WHAT DOES THE ENERGY TRANSITION MEAN FOR THE MINING SECTOR?
Transparency International Australia has released a new report. As the world moves towards cleaner sources of energy, demand for minerals is growing exponentially.
To meet the growing demand, the world will need new mines, and this new and rapidly changing context brings additional challenges and opportunities for the mining industry, for governments and communities.
Improving governance of the mining sector and ensuring that business integrity is maintained throughout the value chain is crucial for a sustainable and just energy transition, and it is essential to act now.
This policy brief highlights a selection of key trends to understand corruption risks for the mining industry associated with the energy transition, organised around five key areas:
1. High demand will lead to more mining licenses in jurisdictions with weak governance.
2. The rapid growth of demand for these minerals could increase speculative behaviour.
3. Fast-tracking of projects and strategic initiatives for the sector can increase government pressure and put new projects at risk.
4. Increase of state participation in the extraction and processing value chain can heighten corruption risks.
5. Investments in sensitive locations can exacerbate environmental, social and political tensions.