Responsible mineral and energy futures: views at the nexus

Abstract

In an era of mineral resource constraints and radical transition in the energy sector, this paper reviews the extent to which a long-term view of production and use is adopted in both sectors. A long-term view including the mineral-energy nexus is deemed to be necessary (although not sufficient) for managing future resource constraints and energy transitions. Alarmingly, it identifies that the future of minerals resources and production is generally viewed only 5–10 years ahead rather than several decades or more as for energy. Additionally, the sectors are generally studied independently, rather than with a focus on the nexus. With these findings as evidence of an unaddressed problem, the paper then focusses on the current forces for change in the minerals industry: namely community drivers regarding social licence to operate, new technologies and consumer and government drivers on responsible minerals. As discussions of sustainable development become displaced by the emerging discourse of ‘responsible’ minerals, what is adopted and discarded? Whilst responsible minerals considers chain-of-custody, it does not adopt a long-term view and overlooks the mineral-energy nexus. Using three illustrative cases at the nexus of (i) rare earths-renewables, (ii) coal-steel and (iii) uranium-nuclear we extend the theoretical discussion on ‘responsible’ with a range of contemporary examples from the perspectives of producing (Australia) and consuming countries (Japan, Switzerland) and propose a research agenda for an expanded notion of responsible minerals which recognises the complexity of the mineral-energy nexus and connects it to progressing sustainable futures.

Introduction

The global production–consumption cycles of minerals and energy are inextricably connected. Uranium is mined and used in nuclear power production; coal generates electricity used in mineral and metals production and is used as a reductant in blast furnace steel making; rare earth elements – for example in wind turbine magnets – have enabled growth in renewable energy technologies. The energy intensity of primary mineral production is also forecast to increase (Norgate and Haque, 2010) as average mined ore grades decline (Prior et al., 2012) and there is significant potential for cleaner energy to be coupled to mineral production (McLellan et al., 2012, Memary et al., 2011).

This strong interrelationship between minerals and energy has been largely overlooked in discussions about mineral and energy futures, including in the emerging discourse of responsible minerals which has begun to supplant a focus on sustainability in the sector. The key aim of this paper is to examine the connections between these themes and foment a structured discussion on responsible mineral and energy futures. This is undertaken through critical analysis of futures practices in the two sectors and through specific examples of alternative contexts (producing and consuming countries) and important mineral-energy nexus cases.

As with public perspectives and policies in different countries, industry perspectives on sustainability and their role in shaping the future have differed and are not made explicit (Hilson and Murck, 2000). Historically, a failure to address this interrelationship in sustainability discussions about minerals and energy, may have been a result of the fact that both sectors' sustainability concerns were previously associated with disparate issues. On the one hand, the minerals sector's sustainability discourses have focussed on issues including resource depletion, mine site rehabilitation, air and water pollution and safety. On the other hand, the energy sustainability discussion has been dominated by concerns about energy security and peak oil, new technologies, and the link between fossil fuel consumption, global warming and climate change. The mineral-energy nexus has not been a specific focus in sectoral sustainability debates.

On the ground, community and consumer perceptions about how minerals are obtained and used, have popularised the notions of the ‘social licence to operate’ (Thomson and Boutilier, 2011) and social responsibility. In the context of mining, the social licence to operate has become a community-driven, but non-formal extension of traditional mine licensing, where a mining project gains ongoing approval from local communities to continue activities (Prno and Scott Slocombe, 2012). The related concept of social responsibility suggests the needs for corporations to operate in a socially responsible manner – particularly with a view to future sustainability and intergenerational equity. In the last decade both notions have gained prominence in relation to the production of minerals and energy – they hold relevance in the contexts of responsible production and ethical consumerism, yet social-licence is only beginning to adopt an explicit futures focus.

At a time when mineral and energy resource constraints may impact critical services on which society depends (Graedel et al., 2013), the notion of the social licence to operate and rising awareness of responsible supply chains amongst both corporations (and citizens) emphasises the necessity to address these concerns at the mineral-energy nexus. However, understanding how responsible mineral and energy futures can offer pathways to sustainability – for communities and nations – requires assessment of the mineral-energy nexus at longer time scales and across global supply chains. Assessment and action should consider multiple perspectives at local and global levels, from the point of view of producers and consumers, and in relation to changing public and corporate perceptions of how society uses minerals and energy in daily life.

This paper concentrates on examining four aspects to advance the debate on minerals, energy and sustainable development, drawing on industry perspectives and those from producing and consuming countries. Firstly, how adequately is the minerals sector adopting a longer-term view, identified as a minimum necessary starting point to consider sustainable development? Secondly, in light of increasing interdependencies between minerals and energy, what are the characteristics of the mineral-energy nexus and risks of overlooking it? Thirdly, from an industry perspective, do these first two points feature within contemporary discussions on social licence and responsible minerals? Whilst discourses of responsible minerals include a focus on chain-of-custody, what aspects of sustainability are diminished; what additional elements could be proposed in an expanded notion of responsible minerals? Fourthly, how does the future-orientation and complexity at the mineral-energy nexus manifest from the perspective of producing and consuming countries for selected case studies? What can these example cases illustrate more generally about the dimensions of complexity which should be included in a research agenda for truly responsible mineral and energy futures that support sustainable development?

Australia, a significant minerals and energy producer, is contrasted with Japan and Switzerland as illustrative minerals consumers in Asia and Europe respectively. The countries use differing energy mixes, are characterised by differing mineral and energy management policies, frame resource management responsibility differently and thus present informative cases for comparison. The choice of countries was informed by the location of the paper's authors and hence familiarity with the respective contexts and are used to illustrate the breadth of differences in the global energy and resources landscapes rather than being representative.