Introduction

The report positions mining and metals as essential enablers of a circular economy and the transition to a net-zero, nature-positive future. Metals are durable and recyclable, but circular outcomes depend on both responsible production and use. The industry’s role extends across the value chain, requiring collaboration upstream and downstream to reduce waste, retain value, and support sustainable development.

Background and purpose of the tools for circularity

The tools for circularity were developed to support mining and metals companies in embedding circular economy principles into business decision-making. Building on earlier research and stakeholder engagement with policymakers, investors, academia and industry, the tools aim to improve understanding of circularity, its value proposition, and practical pathways for implementation. They are designed for corporate leaders, site operations, wider business units, and external stakeholders involved in enabling circular loops.

How mining and metals fit into the circular economy

The report distinguishes between the circular economy as a system and circularity as its application within companies. It highlights value leakage from waste and the opportunity for value creation and capture through resource optimisation, life-extension, reuse, remanufacturing and recycling. Frameworks such as the ReSOLVE model are used to illustrate circular strategies, including regenerating ecosystems, sharing assets, optimising processes, looping materials, virtualising services and exchanging technologies.Demand for metals is expected to rise sharply, with estimates of up to a 20-fold increase in nickel and cobalt demand by 2040 and a doubling of copper demand by 2050. Circularity is therefore presented as essential to managing resource constraints, reducing environmental impacts and improving resilience. Key drivers include economic value, regulatory and reporting requirements, stakeholder expectations, climate change, biodiversity loss and supply security.

Building a case for circularity in mining and metals

The report emphasises that circularity initiatives require a clear business case, often financial but inclusive of non-financial benefits. Non-circular operations carry significant costs, including waste management, regulatory risk, reputational damage and carbon liabilities. Circular practices can deliver operational efficiencies, risk mitigation, environmental and social co-benefits, reputational gains and improved access to finance.Quantitative metrics include avoided waste costs, labour and efficiency savings, valorisation of by-products, reduced fines, lower carbon offset expenditure, and new revenue opportunities. These metrics can be integrated into return on investment or net present value analyses over different time horizons. Qualitative metrics, while harder to measure, are also critical and can be assessed using concepts such as Total Economic Value to capture social, environmental and ecosystem benefits.The report identifies common barriers to circular business models, including unclear definitions, vague ambitions, absence of metrics, limited understanding of performance, and poor articulation of the value proposition. Overcoming these barriers requires clearer targets, governance, appropriate incentives, and improved measurement and reporting.Regulation is a major driver. The report outlines an evolving global policy landscape, with the European Union leading through measures such as the Circular Economy Action Plan, Critical Raw Materials Act, Batteries Regulation, Ecodesign for Sustainable Products Regulation, Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive and Sustainable Finance Disclosure Regulation. Other jurisdictions, including Australia, Canada, Chile, China, Japan and the United States, are also strengthening circularity-related policies.

Circular economy case studies in the mining and metals industry

Case studies demonstrate how circularity can be applied across different scales and maturity levels, from pilots to long-established practices. Examples include by-product reuse, waste valorisation, secondary material production, co-location and closed-loop systems. These cases illustrate economic, environmental and social benefits, while recognising that some initiatives are still in development and may not yet realise their full value.Overall, the report concludes that integrating circular economy practices can significantly outweigh business-as-usual outcomes and is increasingly necessary for long-term competitiveness, compliance and resilience in the mining and metals sector.