week 10

Question 1

geometallurgy definition

Answer 1

• where is the metal in the deposit, why is it there and how best to get it out

Question 2

UN sustainable development goals

Answer 2

• adopted by 193 governments at the UN on 25th September 2015
• outline a plan to “end poverty, combat climate change and fight injustice and inequality”
• 17 goals, 169 targets, 304 indicators

Question 3

what is ESG

Answer 3

• environment, social and governance
• finance, investment, resources sectors

Question 4

who is involved in ESG

Answer 4

• businesses, investors, regulators, insurers
• much of it is based around regulatory frameworks

Question 5

what is the “mining industry”

Answer 5

• large mining companies
• junior mining companies
• artisinal and small scale mining

Question 6

large mining companies

Answer 6

• multi-national, multi-commodity, assets >$1 billion or >$100 million, >100,000 tonnes of ore per annum

Question 7

junior mining companies

Answer 7

• usually <$100 million assets, more geographically limited, 1-3 commodities, <100,000 tonnes ore per annum

Question 8

artisinal and small scale mining

Answer 8

• formal or informal mining, which is usually low cost, labour intensive and includes simplified forms of exploration, extraction, processing and transport
• the majority of ASM is legal
• presents ESG and health and safety challenges and opportunities

Question 9

what is needed to open a mine

Answer 9

• ore and technical skills to extract
• license to operate
• finance and demand

Question 10

describe critical metals

Answer 10

• they are metals essential for society, usually for green technology, for which there is a significant supply risk

Question 11

supply and demand of critical metals

Answer 11

• critical metals essential for green technology but with significant supply risk - supply-demand gap
• but global resources for most metals nowhere near depleted
• many metals do have alternative source options
• supply is controlled by mining companies, demand is controlled by consumers
• if demand goes up, metal price goes up and it makes deposits which may have been sub-economic worth mining
• if supply goes up and demand stays the same or fall, then price goes down and a mine which may have been economic suddenly isn’t anymore.

Question 12

factors influencing supply

Answer 12

• production capacity
• refining capacity
• production costs (labour and materials etc.)
• number of active mines
• bottlenecks in supply chain
• other external factors such as weather, industrial action, materials shortage etc.
• it takes a minimum of 10 years to open a new mine

Question 13

describe substitution

Answer 13

• if a technology can use several different elements for the same function, companies will usually use the cheapest
• if a new substitute is invented, the demand may suddenly disappear for a critical metal

Question 14

the substitution cycle - life cycle assessment

Answer 14

1. commodity price increases for metal X = need for substitution
2. substitution decreases demand for metal X
3. a surplus in supply is created for metal X and the price falls
4. metal X is now economically viable

Question 15

how to mine responsibly

Answer 15

• more efficient mining - better geometallurgy, novel processing technologies, resource from waste
• focus on ESG - net positive impact and ‘good stewardship’ and the just transition - ESG an essential not an add on
• carbon-neutral mining - renewable power, more efficient processing, in situ leaching, more efficient exploration