Responsible or reckless? A critical review of the environmental and climate assessments of mineral supply chains

Abstract

This paper critically reviews and identifies gaps in the methodologies used to analyze the environmental impacts of mineral and metal global supply chains. Of specific focus are assessments of the extraction and production of minerals and metals needed for a low-carbon energy future. Current trends and projections suggest that the future low-carbon energy system will have greater material needs than the current one. Thus, it is important to better understand the full impacts of increased resource extraction to help ensure a sustainable and just transition. This review reveals that existing methodologies are currently insufficient in capturing the full suite of environmental, social, and governance concerns. The copper supply chain is used as a case study to highlight areas that require refined or augmented methodologies, with an in-depth examination of the corporate practices of Freeport-McMoRan, Vale, and BHP. Together, this review of existing methodologies and examples from the copper supply chain highlight the incomplete and variable nature of environmental and climate reporting within the mining industry. Areas for future work are defined with the goal of advancing accounting frameworks for the mining industry and the associated supply chain.

Escasez de recursos minerales: consecuencias en la explotación, la sostenibilidad y el desarrollo tecnológico

“…Como indicamos, para el caso de las tierras raras, se ha observado que su extracción genera inconvenientes sobre los ecosistemas debido a las grandes cantidades de gases residuales compuesto de material particulado concentrado, ácido fluorhídrico, dióxido de azufre, aguas residuales ácidas y residuos radiactivos (Tunsu et al, 2019). Los impactos ambientales también incluyen la emisión de gases de efecto invernadero, ecotoxicidad e impactos en la toxicidad humana, atribuidos a metales comunes como el hierro, acero, aluminio y cobre, que representan más del 95% de la extracción mundial (Lee et al, 2020). Además, Lapcik et al (2018), señalan que las consecuencias dependen directamente del tipo de explotación, dando como ejemplo el caso de cielo abierto, cuya desventaja es que afecta en mayores extensiones y genera un alto grado…”

The material foundations of a low-carbon economy

“…Yet as different nations begin to develop aggressive climate change policy and trade agreements, comparatively little progress has been made in addressing the detrimental effects of rapid and continuous mineral extraction and processing. 2 The mining industry has a long history of environmental degradation, and many questions remain around optimal policy solutions to address the ''resource curse.'' 3 Sustainable development concerns to date include the use of child labor in cobalt sourcing, the impact of lithium extraction on nearby ecosystems, copper pollution in the vicinity of mines, and the toxicity of rare-earth elements, along with other impacts from the materials of the energy transition.…”

“…13 More recently, reports have found as many as 255,000 artisanal cobalt miners in the DRC, 35,000 of whom are children working in exceedingly harsh and hazardous conditions to produce the materials many people use in their $100,000 electric vehicles (EVs) and other ''clean'' technologies. 2 Similarly, mining for lithium has been criticized in Chile for depleting local water resources across the Atacama Desert, destroying fragile ecosystems, and creating unknown, long-term environmental impacts even though the nation exports most of what it produces to support electronics and batteries in other countries. 5 The production of cadmium (used in semiconductors and photovoltaics) has also been linked to groundwater and agricultural soil contamination, along with worker exposure to hazardous chemicals, but this is rarely discussed among solar advocates or by those who lobby for green legislature.…”

“…5 The production of cadmium (used in semiconductors and photovoltaics) has also been linked to groundwater and agricultural soil contamination, along with worker exposure to hazardous chemicals, but this is rarely discussed among solar advocates or by those who lobby for green legislature. 2 The mining of rare-earth elements has also resulted in chemical pollution from ammonium sulfate, ammonium chloride, and radioactive elements that now threaten rural groundwater aquifers, but the associated tariffs, monetary costs, and import reliance are almost always the focus of newspaper headlines and discussions. 14,15 Opaque supply chains pose challenges Considering entire supply chains-from the initial steps of extracting ore to the manufacturing of highly complex end products-is important to understanding the risks and opportunities for different minerals and metals.…”

Mine Water Use in Kazakhstan: Data Issues, Risks, and Regulations

“…This has affected indigenous communities that engage in agriculture, and a similar situation exists in Argentina [1]. Furthermore, artisanal mining in many parts of the world pollutes waters due to reliance on unsafe and outdated technologies [8,9]. These environmental challenges of mining, coupled with impacts on human rights, spurred a critical review of mineral supply chains and origin tracing of "conflict minerals" by NGOs, investors, and consumers [9].…”