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David Anonychuk
Global Vice President Metallurgy and Consulting
SGS

11 November 2022

When it comes to critical minerals, Asia continues to dominate; what opportunities does the West have to compete and ensure a stable and secure supply for itself?

Governments really are the ones who set the tone, which further drives the industry to adjust and adapt. Both the EU Commission and the United States have issued strategy papers to develop these supply chains and diversify away from Asia. This is the concern for the coming period: that there simply will not be enough lithium, nickel, cobalt, rare earths, copper, and so on to meet the high demand expected within the next decade.

These commodities are available in many countries around the world, which is good news. What is important to note is that people nowadays prefer to source them from lower-risk jurisdictions, such as Canada or Australia, which have good regulatory systems in place and are committed to sustainability goals. Investors are also looking for locations that show accountability and transparency in their supply chains.

These minerals are critical for the green transition; in the same time, sourcing them involves opening new mines. How can these seemingly opposed interests be reconciled?

Many jurisdictions already have very high standards in place for the mining sector. If a junior mining company, for example, wants to be listed and raise funds through the stock exchange, it must adhere to stringent environmental and social responsibility standards. A CEO of a junior mining company will not give a presentation today without mentioning ESG or sustainability; it is simply expected of them.

On top of this, we definitely see a movement towards even higher adherence to net zero driven by end users: an automotive company will want to ensure that their supply chain is aligned with this goal. The same goes for consumer products, and this type of demand is reverberating all throughout the mining supply chain.

Is there an increase in demand for sustainability-related services at SGS?

Absolutely, in fact it is growing by leaps and bounds. We work across the entire supply chain and can see appetite going up for services related to ESG, carbon footprint, circular economy, biodiversity etc. Interestingly, we also notice a new workforce shaping up; the sector is once again attracting young people who see the growing demand as well as an opportunity to help build a safer world.

What role do you anticipate technology will play in this transformation? Do you use cutting-edge technology at SGS?

Absolutely. First, there is the concept of big data; during the exploration phase, new technologies are available that can be used to scan the materials extracted from the ground from a mineralogy standpoint. Second, we can use AI and machine learning to discover new unexplored areas; in fact, SGS won a challenge (and a million-dollar prize) in 2016 for identifying the best targets for a gold project using these modern technologies. We are also looking into ways to extract the same amount of minerals and metals while using less energy. Even mining itself is evolving; for example, many people are now looking to the ocean to see if it is feasible to mine the seas in a sustainable and environmentally friendly manner. 

 

While much of our work focuses on mine development, we have also become very interested in recycling, attempting to recover nickel, cobalt, lithium, graphite, and other elements from used EV batteries.

 

Are you generally optimistic about the goals set for 2050? Is action taken quickly and consistently enough to arrive there in time?

It remains to be seen whether we will arrive on time, but the commitment is undeniable. Consider the automotive industry's transition to electric vehicles: they must plan at least five to seven years in advance, deciding which technologies to invest in, securing the raw materials required for batteries, constructing factories and production lines, and so on. These commitments are made well in advance, and everything is very real at this point; there is no turning back. Overall, the trend is very positive; it will come down to investors and, ultimately, the masses, as consumers' demand will determine which way we go.

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