Q&A: Why the world could be headed towards a ‘minerals famine’

A waiting ‘minerals famine’ and supply chain issues may endanger environmental and technological progress, warns Peter Bryant, chair at Clareo, a strategy consulting firm.

A 30-year industry veteran, Bryant says the surge in mineral demand related to the energy transition poses a number of challenges for miners, who are already struggling to access capital and with permitting timelines. Bryant, who recently spoke at the Nov. 13-14 Mining Innovation Commercialization Accelerator (MICA) conference in Toronto, says collaboration and innovation are critical for the mining sector to overcome the coming supply gaps and its supply chain challenges and gain social acceptance.

He spoke with The Northern Miner in November (watch the attached video).

The Northern Miner: Why do you believe the world is facing an impending minerals famine and what will the implications be for the global economy?

Peter Bryant: The ‘minerals famine’ is a multifaceted issue. Primarily, it’s driven by the surging demand for minerals like copper, lithium, and nickel, which are crucial for renewable energy technologies. The global push towards decarbonization has accelerated this demand. However, the mineral value chain is complex and often misunderstood, leading to supply bottlenecks. Add to this the long timeframes required to permit and develop new mining projects, and you have a perfect storm brewing. This scarcity poses significant risks to the global economy, potentially leading to inflated commodity prices, disrupted supply chains, and even stalling the transition to green energy.

TNM: Given the urgent need for metals, how can the industry balance long-term solutions with immediate production demands?

PB: Balancing these aspects is challenging but crucial. On one hand, the industry needs to ramp up production to meet immediate demands for critical minerals. This requires efficiently exploiting current resources, adopting quick-win technological solutions, and streamlining operational processes. On the other hand, long-term sustainability cannot be overlooked. This involves investing in research and development programs for sustainable mining practices, building resilient and ethical supply chains, and planning to gradually integrate green technologies in mining operations. Balancing these needs requires a strategic approach that aligns immediate production goals with a long-term vision for sustainable mining.

TNM: One of the things you’ve been talking about recently is the lack of investment flowing into mining. What are the key factors behind that stall in global capital flow, and how can the industry attract necessary investments?

PB: The current investment slowdown is tied to several factors. Key among them is the uncertainty surrounding the actual costs and outcomes of the energy transition. Investors are cautious, seeking clarity on environmental regulations, market demand, and technological viability. The mining industry must demonstrate a clear path to sustainability and profitability to attract and retain investment. This involves showcasing responsible mining practices, transparency in operations, and a commitment to ethical governance. Highlighting successful case studies and fostering a stable regulatory environment can also boost investor confidence.

TNM: How can innovation help the mining industry tackle the challenges of the energy transition?

PB: Innovation is the lynchpin in addressing these challenges. It’s not just about new mining technologies, though they are vital. We must rethink how we approach mining operations, from water usage to energy efficiency and waste management. Digitalization, for instance, can optimize resource extraction and processing, reducing environmental impact and improving safety. Moreover, recycling and urban mining innovations could alleviate some pressure on traditional mining. Investing in R&D, embracing digital transformation, and re-evaluating operational models are imperative for the mining sector to support a sustainable energy transition.

TNM: Why is collaboration with other stakeholders important for the mining industry?

PB: Multi-stakeholder collaboration is essential in today’s mining landscape. The industry must engage in open, honest dialogues with governments, investors, local communities, environmental groups, and indigenous populations. This means going beyond mere compliance to genuinely understanding and addressing the concerns of these groups. Collaboration should aim to create shared value, ensuring that mining projects are economically viable and socially and environmentally responsible. This requires a shift in mindset towards long-term sustainable partnerships rather than short-term gains.