A new World Bank Group report, "Minerals for Climate Action: "The Mineral Intensity of the Clean Energy Transition," finds that the production of minerals, such as graphite, lithium, and cobalt, could increase by nearly 500% by 2050 to meet the growing demand for clean energy technologies.
We have all heard about climate change, and it has been discussed in depth. Environment degradation has become a global issue that has adversely affected the planet. Each year, more and more environmental challenges are being faced. Greenhouse emissions are through the roof and have led to global warming, eventually translating to severe weather patterns. As the world continues to evolve, more and more environmental discussions will emanate.
During the industrial revolution, minerals such as coal and graphite were mined to power machines and industry. This gave way to the technological revolution, where countries are looking towards manufacturing and using environment-safety machines, including vehicles, to meet the growing demands of globalization. However, the flip side of creating clean energy technologies is the intense need for minerals to manufacture them. A new World Bank Group report, "Minerals for Climate Action: "The Mineral Intensity of the Clean Energy Transition", finds that the production of minerals, such as graphite, lithium, and cobalt, could increase by nearly 500% by 2050 to meet the growing demand for clean energy technologies.
As a result, prospecting, exploration, construction, operation, maintenance, expansion, abandonment, decommissioning, and repurposing of a mine began to have an impact on social and environmental systems in a variety of positive and negative ways, both directly and indirectly.
Going by International Energy Agency (IEA), net-zero mining is where all fuel and energy come from renewable sources, free of greenhouse gases (GHG) emissions, and the upstream and downstream emissions associated with mining activities are mitigated. Put simply, net zero means cutting down greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere by oceans and forests, for instance.
As we speak, the Earth is already about 1.1°C warmer than it was in the late 1800s, and emissions are still increasing. To achieve a 1.5°C climate-change target by 2050, the mining industry must reduce direct CO2 emissions to zero. A McKinsey report from 2020 calculated the mining sector is responsible for four to seven percent of global greenhouse gas emissions across its operations and power use. This figure rises to around 28% when emissions from the minerals it extracts are considered, most notably the burning of coal for power generation and steelmaking.
Mining companies are under increasing pressure to support national decarbonization targets in their host countries. The possibility of carbon taxes in several jurisdictions provides incentives for mining companies to participate more effectively in the energy transition. Many companies are conducting systemic reviews of their asset portfolios in light of these sustainability challenges, and several have already published decarbonization plans. For example, the European Union (EU) finalized a bill earlier this year that will create a legally binding 2050 net-zero emissions target and a target of 55% below 1990 levels of CO2 emissions by 2030 for companies operating in the EU. Another great example is President Biden signing the climate bill into law in August 2022, making it the most significant climate legislation in US history, spending more than $369 billion over the next ten years to achieve a 40% reduction in emissions from 2005 levels.
KPMG's "Sustainability on the horizon" report finds that more than three-quarters of mining companies have set net-zero targets for carbon emissions. At the same time, 69 percent say they aim to achieve them by 2030. At Metallika, we will not be left behind. Sustainability and decarbonization are top items on our business operation agenda. So we came up with DAO Metallika (Decentralized Autonomous Organization), a blockchain-based decentralized autonomous organization to accompany the exploration and mining cycle.
DAO is an organizational form in which the coordination of the activities of participants, and the management of resources, take place in compliance with a pre-agreed and formalized set of rules, the enforcement of which is performed automatically. The main product of DAO METALLIKA is cloud services that provide an opportunity for fast, convenient, reliable, and transparent communication between various participants in the exploration and mining cycle.
Leveraging blockchain technology, Metallika provides an opportunity for fast, convenient, reliable, and transparent communication between various participants in the exploration and mining cycle. Through our innovative lean model, we have also initiated a process that has helped make mineral sourcing sustainable, economically reasonable, and, most importantly, ethical. Through blockchain technology, our goal is to produce only when the customer generates the need for minerals. Metallika, in this best way, promotes responsible mineral sourcing as we only procure minerals when the customer demands a product. Contact Metallika today and join our efforts to drive a net-zero mining future.