The World Bank has created an initiative to address growing concerns about developing nations’ ability to sustainably mine of the minerals powering the green energy economy, namely lithium and cobalt. The initiative that is set to begin in May is known as Climate-Smart Mining and on April 9 it got received support from Rio Tinto.
Rio Tinto has agreed to join the initiative as it, and other global mining companies face increasing pressure from investors and non-governmental organizations to make supply chains more sustainable while reducing climate impact.
The program “will innovate and deploy financing specifically designed to manage the clean energy transition - responsibly, pragmatically and sustainably,” Arnaud Soirat, Rio’s head of copper and diamonds, said in a speech at CRU’s World Copper Conference in Santiago, Reuters reported.
“Significant challenges will likely emerge if the climate-driven clean energy transition is not managed sustainably,” according to a World Bank presentation.
Rio plans to offer technical consulting advice, as well as contribute $1 million over five years to the program, according to a spokesman, joining efforts by the World Bank to raise $50 million from the private sector.
Anglo-American Plc confirmed that it will join the program as well.
“Society’s expectations of mining have increased and this has now extended into the investment community in an even greater way,” Rio Tinto’s Soirat told delegates.
“What we are experiencing now is qualitatively different.”
Many of the critical minerals used to make electric vehicle batteries are found in developing nations, and the World Bank initiative seeks to avert major ecological damage at mine sites.
Sustainable mining is increasingly a topic of import even for those miners not directly involved in the World Bank effort.
Daniel Malchuk, president of operations at BHP’s Minerals Americas, said in Santiago that copper producers must collectively raise their game to improve the metal’s ethical and green credentials as ageing mines require more water and energy to produce the same amount of metal.
“Collectively, we have to deliver our products more sustainably with the ethical end-consumer in mind,” he said.