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The World Bank has launched the Climate Smart Mining initiative to help resource-rich developing countries benefit from the increasing demand for minerals and metals.
The smart mining facility will support the sustainable extraction and processing of mining products used in developing clean energy technologies.
World Bank is targeting a $50 million investment over five years. Its partners include the German Government and Rio Tinto.
Anglo American, a founding donor to the Climate Smart Mining Facility, is also providing $1 million to build on the World Bank’s initial $2 million investment.
It is the first ever fund dedicated to making mining a more sustainable practice that complements the energy transition.
The fund will work with governments and operators in developing countries to establish strategies and legal frameworks that promote smart mining.
It helps ensure the decarbonisation of the mining sector, benefiting resource-rich countries that host these strategic minerals.
“Developing countries can play a leading role in this transition: developing strategic minerals in a way that respects communities, ecosystems and the environment,” World Bank senior director and head of the energy and extractives global practice Riccardo Puliti said.
“Countries with strategic minerals have a real opportunity to benefit from the global shift to clean energy.”
Global mineral production such as lithium, cobalt and graphite will rise with the advance of low-carbon technologies by 2050, according to the World Bank.
Climate-Smart Mining will support projects such as forest-smart mining, minerals recycling and the integration of renewable energy into mining operations.
“Mining cannot continue its long path of simply scaling up to supply what the world needs,” Anglo American chief executive Mark Cutifani said.
“We need to do things in dramatically different ways if we are to transform our footprint and be valued by all our stakeholders. Our first responsibility is to reduce our energy and water usage, and our emissions.”