BUSINESS • mine and manufacture ; how we generate electricity ; how we travel ; how we live , work and play and how we feed 10 billion people .”
The present and future power of the mining industry lies in the fact that it is “ absolutely central to this green energy revolution ” – where global regulations are driving clean energy in the US , Europe and China and impacting demand patterns ; where traditional commercial rationale is being turned on its head ; where critical minerals are overtaking the historical predominance of bulk metals , but in smaller quantities – with all these trends amounting to a very volatile environment .
Froneman explained that assuming a net zero emission scenario by 2050 – a 5-fold increase in lithium demand by 2030 from a 2021 base with demand in 2050 900 % higher than for 2021 is forecast . And this while demand for the more established metals is less dramatic , but still compelling with copper demand increasing by approximately 50 % by 2030 and nickel demand expected to double over the same period as estimated by the International Energy Agency ( IEA ) Critical Mineral Market Review for 2023 .
Friedland has been known to say , ‘ everything we see or touch here , and in our daily lives , was either mined or grown agriculturally , and society as we know it would not exist without the metals and minerals produced by the mining industry ’.” He added stats from the World Economic Forum , noting that half of the world ’ s gross domestic product ( GDP ) – around USD44-trillion – is dependent on primary industry : mainly mining and agriculture . Without this contribution , the other half of global GDP will not be sustained .” Again , herein lies the power of mining and with this impact lies a guaranteed future .
Despite the fact that mining is essential to the existence of the human race , because of its negative legacy , Froneman said the industry is still seen in a negative light even though the industry has been driving and proactively implementing responsible practices for many years now . Because of its influence and impact , the industry is able to serve as a powerful catalyst for economic and social development or a “ force for good ” with local relevance , he noted , but with a proviso – “ We have a unique opportunity to reposition mining in the world in its rightful place , as long as we do the right things .”
Renewable energy generation sources such as solar and wind , combined with storage to combat intermittency , will also create new demand impetus for the use of metals common to both energy sources such as copper .
Additionally , “ the development of secondary supply from recycling and secondary mining of material previously discarded as waste streams is going to become a growing imperative to meet the world ’ s voracious appetite for metal ,” said Froneman . “ In fact , I can foresee a time when primary mining will be ancillary to secondary and circular economy supply , producing just enough to top up the metals already in circulation .”
He noted that PGMs are also set to play a critical role in the burgeoning hydrogen economy and fuel cell industry for the future , in addition to their current relevance in catalysing noxious emissions from internal combustion engine driven vehicles .
Summing the power of the industry up Froneman said , “ Robert
“ How we respond and the decisions we make now , will define the future we will leave for our descendants ,” and this includes “ the way we extract and process our metals and minerals as stewards of precious resources , and how we engage and consider stakeholders .” Responsibly conducted mining has the unique potential to introduce much needed economic activity into remote areas compared to many other industries , serving as an economic axis and foundation for the development of under-served and impoverished economies .
Evolution required to harness opportunity amid disruption With all of these trends in mind , Sibanye-Stillwater has evolved to make its operations resilient and future-fit in this volatile environment .
“ As an entrepreneurial organisation competing for value accretive growth on a global playing field and in a constantly changing macro and operating environment ”, the Group has consciously built its strategy informed by the identification and recognition of these major global trends – or “ grey elephants ” ( highly probable , high
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