09 Oct 2020 | 10:39 UTC — London

Energy transition requires responsible mining to succeed: panel

Highlights

Energy transition 'will require vast amounts of mining'

World 'facing a paradox' to power sustainability

Recycling 'key, but won't meet demand'

London — As the world gears up to move to a clean and sustainable future, including the much touted energy transition, responsible mining practices are more important then ever, according to an industry panel.

With the world slowly reawakening from the ongoing coronavirus pandemic, there are calls for the need to "build back better." Caught up in the movement, and general market buzz, is the renewable energy transition.

Speaking during the webinar "An investor perspective on the green energy transition and mining: How can we make it more responsible?" Hélène de Villiers-Piaget, CEO of the Responsible Mining Foundation, said that to her the phrase "clean and green" are concerning, as they can mask the real focus of "inevitable impacts and unintended consequences" of mining.

Richard Shirreff, co-founder and managing partner at Strategia Worldwide, said the world is facing a paradox, as the move towards a sustainable future requires increased mining for raw materials such as cobalt, lithium, copper and others.

Villiers-Piaget said more mining means "more waste, more tailings."

Hanno Wurzner, the Dutch ambassador to the UK, said the world is becoming increasingly dependent on minerals and raw materials and that the world cannot realize the energy transition without mining and minerals. He said "responsible mining practices" were needed, adding that sustainable economic development is only possible with responsible mining.

Villiers-Piaget agreed, saying large-scale mining "has more to do ... responsible mining is needed now more than ever."

Recycling can't meet demand

One point all participants agreed on was that even though recycling is important to a sustainable future, it cannot keep up with projected demand for battery metals and other critical materials, and as such virgin mining will remain essential.

"We need to recycle otherwise frankly, it's all pretty bleak for us," Eric Rasmussen, director at the European Bank for Reconstruction and Development, said.

Daniele La Porta, senior mining specialist at the World Bank, said the bank sees investors as acting more responsible now, looking at raising standards especially around environmental, social and governance matters.

Mirjam Staub-Bisang, head of investment firm BlackRock's Swiss business, agreed that investors are critical to improving standards across the value chain.

"Asset managers/investors [have a] duty to push for responsible mining," she said. "More can be done, [we're] really only [at] the beginning [of the journey]. Large asset managers have sustainability targets. Certain market forces [are] helping. [For instance, there are] huge regulatory pressures."

Transition bonds in focus

One point of interest raised by Staub-Bisang was that of the need for "transition bonds." There is a lot of talk around "green bonds," which allow new entities to raise money for sustainable projects, but the Blackrock head said transition bonds are just as vital. These can be issued for companies looking to move towards clean targets.

"[It's a] whole chain reaction that we see coming from asset managers, putting pressure on companies such as miners to clean up [their] acts," she said.

The World Bank's La Porta summed up the situation: "[We're at a] crossroads to mine responsibly and drive the energy transition in a sustainable way. [A real] opportunity to build back better, [we must] take [the] challenge on."