KEY POINTS
- Mining companies face growing pressure to prove that metals are responsibly produced and traceable from mine to finished product.
- New regulations and supply-chain disruptions are making transparency and responsible sourcing increasingly important for market access.
- The Copper Mark is working to unify assurance standards and improve traceability across the global metals value chain.
Mining and metals companies around the world are facing increasing pressure to provide greater transparency over how critical minerals are extracted, processed and eventually incorporated into finished products, as the global energy transition accelerates and geopolitical uncertainty continues to disrupt international trade.
The Copper Mark, a responsible sourcing and production assurance organisation, says the industry is undergoing a significant shift in the way responsible production is understood.
According to its value chain director, Mike Smith, sustainability can no longer be assessed only at the mine site. Increasingly, customers, manufacturers, regulators and investors want to know the complete journey of metals through the supply chain.
Smith said the expected growth in demand for metals needed for the energy transition would make responsible production even more important. The International Energy Agency has projected that demand for metals and minerals could double over time as countries expand renewable energy, electric mobility and other low-carbon technologies.
This growing demand is being accompanied by stronger expectations that metals should be produced with reduced environmental and social impacts.
Focus shifts beyond the mine
The Copper Mark was established on March 31, 2020, as a responsible production assurance framework for the copper industry. It currently covers about 40% of global mined copper.
However, the organisation is expanding its approach beyond mines, smelters and refineries to include processors, manufacturers and downstream users of metals.
The move reflects growing pressure on industries such as automotive manufacturing, electronics and renewable energy to demonstrate that the raw materials used in their products have been sourced responsibly.
To improve transparency, The Copper Mark is developing a Midstream Standard for processors and fabricators, as well as a Chain of Custody Standard intended to track responsibly produced metals as they move through the supply chain.
It is also establishing a Responsible Metals Value Chain Platform to bring mining companies, manufacturers and end-users together to improve cooperation, information sharing and supply-chain visibility.
The objective is to provide confidence not only in the conditions under which metals are mined but also in their responsible movement from extraction to final use.
The push for greater transparency has been strengthened by a series of global disruptions that exposed weaknesses in international supply networks.
The Covid-19 pandemic demonstrated the risks of highly concentrated supply chains, while geopolitical tensions, trade disruptions and shipping problems have further encouraged companies to reconsider where and how they source raw materials.
