Mining and Metals Industry Structure and Interaction with the Circular Economy

"INTRODUCTION In recent years, there has been increasing focus on environmental and social impacts of the extractive industries, climate change and resource scarcity. The concept of the circular economy aims to replaces the “take-make-dispose” economic model with one that eliminates waste of all kinds and is restorative by design. Such closed-loop systems implicitly aim to reduce the quantity of primary extracted materials entering the economy, thereby affecting supply and demand dynamics, hence mining industry economics. For the metals industry, the ability to engage in, or adapt to the circular economy can be heavily affected by industry structure and geographical factors. Eco-efficiency initiatives that reduce waste and environmental impact may help the mining and metals industry align with some of the goals of the circular economy. This paper focuses on base metals, and explores case studies in copper, lead and zinc. It analyzes primary and secondary metal production, and recycling. It examines company structures and how these affect engagement with the circular economy. CIRCULAR ECONOMY PRINCIPLES Ellen MacArthur Foundation (2012) describes the circular economy as “an industrial system that is restorative or regenerative by intention and design”, which “replaces the ‘end-of-life’ concept with restoration”, and “aims for the elimination of waste through the superior design of materials, products, systems, and, within this, business models”. The concept is systems focused. For materials such as metals, a series of loops are considered, including maintenance of devices, reuse, refurbishment and recycling. Potential methodologies to achieve circular economy outcomes include disassembly and reassembly of manufactured goods, leasing rather than buying major appliances, and converting to renewable energy sources. The circular economy is partially aligned with the principles of eco-efficiency, which relate to reducing the environmental impact per unit of a material produced. PRIMARY AND SECONDARY METAL PRODUCTION Base metals (copper, lead, zinc and nickel) are essential ingredients in modern economies and are key commodities produced by the global mining industry. Metal production can be categorized as primary or secondary. Primary metal comes from the processing, smelting and refining of metal content extracted from ores, while secondary production comes from metals recovered from recycled streams (e.g. recycled lead-acid batteries, copper wire scrap, etc.). Metals are stored in natural, anthropogenic in-use and anthropogenic waste stocks. An example of the stocks, flows and processes associated with global copper extraction and use is shown in Figure 1."