Mishcon de Reya and Oxera LLP have conducted a collaborative research project on "The strategic importance of natural capital mapping and mineral exploration in the context of the energy transition", commissioned by world leader in airborne and marine geophysical solutions, Xcalibur Multiphysics.
The report argues that mitigating the effects of climate change will require an accelerated energy transition, and an accelerated energy transition will lead to an increase in mineral demand. Current and planned mines are not enough to meet future demand. At the same time, geopolitical tensions are driving a need for diversification of the mineral supply chain to increase security. The report covers some of the most pressing questions resulting from these issues, including:
- How can resource-rich countries take advantage of the opportunity presented by the expected increase in demand for minerals, and therefore mining activity, to attract investment?
- With the need for more mining, how can the mining industry combat the negative social and environmental impacts with which it can be associated, for example bribery and corruption, human rights abuses, and biodiversity loss, and instead play a key role in sustainable development?
- Can natural capital mapping be used explore new economic development opportunities, alongside mitigating climate change, and address biodiversity loss?
- How can cutting edge geological mapping data assist with meeting demand and diversification of supply?
- What are the economic benefits and risks of minerals exploration and mapping?
- What financing options available, and what are the risks?