As governments shift away from fossil fuels and push for clean energy, there is a growing focus on securing critical mineral supplies. Essential materials like copper, lithium, nickel, cobalt and rare earth elements are crucial for clean energy technologies such as wind turbines and electric vehicles. With increasing demand, government-to-government partnerships aimed at securing mineral supplies are becoming more common. These partnerships help establish frameworks for cooperation between producing and consuming countries. However, many agreements are often vague and lack detail. By making these partnerships more concrete and transparent, governments can better ensure that new mining projects are developed responsibly.
Strategic partnerships usually involve a major consumer market government and a major mineral-producing country, like the EU with the Democratic Republic of Congo, or the UK with Zambia. There are also partnerships between consuming countries, such as the US and Japan. These deals are often driven by economic and national security concerns and generally lay the groundwork for collaboration or investment incentives. They usually focus on:
- Identifying projects for financing.
- Supporting open, competitive markets.
- Building capacity and transferring knowledge through technical assistance.
- Facilitating research, development, and innovation.
- Developing domestic processing capacity to add value to raw materials before export.
Many agreements also commit to managing supply chains responsibly and sustainably. Fulfilling these commitments requires advancing sustainable development in producer countries and mitigating environmental, social, and governance risks that could lead to supply disruptions. Transparent partnerships, with clear criteria for sustainable practices and stakeholder consultation, can strengthen critical mineral supply chains responsibly.
Improved transparency in strategic partnerships helps build credibility. Research shows that many partnerships only provide initial press releases without detailed information. The International Energy Agency’s Critical Minerals Policy Tracker often finds that many agreements are preliminary and lack details on implementation. More transparency regarding objectives, terms, and implementation of these partnerships can improve credibility among stakeholders and align with global transparency standards.
Partnerships also offer opportunities to address global energy access and development imbalances. Consumer countries can assist in areas like geological data management, environmental protection, and supportive regulations. They should consider how these partnerships can aid broader producer country ambitions, including infrastructure investment and economic diversification.
Ensuring mineral-producing countries can develop refining and processing industries is crucial for economic growth. Transparent and accountable processes are necessary for informed decision-making. Civil society in countries like Ghana and the DRC is advocating for independent feasibility studies and forums to monitor mining plans.
Consultative processes enhance the likelihood of mining projects obtaining and maintaining social acceptance. Involving local communities, Indigenous Peoples and civil society can help ensure projects meet international standards and make partnerships more meaningful for citizens.
Addressing environmental, social and governance risks, such as pollution, emissions and human rights abuses, is crucial. Publicly available details on partnerships and projects would allow for better assessment of these risks. Agreements should include criteria for sustainable practices to help reduce these risks.
Strategic partnerships should also require companies and financial institutions to demonstrate due diligence to prevent harm. Without clear responsibilities or strong criteria, important work might be neglected.
To improve strategic partnerships:
- Enhance transparency by disclosing roadmaps and project details to build credibility and engage stakeholders.
- Address the needs of mineral-producing countries by supporting sustainable development and robust regulatory protections.
- Incentivize responsible mining practices with agreements that include due diligence requirements and ESG criteria.
- Consult with stakeholders, offering them a role in shaping priorities and implementation to obtain and maintain a social license to operate.
