Extracting minerals for the energy transition – Local data for global decision making

Abstract

Strong long-term demand outlooks are driving investments in energy transition minerals. New mines must be developed to supply the 34 minerals necessary for low-carbon energy technologies and infrastructure. Responsible investment is critical to ensure that mining for the energy transition does not come at unacceptable social and environmental costs. Investment decisions rely on access to site-level information. Achieving both reliable and sustainable mineral supply chains is a complex proposition that requires deep local-level knowledge for all sites across the supply chain. This paper analyses a global dataset of local disclosures for 444 geolocated mining projects hosting the bulk of future energy transition minerals supply. The dataset captures disclosures related to the interactions between mining projects and their local context and connects a supply source point and its host context to global supply chains. Our analysis reveals the paucity of local-level data, with 37% of analysed records containing no context-related disclosure, and another 30% containing minimal, compliance-centred disclosure. We also find evidence of disclosure not matching reality, e.g. 78% of records of projects intersecting Indigenous peoples land do not have Indigenous people-related disclosures. These findings put into question the capacity of investors and governments to make informed decisions about mining development, including which sites to develop and how. We also analyse the magnitude and types of costs incurred at mine sites and find that 12% of projects face or have faced severe costs originating from interactions with the local context. We stress the need for full local disclosures to ensure responsible governance and investment in the mining sector.