The mining sector has emerged as an important supporter of decarbonization due to increasing demand for critical and strategic minerals in global energy transition.
"If we don't have what we call a social license, mining operations can be halted at any moment," Maria Jose Gazzi Salum, a mining engineer and a environmental, social and governance committee member at Sigma Lithium, said at the Nov. 7-8 International Conference on the Amazon and New Economies in Belém, Brazil. "Therefore, local partnerships, transparency and support to communities are essential for the development of these projects," Salum said.
The conference attracted over 3,000 attendees and featured an intensive three-day program focused on energy transition, social and environmental sustainability. With over 170 speakers, including authorities, experts, industry leaders, investors, and organizations from 11 countries, the event set the stage in the city that will host the UN Climate Change Conference in 2025.
Salum likened current volatile lithium prices, a key strategic mineral for producing electric vehicle lithium-ion batteries, to an "electrocardiogram that goes up and down." She believes that once prices stabilize at higher levels in the near future, Sigma and others will be able to effectively apply a greater premium on the green and high-quality lithium concentrate, spodumene, produced in Brazil.
Platts, part of S&P Global Commodity Insights, last assessed FOB Lithium Triangle price assessment at $10,100/mt, up by $200 on the day and week, following global fundamentals.
Sigma claims to produce a "quintuple zero" material: zero carbon production, zero potable water usage, zero tailings dams, zero harmful chemicals and zero coal energy use. The company is also targeting a zero waste process, which means allocating material for circularity and/or in the marketplace for different applications.
Brazil's lithium carbonate equivalent output reached 29,976 mt in 2023, with expectations of up to a fivefold increase by 2028, as reported by S&P Global Market Intelligence.
Energy transition as an opportunity
Monica Cesar, corporate affairs manager at Vale Basic Metals, said the energy transition presents a unique opportunity for various industries and added: "Even sectors that were not well regarded are now part of the solution. Maintaining the forest is crucial for this transition."
Cesar said copper is often overlooked in discussions about the transition to clean energy, yet it is a critical mineral for such initiatives, stating that positioning in the copper market is strategically vital.
Vale's recent restructuring, which involves the separation of its basic metals assets, enables a sharper focus on strategic minerals, she added.
Cesar underscored the importance of producing high-quality nickel, particularly for battery manufacturing and high-quality iron ore for the steel industry, which faces significant pressure to reduce carbon emissions.
"As European steelmakers seek to decarbonize, we are prepared to provide the raw material they need," she said.
Speakers also noted the importance of traceability for low-carbon products. "A specific sector of the company was created to enhance this traceability, as there are costs associated with it," Cesar said.
Availability of critical minerals
Gustavo Nacif, superintendent of Brazil's state Energy Research Office, said, "We need to understand the pace of this transition and map out all the expansion that the country is planning, as the availability of these critical minerals will dictate market dynamics.
He said that emerging economies must ramp up their investment in these minerals by a factor of six to keep pace with technological advancements and energy demands.
Nacif also discussed the concept of "powershoring," where companies may relocate to Brazil to access a green energy matrix, and "friendshoring," suggesting that Brazil's mineral availability could lead to new international cooperation agreements, thereby attracting investment due to the diversification of supply sources.
Silvia Alves França, director of the Mineral Technology Center, or CETEM, called for coordinated action plans at the federal level, emphasizing that fragmented initiatives do not provide a comprehensive view or pathway for development.
Josiane Rosa, environmental manager at Alcoa, emphasized that mining companies need to reassess practices to remain competitive.
"Mitigating effects is no longer enough, we must go further. We need to regenerate degraded areas and respect protected areas," Rosa said. "With smart mining, it's possible to think about extraction while causing minimal impact."
