The report aims to provide a comprehensive analysis of critical minerals that will be essential in the coming decades for achieving a low-carbon economy. The following is a summary of the report’s main findings, along with its recommendations and key environmental, social and governance (ESG) issues.

The report states that the growing demand for critical minerals, such as lithium, cobalt, and nickel, presents a unique opportunity for countries that have substantial reserves of these minerals. Simultaneously, there is growing concern among countries like Australia, which has a wealth of such reserves, over the ethical and environmental challenges associated with extracting these minerals. The report highlights that most of the mineral reserves are concentrated in a small number of countries, and the downstream manufacturing is dominated by China.

Environmental and social impacts of critical mineral extraction

The report includes six detailed case studies that examine the social and environmental impacts of mining key transition minerals in Australia. These case studies are based on detailed research and highlight the considerable environmental and social impacts of extraction on communities in the areas surrounding these mining sites. The report notes that extraction of these minerals causes unavoidable environmental damage, which can be mitigated through responsible mining practices.

Recommendations for socially responsible extraction of critical minerals

The report identifies 11 key recommendations for Australia to encourage sustainable and socially responsible extraction of critical minerals. Some of these recommendations include:

• Development of critical mineral policy that reduces demand for such minerals.
• Detailed investigation and publication of the environmental and social impacts of mining critical minerals.
• Development of an environmental policy that reduces demand for transition minerals and promotes recycling solutions.
• Legal reforms to enhance the decision-making power of First Nations communities in mining operations.
• Revising mining laws to identify protected mining-free areas, streamline the approval process, and improve mine rehabilitation and clean-up.
• Global agreement on sustainable sourcing of transition minerals to limit environmental impact in neighbouring countries.

Supply chain ethics

The report discusses the increasing demand for transition minerals, and the risks and complexities in the supply chain. The bulk of these minerals are concentrated in underdeveloped and sensitive regions, with a history of inadequate governance structures and limited access to technology. The report recommends that Australia initiate responsible sourcing of transition minerals and review its trade and investment policies to promote sustainable extraction of natural resources.

Policy solutions

The report highlights how policies around recycling, transport, development, and the circular economy can help reduce the demand for transition minerals. These policy changes could help make the new energy transition more sustainable than the previous one.

The report concludes that the mining of transition minerals is crucial for achieving a low-carbon economy, but the environmental and social impacts of extraction must be mitigated through sustainable and socially responsible practices. The report also highlights that the reorientation of transport and energy policies, along with urban development and construction policies, is vital to achieve a sustainable energy transition.