Register for free to
view the full innovation profile.
By reducing production to increase commodity value, positive socio-ecological outcomes could be achieved, while maintaining long term profitability.
About
The proposal I introduce today aims to address multiple issues simultaneously through a holistic supply-side economic approach. This strategy seeks to: increase long-term profitability; extend the operational lifespan of mining projects; promote sustainable resource use within societies; reduce emissions in the short term; and improve the tailings management process.
The core of this approach involves collectively reducing production across the industry. This action of reducing supply by reducing operational output will reduce supply and cause the value of metals to increase. Additionally, it would extend the life of mine (LOM) for projects, enhancing long-term profitability while yielding several positive environmental and societal outcomes.
Similar to how oil companies influence prices by adjusting supply, this concept aims to achieve broader and more beneficial impacts without being driven by profit alone. It promotes resource conservation (addressing scope 1, 2, and 3 emissions) and enhances the profitability of resource entities.
This solution aligns with zero-harm approaches by mitigating impacts on communities and the environment, fostering a circular economy, and allowing for the adoption of advanced technologies. Consequently, current processing could be deferred until more efficient and sustainable technologies become available, such as those enabling sustainable energy generation.
Key Benefits
Tailings management
Reduced operations decrease tailing volumes, resulting in less waste. Lower energy and water consumption improve sustainable tailings management. With fewer tailings, mining companies can prioritize sustainability over mere management. Smaller volumes also reduce facility pressure, lowering the risk of catastrophic failure.
Water use
Water resources can be depleted beyond their capacity to sustain themselves, affecting surrounding ecosystems and the long-term water supply for society. Mining requires significant amounts of water and thus can influence water systems and their ability to maintain sustainable flows. This contributes to water security, which is a growing concern in modern society. Reducing the annual water usage in operations would allow for the replenishment of natural water reserves.
Reduced environmental impact
Lower production levels would lead to a decrease in environmental impacts. This includes reduced dust, less impact on flora and fauna, diminished traffic, decreased road damage, and a reduction in water usage as listed above. A lower environmental impact also means reduced effects on communities through decreased blasting, dust, and noise.
Reducing resource supply and changing societies
By reducing resource supply, societies can change in different and unique ways. The story could go like this:
A can of Cola was once economically viable to make out of aluminum, however due to an increase in the price of aluminum, Cola can no longer be canned using new aluminum due to the commercial conditions, meaning that a new industry for recycling is now flourishing. Additionally, this created an opportunity for a stakeholder to develop an entirely sustainable process for distributing and storing coca cola to consumers. This means that the recycled and new aluminum can be used for more critical things such as the energy transition.
While things would not transpire exactly like the story above, the point is: markets adapt to the conditions of supply and demand. The mining industry has the ability to influence supply and thus influence demand. Each mineral and use cases would have to be evaluated to dictate potential downstream effects and how significantly supply can be reduced. There are certain circumstances where by using game theory, we could map the socio-ecological outcomes by assessing how actors in society would react to the changes in material conditions.
Technological advancement
Extending the life of a mine (LOM) allows more time for technological advancements in sustainability, productivity, and automation. This results in reduced emissions over time, as future operations will utilize more efficient systems, providing long-term environmental benefits as opposed to using less efficient systems now.
Applications
The mining industry as a whole, with downstream impacts being anticipated.