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What Better Looks Like: Breaking the Critical Minerals Resource Curse

澳门六合彩 and the U.S. Agency for International Development (USAID) hosted an expert discussion on what better looks like when it comes to mining, processing, recycling, and consuming critical minerals such as lithium, cobalt, niobium, and titanium.

Date & Time

Tuesday
Oct. 4, 2022
11:00am听鈥撎12:30pm ET

Location

Webcast

Overview

In recent years, the urgency of climate action has brought fresh attention to the critical minerals sector. Growing renewable energy investments are driving up demand for resources like lithium, cobalt, and copper, which form the mineral backbone of green technologies. But there are substantial concerns to navigate when it comes to sourcing green energy minerals.

鈥淭here鈥檚 a risk that in our modern-day mineral rush, without meaningful efforts to do better in the mining sector, there will be casualties,鈥 warned Lauren Risi, Director of 澳门六合彩 Environmental Change and Security Program, at a听recent Wilson Center event on critical minerals, co-hosted by USAID. 鈥淭he mining industry has a long history and not necessarily a particularly good one,鈥 pointed out Sharon Burke, Founder and President of Ecospherics and Global Fellow at 澳门六合彩.

Given the grim legacy of human rights and conflict risks associated with mining, the energy transition presents an opportunity鈥攁nd a moral imperative鈥攖o pursue new approaches to extraction. 鈥淲e鈥檙e already living in a climate stressed world, so we need to make sure that our solutions here in extracting materials for energy transition don鈥檛 do greater harm,鈥 said Aimee Boulanger, Executive Director of the Initiative for Responsible Mining Assurance.

What, then, does better look like for mining? The answer requires reflection and action in all sectors of society and levels of governance. 鈥淏etter is what we all need to be striving for, whether we鈥檙e donors, governments, civil society, or the private sector,鈥 noted Kimberly Thompson, Senior Advisor at USAID.

Yet views of 鈥渂etter鈥 likely will vary among stakeholders 鈥淚t depends on who you ask,鈥 said Boulanger. 鈥淎n Indigenous community pressed to the edge, trying to protect what little cultural heritage is left, or a community living downstream of a tailings dam is going to have a different definition of what is good compared to end brands who are giving us the products that we use each day and the mining companies who are striving to supply them.鈥

Strengthening Community Participation and Benefit-Sharing

Local stakeholders are crucial partners in shaping what 鈥渂etter鈥 looks like, said Amay猫le Dia, Senior Protection Program Office at the INGO Pact. From community members and organizations to local government structures, these stakeholders determine whether companies have the social license to operate. But they鈥檙e too often seen as a secondary stakeholder, she added, and their views, opinions, and concerns aren鈥檛 always taken into account. Exclusion from dialogue opens the door to both problematic mining concessions and human rights violations (like child labor) if communities are left with unmet needs.

To combat child labor in the Democratic Republic of the Congo (DRC), where roughly 45,000 children are involved in cobalt mining alone, Pact developed the听听The initiative created an apprenticeship program to help adolescent miners find alternative employment as a response to observations made by a local development committee in the region鈥檚 copper-cobalt belt. Using a community-based model and local know-how, the program provides training in automotive mechanics, welding, carpentry, hairdressing, tailoring, and other trades. Since its inauguration close to 10 years ago, it has served several hundred young people in DRC.

Mitigating risks like child labor in the first place, however, requires stronger benefit sharing and up-front community participation in mining decisions. Communities must be involved 鈥渢o ensure that critical minerals provide tangible [local] benefits鈥 said Dia, citing economic opportunities, sustainable livelihoods, the development of infrastructure in education or health, and access to clean drinking water, among other examples.

Boulanger agreed that the best approach to mining involves working directly with communities.听 鈥淲ithout community,鈥 she observed, 鈥渨e do not have security of supply.鈥

Recognizing 鈥淗idden Suppliers鈥 and Promoting International Standards

Dia said that another key group also merits greater attention. Artisanal and Small-scale Mining (ASM) operators number about 45 million across 80 countries and produce a sizable portion of global gold, tin, and cobalt supplies. 鈥淲e cannot do the green transition without ASM operators,鈥 Dia said. But these miners face a slew of challenges: They are often limited by a lack of market opportunities, a lack of expertise, and discriminatory gender norms.

In the larger field of industrial-scale mining, progress is reflected in a growing spotlight on standards and certifications. For instance, the听听(IRMA), which started 15 years ago with an initial focus on jewelry, is now a leading example of a third-party certifier with participating companies of all sizes located around the world.

鈥淲e have companies like Anglo American saying they will be audited at all their mine sites,鈥 said Boulanger, 鈥渁nd smaller companies, [like] Carrizal in Mexico or Albemarle, who are still willing to do this, even though they鈥檙e starting companies.鈥

Certifications can help ensure that environmental, social, and governance concerns have been addressed by companies both big and small. Public-facing audits should be emphasized in certification processes, noted Boulanger, because they help communities to weigh in on the impacts of mining activities. 鈥淲e need to be sure we ask communities whether the suppliers to our end brands are doing less harm,鈥 she said. Certification programs also need to tackle mining risks in a holistic way, making sure not to inadvertently trade one risk for another.

IRMA is a crucial tool for developing higher mining standards and ensuring transparency, but legislation is ultimately needed to secure broad and lasting changes in the mining sector. 鈥淎 voluntary initiative like IRMA is never going to replace the rule of law and government,鈥 said Boulanger. 鈥淲e need to improve these laws, and a global standard like IRMA can be used as a template and a support to governments as they increase and improve the strength of their laws and the robustness of their legal structure.鈥

Expanding Policy and Partnerships

In the U.S., the recent听听(IRA) represents a $370 billion investment in clean energy and tech, said Helaina Matza, Director of the Office of Energy Transformation at the State Department.

One key aim of the IRA is to onshore part of the energy supply chain, including critical minerals. Christopher Smith, Chief Government Affairs Officer at Ford, observed that 鈥渁s we move to electrification and manufacture batteries to reduce greenhouse gas emissions and power our economy, the United States government feels like it should have a greater direct role in overseeing and managing environmental issues that are associated with the extraction and the processing of said minerals. The idea is to move those minerals back to the US or to countries with which the US has a free trade agreement.鈥

Apart from the IRA, Matza said that the US government has been working on critical minerals issues through two State Department initiatives that seek to build cooperation across countries: The Energy Resource Governance Initiative (ERGI) and the Minerals Security Partnership. 鈥淭here are important resources everywhere, and the only way to make a global energy transition is if we cooperate,鈥 said Sharon Burke.

ERGI supports capacity development for ESG in mineral producing countries around the world, explained Matza. Since it began in 2018, ERGI has brought over $30 million to countries like Argentina, Uganda, and most recently the DRC. The State Department has also developed an听, which features targeted learning modules for mining sector professionals on everything from production and stewardship to working with Indigenous communities.

Matza added that this past June, the State Department also created the听听with the participation of ten other governments to 鈥渟tart diversifying clean energy supply chains.鈥 听The Partnership is using existing ESG criteria like IRMA to have clear conversations with countries and companies about what it means to uphold robust standards, and it is already providing insights into the thinking and priorities of producing countries across the globe.

鈥淢any of the countries we spoke with鈥 want to make sure that they have a true understanding of their resource base,鈥 said Matza, 鈥渟o that as they tender out projects or start making modifications to their royalty or tax regimes, they understand that they鈥檙e doing so in a way that totally serves their community.鈥 She also noted that these countries want to see their own leaders and experts involved in these projects and want to develop value added industries within the green energy economy.

As we look towards a renewable energy future, legislation at home must do 鈥渁 lot more than just securing supply chains,鈥 said Matza. It must secure supply chains 鈥渋n a way that really supports the economic development and growth of all economies involved.鈥

Transparency and Better Technology as a Competitive Advantage

鈥淓nd brand鈥 companies like the leading automaker Ford also need to shore up resilient and reliable supplies in an ethical manner. 鈥淓lectrification is going be the key to future transportation,鈥 said Smith. 鈥淎nd right at the middle of that is the ability to access and mine refine these minerals that you need for these batteries in a way that鈥檚 consistent with our larger values.鈥

Despite the complex supply chain of Ford鈥檚 products, Smith said Ford is keen on responsible sourcing. 鈥淭here鈥檚 a great deal of visibility on a brand like Ford, and it鈥檚 an important part of our competitive advantage to do these things well.鈥

New types of extraction technologies, including听, offer another path to 鈥渂etter鈥 mining. Investments in innovation could lead to technologies that reduce the mining sector鈥檚 environmental impact and minimize its risks鈥攊f these new methods are pursued alongside community participation, international standards, corporate initiatives, and cooperation across governments.

Even with all of these avenues operating in tandem, however, 鈥渢he mining sector is never going to be perfect,鈥 Thompson admitted. 鈥淚t鈥檚 a difficult industry. But we really can and we must do better. We must learn from our mistakes. We must draw lessons from the resource curses of the past. We must learn to empower and listen to local communities. We must learn to manage environmental and social risks and insulate the sector from corruption. In short, we need to learn to govern the sector better.鈥

Written by Claire Doyle, edited by Richard Byrne.听

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Introductions

Lauren Herzer Risi

Lauren Herzer Risi

Program Director, Environmental Change and Security Program

Kimberly Thompson

Senior Advisor, Natural Resource Governance & Conflict and听Industry Lead for Mining, Center听for听Environment, Energy, and Infrastructure, U.S. Agency for International Development

Panelists

Aimee Boulanger

Executive Director, Initiative for Responsible Mining Assurance (IRMA)

Amay猫le Dia

Senior Protection Program Officer, Mines to Market (M2M), Pact

Christopher Smith

Chief Government Affairs Officer, Ford
Helaina Matza

Helaina Matza

Acting Special Coordinator for the Partnership on Global Infrastructure and Investment

Hosted By

Environmental Change and Security Program

The Environmental Change and Security Program (ECSP) explores the connections between environmental change, health, and population dynamics and their links to conflict, human insecurity, and foreign policy.  Read more

Africa Program

The Africa Program works to address the most critical issues facing Africa and US-Africa relations, build mutually beneficial US-Africa relations, and enhance knowledge and understanding about Africa in the United States. The Program achieves its mission through in-depth research and analyses, public discussion, working groups, and briefings that bring together policymakers, practitioners, and subject matter experts to analyze and offer practical options for tackling key challenges in Africa and in US-Africa relations. 听  Read more

Canada Institute

The mission of 澳门六合彩's Canada Institute is to raise the level of knowledge of Canada in the United States, particularly within the Washington, DC policy community.听 Research projects, initiatives, podcasts, and publications cover contemporary Canada, US-Canadian relations, North American political economy, and Canada's global role as it intersects with US national interests.  Read more

Latin America Program

澳门六合彩鈥檚 prestigious Latin America Program provides non-partisan expertise to a broad community of decision makers in the United States and Latin America on critical policy issues facing the Hemisphere. The Program provides insightful and actionable research for policymakers, private sector leaders, journalists, and public intellectuals in the United States and Latin America. To bridge the gap between scholarship and policy action, it fosters new inquiry, sponsors high-level public and private meetings among multiple stakeholders, and explores policy options to improve outcomes for citizens throughout the Americas. Drawing on 澳门六合彩鈥檚 strength as the nation鈥檚 key non-partisan policy forum, the Program serves as a trusted source of analysis and a vital point of contact between the worlds of scholarship and action.  Read more

Mexico Institute

The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis T茅llez and Earl Anthony Wayne, oversees the work of the Mexico Institute.听  Read more

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