Metals and mining - SUM: Sustainability Management Wiki

Authors: Marlen Jirschitzka, Felix Danneil, Clara Strehle, Jessica Foppe
Last updated: October 2nd 2023

1 Definition and Relevance

1.1 Definition

Mining and mining products

Mining is commonly defined as “the activity, occupation, and industry concerned with the extraction of minerals”¹. The mining and metal sector’s products consist of minerals and metals with a broad variety of applications.

Fig. 1 Mining products (by group) (own design, based on ²)

Iron, steel and ferroalloys are a group of metals related to steel making. Ferroalloys are metals of which small amounts are added to steel to adjust its characteristics for different applications. Metals that are not related to steel production are also referred to as non-ferrous metals. Technology elements are called like that because first and foremost they are critical for technological applications. Precious metals and gems are mined particularly for their perceived value. Industrial minerals include almost all minerals that are not metals or energy minerals. They are used in agriculture and the chemical- and building industry³.

Mining process

Traditionally there are two main categories of mining, which are underground mining and open-pit mining (also: opencast mining, surface mining). In the case of open-pit mining, the extraction of ore from rock bodies takes place on the surface of the earth, while underground mining is a practice of extracting ore underground, without removing the earth layers above⁴. More recent developments in mining techniques are exploring less environmentally harmful forms of resource extraction, including solution mining (leaching) as a less invasive method⁵ ⁶, as well as landfill- and urban mining as parts of a closed-loop metal cycle⁷. Other technological developments are targeted to new sources, like deep sea mining⁸ and space mining⁹.

Furthermore, mining and metal production operations can be distinguished by scale. Small, low capital- and rather labor-intensive mining operations are referred to as artisanal and small-scale-mining (ASM), which takes place in different forms of organization, and in sizes of about 4-10 people in a working group, with respectively up to 300 people per organizational unit¹⁰.

Mining projects generally follow a sequence known as the project cycle¹¹:

Fig. 2 Project Cycle (own design, based on ¹²)

Closure involves transformation support for communities and workers and the implementation of treatment facilities and monitoring systems. Post-closure means the long-term run of treatment and monitoring and necessary maintenance¹³.

Similarly, the production of commodities usually also comprises certain phases and operations, referred to as product cycle, as depicted below¹⁴:

Fig. 3 Product Cycle (own design, based on ¹⁵)

1.2 Economic Importance

Contribution to GDPs

When revising literature and especially comparing different statistics and numbers, one must always be aware that the metals and mining industry might be defined differently by different authors, for example, including or excluding fossil fuels. The contribution of the metals and mining sector has been changing quite a lot during the last decades: The global mineral production at the mine stage contributed about 0.6% to global GDP in 1996, went up to 1.9% in 2011 and has then decreased to 1.2% in 2016¹⁶. In 2014, mining and mineral processing accounted on average for 3-10% of national GDPs¹⁷. When including reuse and recycling, metal processing was equivalent to 11% of the EU’s GDP. A widely used indicator for the importance of the industry for a nation’s economy is the Mining Contribution Index (MCI). The MCI includes multiple indicators like export contribution and change in contribution, production value in relation to GDP, and mineral rent in relation to GDP¹⁸.

The recent volatility in the 2022 MCI can be explained, among other factors, by the effects of the Covid-19 pandemic that had very different impacts in different economies¹⁹. In terms of different metals, gold has by far the biggest impact on a country’s MCI²⁰. The way the MCI is calculated strongly reflects a country’s dependence on the mining sector. Therefore, countries with less diversified economies will rank highly even if they are not producing high volumes²¹. In the last years, China and Australia have been the biggest contributors to global mining production while China has also been very important for global metal and mineral demand²². Nevertheless, even when looking at longer time frames, low- and middle-income countries are the ones who are most economically dependent on mining²³.

Value and volume per year

In 2022, the global aluminium, iron and steel, precious metals, minerals, coal and base metal industry grew by 12.8%, reaching a value of USD $5,799,354.1 million, with iron and steel contributing 58.4% to the industry’s total value. The same year the industry volume grew by 4% to a level of 12,456,508.6 thousand metric tons²⁴. Based on a wider definition of the industry, the world mining production has been estimated to have been 9.6 billion metric tons in 1985, 11.3 billion metric tons in 2000 and 17.2 billion metric tons in 2020. The same source provides data on total mining production and change in production for different continents²⁵:

Table 1 Total mining production and change in production for continents (own design, based on²⁶)

Continent	Share of total global production 2020	Δ 2000/2020 change in production rates
Asia	59.8%	+104.1%
North America	15.4%	+13.8%
Oceania	7.3%	+142.4%
Europe	6.8%	-33.0%
Latin America	5.5%	+4.7%
Africa	5.2%	+16.2%

In the last years, most important for the generation of value were coal, iron, ore and gold²⁷.

Number of corporations

State-owned enterprises (SOEs) made up close to 50% of the global mining production in the 1980s and declined towards 28% in the 2010s, of which almost one third were owned by China. Based on data from the mid-2010s, an estimation expected around 25,000 companies active in the mining industry (excluding several commodities, a,o. oil and gas) operating in about 140 countries. Producing mines were roughly 56%, while 44% were active in exploration. Of these 25,000 companies, 650 were responsible for three-quarter of global production²⁸. When including petroleum and natural gas, the number increases significantly: In this case, for example the EU alone counts about 17,500 companies with approximately 413,000 employees²⁹.

Much of the economic importance of the metals and mining industry comes from its critical role in the transition towards a low carbon economy³⁰. The potential effects of a big increase in future demand are explained in more detail in chapter 4.2. In any case the metals and mining industry’s development will have a significant impact on the entire economy ³¹ ³² ³³, and will play a crucial role as an enabler for a greener economy³⁴.

2 Sustainability impact and measurement

2.1 Environmental impact

2.1.1 Mining products as essential components for a sustainable future

Mining plays a central role for achieving sustainable development. For example, metals and minerals are connected to the achievement of all 17 Sustainable Development Goals³⁵. From an environmental perspective, the positive impact is mostly related to climate change mitigation. As already stated in the previous chapter, mining products are essential components of low-carbon technologies. For example, so-called energy transition metals are needed for renewable energy production, which is essential to limit global warming³⁶. However, mining is also connected to many negative impacts, both from an environmental and social point of view. With the latter being discussed in part 2.2.2, the former will be presented in the next sections.

2.1.2 Negative impact of mining operations and processes

As mining and processing operations vary between different metal and mineral resources, the same applies to their environmental impacts. Moreover, impacts related to a specific metal or mineral also significantly differ over time and location of its sourcing and processing, which makes environmental impacts of mining a complex issue³⁷. Nevertheless, from an overarching perspective, some more general findings regarding the environmental impacts can be drawn. Before presenting these, two more aspects should be highlighted: First, the mining sector is characterized by a particularly high-risk related to the potential for disastrous accidents and catastrophes with severe consequences³⁸ as, for example, the failure of the Brumadinho tailings dam in Brazil in 2019, which resulted in enormous waves of mud that spread over several kilometers and caused many people’s death³⁹. Second, another feature of the sector, which sets it apart from other industries, is the long time horizon, as mining projects as well as their environmental impacts often cover extended time periods of several decades or even centuries⁴⁰.

Land use and biodiversity

Mining occupies large areas of land. An estimation based on satellite data from 2019 indicates that more than 100,000 km² are covered by large- and small-scale mining sites as well as related dams, dumps, ponds and processing plants⁴¹. Over the past two decades, the extraction of metals and minerals has rapidly increased and expanded especially into regions with high biodiversity, such as tropical forests⁴². Mining impacts biodiversity via different ways and at multiple scales: On the one hand, it causes habitat loss at the mining site. On the other hand, it also degrades or fragments habitats on a regional level due to the construction of infrastructure and the discharge of physical or chemical mining waste⁴³. This has long-term consequences: Even though there are measures for renaturation of mining sites (see 3.1.1), it is very demanding and often not possible to restore mining areas to their native state⁴⁴.

Energy use and greenhouse gas (GHG) emissions

The extraction and processing of metals and minerals causes a significant share of global GHG emissions. For instance, in 2016, manufacturing of iron and steel caused 7.2% of global GHG emissions, while non-ferrous metals and clinker production accounted for 0.7% and 3%⁴⁵. One relevant source of emissions is the high use of energy that often stems from fossil fuels⁴⁶. An overview of energy sources and energy-consuming processes is provided in Figure 4. Next to emissions from energy use, another important type of GHG emissions from mining are fugitive emissions of methane that emerge from the mineral deposits themselves⁴⁷. In 2016, fugitive emissions from coal, oil and gas were responsible for 5.8% of global GHG emissions⁴⁸.

Fig. 4 Non-exhaustive overview of energy sources and energy consuming operations in mining and mineral processing (own design, based on ⁴⁹ ⁵⁰).

Water use and pollution

Regarding water, the mining sector causes environmental impacts via both water consumption and water pollution. On a global level, water use in mining is relatively small, especially when compared to other sectors such as agriculture⁵¹. However, water is a local issue, which is particularly relevant against the background that mining is often located in water-scarce areas⁵². At the local level, the mining sector is a big consumer of water and its consumptive water use, meaning water that is not returned to the original water body, can cause significant impacts⁵³.

Furthermore, water often is contaminated during mining and mineral processing due to contact with mining waste or chemicals. If this wastewater runs off without being treated, it pollutes soils and natural water bodies⁵⁴. One of the most harmful and widespread environmental impacts of mining is acid mine drainage (AMD, also called acid rock drainage). AMD is a complex process of chemical reactions, simply put it is caused by oxidation of sulphide minerals that are contained in metallic ores or coalbeds⁵⁵. When these are exposed to air and water, they form an acidic solution that severely affects surface water streams and groundwater⁵⁶.

Waste generation

Mining produces huge amounts of different wastes: From waste through surface clearing for open pits (overburden) or waste rocks from mines (gangue), over waste from extraction processes (tailings) to metallurgical wastes from smelters (slag) – almost every stage of the material processing generates waste⁵⁷ (also see Figure 5). The amount of waste per amount of retrieved metal or mineral varies for the different elements of interest. As an example, copper minerals constitute less than 1% by weight of the extracted material⁵⁸. The global area that is covered with mining wastes is estimated to be around 1,000 km² annually⁵⁹.

Fig. 5 Examples of material processing steps and generated wastes (own design, based on ⁶⁰)

Waste from mining is mostly hazardous waste. Thus, it creates a relevant risk factor, not only at the time of mining operations but also long after the closure of mines, as uncontrolled deposition of mining waste can lead to long-term damages of ecosystems⁶¹.

2.2 Social impact

2.2.1 Positive contribution to socio-economic development

It is worth mentioning that the mining sector can contribute positively to social sustainability under certain conditions. Most notably, mining operations can function as catalysts for the local economy by elevating income levels, generating tax revenues and offering employment opportunities⁶² ⁶³. A study on the socio-economic impact of Newmont’s Ahafo gold mine in Ghana, for example, found that it produced about 48,000 direct and indirect jobs in Ghana, while every job in the Ahafo mine created 28 jobs elsewhere⁶⁴. However, the employment impacts of mining are highly region-specific and depend on, for instance, the size of the region and existing industrial structure⁶⁵. Moreover, companies can promote the development of local communities by, for example, providing education and skill training, investing in local infrastructure or improving access to health services⁶⁶. This will be further addressed in section 3.2.1.

2.2.2 Negative impacts on human communities and human rights

Although there is some potential for the mining sector to contribute positively to social sustainability, negative impacts prevail. The most concerning social aspects are related to the use of land, and environmental impacts that affect human health and human rights⁶⁷.

Competition over the use of land

Land competition can arise when a mining company wants to develop a new project in an area on which the local community depends to maintain their livelihood and wellbeing⁶⁸. For example, mining operations can compete with other sectors like agriculture or tourism⁶⁹. However, land is often used by mining companies without agreement of indigenous peoples, which leads to land expropriation, displacement and resettlement⁷⁰. Consequences are the erosion of traditions and cultures, as well as negative economic impacts, especially when no alternative sources of income are available⁷¹. Furthermore, relocation often results in situations where indigenous people lose their land, job, home, and access to common resources⁷². Therefore, it has high potential for conflict⁷³. Frameworks and planning to balance and manage different interests of involved parties are often missing⁷⁴.

Environmental consequences

It is important to understand that there is a direct link between environmental and social impacts of mining. Since local communities, in particular indigenous populations, often depend directly on natural resources like water, land and functioning ecosystems, environmental impacts that detrimentally affect these resources also always have negative social consequences⁷⁵. For example, the pollution of groundwater, caused by wastewater from tailings dams in China, resulted in crop failures and the resettlement of farming communities⁷⁶. Moreover, environmental impacts can also affect human health both directly (e.g. by toxic or carcinogenic effects) or indirectly⁷⁷. For instance, the mining of cobalt from the Democratic Republic of the Congo (DRC) caused severe mineral contamination of air, water and soil, leading to adverse health impacts for miners and surrounding communities⁷⁸.

Poor working conditions

Due to its unique risks, the mining sector is characterized by a dangerous working environment⁷⁹. For example, workers are affected by accidents, falling rocks and landslides⁸⁰. However, considerable disparities exist in terms of job security, wages, and working conditions depending on the type of company and category of workers. While, for example, the salary of foreign workers recruited on the international market lies between USD $6,000 and USD $25,000 per month, permanent unskilled workers in the copper mining sector in the DRC earn only USD $100 to USD $200 per month and need to rely on credit and informal activities next to their job. What is more, women are not well represented in the mining sector, and those who are employed often find themselves in lower-ranking positions, suffer from discrimination and do not have the same opportunities as men⁸¹ ⁸² ⁸³.

While industrial mining companies can provide permanent employment, high salaries, and good labor environments, artisanal and small-scale mining (ASM) is characterized by poor working conditions including extended work hours, substandard health and safety conditions, irregular income and low wages⁸⁴. Artisanal miners often work in hazardous settings within manually excavated mines, which are at risk to collapse, and face heightened exposure to heavy mineral contamination⁸⁵. Moreover, child labor is pervasive, with around 40,000 children under the age of 15 estimated to work in artisanal cobalt mines⁸⁶. It is important to mention, however, that ASM constitutes an important source of income for many households with an estimated number of more than 100 million people being dependent on artisanal and small-scale mining⁸⁷.

Inequality and conflicts

The risks, costs and benefits coming from mining are often distributed inequitably which enforces income inequality and can trigger social tensions⁸⁸ ⁸⁹. While the host communities are confronted with many of the costs and risks, like resettlements or increased water scarcity⁹⁰ ⁹¹, benefits from mining often only reach a minority such as company shareholders, political authorities and local elites⁹². Mechanisms to track this distribution are often missing⁹³.

In the context of mining the term “resource curse” is widely used and describes the phenomenon that natural resource wealth does not generally lead to expected benefits, but instead has adverse impacts on a country’s economic, social or political well-being⁹⁴ ⁹⁵. Indeed, NGOs have reported negative consequences of industrial mining projects with respect to poverty alleviation⁹⁶. What is more, poverty can even increase, if the local community loses their traditional means of livelihood and if governments do not reinvest revenues from mining⁹⁷.

If the mining activity, however, does not lead to the expected advantages, conflicts can occur⁹⁸. These especially arise between mining companies and artisanal miners⁹⁹, for example, because of the removal of ASM from the company’s mining area, or because the socio-economic situation of company workers improves while the one of artisanal miners remains insecure¹⁰⁰.

Migration flows

A new mining project usually leads to migration flows to the mining area¹⁰¹. Since most workers are male, this can cause a gender imbalance in communities accompanied by psychological or behavioral problems, such as alcoholism, drug addiction or prostitution¹⁰² ¹⁰³. Moreover, migration flows can cause major socio-economic and cultural changes¹⁰⁴ and have the potential to weaken social unity¹⁰⁵. Inflation and rising accommodation costs can also occur¹⁰⁶.

Conflict minerals

Conflict minerals are minerals that are mined in areas of armed conflict and human rights abuses, for example, in the Democratic Republic of the Congo. This applies to the minerals tin, tungsten, tantalum, and gold, which are important components in various consumer products such as automotives, electronics or jewelry. By extracting and trading conflict minerals companies can fuel and finance armed conflicts, human rights violations and environmental degradation in the regions where they are sourced¹⁰⁷.

Violation of human rights

Violation of human rights can be found throughout the mining sector. Especially the lack of stakeholder inclusion and the non-involvement of indigenous communities constitute great challenges. In fact, indigenous people’s rights are frequently not respected, and mining activities can have negative impacts on cultural and aesthetic resources¹⁰⁸. Moreover, working practices in the mining sector such as child labor are linked to human rights abuses¹⁰⁹, and various forms of discrimination take place at the workplace, for example, against women, disabled or ethnic minorities¹¹⁰. What is more, safety problems can have adverse impacts on local communities, for instance, explosive can cause damages to homes¹¹¹.

3 Sustainability strategies and measures

3.1 Environmental strategies and measures

The serious impacts described in the previous section emphasize the need for comprehensive sustainability strategies and measures in the mining sector. Regarding environmental impacts, a variety of technologies and measures to increase the sustainability of mining exist and are constantly developed further. Nevertheless, even with improved practices, the extraction of metals and minerals from the natural environment will continue to have a destructive character¹¹² ¹¹³. Furthermore, metals and minerals are non-renewable, finite resources. Therefore, the following chapter will on the one hand present technologies and measures that decrease the environmental impact of mining operations (see 3.1.1.), but on the other hand also look at processes and tools for a more sustainable resource management that will reduce the overall necessity of mining from natural sites (see 3.1.2.).

3.1.1 Improving the environmental sustainability of mining operations

Biodiversity protection and land management

As the destruction of natural habitats and ecosystems through human activities is one of the major causes of biodiversity loss, mining companies should seek to minimize land disruption and disturbance of natural areas. In its strictest sense, this involves the decision to not establish an operation site in areas that are particularly sensitive or valuable from an environmental or social point of view, also referred to as “no go” zones¹¹⁴. If a site is going to be established, mine designers and operators should engage in baseline monitoring, i.e. collect data on existing biodiversity and identify critical risks to it. Based on this information, risk levels and respective methods for mitigation can be developed and implemented¹¹⁵.

A possible measure to compensate for unavoidable impacts, which is frequently applied by mining companies, is conservation banking. This method is based on the principle of permanently protecting a certain land area as a conservation site for listed species “in exchange” for the disruption of habitat at the mining site¹¹⁶. However, conservation banking is a controversial tool, because biodiversity is very difficult to quantify and measure. Thus, it remains questionable whether the protected area provides an equivalent to the lost site and whether the application of offsetting is actually effective¹¹⁷.

Next to its importance during the planning and operation of a mine, engaging in responsible land management is also essential during the closure and post-closure phase. In this context, different concepts can be distinguished, a.o. reclamation, revegetation, rehabilitation and restoration. Reclamation is a broad term that refers to processes that reconvert the affected land to its former or an alternative productive use¹¹⁸. More concretely, revegetation relates to covering closed sites with plants or other vegetative covers¹¹⁹. Rehabilitation targets actions to reinstate a functioning ecosystem on degraded sites, aiming for ecosystem service provision. However, this does not have to imply that the original native ecosystem is recovered, which is the more sophisticated goal of restoration¹²⁰ ¹²¹.

A practical example for closure and post-closure management can be given by the Tallering Peak, an iron ore mine site operated by the Australian company Mount Gibson Iron. Before the site was established, the land was vegetated by native shrubs and used as pasture for goats. For reclamation to its former use, the impacted area was revegetated with native species, with diversity and cover being comparable to the original ecosystem. Importantly, revegetation was practiced in a progressive and subsequent manner over several years, enabling timely rehabilitation. Furthermore, measures were tailored to specific sections such as the open pits, infrastructure, and waste disposals. Within a timeframe of ten years, the company achieved to reinstate 98% of the area¹²².

Emission reduction

Companies can apply a variety of strategies to reduce their emissions. One pathway is the reduction of emissions related to energy: Regarding the fact that mining activities often use energy produced by combustion of fossil fuels, a shift to energy from renewable resources such as solar, wind and geothermal energy provides an important step to decrease GHG emissions¹²³. Furthermore, a relevant strategy is to reduce energy demand through efficiency measures. For example, optimized blasting technologies or more efficient grinding may significantly lower energy use¹²⁴. Moreover, recovering energy from excess heat is another measure for companies to reduce their GHG emissions¹²⁵.

Next to this, cleaner production technologies provide a second pathway for emission reduction. In this context, a successful technology innovation was achieved by ELYSIS, a Canadian enterprise established as a joint venture of the two mining companies Alcoa and Rio Tinto, who developed a carbon free technology for smelting aluminium¹²⁶. More precisely, they replaced carbon anodes, which are traditionally used in aluminium smelting, with newly developed materials that do not react during the process. This allows to eliminate all GHG emissions from the smelting process, while pure oxygen is emitted instead¹²⁷. According to the company’s website, a full adoption of the technology in Canada could reduce annual GHG emissions by around seven million metric tons¹²⁸.

With regard to fugitive emissions, release of methane can efficiently be reduced through targeted drainage. Besides decreased release into the atmosphere, this comes with the benefit of improving mine safety¹²⁹. Moreover, improved combustion technologies provide further technical tools to reduce emissions¹³⁰.

Water management

Several strategies and measures exist to reduce the water footprint of mining companies, both quantitatively and qualitatively. To conserve water resources, (fresh-)water consumption can be decreased through efficiency measures as well as reuse and recycling of wastewater¹³¹. The implementation of closed systems in production can significantly lower the impact on natural water sources. This may be illustrated by the example of the Sossego Mine in Brazil, which is a copper mine operated by the Brazilian corporation Vale. At the site, water reuse amounts to 99% of the water used in production processes, resulting in yearly savings of approx. 900,000 m³ of water that was previously extracted from the nearby river.¹³² ¹³³

Next to wastewater, using untreated or desalinated sea water is a common practice among mining companies, and it is expected that the use of seawater in mining will continue to increase.¹³⁴ ¹³⁵ However, certain trade-offs need to be considered regarding the desalination and pumping of seawater: On the one hand, seas and oceans provide a secure and unlimited supply of water whose use may reduce unsustainable exploitation of local surface streams or aquifers.¹³⁶ On the other hand, desalination requires high amounts of energy, causes high costs and depending on how the salt is disposed, it may be damaging to the environment¹³⁷. Moreover, long distance infrastructure is needed to transport the water to the mine or plant¹³⁸, which may cause further disruption of natural landscapes.

Moreover, the implementation of non-aqueous processing technologies provides a further mechanism to decrease water consumption. Available technologies for dry separation are based on physical differences between minerals and the ore they are embedded in. This includes, for example, gravity separation, where mineral particles are stratified or grouped by vibrating, shaking, sliding or using air with methods such as shaking tables, dry spirals or air fluidized beds¹³⁹. Another field of waterless operations is solvometallurgy, which constitutes a leaching technology for dissolving and recovering metals, where water is replaced by organic solvents. Though this method comes with the benefits of minimized water consumption as well as the circumvention of wastewater, it nevertheless has an environmental impact. Accordingly, it has to be considered that in some cases dry processing may cause higher carbon emissions, which depends, for example, on the solvents used instead of water. Furthermore, possibilities to recycle and reuse degraded solvent liquids need to be improved¹⁴⁰.

Regarding water quality and the protection of water resources, processes to treat contaminated, often highly acidic water as well as measures to prevent contact with natural surface or groundwater play an important role¹⁴¹. This applies especially with regard to acid mine drainage (AMD): Since water is the general transport medium for contaminants, water flows need to be controlled to prevent and mitigate AMD. This involves both controlling outflows from as well as inflows into the mine¹⁴². Though treatment of AMD is possible and very common, it is a complicated and expensive process. For this reason, preventing and mitigating AMD by inhibiting sulfide oxidation at source present the more rational strategy for companies¹⁴³.

Waste management

Since it is practically not possible to prevent the generation of waste during mining processes,¹⁴⁴ it is essential to implement responsible waste management measurements, both for the short and long term. A first important step is to prevent the migration of waste into the environment. Therefore, waste rock and tailings should be safely stored, with barriers installed to prevent leaching¹⁴⁵. Applied techniques include, for example, physical barriers between the ground and the stored waste, multi-layer coverings as weather protection, and biological methods such as phytostabilization¹⁴⁶. This method uses plants, mostly trees, which are planted on tailings to accumulate and stabilize pollutants near their roots¹⁴⁷.

Besides a safe disposal, a further strategy to manage mining waste is to consider it as a potential resource for further use¹⁴⁸. As an example, tailings are often used as additives to cement, which yields several benefits: first and straightforwardly, it allows to save cement. Secondly, depending on the characteristics of the tailings used, it may improve the cement’s resistance to water, frost and thawing¹⁴⁹. Moreover, flotation waste may be used as a source to recover valuable elements such as cooper, zinc or lead, though it must be taken into account that this can create new waste that is even more complicated to manage¹⁵⁰.

Nevertheless, retrieving metals that are currently locked up in tailings, slags or dusts will be an important strategy in the transition towards a more sustainable mining sector. Even though residues from mining may not be fully avoided, a “near-to-zero”-approach may be aspired by valorising formerly unwanted by-products, which may then be considered as secondary raw materials¹⁵¹. Therefore, new metallurgical technologies are employed at varying applications fields and scales to enable the extraction of metals from mining wastes. One of these technologies is bioleaching, which is based on the use of microorganisms that facilitate the dissolution of metals from sulphite ores. In addition to its applicability for the recovery of metals from secondary materials, it can generally be considered as a more environmentally friendly version compared to other metallurgical methods, which are often energy- and chemical-intensive¹⁵².

3.1.2 Sustainable resource management of metals and minerals

Considering mining wastes as secondary resources, as described in the previous section, already provides an important step towards a more sustainable resource management of metals and minerals. However, the principle of focusing on the resources themselves goes beyond this and includes the whole lifecycle of products, including their use and end-of-life phase¹⁵³. Hereby, a more systemic perspective of metals and minerals within society is encompassed, involving the concept of circularity of resources, which significantly reduces environmental impacts from material processing¹⁵⁴.

Achieving sustainability in the use of resources requires the adoption of new or revised business models that valorise each stream of materials¹⁵⁵. In this regard, two important concepts are landfill mining and urban mining. Landfill mining relates to the recovery of materials deposited in waste dumps or landfills (not only mining wastes, but also other wastes)¹⁵⁶. The approach of urban mining is to recover secondary materials from anthropogenic stocks that have been but are no longer part of the ongoing material cycle. According to its name, it is sometimes specifically referred to the area within city borders¹⁵⁷.

However, incomplete value chains of secondary materials can be a barrier to urban mining that needs to be overcome¹⁵⁸. In this context, an innovative tool is the online platform Madaster, which registers and documents materials and products used in the built environment, providing information on how the embedded resources can be reused¹⁵⁹. A pilot project of creating a construction materials cadaster involving Madaster is currently being implemented in the German city of Heidelberg¹⁶⁰.

3.2 Social strategies and measures

In terms of social responsibility, it is important for metals and mining companies to build strong relationships with their stakeholders to maintain their social license to operate. Since local communities and employees belong to the most important stakeholders of mining companies¹⁶¹, and simultaneously are strongly impacted by the negative social consequences of mining activities, strategies concerning social sustainability should address these two groups.

3.2.1 Local communities

Respecting rights of indigenous peoples

In most countries the law does not require that indigenous peoples or other population groups need to be consulted when mining companies want to develop a project that will affect them. In these cases, companies should respect the principle of “Free, Prior and Informed Consent” (FPIC) to protect indigenous people’s rights¹⁶². Situations of uncertain or disputed customary land claims must be identified before the company undertakes any activities on that land. Moreover, companies should perform extensive social baseline and impact assessment studies to identify human rights concerns¹⁶³.

Besides, companies should adapt their decision-making processes to the cultural circumstances of indigenous peoples¹⁶⁴. For example, it needs to be accepted that indigenous communities might not share certain information like sacred knowledge with the company¹⁶⁵. A good example for promoting engagement with indigenous peoples is the “Global Center for Indigenous Community Relations” of the mining company Newmont. The center’s goal is to be a source of dialogue, collected knowledge and shared experiences, while setting a focus on partnerships and learning networks, respect for customs and culture, as well as opportunities for indigenous people¹⁶⁶.

When negotiating the use of land of the potential mining area, all groups that are likely to be directly affected by the outcome need to be included¹⁶⁷. If the local population consents to the mining project, the company should commit itself to mitigate any negative impact of its activity, pay a fair compensation and offer benefit-sharing options that consider indigenous peoples’ land and resource rights. Compensation can include, for example, equity shares, royalty payments and community development funds that are owned and governed by the community¹⁶⁸. If resettlement takes place, the company must ensure that the relocated people can maintain their living standards and that social ties are not destroyed. Therefore, roles and responsibilities need to be defined and monitored to ensure the long-term well-being of resettled communities¹⁶⁹. The mining company Glencore, for example, invested USD $6 million into the relocation, expansion and improvement of a local school as part of the relocation of 120 families from rural Tweefontain to Phola township¹⁷⁰.

Community development

Companies can engage in community development in various ways. For example, they can employ locals, support local businesses, and adopt preferential procurement policies towards local suppliers and distributors¹⁷¹. Moreover, mining companies often invest in¹⁷² or share their infrastructure such as railways, roads, and power and water supply with the local community¹⁷³. The Antofagasta Minerals’ Minera Los Pelambres mine, for example, works together with the Choapa River Surveillance Board to enhance the irrigation infrastructure on which the region’s farmers depend on¹⁷⁴. Companies can also engage in health programs¹⁷⁵. The mining company South 32, for instance, cooperates with the Machado Joseph Disease Foundation to fight this inherited neurodegenerative disorder by funding a local MJD Foundation headquarters, and paying for medical equipment, physiotherapy and enhancements in providing services to remote communities¹⁷⁶.

Providing skills training and education is another important tool for supporting the local community¹⁷⁷. The mining company Teck, for example, has a partnership with the UN Women Originaria program in which they try to empower indigenous women in Northern Chile. This is done by offering courses on topics such as network building, business leadership and mentoring plans¹⁷⁸. Moreover, companies can offer scholarships and internships, and cooperate with universities and research institutions¹⁷⁹. It is also important that companies train local communities for long-term sources of sustainable income other than mining¹⁸⁰. In that manner, the global resource company MMG supported the development of over 43 fishing ponds in six local communities close to the Kinsevere copper mine in the Democratic Republic of the Congo. A fish farming expert was consulted on the right methods and technical training was provided¹⁸¹.

In all cases, it is important that community engagement already begins at the exploration stage and that potential social benefits are also sustained once the mining project ends. Therefore, it is important that companies develop plans for continuous engagement during the mining project and that social aspects are integrated into mine closure planning. These plans should be discussed with the local community and should ask the question where the community wants to be after the project ends¹⁸². To ensure that the mining company will adhere to the closure plan, it can provide a bond or financial guarantee. This way, it can be avoided that companies leave behind social costs¹⁸³.

Dealing with conflicts

When mining companies operate in countries where access to justice is limited, or when current methods are insufficient or lack credibility, companies should develop and adopt dispute resolution mechanisms to deal with conflicts. The goal should be to bring different groups together in a neutral forum and develop mutually acceptable solutions. A balanced multi-stakeholder board could oversee the overall program¹⁸⁴. Moreover, a local-level dispute resolution mechanism should also address unequal power relationships and encourage participation of different parties in designing the mechanism¹⁸⁵. It is important to understand that mediation approaches will only be successful if all groups agree to meet. This is more likely to be the case when the mining company has already established an extensive stakeholder engagement process. Lastly, the dispute resolution process should be conducted by specialists who have knowledge and understanding of the local culture¹⁸⁶.

An example of a successful dispute resolution provides the mining company Corporacion Ananea S.A. In La Rincondada, Peru, there was a conflict over mineral rights with artisanal and small-scale miners which could be solved by the help of the donor agency, GANA Peru. The mediation process started with a series of roundtable meetings where the rules for the process were developed. After two years of negotiations an agreement was found which allowed the artisanal miners to buy shares of the mining company¹⁸⁷.

Also beyond that, larger mining companies can cooperate with artisanal workers to avoid conflict and generate positive social impacts. For example, mining companies can establish technical assistance programs where they share their skills and expertise with artisanal miners to improve their working conditions. In a similar manner, companies can support the establishment of the organizational structure of artisanal workers. This is an important tool because it can help artisanal miners to get access to services such as finance or technical support that they would not qualify for as individuals. Another effective tool to benefit artisanal workers is to employ them as workers¹⁸⁸.

3.2.2 Employees

Decent working conditions

It should be self-evident that companies respect their worker’s rights by, for example, not employing child or forced labor, respecting freedom of association and collective bargaining¹⁸⁹, providing secure working conditions, fair payment, and acceptable working hours¹⁹⁰. Especially in the mining sector occupational health and safety is an important area on which social strategies should be targeted. For example, risk assessments should be conducted¹⁹¹ and workplace health and safety monitoring and reporting should be established¹⁹².

An important tool for improving safety performance at the workplace is the implementation of technologies. For instance, the risk of accidents related to vehicles can be significantly reduced by advanced sensors, radars and cameras that provide real-time warnings to vehicle operators as well as pedestrians¹⁹³. Moreover, the automation of processes, use of robots in critical situations, and remote operation centers (ROC) improve safety, by decreasing the number of operators that need to be present at hazardous sites¹⁹⁴.

However, relying too much on technology can be risky. Therefore, it is crucial to prioritize operational discipline and performance. Moreover, enhancing processes can also raise safety standards, for instance, by optimizing vehicle routing, defining precise protocols for vehicle movements, or implementing rigorous maintenance and inspection routines¹⁹⁵. Regular safety trainings, for example, on the correct use of safety gear or the adherence to established procedures, are also important to reduce risks and foster a safety-oriented culture¹⁹⁶ ¹⁹⁷. In general, it is essential that a safety strategy does not only focus on specific hazards but takes on a holistic perspective. Therefore, it should also consider broader organizational factors such as active involvement of employees, powerful communication, and training and education¹⁹⁸.

Competence building

To improve employee’s skills and thereby achieve a positive social impact, companies could adopt mandatory in-house training programs and review performance development on a regular basis to further improve employee’s skills and talent¹⁹⁹. In doing so it is important that the acquired skills are transferable to other situations so that employees can still benefit from it when the operation closes. Training could focus, for example, on management skills²⁰⁰, foreign languages or information technology software²⁰¹. Moreover, companies should sensitize their employees to local culture and traditions²⁰². The mining company South 32, for example, provides intensive cultural awareness training to facilitate the effective management of positive corporate-community interactions²⁰³.

Empowering women

Due to the gender imbalance in the mining sector, special focus should lie on guaranteeing equal opportunities for women. This can be achieved, for instance, by ensuring equal compensation for all genders, elevating more women to visible leadership positions and adopting more flexible schedules for accommodating childcare. Moreover, companies should offer gender-specific personal protective equipment (PPE) which is often just designed for male proportions²⁰⁴. What is more, companies should develop gender-specific policies that include strategies for recruiting women and developing their skills. These could be developed in cooperation with governments, trade unions and NGOs²⁰⁵. The global mining group Rio Tinto, for example, has established a guide called “Why Gender Matters” for all employees with the goal to promote women’s engagement in community site activities and empower them in participating in community decisions²⁰⁶.

4 Drivers and Barriers

Factors that influence the sustainability of the mining sector will often have ambiguous effects as there are usually trade-offs between positive and negative impacts²⁰⁷. It has also to be taken into account that changes within the metals and mining sector will likely impact surrounding sectors through forward and backwards linkages²⁰⁸.

4.1 Political

Governments are a very important player when it comes to a promoting and enforcing changes towards more sustainable business practices within the metals and mining sector²⁰⁹. Their role does include the balancing of economic, social and environmental interests that might at times be mutually exclusive²¹⁰. Political drivers and barriers often come in form of standards which can be clustered into four main categories: There are normative global standards that are non-binding like e.g. UN declarations, legally binding standards like EU regulations, guidelines e.g. from the OECD or the ICMM, and there are voluntary initiatives like certificates or reporting standards²¹¹.

If standards are made mandatory, they will usually reach a significant impact in a short amount of time (Umwelt Bundesamt, S. 19). An often-cited example is the Dodd-Frank-Act that enforced due diligence in supply chains of companies listed on the US stock exchange²¹². Similar standards within the EU did also bring substantial change to the metals and mining sector. It is important to know that not all minerals are included into the due diligence frameworks for supply chains in the US and EU stock markets²¹³.

Another area with room for improvement is the conflict financing through conflict minerals²¹⁴. As mentioned in chapter 2.2.2 conflict minerals are a major issue in the metals and mining sector. A good example for an effective standard in this area is the Kimberly-Process which according to the EU managed to decline the trade with identifiable conflict diamonds from 15% to below 1% in 2003. This was achieved using a certification scheme based on minimum requirements and transparency that was implemented in 85 countries²¹⁵. There do exist a few more mineral specific global standards like the Responsible Jewellery Council, the Conflict-Free Gold Standard, the Responsible Gold Guidance and the Aluminium Stewardship Initiative, but all in all there are still many (conflict) minerals that are traded without any global standard in place²¹⁶.

Another topic of high importance regarding mining activities is the relationship between local communities, governing bodies and mining corporations. Especially looking at mining in Africa the UN convention on “Permanent Sovereignty over Natural Resources” led to significant loss of access to minerals previously used by local communities. In many cases local communities are barley included into the process of permitting mining operations. The goal of the convention was to enable countries that had been colonized to use the resources in their territory to the best interest of their citizens. In practice there have been and likely will be many conflicts between local communities and external parties trying to initiate mining activities in the region/area²¹⁷. The issue of lacking community consultation, especially in developing countries, is also highlighted by the ISSD²¹⁸. But even in well developed countries like Germany the current laws and the way they are put into practice do often prioritize profit making interest of mining corporations and government actors instead of protecting local communities²¹⁹.

All in all, the evaluation of policies and regulations is a very difficult task as effects are often hard to quantify and it is many times unclear how the sustainability of the metals and mining sector is impacted by new laws. While there are some examples where regulations e.g. regarding water discharge have led to more efficient water use²²⁰, often times there is simply a lack of data to determine the effectiveness of standards²²¹. Another barrier to the evaluation of sustainability is the use of very different indicators that can hardly be compared to each other²²². Especially in the EU new standards are implemented in very different manners which can lead to different impacts of the same law/standard/directive²²³ e.g. the examination of the implementation of an EU-regulation regarding mining waste led to 22 investigations and two lawsuits for non-implementation²²⁴.

As global political approaches are still very much lacking especially when it comes to enforcement²²⁵ a carbon tax would be an approach that promises a strong positive impact on sustainability in and outside the metals and mining sector while also being economically beneficial to the sector²²⁶. Other areas that are currently lacking and would positively impact the sustainability of the mining sector are standards on risk assessment and new approaches to stakeholder management²²⁷.

4.2 Economic

A clear and very effective driver for sustainability is a business case. The health and safety of employees for example is directly correlated with their efficiency²²⁸ ²²⁹. In addition to maintaining or even boosting the productivity of the workforce sustainable mining corporations are more attractive for investors. This might be due public scrutiny and because corporations that are operating sustainably are usually up to par with newest technology²³⁰. In a study by McKinsey a grand majority of investors (82%) were in favor of mandatory sustainability reports²³¹, which further proves the point that sustainability is crucial for investors. It is expected that sustainable development within mining companies will boost overall economic performance by lowering e.g. labor and production costs²³².

Unfortunately for sustainability enthusiasts there is also a strong economic incentive to shorten the lifespan of products. On the demand-side consumers do also tend to shorten the time of use of products that contain metals and or other mining products²³³. This practice is a clear barrier for sustainability. Some sources with insight into the metals and mining sector argue that mines are price-takers meaning that they will be seeking minimization of their costs²³⁴. This might be hindering change towards sustainability as new sustainability measures can, at least short term, be cost intensive.

Another area that can act as an economic driver for sustainability are markets for scarce goods and resources used by the mining sector. A paper related to water use in the mining sector finds that were very effective in minimizing the water intensity of mining activities. On the other hand, it has also been observed that market solutions could reinforce and at times augment existing inequalities between market participants. The same paper also suggests that it can be sustainable and beneficial for all parties if mining companies are co-financing water infrastructure together with local governments or suppliers²³⁵.

The efforts to transform the economy into a low-carbon green economy are widely predicted to lead to great increases in demand for metals and mining products²³⁶ ²³⁷ ²³⁸. Until 2050 the demand for metals might be up to tenfold according to²³⁹. Based on microeconomic theory and empirical evidence prices are expected to vary with demand²⁴⁰. Especially assuming that new metal discoveries will decrease in the future there is a strong argument to expect demand and prices to increase²⁴¹ ²⁴².

Even given the current indications it should always be taken into account that predicting long-term trends for commodity prices comes with a huge amount of uncertainty as general tendencies simply do not exist²⁴³. There do also exist predictions that foresee an increase in volume of metals of 7.6% in 2027 but at the same time a severe decrease in value by 31.6% (MarketLine, S. 2). The authors reason their prediction with labor shortages, supply chain disruptions and slowing demand from construction and automotive industries as well as a potential oversupply and climate concerns in the market²⁴⁴. Looking at predictions of the world bank, prices are expected to develop differently for different metals. Most apparent is the difference between Aluminium that is expected to increase in price by 40.8% from 2020 to 2035, while at the same time Iron ore is expected to decrease in price by 36.1%²⁴⁵. Research has shown that at least for some metals like steel the demand is more dependent on per capita income than on price²⁴⁶. In that case a potential change in price might not influence the demand as strongly as one might expect.

How these anticipated future market developments are influencing the sustainability of the sector itself is another question with a multitude of different perspectives and predictions. While increases in price and demand will likely lead to an increase in recycling²⁴⁷, an increased demand combined with scarcity of material both in pure form and in form of recyclable scrap will pose problems for a fully circular economy²⁴⁸. In any case as has been highlighted above, an extended lifespan of products would greatly improve sustainability²⁴⁹.

4.4 Social

NGOs and citizens movements, in collaboration with other societal actors, have often been able to create public awareness for sustainability problems of mining operations in different ways: own investigations and measurements, public relations, addressing companies, policy makers and institutions or legal claims²⁵⁰. Prominent examples concerning metals and mining on an international level are the campaigns against diamonds fuelling wars in Sierra Leone and Angola (”blood diamonds”), which involved i.a. the NGOs Global Witness, Amnesty International, Oxfam International and World Vision, resulting in an international certification scheme for diamonds²⁵¹, as well as campaigns targeting other conflict minerals, like 3T (tantalum, tin, tungsten) or gold. Furthermore, a civil society campaign for conflict minerals awareness was the starting point of the “fairphone”-company²⁵² that aims at producing smartphones free of conflict minerals and with fair working conditions along the supply chain.

On a more regional basis, though not neglecting global motivations and partly international attention, the following examples can be mentioned:

Protests against coal mines, like in the German Hambach forest area, which helped to put a halt to further destruction of the forest by energy company RWE, and received international attention²⁵³
The standing rock protests against the Dakota Oil Access Pipeline
Environmental justice movements in Latin America, targeting i.a. the gold industry²⁵⁴

Beyond these examples, there is a lot of local activism targeting a certain mine, refinery, company or region, with varying success²⁵⁵. Furthermore, it is suggested that NGO-business collaborations can be helpful for resource sector companies in instable or conflict-affected regions, since local NGOs often know the specific conditions and have established networks²⁵⁶. Generally, it can be stated that metals and mining corporations are increasingly motivated to put more efforts in addressing environmental and social concerns to preserve or restore a good reputation²⁵⁷.

However, public opinions may constitute a barrier to sustainability as well. In regions or nations with mining activities, there are reports of civil activism against sustainability-enforcing regulations and political support in favor of extractive industries, due to fear of loss of livelihoods in a mining-related facility or due to hope for overall economic prosperity²⁵⁸. Also, there are cases when communities become financially dependent on pollution reparation payments by corporations and therefore support or at least not oppose unsustainable corporate policies²⁵⁹.

Within the sector, industry- and multi-stakeholder associations and initiatives play a major role in enforcing sustainability practices. Organizations like the International Council on Metals and Mining (ICMM), the Mining Association of Canada (MAC) or the Mineral Council of Australia (MCA) pushed their members, e.g., to adopt sustainability reporting and help generate sector-specific sustainability knowledge²⁶⁰. There is a number of organizations with different focuses and scopes:

Table 2 Overview of industry/multistakeholder initiatives (own figure, ²⁶¹ ²⁶² ²⁶³ ²⁶⁴ ²⁶⁵)

Organization	Industry Scope	Commodities	Membership Requirements	Members
Aluminium Stewardship Initiative (ASI)	Large-scale, whole supply chain	Aluminium	Set of codes about i.a. tailings, LCA, indigenous rights, GHG-emission standards	Covers 40% of bauxite (aluminium raw material) production and 25% of aluminium production
Bettercoal initiative	Large-scale, Europe	Coal	Commitment to standardized reporting and continuous improvement regarding 12 sustainability principles	Account for 70% of European and 5% of global coal useg
Extractive Industries Transparency Initiative (EITI)	Large-scale, whole supply chain, global	All	Value chain disclosure requirements
Fairmined Standard	ASM, global	Gold	Social and basic environmental requirements
International Council for Mining and Metals (ICMM)	Large-scale, mining, global	All	Standardized reporting, external assurance, compliance whith a set of performance expectations covering all major sustainability topics	27 companies in resource extraction, representing 1/3 of the sectors activities
Responsible Jewellery Council (RJC)	Large-scale whole supply chain	Diamonds	Due Diligence requirements, audits for Kimberley-Process compliance	Covers 70% of diamond production
Responsible Minerals Initiative (RMI)	Large-scale, whole supply chain, global	Gold, tin, tantalum, tungsten, cobalt from conflict areas	Due Diligence, assessment and reporting	380 companies from the whole supply chain

Discriminatory structures are prevalent in the metals and mining sector as well and can impair sustainability. Mining companies often work in a multicultural setting, which can be challenging to deal with adequately.²⁶⁶ Also, mining traditionally is a male dominated industry²⁶⁷, reflecting societal beliefs about gender inequality. E.g., in former times, in parts women were forbidden underground²⁶⁸; still today, women in artisanal small-scale mining in African countries face a set of disadvantages, driven by beliefs about their subordinate status or spiritual beliefs about them harming the mining success with their presence²⁶⁹, while in the management of larger mining companies, women are even more underrepresented then in other sectors²⁷⁰.

Social norms can also be a barrier to sufficiency strategies in the sector, e.g. due to pressure for using up-to-date-products and limited social acceptance of sharing, repairing or giving away unused items²⁷¹.

4.5 Technological

There are several technological development trends framed under digital transformation that can be applied in mining operations to improve sustainability. Most prominent here is the automation of processes, accompanied by technologies like the Industrial Internet of Things (IIoT), remote operation centers (ROCs), connected workers, robotics and drone technology²⁷². Automation can take place in various steps of mining processes and serve different sustainability goals. On the health and safety side, generally spoken, automation helps moving people out of high-risk areas and therefore improves their work environments²⁷³. A side effect hereof is that there is less need for people living close to mines, which is usually beneficial for their health, but also reduces the mine’s environmental footprint²⁷⁴. On the environmental side, it can generally be stated that automated machinery can be controlled more precisely than human-operated machinery and thus work more efficiently, reduce unnecessary labor, emissions a.s.o., and have a longer lifespan. Examples for specific applications are²⁷⁵:

Automated mining trucks and rigs reduce workers’ exposition to hazardous material
Automated tunnel-boring and drilling reduces workers’ exposition to hazardous environments & processes (temperature, rockfall etc.); also they can target ore deposits more precisely, avoiding disturbance, waste and emissions.
Automated site monitoring (remote sensing): more precise and complete surveillance of rock structures, emissions, water flows etc.
Automated ventilation can be used more precisely (in combination with sensoring), which can save up to 40% of energy.

Complementary to the operation site technologies, integrated software platforms, simulation and visualization as well as data analytics can help with controlling processes and making decisions at the management level²⁷⁶.

Electrification is another technology trend that can improve mining operations’ sustainability.Generally, it leads to less emissions inside the mines, which reduces health and safety hazards as well as the need for ventilation, which saves energy. Also, electrification of processes opens the opportunity for on-site renewable energy production, which can replace fossil fuel transports to the mine – a double saving of GHG emissions, also an opportunity for cost reduction.²⁷⁷ A best-practice example for use of new technologies is the fully electric Borden gold mine, established by Goldcorp in Ontario (Canada). It is estimated to save a major part of GHG emissions and be economically viable in the long term due to decreased operation costs²⁷⁸ ²⁷⁹.

Apart from general technology trends, there are also sector specific developments in the shape of new mining methods:

Continuous mining: instead of traditional drill-and-blast-mining, usually creates less waste rock and performs better with regards to workers’ health and safety²⁸⁰
Solution mining, includingin-situ or heap leaching, has at its core the extraction of minerals and metals from rock material by inserting a chemical solution that binds them and extracting them from the solution afterwards. It promises less damage to surface flora and fauna and avoidance of dust spreading, however carries the risk of water contamination and requires careful handling of the leaching solution. ²⁸¹ ²⁸²

Nevertheless, digital technologies that might be beneficial in the future, to date often do not yet work as desired. For example, mining machinery and software still mostly lack common digital interfaces, thus corporations face compatibility problems, while special technologies suitable to mining environments are often still missing. ²⁸³ Furthermore, new technologies can have downsides when it comes to social sustainability. The proposed developments in automation and digitalization are likely to reduce job opportunities, especially for people with low qualification,²⁸⁴ cause social disruptions and economic losses for communities²⁸⁵.

Another barrier in the technological field are costs for implementation, that are often a hindrance for using sustainable technology. E.g. the mining sector is confronted with extraordinarily high risks concerning health, safety and environment, compared to other sectors; therefore, technologies for minimizing risks and damages are highly specialized and relatively costly²⁸⁶. The same applies for many digital technologies²⁸⁷ and recycling processes²⁸⁸, due to the complex requirements for these technologies in metals and mining.

Also, sustainability enhancing technology for important steps is still lacking. In terms of waste management, where corporations must deal with long-time processes in the closure and post-closure phase, research as well needs to be conducted over relatively long timeframes, which slows technology development respectively. Also, it is extremely challenging to achieve a sufficient degree of certainty, since some processes require technologies providing security for hundreds of years.²⁸⁹

4.6 Firm-internal

Mining and metals corporations can enhance their sustainability by adopting structural and cultural measures that help firms in other sectors too, like leadership for sustainability, mainstream CSR, sustainability and diversity oriented company culture, respective employee trainings etc.²⁹⁰ This also includes the compliance to standards by industry initiatives (for more details, see social drivers), as well as standardized sustainability reporting, wherein the GRI G4 Guidelines with Metals and Mining Sector Supplement are a common standard²⁹¹. A sector specific characteristic is the special importance of local community involvement, which derives from the large influence that resource extraction activities can have at a local scale, including the creation and changing of settlement structures close to mining operations. There are lots of reports on how mining corporations failed sustainability when neglecting local communities in different ways and lacking internal structures to assessing and addressing community needs.²⁹² ²⁹³ ²⁹⁴ Therefore, also regarding growing international scrutiny on mining operations, thorough stakeholder management is very important to ensuring sustainable business development in extractive industries²⁹⁵.

Multinationality of corporations is a condition that leads them to rather adopt global best standards and therefore at least pledge sustainable business practices, given the global standards are higher than national ones. Possibly multinational corporations are more dependent on the perception of an international audience, including sustainability promoting investors.²⁹⁶ Appropriately, large size of mining companies usually results in higher managerial sustainability efforts, possibly due to higher public expectations towards big companies and their financial resources to invest in sustainability²⁹⁷. This is supported by the argumentation that mining is a high-risk sector and therefore accidents, environmental or social, tend to draw considerable media attention, bearing the potential for considerable reputation losses²⁹⁸ On the other hand, Kim & Davis (2016) find that international diversification and supply chain complexity can as well reduce the ability of metals and mining firms to ensure sustainability standards²⁹⁹.

Managers’ cognition and private moral ideas are also quite relevant and can either support or hamper sustainable management decisions, which seems to be especially true for complex environments with contradictory incentives which many mining companies find themselves in³⁰⁰. In general, accordingly, it might be stated that firm-internal drivers for sustainability are especially important for extractive industries, since they often work in political environments with significant institutional voids and are then challenged to fill these with their own standards³⁰¹. Mining as a business with a long tradition, aimed at long terms, comes with a company culture that can be characterized by a sector specific inertia, that is also supported by education systems ³⁰² ³⁰³. Control-focused management approaches are widespread, with core values being delivery reliability, low cost and market penetration, which do not encourage flexibility, adjustability to change or openness to new relations³⁰⁴.

4.3 Environmental

Many scientific works have been published trying to uncover the effects of increasing demand for metals and minerals when transitioning into a low-carbon economy. In some cases, authors concluded that availability of metals and minerals might be limited³⁰⁵ ³⁰⁶. If the limited demand is a result of scarce physical resources, in this case metal or mineral deposits, it could be considered an environmental factor affecting sustainability. Physical scarcity will be a barrier to sustainability as the ore grades deteriorate and therefore more energy and resources will be needed for the same amount of concentrate³⁰⁷. At the same time physical scarcity would lead to improvements in recycling and boost the implementation of a circular economy³⁰⁸.

However, it is unclear whether the expected scarcity of metals and minerals is caused by geological scarcity or by economic scarcity. Assumptions on future discoveries of resources, as well as technological progress that might improve accessibility of resources or usability of lower grade ores, will greatly impact the forecast ³⁰⁹. Technological inventions might also lead to drastic changes in demand; e.g. if lithium-ion batteries will be replaced by a new technology³¹⁰. In that sense scarcity, no matter if economic or physical, would incentivize research looking for potential substitutes to scarce resources³¹¹. If new substitutes and technologies will act as a driver or barrier for sustainability stands on another page.

There do also exist scenario analysis that find the current natural resources in metals and minerals to be sufficient. The bottleneck in the given paper were neither economic profitability nor geological availability, but the emission budgets derived from the goal to keep global temperature well below two degrees³¹². It has to be noted that many current scenarios investigating potential bottlenecks in the transition towards low-carbon economy are not taking into account the energetic return on investment (EROI). If humanity wants to keep on living on a planet, which is only possible if its environmental barriers and physical boundaries are respected, the way of life in today’s industrial complex societies must transition beyond current growth paradigms³¹³.

References

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Hartman, L. H., & Mutmansky, M. J.: Introduction to mining. In L. H. Hartman & M. J. Mutmansky (Eds.): Introductory mining engineering, 2, 1-21 (2002), John Wiley & Sons, Inc.: Hoboken (New Jersey). As cited by Qudrat-Ullah, H., & Panthallor, P. N.: Operational Sustainability in the Mining Industry. https://doi.org/10.1007/978-981-15-9027-6 (2021), Springer: Singapore.
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according to Hodge, R. A., Ericsson, M., Löf, O., Löf, A. & Semkowich, P.: The global mining industry: corporate profile, complexity, and change. Mineral Economics, 35, 587–606; 10.1007/s13563-022-00343-1 (2022).
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Hodge, R. A., Ericsson, M., Löf, O., Löf, A. & Semkowich, P.: The global mining industry: corporate profile, complexity, and change. Mineral Economics, 35, 587–606; 10.1007/s13563-022-00343-1 (2022).
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Hodge, R. A., Ericsson, M., Löf, O., Löf, A. & Semkowich, P.: The global mining industry: corporate profile, complexity, and change. Mineral Economics, 35, 587–606; 10.1007/s13563-022-00343-1 (2022).
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according to Hodge, R. A., Ericsson, M., Löf, O., Löf, A. & Semkowich, P.: The global mining industry: corporate profile, complexity, and change. Mineral Economics, 35, 587–606; 10.1007/s13563-022-00343-1 (2022).
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Jain, R. K.: Environmental Impact of Mining and Mineral Processing. In R. K. Jain, Z. Cui, & J. K. Domen (Eds.): Environmental Impact of Mining and Mineral Processing. Management, Monitoring, and Auditing Strategies, 1-15 (2016), Elsevier.
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