Minerals are increasingly crucial to global supply chains, especially given the rising importance of technology and AI. However, the mining and processing of minerals has significantly increased the risk of various issues, from forced labor to corruption, child labor and other human rights abuses.
Given the severity of these issues, more companies are being encouraged to engage in responsible mineral management.
I take a brief dive into what the concept means and how the future of responsible mineral management will likely evolve over the coming years.
What is responsible mineral management?
Responsible mineral management involves overseeing the extraction, processing, and distribution of minerals in a way that minimizes environmental impact, ensures ethical labor practices, and promotes economic sustainability. This approach aims to balance the benefits of mineral resources with the need to protect communities and ecosystems.
Key aspects of responsible mineral management include:
- Environmental stewardship: Implementing practices that reduce environmental degradation, such as minimizing land disturbance, managing waste, and preventing pollution.
- Ethical sourcing: Ensuring that minerals are sourced in a manner that respects human rights and avoids contributing to conflict or exploitation. This includes adhering to international standards like the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
- Community engagement: Involving local communities in decision-making processes and ensuring that they benefit from mineral development. This can include providing jobs, supporting local infrastructure, and investing in community development projects.
Responsible mineral management in corporate supply chains
Responsible mineral management is crucial in corporate supply chains, ensuring that the extraction, processing, and distribution of minerals are conducted ethically and sustainably. This means that, in sourcing minerals, companies should pay attention to:
- Due diligence: Companies are expected to conduct thorough due diligence to identify, prevent, and mitigate risks associated with human rights abuses, environmental harm, and corruption in their supply chains. The OECD Due Diligence Guidance provides a framework for companies to follow, helping them manage these risks effectively.
- Transparency and traceability: Ensuring transparency and traceability in the supply chain is essential. Companies need to track the origin of minerals and maintain clear records of their journey through the supply chain. This helps in verifying that the minerals are sourced responsibly and comply with ethical standards.
- Environmental, social, and governance (ESG) standards: Adhering to high ESG standards is a cornerstone of responsible mineral management. This includes minimizing environmental impact, promoting good governance, and ensuring fair labor practices. The Minerals Security Partnership (MSP) emphasizes the importance of integrating ESG standards into all stages of the mineral supply chain, from mining to processing and recycling.
How will the future of responsible mineral management shape up?
In my opinion, the future of responsible mineral management in corporate supply chains is poised to evolve significantly, driven by advancements in technology, stricter regulatory frameworks, and increasing stakeholder expectations. Here are some key trends and developments to watch:
- Enhanced transparency and traceability: Companies are increasingly adopting advanced technologies like blockchain to improve transparency and traceability in their supply chains. Blockchain technology allows for secure and immutable recording of transactions, making it easier to track the origin and journey of minerals from extraction to end-use.
- Stricter regulatory frameworks: Governments and international organizations are tightening regulations to ensure responsible mineral sourcing. The OECD Due Diligence Guidance provides detailed recommendations for companies to identify, address, and mitigate risks associated with human rights abuses, conflict financing, and other financial crimes in mineral supply chains. These guidelines are being integrated into regulations across various regions, enhancing global standards for responsible mineral management.
- Focus on environmental sustainability: As the world transitions to a greener economy, the demand for minerals used in renewable energy technologies, such as lithium, cobalt, and nickel, is increasing. Companies are under pressure to source these minerals responsibly, minimizing environmental impact and promoting sustainable practices. Initiatives like the Responsible Minerals Initiative provide tools and resources to help companies implement responsible sourcing practices and meet environmental standards.
- Integration of ESG criteria: ESG criteria are becoming integral to corporate strategies. Companies are incorporating ESG standards into their mineral supply chains to ensure ethical practices and reduce risks. The MSP emphasizes the importance of integrating ESG standards at all stages of the mineral supply chain, from mining to processing and recycling.
- Adoption of innovative technologies: The future of responsible mineral management will see increased adoption of innovative technologies to improve efficiency and reduce environmental impact. For instance, advancements in mining technology, such as automation and artificial intelligence, can enhance operational efficiency and reduce the ecological footprint of mining activities.
At the end of it, the future of responsible mineral management in corporate supply chains will be shaped by technological advancements, stricter regulations, and a heightened focus on sustainability and stakeholder engagement. Companies that proactively adopt these practices will be better positioned to meet the growing demand for ethically sourced minerals and contribute to sustainable development.
![]() |
by Doğan Erbek and STF Team |