Nature Positive Role of the Mining and Metals Sector

However, it also contributes to drivers of nature loss, including land-use change and water abstraction in upstream industries, mining operations and midstream production, as well as pollution and GHG emissions across the value chain. Mining activities can impact nature beyond the direct physical footprint of projects. These impacts can occur indirectly, for instance, through industries that support mining operations or stakeholders who gain access to biodiversity- rich areas due to mining. Additionally, cumulative effects arise when multiple mining activities are concentrated within the same region. In addition, mining can adversely impact Indigenous Peoples and other local communities, including peasant communities, Afrodescendent communities and fisherfolk. Negative impacts on nature can lead to violations of the rights of Indigenous Peoples and other communities and related negative social impacts. For example, contamination of land and water resources can impact the ability to access and use resources such as firewood, medicinal plants, drinking water, fish and amphibians. It is vital that companies consult with Indigenous groups and civil society throughout all stages of project development52 and respect the right of Indigenous Peoples to give or withhold consent regarding projects affecting their lands, territories and resources. A recent study by the University of Queensland found that more than half of energy transition mineral mining projects were located on or near the lands of Indigenous Peoples with rights to consultation and free, prior and informed consent (FPIC).53 Economic or material benefits should also be distributed equitably, and benefit- sharing agreements are best positioned when they reflect a genuine negotiation and participatory decision-making process with Indigenous leaders. This is advancing in some regions, such as in Canada, where there are over 500 agreements between Indigenous communities and the mining industry that outline employment, procurement and royalty arrangements.54 In most countries, mining remains the most hazardous occupation for workers and is responsible for approximately 8% of fatal incidents at work. In some countries, many more people are employed in small-scale, often informal, mining than in the formal mining sector. These jobs can be precarious and do not conform with international and national labour standards; accident rates in small-scale mines are routinely 6 or 7 times higher than in larger operations, even in industrialised countries.55  Large-scale mining, artisanal and small-scale mining and illegal mining BOX 2 A recent study found that more than half of energy transition mineral mining projects were located on or near the lands of Indigenous Peoples with rights to consultation and FPIC. It is important to distinguish between the impacts of large-scale mining (LSM), artisanal and small-scale mining (ASM) and illegal mining to identify the entry points for addressing impacts. LSM is defined as a formal and regulated activity using modern industrial-scale extraction and processing technologies. It involves a wide range of commodities and typically larger project sizes, leading to significant post- closure restoration and rehabilitation requirements. The ASM sector, on the other hand, is typically informal by nature and less regulated, which means it often uses more environmentally harmful extraction methods with few rehabilitation measures in place. Workers can also face difficult or dangerous working conditions,56 and ASM can be responsible for opening new mining frontiers that LSM moves into. However, with anything from 40 to 100 million artisanal miners globally in more than 80 countries, the industry can be essential to the livelihoods of some of the world’s most marginalized communities and people and an important source of critical minerals.57,58,59,60 Illegal mining can take place at both abandoned and operating mines. It can cause both significant environmental and social impacts, for example, as a result of the use of harmful extraction methods or operators working under dangerous conditions. It also has a range of negative social and financial impacts on the state, the mining sector, companies and employees due to the loss of revenue, taxes, employment opportunities, capital expenditure, exports, foreign exchange earnings and procurement, among other factors.61 Nature Positive: Role of the Mining and Metals Sector 16 Nature Positive: Role of the Mining and Metals Sector16