Critical mineral extraction is a resource-intensive process with far-reaching environmental and social consequences. The scale and severity of these impacts varies across regions and mineral types, but they consistently involve ecological disruption, resource depletion, emissions, and human rights concerns.
Ecological Disruption and Resource Depletion
Water resource strain:
In the Atacama Desert of Chile, lithium extraction operations have severely depleted groundwater levels, threatening both the fragile desert ecosystem and indigenous communities such as the Atacameños who rely on traditional agriculture. The brine extraction method, which pumps massive amounts of saline groundwater to extract lithium, has drawn criticism for its unsustainable water use. Multiple environmental reports indicate that lithium production in this region consumes approximately 500,000 gallons of water per metric ton of lithium produced.
- Albemarle Corporation and SQM, two major lithium producers in the Atacama, have faced legal challenges over their water usage, with local communities filing claims of unauthorized groundwater extraction.
- In Bolivia’s Salar de Uyuni, a different extraction approach using direct lithium extraction (DLE) technology has been promoted as a more water-efficient alternative, but scaling remains limited.
Habitat destruction:
Deforestation caused by cobalt mining in the Democratic Republic of the Congo (DRC) has led to the degradation of dense, biologically diverse forest ecosystems. In particular, the loss of primary forests around the Katanga region has been driven by both legal and illegal mining operations. This deforestation has been linked to habitat loss for endangered species such as the Bonobo.
- Glencore’s Kamoto Copper Company (KCC), one of the largest cobalt producers in the DRC, has been criticized for its environmental footprint, including forest clearance and tailings management failures.
- Rare earth mining in northern Myanmar has not only devastated forested areas but also triggered soil erosion, landslides, and habitat loss for local wildlife, including the endangered pangolin species.
Soil and Water Contamination
Toxic waste discharge:
The failure of tailings dams can lead to catastrophic ecological damage, as seen in the 2019 Brumadinho dam disaster in Brazil. This disaster at a Vale-owned iron ore mine resulted in the release of approximately 12 million cubic meters of toxic sludge into the surrounding area, killing 270 people and contaminating the Paraopeba River. Environmental monitoring reports have since identified high concentrations of heavy metals such as arsenic and lead in local water sources.
- Vale has faced over $7 billion in fines and compensation claims related to the disaster, making it one of the most costly environmental incidents in mining history.
- Following the Brumadinho disaster, the International Council on Mining and Metals (ICMM) introduced a new Global Industry Standard on Tailings Management in 2020, but compliance remains voluntary.
Heavy metal pollution:
The Ok Tedi mine in Papua New Guinea has become a symbol of large-scale environmental degradation due to direct waste discharge into the Fly River system. The mine, operated by Ok Tedi Mining Limited (OTML), has released millions of tons of tailings, resulting in significant heavy metal contamination. Scientific studies have shown elevated levels of copper, zinc, and cadmium in river sediments, leading to the decline of fish populations and agricultural productivity for local communities.
- Indigenous groups, including the Yonggom people, have repeatedly filed lawsuits against OTML, seeking compensation for lost livelihoods.
- OTML initially resisted stricter environmental regulations, citing high operating costs, but has since been forced to adopt improved waste management practices.
Acid mine drainage:
Acid mine drainage (AMD) occurs when sulfide minerals in exposed rock surfaces react with water and oxygen to produce sulfuric acid. This acid can leach heavy metals into nearby soil and water bodies, creating long-lasting contamination.
Notable cases include:
- Grasberg Mine (Indonesia): Operated by Freeport-McMoRan, the Grasberg mine has been identified as a major source of AMD, with acidic runoff affecting local rivers and agricultural lands.
- Ok Tedi Mine (Papua New Guinea): Beyond heavy metal pollution, AMD has further degraded water quality, leading to the death of aquatic life in downstream areas.
- Cerro Rico Mine (Bolivia): Centuries of silver mining have resulted in extensive AMD, turning local rivers into acidic, metal-laden waterways that remain toxic to this day.
Carbon Emissions and Energy Use
Energy-intensive extraction:
Nickel extraction using the High-Pressure Acid Leach (HPAL) process is one of the most energy-intensive methods in the mining sector. This method, primarily used for nickel laterite ores in Indonesia and the Philippines, has a carbon footprint significantly higher than traditional nickel sulfide mining.
- Tsingshan Holding Group’s nickel operations in Indonesia are among the largest HPAL facilities globally. Despite claims of improving efficiency, these facilities rely heavily on coal-fired power, making them major carbon emitters.
- Vale’s Voisey’s Bay nickel mine in Canada operates on hydropower, significantly reducing its carbon intensity.
Coal-dependent processing:
China’s rare earth processing industry is a major source of carbon emissions due to its reliance on coal-fired electricity. The Bayan Obo mine in Inner Mongolia, the world’s largest rare earth deposit, is a key contributor.
- Reports indicate that rare earth production in China accounts for over 75% of global supply but is responsible for nearly 90% of global rare earth processing emissions.
- China’s 14th Five-Year Plan includes a mandate to increase the share of renewable energy in the rare earth sector, but progress has been limited.
Transition to low-Carbon methods:
Leading mining companies are adopting renewable energy to mitigate their carbon footprints:
- BHP’s Escondida Copper Mine (Chile): Transitioned to 100% renewable energy as of 2022, primarily through solar and wind power contracts.
- Rio Tinto’s Gudai-Darri Mine (Australia): Integrated a 34-megawatt solar farm and battery storage system, reducing diesel consumption by 90%.
- Barrick Gold’s Kibali Mine (DRC): Uses hydropower for 80% of its energy needs, significantly cutting carbon emissions in a high-risk region.