on mining-affected communities. Responsible sourcing regulation over the last two decades has not only had limited positive impact but even led to some dire unintended consequences for the most vulnerable actors in artisanal mining; to change this paradigm, the proposal is to increase engagement through direct investment in ASM (artisanal and small-scale mining) operations and/or partnerships with local companies. This however entails clear-eyed assessment and purposeful management of governance: beyond statements of intent, buyer markets are called to align their action with their values. This was echoed by Kaisi Kabenga ( K Kaisi ) in his presentation of Temisite, an innovative approach to enable artisanal miners in Tanzania to access not only data but also commercialisation opportunities for their product. This aims to break the hold of illegal financing and traders on ASM operations, and promote transparency and accountability in some of the most opaque parts of value chains with significant impact and economic potential for communities and countries. Interestingly, Kathryn Moore also discussed the risks of small-scale mining globally and how we can overcome impediments to technology and business-model adoption to enable smaller-scale mining to simultaneously respond to growing need for minerals, improve its environmental performance and leverage its potential for positive social impact at local level.

Corruption is too often deemed a victimless crime by a number of stakeholders, and overlooked by companies and policy shapers; but at the end of the day it is corruption that empties State coffers, driving systemic poverty, illegal activities and insecurity in a vicious cycle.

Transparency and engagement are also key to (re)building trust, as highlighted by the OECD in its “Responsible is reliable” manifesto; Louis Maréchal explained this vision and the need to invest in governance to secure supply of critical minerals, including anti-corruption measures. This connects to many of the initiatives and approaches of the Extractive Industries Transparency Initiative (EITI), as discussed by Mark Robinson and Michael Barron . The EITI Standard is the global benchmark for transparency and accountability in the oil, gas, and mining sectors, and was updated in 2023 to respond to stakeholder needs and a changing global context, including increased focus on corruption risks, energy transition impacts, gender, social and environmental issues and revenue collection transparency. Pavel Verkhniatskyi connected transparency of supply chains and geopolitical stakes, including global competition for military dominance where critical materials play a crucial role. In this context, enhanced due diligence aims to cut through the fog of transnational trade and ambiguity.

So even as we aim to transform mining and reshape mineral value chains, how can policy shapers act to transform the context in which they operate ? In addressing the systemic challenges of the day, trust in allies and innovative partnerships must play a role: Mark C. discussed the Canada-EU Strategic Partnership on Raw Materials as an example of resilient but dynamic political relationship which can be leveraged by companies and investors reshaping their operations, linkages and outlook. And Diego Marin turned the conversation full circle by urging us to tackle the problem at the source: rethink consumption of minerals, echoing a recent call to EU policy shapers for to legislate on sustainable resource management. Civil society organisations have emphasised the need to drive significant reductions in high-consumption sectors like transport, construction and digital industries to support a just transition, bolster strategic autonomy and re-align European consumption with planetary boundaries.

Reporting by Ludivine Wouters