PATH TO NET ZERO: Politics of mineral security to shape miners' efforts

This is the fourth in a multi-part series on net-zero efforts across industries. The previous article can be found here.

A major push by Western nations and their trading partners to secure critical mineral supply chains is reshaping the mining sector's net-zero efforts, experts told Platts, part of S&P Global Energy.

Western nations have been working to reduce their reliance on China-dominated critical mineral supply chains by signing international investment, trade and supply agreements, marking a shift in international priorities from climate change to security of supply.

But experts say the surge in cross-border agreements may still support and even accelerate emissions reduction in the mining sector.

Major players such as the EU, Australia and Canada have stringent climate policies, and trade agreements will have to align with these regulations even if other countries like the US are more focused on boosting supply.

"At the geopolitical level, security of supply has become the dominant concern," Bryony Clear Hill, director of innovation for the International Council on Mining and Metals (ICMM), told Platts. "Policymakers understand the importance of decarbonization, but they're weighing it against real pressures on critical mineral access and supply chain resilience. That said, the two agendas aren't completely separate."

Addressing reliance on China

In 2025, China accounted for 85% of global rare earth processing capacity and dominated processing of other key minerals, such as lithium and cobalt, according to the International Energy Agency.

The minerals powerhouse exerted its market dominance in 2025 by imposing export controls on critical minerals and rare earths. The subsequent pressure on Western economies drove a series of new mineral deals, and miners may find their decarbonization goals being shaped by these trade agreements.

"Cross-border investment is really starting to dictate some of the miners' decarbonization goals sitting alongside supply chain security," Rebecca Seidl-Inglesby, a partner at law firm Baker Botts, told Platts.

"An example is the US-Japan strategic memorandum in which we have inbound investment from the government of Japan that needs to align with their abatement goals," said Seidl-Inglesby, who also leads the law firm's critical minerals and metals practice.

In March, the US and Japan announced a partnership to support each other's critical mineral supply chain resilience. Japan aims to achieve net-zero emissions by 2050 and has a target to reduce its greenhouse gas emissions by 46% by 2030.

"These international trade agreements might actually accelerate some of the decarbonization efforts," Reinhardt Arp, mining and metals lead at global climate consulting firm The Carbon Trust, told Platts. "I think a lot of countries that are racing to secure these agreements understand they need to support responsible mining."

Arp emphasized that the extent to which decarbonization advances through trade agreements depends on which countries are involved.

"Some countries might be happy to just increase supply without really driving decarbonization," Arp said. "But other countries, particularly those exposed to European trade mechanisms like the [Carbon Border Adjustment Mechanisms], will be impacted. [As] the EU is engaging in these international trade agreements, all these pieces of the puzzle might just slot into place and be a driver for decarbonization."

US President Donald Trump has actively opposed efforts to reduce CO2 emissions and withdrew the US from the Paris Agreement and other international climate commitments.

The US has also signed or approved 160 mineral deals since January 2025, according to an Aug. 7 White House fact sheet.

Although US policy has shifted away from decarbonization, other nations are still working to cut emissions.

The EU, Canada, Australia and others have maintained their net-zero targets and climate policies. The EU implemented its CBAM policy to cut carbon emissions entering the bloc, and both Canada and Australia have codified their net zero by 2050 targets into law.

Agnico Eagle Mines Ltd., one of the world's largest gold producers, told Platts the constant regulatory changes and shifting geopolitics have caused challenges for miners.

"We still have a goal to make our mines carbon resilient and our [emissions reduction] 2030 goal," said Mohammed Ali, the miner's vice president of sustainability and regulatory affairs. "But when Europe, Australia, Canada, etc., are emerging with new standards, it's been quite distracting, and it's been using up our resources. There's been a lot of noise this year that has been a challenge."

Miners cutting emissions

Amid the geopolitical tumult and reshaping of supply chains, miners have pressed on with emissions reduction efforts.

BHP Group Ltd. and Rio Tinto Group, the world's two largest miners by market capitalization, jointly launched trials of battery-electric haul trucks at iron ore operations in Western Australia.

Fortescue Ltd. commenced construction on a 690-megawatt solar farm and a 650-megawatt-hour battery energy storage system, and said it is on track to fully decarbonize mining operations by 2030.

"I'd say [2026] is a step forward at this point," Anna Zanetti, strategic communications manager for the Brussels-based trade group Euromines, told Platts. "Companies kept making real operational progress, like Boliden AB (publ) and Epiroc AB (publ)'s battery-electric trolley system at Kristineberg [zinc-gold mine in Sweden] and LKAB's [Luossavaara-Kiirunavaara AB (publ)] move toward fossil-free pellets."

Zanetti also highlighted the EU's new Emissions Trading System package proposed in July.

"It sets up a €100 billion Industrial Decarbonisation Bank starting in 2028, extends free allowances for heavy industry into the 2040s, and pushes the phaseout of free CBAM sector allocation back from 2034 to 2038," Zanetti added. "It looks like an attempt to protect industrial competitiveness through extended free allocation and the new decarbonization bank while still keeping the 2040 climate target intact."

Volatility in global energy markets has also pushed miners toward more sustainable methods.

"The geopolitical uncertainty around the energy supply chain is definitely sharpening focus on how energy is used and what energy is used," said Mary Stewart, partner at global sustainability consulting firm ERM. "Miners are looking at the efficient use of fossil fuels or other liquid fuel sources, and it changes the business case for electrification."

Stockholm-based Sandvik AB (publ), a major producer of electric mining equipment, told Platts it has seen the conversation around mining electrification mature as deployment becomes more widespread.

"We see some miners report above 30% improvements in tons per hour, 50% lower maintenance cost and a strongly favorable return on investment, meaning the question is no longer about whether electrification makes sense, but rather, can those substantial benefits be realized in a given mine with its mine design," said Tommi Valkonen, head of battery-electric vehicle strategy at Sandvik Mining.

The changing landscape and major shifts in supply chain dynamics come as most of the top miners narrow in on their first set of concrete emissions goals.

"2030 is a year where a lot of companies have set their first initial near-term decarbonization targets," The Carbon Trust's Arp said. "That's going to be a pivotal point in not just mining, but the global energy transition. We'll see if these companies achieve their targets. And if not, will there be penalties? I do think it's a pivotal next five years."

Susan Dlin contributed to this article.