Today’s world moves quickly. Disruptions to established industries are increasingly common, and rapid advances in technology make for a fast-moving business landscape. And this is as true in the mining industry as in any other.
One economic concept gaining momentum in recent years is the circular economy, which involves reducing waste by repurposing goods and processes in innovative ways to generate new value that may have previously gone uncaptured.
So, what is the circular economy, and how can the concept be applied to mining?
What is the circular economy?
The circular economy seeks to eliminate waste by reusing materials as many times as possible. According to the Government of the Netherlands, in a circular economy, waste is the raw material. This is in contrast to a traditional linear economy where items may be discarded or disposed of after as little as a single use.
Examples of the circular economy in other industries
Many industries and businesses are now shifting towards more sustainable operations in line with the circular economy way of thinking.
In farming, agricultural waste such as crop stalks are being repurposed to create fertiliser, while properly treated wastewater can be reused to nourish pastures and grow new crops.
Similarly, modern electrical devices are now often being designed to be more easily repaired rather than disposed of. Complex devices like mobile phones can be scrapped for the precious metals which are often used in their components. In fact, according to Accenture, 41 mobile phones can yield as much gold as a tonne of ore.
Sustainability measures can also be seen in service-based businesses such as with rideshare company Uber and its Pool offering, which allows multiple users of the platform to share a ride for a lower fee, with the goal being to reduce the overall carbon footprint of both passengers and drivers.
How mining companies can apply circular thinking
Traditionally, mining processes have followed a more linear path as described in this article by Bruce Connell of the University of Queensland. Ore is extracted, it is processed and turned into end products, and waste products are disposed of.
But in a world where demand for minerals is predicted to remain strong well into the future, while industry is increasingly under pressure to implement ESG goals and policies that reduce waste and emissions, how does a mining company go about addressing these two competing priorities? The answer isn’t easily found in traditional mining business models, so an adjustment in thinking is required.
Like many situations requiring a significant change, the answer lies in proper preparation and planning.
First, companies need to determine how they will implement circular thinking. Will it be incremental and tested on select areas of the business’s operations only? Or will it be a broader implementation, affecting multiple or even all areas of production?
In the context of a mining company, one incremental initiative could be to reuse or reprocess waste products to extract any remaining value.
Going further, a company might consider all aspects of its operations and how they could be reworked to provide more long-lasting benefits. This could mean working circular thinking into every stage of the mine lifecycle, from planning, modelling and exploration, to construction, operations, and closure. In this case, there would also be downstream processes and industries to consider.
Future challenges: meeting increased demand while also improving sustainability
As the world increasingly shifts towards sustainable business practices and demand for minerals continues to grow, mining companies face some significant challenges.
Some sustainable mining initiatives include increasing recycling efforts, using smart mining methods to find greater efficiency (resulting in less water and energy used), and reusing materials wherever possible. In addition, mining companies can invest in new technologies that help to reduce their impact on the environment. Some examples include adding electric vehicles and vehicles powered by other fuel sources such as biofuels.
Another process which shows good potential for sustainability benefits initiative is the granulation of tailings and other waste products to create construction materials such as aggregate.
Discover more about Fortem Resources
Read more about our approach, company values, and what makes us different to other mining consultancies.
