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Green Economy Journal Issue 48

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The path to BEING BETTER<br />

SMART MINING<br />

STEWARDS OF THE EARTH<br />

European countries are working towards sourcing their<br />

future minerals supply in a more responsible way, but the<br />

challenge is to ensure that vulnerable stakeholders along<br />

the value chain are not left out of the conversation.<br />

BY SRK CONSULTING<br />

The RE-SOURCING Project aims to promote responsible sourcing<br />

through creating roadmaps for the renewable energy, mobility<br />

and electronics sectors in the EU. Funded by the European<br />

Commission under the Horizon 2020 project, RE-SOURCING is pursuing<br />

its goal by building a responsible sourcing community among a range<br />

of global stakeholders.<br />

“On the strength of our historical involvement in the mining sector, SRK<br />

Consulting has been drawn into the RE-SOURCING process, where our role<br />

includes facilitating the engagement of stakeholders in Africa and Asia,”<br />

says Andrew van Zyl, partner and principal consultant at SRK Consulting.<br />

These zones, along with South America, are key mineral-supply regions<br />

whose input to the consultation process is vital, adds Van Zyl, noting<br />

that the areas have wrestled with a range of ESG issues that relate to<br />

responsible mineral sourcing, such as artisanal mining and community<br />

engagement. “A significant amount of mining best practice is in fact<br />

emerging from developing countries that host mining sectors, which is<br />

what we are looking to feed into the RE-SOURCING process,” he explains.<br />

Key among the concerns of the responsible sourcing agenda is<br />

environmental degradation, carbon emissions and climate change. The<br />

recent United Nations IPCC report on climate change – which confirms<br />

the severity of global environmental impacts – certainly raises the<br />

urgency around the achievement of concerted world-wide action to<br />

reduce global warming.<br />

With most of the mining – that is, upstream activities in the mineral<br />

value chain – conducted in emerging economies, and a significant portion<br />

of downstream beneficiation and manufacturing occurring in wellestablished<br />

economies, the stakeholders on different sides of this divide<br />

can often have differing interpretations of “responsibility” in the sourcing<br />

process. According to SRK principal consultant ESG Lisl Pullinger, this<br />

means that charting an optimal path to the future requires the voices not<br />

just of the primary mineral consumers but among the producing regions.<br />

“A representative spread of stakeholder voices will help ensure future<br />

policies do not unintentionally remove value along the value chain of<br />

mineral production,” says Pullinger, “Especially where livelihoods may be<br />

more vulnerable to changes introduced by new standards or hurdles to<br />

market participation.”<br />

Mindful of the complexity of finding common ground for progress,<br />

RE-SOURCING is a multi-year process that works towards harmonising of<br />

concepts in search of a global definition of responsible sourcing. This will<br />

involve joint learning from innovative business cases around the world.<br />

Bjanka Korb, senior engineer at SRK Consulting, highlights that hearing<br />

different perspectives was an essential aspect of the current process – so<br />

that all the implications of future responsible sourcing frameworks are well<br />

considered before decisions are made and plans rolled out.<br />

“There is undoubtedly a resounding call for action on global threats<br />

like climate change and any proposed actions need careful thought in<br />

Above, Lisl Pullinger.<br />

Left, Andrew van<br />

Zyl and Bjanka Korb<br />

from SRK Consulting.<br />

terms of their impact on vulnerable groups,” said Korb. The danger that the<br />

RE-SOURCING process is working to avoid, is the development of a path<br />

towards a green economy at the cost of those in the mineral supply chain<br />

who are most vulnerable, says Pullinger.<br />

“The terrain of the responsible sourcing discussion includes a range<br />

of complexities around historical economic development trajectories,<br />

making many stakeholders weary about who will benefit most from the<br />

policy outcomes,” she says. “It is, however, a necessary engagement if we<br />

are to find shared solutions to global challenges like climate change and<br />

economic inequality.”<br />

The current reality of environmental degradation, says Van Zyl, results in<br />

large part from many countries “consuming cheaply” in the past – shifting<br />

the externalised costs onto future generations. “That bill has now come<br />

due, and the cost of the externalities needs to be addressed – which<br />

includes becoming better stewards of our planet going forward,” he adds.<br />

Among the planned events of the RE-SOURCING initiative is a Roadmap<br />

Workshop on the Mobility Sector, to be held virtually in October this year;<br />

Roadmap 2050 focuses on the key value chain steps of the Li-ion battery:<br />

mining, cell production and recycling.<br />

RE-SOURCING Virtual Conference: ON THE ROAD TO RESPONSIBLE<br />

RESOURCING – How to achieve lasting impact<br />

8-10 NOVEMBER 2021<br />

The conference will provide you with the latest on responsible<br />

sourcing through a mix of expert presentations and panel discussions.<br />

REGISTER FOR EVENT HERE<br />

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