Debunking the myths around mining and the circular economy

By Spencer Eckstein, Director of Business Development, Ukwazi

The terms ‘circular’ and ‘green’ are often used interchangeably when speaking about the economy. It is, however, important to distinguish between the two. The UN Environment Programme (UNEP) defines a green economy as ‘one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities’. A circular economy entails the recycling and reuse of materials and components, combined with the utilisation of sustainable inputs, such as renewable energy. While mining has been perceived, and rightfully so, as relatively linear from a value-chain perspective, several sector players have made deliberate efforts to capitalise on the benefits of a circular economy. Despite this, there are misconceptions surrounding mining companies and the role they play.

• Myth 1 – Decarbonisation means fewer minerals and metals

Guiding the world to a low-carbon future will require more minerals and metals rather than less. This was reiterated at the recent 2022 African Mining Indaba. Alarmingly, sector players anticipate a significant production deficit between 2030 and 2040, yet a steady supply of resources will be needed to achieve net-zero goals. Pertinent examples include metals that contribute to alternative and greener energy sources, such as battery metals and platinum group metals (PGMs), which underpin highly sought-after hydrogen fuel cell technology.

The Russia-Ukraine conflict, and the geopolitical shift to be less reliant on Russian commodities, present significant green opportunities for South Africa. Our country currently supplies 80% of the world’s platinum and 40% of all palladium. Going forward, mining companies will need to leverage strategic supply gaps and be selective in who they supply to if they are A circular economy entails the recycling and reuse of materials and components, combined with the utilisation of sustainable inputs, such as renewable energy” to guarantee the sustainability of future end-products.

• Myth 2 – There aren’t any new opportunities to leverage between supply networks

As mining is one of the world’s biggest waste generators, sector players are well-positioned to reimagine and redesign how they generate and capture economic value along their supply chains. The construction industry can use the waste rock to construct roads. Sludge from acid rock drainage treatment can be sold commercially for use in pigments. There are many more ways waste can be repurposed, such as the recycling and reuse of vehicle parts and other bi-products and the rehabilitation of mines into viable renewable energy or agricultural sites. Visibility and collaboration along supply networks will ensure that all value is adequately extracted downstream.

• Myth 3 – Mines will always need large amounts of water to operate

An obvious area where mines can contribute to a feasible circular economy is the efficient use of natural resources such as water. According to the African Circular Economy Alliance, mining is the second-largest water user in South Africa, after agriculture. But, what if little to no water was required to extract resources? While this seems almost impossible, the solution could be the creation of smart mines, where sustainability is built into the initial stages of the overall design process. In addition, improvement in water treatment technologies and the use of renewables, particularly solar for electrolysis, will help to create hydrogen for use on mines by splitting water, thus releasing oxygen instead of carbon-based emissions.

Mining has many facets that can drive circular economy thinking, which is also being driven by investor and consumer expectations and increasing regulatory pressures. By embracing the principles around smart mines, the mining sector can successfully build a resilient system that is good for business, stakeholders and the environment.