Mining’s New License to Operate: Co-Creating a Different Future
The race for critical minerals is in full force. From powering renewable energy and electric vehicles to building low-carbon industries, mining can no longer be just about extraction. If a just future is to evolve, then mining needs to be about a choice, a choice to positively impact people, communities and contexts. How companies operate today will define economic outcomes, but also the social and environmental realities that underpin communities and define the legacy left behind.
The industry at a glance and what is needed to meet the energy-transition demand.
The Global Market Value of key energy-transition minerals is estimated at around $325 USD billion today, and is projected to grow more than double to $770 USD billion by 2040.
Lithium demand is set to rise fivefold by 2040, graphite and nickel to double, cobalt & rare earth elements by 50–60%, and copper by 30%.
Nearly 300 new mines must come online by 2030 just to meet battery and renewable energy demand
$500 USD billion is needed in new capital investment by 2040 to meet supply needs
With the critical minerals sector booming over the last decade and continue to do so, we’ve also seen the social and human rights pressures grow. Over 36,000 mining-related conflicts were recorded globally between 2015 and 2022, and in Africa alone, allegations of abuse linked to transition minerals nearly doubled last year. The scale of this growth makes one thing clear: as the industry races to meet global demand, tensions in communities, disputes over land and resources, and human rights risks are very real - and they are only set to rise if companies don’t act responsibly.
The New Social License to Operate
Mining’s social license has evolved. Today, a social license isn’t bought with a promise - it’s earned, every day, through trust, transparency, and making a real difference for communities.
Even in stable jurisdictions such as Australia, expectations are rising: proactive engagement, robust governance, and measurable social impact are essential. In conflict-affected and high-risk regions, these pressures are amplified, with elevated risks to human rights, operational continuity, and investor confidence.
Seven Principles for Responsible Mining
The UN Secretary-General’s Panel on Critical Energy Transition Minerals offers seven guiding principles to help companies navigate this complex landscape:
Human rights must be at the core of all mineral value chains
The environment and biodiversity must be safeguarded
Justice and equity must underpin mineral value chains
Development should be fostered through benefit sharing, value addition, and economic diversification
Investments, finance, and trade must be responsible and fair
Transparency, accountability, and anti-corruption are essential for good governance
International cooperation must promote peace and security
These principles are a blueprint for responsible, inclusive, and sustainable mining - from Australian mines to global supply chains.
Why Social Impact Matters - Everywhere
Responsible mining isn’t just ethical - it means smoother operations, more confident investors, and relationships with communities that actually last.
Even Australian operations, outside conflict zones, benefit from applying these principles. But the global context reminds us of the stakes:
In the Democratic Republic of Congo (DRC), M23 rebels controlled key coltan mining areas, generating revenue while perpetuating human rights abuses. Companies sourcing these minerals faced supply chain disruption, regulatory risks, and reputational damage.
Environmental neglect can be catastrophic: the 2025 Sino-Metals dam disaster in Zambia released millions of liters of toxic waste, devastating local communities and ecosystems, showing how poor governance carries real financial and operational consequences.
Community engagement failures are equally costly. The 2023 Hpakant jade mine disaster in Myanmar tragically killed dozens of miners - a stark reminder that safety and social responsibility are inseparable.
These examples illustrate why human rights, governance, and community impact must be embedded into every operation, whether in Australia or abroad.
Turning Responsibility into Opportunity
Importantly, companies are increasingly acknowledging that responsible mining is more than risk management - it’s a competitive advantage:
Builds resilient operations and protects license to operate
Strengthens investor and community confidence
Differentiates your company as a leader in ethical and sustainable mining
Conflict zones serve as stark examples of what can go wrong. Even in lower-risk environments, responsible mining proves its worth every day - smoother operations, trusted partners, and a lasting impact.
The minerals we mine today will power the world of tomorrow, but only if we extract them responsibly, with human rights and community impact at the heart of every decision, will that future be a peaceful one.
A Practical Framework for Responsible Mining
Frameworks abound, and the efforts to align them – for example under the Consolidated Mining Standard Initiative, are increasingly important.
Here’s how companies can operationalize responsible mining, combining the UN’s principles with practical, actionable steps:
1. Human Rights at the Core
Put people first – those inside and outside the company. Know your context and conduct regular human rights due diligence to identify risks across the workforce, supply chain, and host communities.
Practical Steps:
Map high-risk activities and suppliers.
Establish grievance mechanisms and remediation processes.
Integrate findings into board-level decision-making.
2. Conflict-Sensitive Operations
Companies have enormous power to be a force for stability or a force for conflict. Be aware of local tensions and potential flashpoints. In high-risk regions, this is critical. In Australia, it ensures positive relationships with Indigenous communities and other stakeholders.
Practical Steps:
Conduct conflict sensitivity analyses before expansion or new exploration.
Train site managers and security providers in human rights and conflict sensitivity.
In Australia, co-develop engagement protocols with Traditional Owners to prevent disputes and build mutual respect.
3. Community Co-Design & Benefit Sharing
Design benefit sharing agreements cooperatively and fairly, invest in local workforce development, and maintain open dialogue. Communities that see tangible benefits are more likely to support your operations and be an advocate for them.
Practical Steps:
Co-design community development plans that align with local priorities (education, health, infrastructure).
Include women, youth, and marginalized groups in decision-making.
Ensure benefit-sharing agreements are publicly reported and reviewed periodically.
4. Transparency, Governance & Accountability
Good governance isn’t just compliance - it’s risk mitigation. Transparent operations build investor and community confidence.
Practical Steps:
Adopt traceable supply chains using digital tracking tools.
Include enforceable human rights clauses in supplier contracts.
Report performance through established frameworks like the Global Reporting Initiative (GRI) or the ICMM Mining Principles.
5. Continuous Impact Assessment & Improvement
Monitor, measure, and adapt - responsible mining is never static.
Practical Steps:
Embed social impact assessment into every operational phase, not just at project approvals.
Measure and publish progress annually, linking outcomes to SDGs and ESG benchmarks.
Review mitigation measures regularly, using independent verification to enhance credibility.
At Ithaca Impact, we help mining companies navigate these challenges, providing practical strategies, tools, and training to operate responsibly - in Australia and beyond. We can guide your team, or provide external surge capacity to deliver.
Responsible mining isn’t just ethical. It’s smart business, risk-aware, and essential for a sustainable and inclusive future.
To receive our capability statement email us: info@ithacaimpact.com