Nature Positive Role of the Mining and Metals Sector

1.1 Sector overview Overall, 9.6 billion tonnes of metal ores30 were extracted worldwide in 2020 alone, making up 10% of global material extraction across biomass, fossil fuels, metal ores and non-metallic minerals. Almost all other sectors rely on these commodities, including the construction industry, energy and transport infrastructure, manufacturing equipment, consumer goods (such as vehicles and electronics), agriculture, and defence sectors. Currently, of all metals, extraction of iron ore was the fastest growing, driven by rising demand for steel in the construction sector,31 which accounts for over 50% of global steel demand,32 and a second wave of urbanization in the Global South.33 Future demand growth, however, will be driven by the clean energy transition, given the essential role of metals and critical minerals, such as aluminium, copper, cobalt, nickel, lithium and rare earth elements, in supporting the scale-up of energy transition infrastructure, for renewable energy (solar panels and wind turbines), energy transmission and energy storage capacity, and the electrification of the transport and mobility system.34 Critical mineral inputs for clean energy technologies are projected to increase 4 to 6 times by 2040.35 A typical electric car requires 6 times more mineral inputs than a conventional car, and an onshore wind plant requires 9 times more mineral resources than a gas-fired power plant.36 Mining operations across large-scale, artisanal and small-scale mining are estimated to cover up to 100,000 square kilometres (km2), equivalent to 0.07% of the world’s terrestrial surface.37 Extraction is concentrated in specific, resource-rich locations. For example, over 65% of iron ore and bauxite is from Australia, China, Brazil and Guinea,38 75% of cobalt is from the Democratic Republic of the Congo, 90% of platinum group metals are from South Africa and Zimbabwe,39 45% of lithium is from Australia and 70% of rare earth elements are from China.40,41 Processing operations are even more concentrated: China is responsible for processing over 50% of aluminium and steel, and 65 to 90% of lithium, cobalt and rare earth elements.42,43 Productivity varies significantly across mining areas, with a small share of sites responsible for the majority of resource extraction volumes,44 and land ownership and management systems also differ across regions. Critical mineral inputs for clean energy technologies are projected to increase 4 to 6 times by 2040. Definition of the mining and metals sector BOX 1 The scope of this report is defined by the Sustainability Accounting Standards Board (SASB) Sustainable Industry Classification System (SICS),45 and includes “Extractives & Minerals Processing – Metals & Mining” and “Extractives & Minerals Processing – Iron & Steel Producers”. This comprises mining operations to extract metals and minerals, processing and smelting of raw materials into fabricated or semi-fabricated products, and mining support activities. While this report covers both mining and metals, it focuses mostly on mining, given that many of the most material drivers of nature loss are concentrated in this part of the value chain. In addition, this report will also consider the full value chain for the mining and metals sector, including industries that provide inputs into mining and processing operations, end- product manufacturers, the use phase of products and end- of-life management.The mining and metals sector is commonly segmented into iron and ferrous alloy (ferroalloy) metals; non-ferrous metals, such as aluminium, cobalt, copper, lithium and rare earth elements; precious metals, such as gold, silver and platinum- group metals; and industrial minerals, such as potash. This report focuses on land-based mining and does not cover deep-sea mining or other marine activities. However, it notes that deep-sea mining is potentially associated with irreversible changes to deep-sea ecosystems and the broader ecosystems they support, where the extreme conditions have given rise to a unique set of species, many of which are highly vulnerable or as yet unknown.46 Mining of coal and construction materials, such as stone, gravel and sand, is also out-of- scope, where it is acknowledged that a rapid phase-out of coal-fired power plants is required to reach a nature-positive, net-zero future. Nature Positive: Role of the Mining and Metals Sector 14