Transforming Mining: How Peer Ledger Drives Circular Value Chains in the Critical Minerals Sector

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The mining industry plays a critical role in supplying the raw materials that fuel global economies, but with growing environmental concerns and resource scarcity, traditionally seen as linear—extracting raw materials and moving them through a one-way value chain—now finds itself at the crossroads of sustainability. Mining operations have a profound effect on global forests, impacting up to one-third of forest ecosystems, with 77% of mines located near key biodiversity areas. Notably, 84% of mining-related deforestation occurs in just 10 countries, driven primarily by two materials, which account for 71% of this deforestation. Indirect deforestation, often more significant than direct impacts, is frequently overlooked in environmental planning. These indirect effects include but are not limited to increase to population density, agriculture through settlement, illegal logging, water and soil contamination leading to devastating health consequences that last for generations (Kramer et al. 2023).

Nearly half of global mineral demand is fueled by China, the EU, and the US all driving the demand for raw materials. Gold and coal together represent over 70% of mining-induced deforestation, with gold being the largest contributor (Kramer et al. 2023).The circular economy presents a solution, focusing on minimizing waste, maximizing resource efficiency, and promoting the reuse and recycling of materials. For mining companies, adopting circular economy principles isn't just about reducing environmental impact; it's about creating long-term value and securing competitiveness in an increasingly resource-conscious world. By rethinking processes, embracing recycling, and fostering transparency, mines can help lead the transition to a more sustainable, circular system.

How Peer Ledger Can Help

‍Peer Ledger can play a pivotal role in helping mining companies transition to a circular economy by offering advanced digital traceability solutions. Through Peer Ledger’s Digital Product Passport, companies can track the entire lifecycle of raw materials, ensuring transparency from extraction to end-of-life recycling. This not only enhances supply chain visibility but also supports responsible sourcing, waste reduction, and compliance with sustainability standards. By integrating blockchain technology, Peer Ledger enables mining companies to make immutable and certify the ethical and environmental origins of materials, fostering greater accountability and driving progress toward a more sustainable, circular economy. 

Currently, Peer Ledger is funded by Natural Resources Canada to bring an innovative project offering an online technology sandbox—MIMOSI-ONE—designed to help critical minerals companies test and deploy cutting-edge traceability and transparency solutions. This platform empowers companies across the critical minerals supply chain, from extraction to recycling, to enhance circularity, improve supply chain visibility, and validate environmental, social, and governance (ESG) credentials. Using Peer Ledger’s Digital Product Passport, participants can achieve comprehensive traceability and transition smoothly from pilot to production. This initiative strengthens Canada’s leadership in critical minerals supply chain management while positioning Canadian companies as global leaders in sustainability and ethical sourcing. To learn more, contact us here.‍

‍Maximizing Resource Efficiency and Minimizing Waste

‍Incorporating these circular practices not only helps mining companies meet regulatory and societal expectations but also creates economic opportunities through material recovery and waste valorization. The shift from a linear to a circular approach in mining is not just beneficial—it is essential for the future of sustainable resource use and industry resilience. Mining companies can contribute to circular systems by implementing practices that enhance resource efficiency, reduce waste, and promote recycling and reuse throughout the value chain. The following are several ways the metals industries and its end users can make positive climate impacts:

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1. Resource Efficiency and Sustainable Extraction  

• Improved Mining Processes: Mining companies can adopt cutting-edge technologies to optimize extraction and refining processes, significantly reducing energy consumption and water usage. By focusing on more efficient resource utilization, companies can also minimize waste, contributing to both cost savings and environmental sustainability.
• Responsible Sourcing: Embracing environmentally and socially responsible mining practices allows companies to align with circular economy principles. This includes selecting mining sites with minimal ecological impact, ensuring ethical labor practices, and supporting local communities—ultimately enhancing both operational sustainability and corporate reputation.

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2. Recycling and Material Recovery  

• Urban Mining: Mining companies can tap into urban resources by recovering valuable metals and minerals from e-waste, scrap, and other discarded materials. This "urban mining" reduces the reliance on virgin materials, creating a circular system that reuses existing resources and mitigates environmental harm.
• Recycled Content in Products: Through fostering partnerships with industries that prioritize recycled raw materials, mining companies can help drive demand for secondary resources. Investing in innovative recycling technologies ensures a greater proportion of materials re-enter the value chain, reducing the need for new mining activities and supporting circular economy goals.

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3. Tailings and Waste Reprocessing  

• Waste Valorization: Tailings and other mining byproducts often contain untapped resources. Through reprocessing these materials, companies can recover additional minerals or repurpose the waste for other industries, such as construction. This approach not only reduces environmental liabilities but also closes the material loop, contributing to a more sustainable resource cycle. 
• Reusing Tailings: Instead of disposing of mining waste like tailings, companies can repurpose them for industrial uses, such as building materials or road construction. This practice reduces waste disposal costs, conserves resources, and supports circular economy objectives by turning waste into valuable inputs.

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4. Product Design for Circularity  

• Collaboration with Manufacturers: End users in an industry can work closely with product manufacturers to design materials that are easier to recycle. This collaboration ensures that metals and minerals used in products, such as electronics or vehicles, can be efficiently recovered and reused at the end of their lifecycle, supporting a circular approach to material management.
• Material Innovation: In innovating and developing new alloys and composites that are both sustainable and recyclable, end user companies, such as jewelry companies, can contribute to creating products that have a lower environmental impact. This promotes the reuse of materials in high-demand industries like jewelry, electronics and batteries, further closing the loop on material use.

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5. Supply Chain Transparency and Traceability  

• Digital Product Passport (DPP): Implementing Digital Product Passports enables mining companies to track and trace materials throughout the supply chain. This transparency ensures that every material's environmental footprint is recorded, promoting responsible sourcing and encouraging end-of-life recycling in line with circular economy principles.
• Blockchain-based system for Tracking: Mining companies can adopt blockchain technologies to certify the origin of minerals and ensure no tampering of data. By tracking the entire lifecycle of these materials, from extraction to recycling, a blockchain-based system provides a transparent and reliable means of verifying sustainability and ethical practices.

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6. Extended Producer Responsibility (EPR)  

• Take-Back Programs: Mining companies can support extended producer responsibility (EPR) programs by offering take-back schemes that encourage the recycling of products containing mined materials. These programs incentivize consumers and manufacturers to return used products, ensuring that valuable materials are reclaimed and reused instead of being discarded.
• Circular Business Models: Exploring new business models such as leasing rare metals rather than selling them outright allows mining companies to retain ownership of the materials and ensure they are returned for recycling at the end of their lifecycle. This approach fosters a more sustainable, circular flow of materials and reduces the need for constant extraction.

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7. Adoption of Circular Economy Frameworks  

• Collaboration in Circular Initiatives: Mining companies can join industry-wide circular economy coalitions and participate in global initiatives that aim to create circular material flows across different sectors. This collaborative approach accelerates the transition to a circular economy by sharing knowledge, resources, and best practices.
• Sustainability Reporting: Transparent sustainability reporting allows mining companies to publicly commit to circular economy principles. By tracking and reporting on circular practices, including waste reduction, resource efficiency, and input/output recycling efforts, companies can showcase their dedication to environmental stewardship and align with global sustainability standards.

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‍Conclusion

‍Mining companies play a crucial role in the global economy, as nearly all raw materials originate from mines, making their actions pivotal to the transition toward a circular economy. Through adopting energy-efficient technologies, embracing responsible sourcing, recovering valuable materials through recycling, and reprocessing waste, these companies can reduce their ecological footprint while optimizing the use of natural resources. Initiatives like urban mining and collaboration with manufacturers to design recyclable products further contribute to closing material loops and minimizing the need for new raw materials.By implementing these circular economy practices, mining companies can lead the way in reducing waste, enhancing resource efficiency, and contributing to global sustainability efforts. Not only will these changes benefit the environment, but they will also position companies for long-term resilience and competitiveness in an increasingly eco-conscious market. The time is now for the mining industry to take decisive action, leveraging circular economy principles to build a more sustainable and profitable future.

‍Sources:

Kramer, M., Kind-Rieper, T., Munayer, R., Giljum, S., Masselink, R., Ackern, P. V., & Rüttinger, L. (2023).

Extracted Forests: Unearthing the role of mining-related deforestation as a driver of global deforestation. Climate-Diplomacy. https://climate-diplomacy. org/magazine/environment/extracted-forests-unearthing-role-mining-related-deforestation-driver-global