Per WSJ, the mining sector is working to change perceptions that mining hurts the environment by contributing to climate change. This perception is impacting efforts by some companies to get new projects permitted and attract skilled workers.
As a result, some mining companies are broadening beyond traditional mining to invest in critical materials recycling. They’re betting that makers of cars and consumer electronics will increasingly demand sustainably sourced metals for their products.
Rio Tinto, a large mining company and major producer of aluminum, just agreed to buy a 50% stake in Matalco, a supplier of recycled aluminum owned by Canada’s Giampaolo Group, for $700 Million. Glencore, another large mining company, agreed in May with Li-Cycle Holdings to study/create a recycling hub in Europe to produce enough recycled material for up to 36 GW of lithium-ion batteries yearly. It would be Europe’s largest source of recycled battery-grade lithium, cobalt and nickel.
Recycling uses less energy and has less impact on the environment. As an example, recycled aluminum production typically has a carbon footprint 5-25x lower than new metal and the cost to set up an aluminum-scrap processing facility is only one-tenth of the cost to build plants that produce the commodity new, says Wood Mackenzie, a UK-based consulting firm. However, there are drawbacks. Recycling margins are typically less than traditional mining. Skills required are different than for the core business. Recycling is not a core competency for many mining companies. And there are many complexities to using scrap – such as impurities that don’t meet the standards for some aerospace, electronics and defense companies – that need to be addressed.
Recycling alone won’t be able to substitute for mining. However, it can de-risk supply chains, increase sustainability of raw materials and cut the number of new mines needed to meet demand. It can also start changing perceptions of mining companies and their role in the ongoing energy transition.
MOSIMTEC specializes in helping mining companies improve performance by using computer modeling, simulation and digital twins. For a strategic metals mining company, we developed a production simulation of a conceptual longitudinal longhole retreat method, incorporating multiple levels, material handling equipment, storage areas and user-configurable input. For a metals/mining company, we developed a detailed global supply chain model to evaluate the feasibility of a new mine related to supplying the material and infrastructure to construct the port, railway and mine. For a platinum group metals producer, we supported development/analysis of a smelter facility to support decision making of major renovations and planned upgrades at the metallurgical complex. MOSIMTEC industrial engineers/data scientists can help mining companies improve performance in their core mining activities, also explore new ways to future-proof their business.
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