The search for battery minerals has reached a state of frenzied urgency, with countries like the Democratic Republic of Congo (DRC) becoming the focus of exploration efforts.
While the desire for rapid progress in mineral development is understandable, it is important to recognize that responsible exploration and mining are complex and risky endeavors that cannot be rushed.
The DRC, abundant in highly sought-after metals such as copper, cobalt, and lithium, is witnessing significant investment in mineral exploration, mine development, and expansion. The pressure is mounting to bring more mining projects online and increase production, driven by the anticipated surge in global demand for battery minerals.
The expectation of China’s economic recovery has fueled enthusiasm, as the country seeks to identify additional sources for its future mineral requirements. African nations, particularly the DRC, are prioritized in China’s latest five-year plan.
Accelerating the Pace for Battery Minerals One clear indication of the market’s concern is the trend of electric vehicle and battery manufacturers securing supply deals well in advance of their actual needs. Even tech companies are joining the race, exploring ways to leverage artificial intelligence in order to expedite and enhance exploration efforts.
Copper producers in South America are already scaling up production, and Africa’s copper belt is witnessing increased activity. In the DRC, numerous project transactions are likely to occur in quick succession, accompanied by accelerated exploration efforts.
However, it is crucial to distinguish speed from haste. The mining sector is expected to adhere to good practices that are both critical and demanding, starting from the initial planning stages.
Given the added pressure to advance projects swiftly, there is an increased risk of overlooking critical elements that could jeopardize the project’s future.
These elements include closure planning and the incorporation of a range of environmental, social, and governance (ESG) considerations, which are vital for long-term sustainability and social license to operate.
Mining with Integrity Reporting standards have taken center stage as a measure of mining companies’ performance in the eyes of investors, financiers, governments, and local communities. Sustainability reports are no longer mere high-level documents; there is a growing emphasis on addressing ESG issues.
Considering the importance of responsible sourcing in the battery minerals drive, stakeholders are now more determined than ever to establish the integrity of sourcing locations and methods.
This concern is particularly relevant in countries like the DRC, where some processing plants do not have their own mining operations. The market for processing third-party-mined material is extensive and often opaque.
For mines that procure ore externally to supplement their own supply, it is crucial to ensure transparency and compliance with industry standards and stakeholder expectations. These concerns range from maintaining ore grading integrity to addressing human rights issues related to child labor and fair pay.
Responsible Sourcing Responsible sourcing has become a priority for the European Union (EU), which has launched the RE-SOURCING project, funded by the EU’s Horizon 2020 research and innovation program. The project aims to develop roadmaps for critical sectors and contribute to future policies. In collaboration with SRK Consulting, the initiative has gathered input from stakeholders in regions where raw materials for the green transition will be sourced.
The project’s objective is to ensure responsible sourcing of minerals, taking into account the impact of mining throughout the extensive value chain, including environmental, social, and human rights considerations.
Commodity-specific standards, such as the Copper Mark, are expected to guide the mining sector in the DRC. These standards not only provide benchmarks but also serve as a basis for fair comparisons. The practical challenge lies in mines’ strategic commitment and their ability to implement these standards.
