Image Credit - BBC

Lithium Mining Fuels Global Debate

September 18,2024

Environment And Conservation

China's Green Tech Ambitions Spark Global Lithium Mining Expansion, Raising Tensions

Ai Qing, a Chinese worker stationed at a lithium extraction site in the breathtaking Andes Mountains of Argentina, had her sleep shattered one night by the noise of a heated protest. Argentine workers had encircled the compound, their anger visible in the flames of burning tyres blocking the entrance.

"It was genuinely alarming. The whole sky seemed alight," Ai recalls. This particular protest, triggered by the firing of local staff, highlights a pattern of escalating tension between expanding Chinese mining operations and their host communities. China, well-established as a dominant player in processing essential minerals for green technology, is now aggressively expanding its reach into global mining.

A decade ago, China made its initial foray into securing a stake in South America's "lithium triangle" – Argentina, Chile, and Bolivia – a region renowned for holding the world's largest lithium deposits. Numerous Chinese investments in local mining projects have followed. Based on shareholdings, the BBC estimates Chinese entities now control approximately a third of the lithium extracted from currently active or developing mines.

However, this rapid expansion isn't without its consequences. Chinese businesses face increasing allegations of wrongdoing, echoing accusations often directed at multinational mining giants. For Ai Qing, the protest served as a rude awakening. Having anticipated a tranquil life in Argentina, her fluency in Spanish thrust her into an unexpected role as a mediator. "Bridging cultural viewpoints wasn't simple," she admits. "Management dismissed the locals as lazy and overly dependent on unions, while the local people felt exploited by the Chinese."

Lithium Mining: Driving the Global Green Revolution

The BBC Global China Unit pinpointed at least 62 mining projects worldwide – focusing on lithium, cobalt, nickel, or manganese – with substantial Chinese investment. These critical minerals are the building blocks of lithium-ion batteries powering electric vehicles. Coupled with solar panels, they have become central to China's industrial strategy. Several of these Chinese-backed projects are major global producers.

China has cemented its position as a leader in refining lithium and cobalt. The 2022 figures from the Chatham House think tank reveal China's share of global supply soared to 72% for lithium and 68% for cobalt. This refining prowess is a significant factor in China's success. It led to the nation manufacturing more than half of the globe's electric vehicles sold in 2023. Furthermore, China boasts control over 60% of international wind turbine manufacturing capacity and a minimum of 80% of each step in the solar panel supply chain. China's impact on the sector has undoubtedly led to more affordable and accessible green technologies worldwide.

The world isn't blind to the need for a green revolution – and the minerals that underpin it. The UN has made a stark projection: if we are to achieve net-zero greenhouse gas emissions by 2050, the use of these minerals must increase six-fold by 2040. Unsurprisingly, this has triggered a scramble for resources. The US, UK, and EU have each put plans in place to lessen their reliance on Chinese supply chains.

Growing Concerns Over Chinese Lithium Mining Practices

As Chinese businesses expand their mining activities, concerns regarding the impact of these projects steadily grow. The Business and Human Rights Resource Centre, an NGO, stresses that problems stemming from mining aren't exclusive to China. Yet, last year alone, the centre published a report documenting 102 specific allegations leveled against Chinese critical mineral extraction companies. These allegations ranged from community rights violations and environmental destruction to unsafe working practices. The BBC identified over 40 additional allegations made in 2023, stemming from media reports and NGO investigations.

Personal accounts from affected communities lend a powerful voice to these concerns. In the outskirts of Lubumbashi, far in the south of the Democratic Republic of Congo, Christophe Kabwita has been tirelessly opposing the Chinese state-owned Jinchuan Group's Ruashi cobalt mine, in operation since 2011. He describes how the open-pit mine, a mere 500 metres from his home, disrupts daily life with explosive blasting two or three times a week. Each detonation is preceded by wailing sirens, the signal for everyone to abandon what they're doing and seek shelter.

"No matter the weather – scorching sun or heavy rain – we have to leave our homes for a shelter near the mine," he says. There are no exceptions, even for the vulnerable, such as the ill or women who have recently given birth.

Tragic Incidents and Environmental Concerns in Lithium Mining

These blasts carry dangers. In 2017, a teenage girl, Katty Kabazo, was tragically killed by a flying rock while on her way home from school. There have also been reports of rocks punching holes through the walls and roofs of nearby homes.

Elisa Kalasa, a spokesperson for the Ruashi mine, acknowledges the past incident. "It was unfortunate indeed – a young girl in an area where she shouldn't have been." She asserts that safety measures have since improved: "We've upgraded our technology, ensuring rocks no longer become projectiles."

However, Patrick Tshisand, a processing manager at the company, seems to offer a conflicting report. "Mining involves explosives. There will be flying rocks, and these can reach the community because it's so close to the mine. We've had accidents like that."

Ms. Kalasa also notes that the company compensated over 300 families for relocation between 2006 and 2012, aiming to create more distance between the mine and residences.

Shifting focus, Indonesia's remote Obi Island tells a different but equally troubling story. Here, a vast mining project – a joint venture between Chinese company Lygend Resources and Technology and the Indonesian mining giant Harita Group – has rapidly consumed the forests surrounding Kawasi village.

Lithium mining

Image Credit - Euro News

Controversy and Conflict Surrounding Global Lithium Mining

Jatam, a local mining watchdog, reports villagers pressured to sell their land and accept government compensation. However, dozens of families refuse, claiming they were offered far below market value. This resistance has reportedly elicited threats of legal action under the label of disrupting a strategically important national project.

Furthermore, Jatam documented the extensive logging of old-growth forests to clear the mining site. They also illustrate the severe pollution of rivers and the ocean with sediment, turning once pristine waters an alarming shade of red.

"The river water is undrinkable from contamination, and the once clear blue sea changes colour when it rains," explains Nur Hayati, a teacher and resident of Kawasi village.

To protect the mining operations on Obi Island, Indonesian soldiers have been deployed. The BBC's recent visit revealed a heightened military presence. Jatam, the local  watchdog organization, alleges these soldiers are used to intimidate and even physically assault those critical of the mine. Nur Hayati echoes this sentiment, expressing that her community feels the army serves "the interests of the mine, not the welfare of their own people."

Disputes and Denials in the Lithium Mining Industry

The military's Jakarta-based spokesperson disputes these claims, stating that allegations of intimidation "cannot be proven." While acknowledging the soldiers' role in "protecting the mine," he denies that their presence involves "directly interacting with locals." He further asserts that the villager relocations were conducted under peaceful police supervision.

Nur Hayati was among a group of villagers who traveled to Jakarta, Indonesia's capital, in June 2018 to confront the government about the environmental impact of the mine. Yet, Samsu Abubakar, a local government representative, told the BBC that his office had received no complaints from the public about environmental damage. He presented an official report concluding that the Harita Group had "complied with environmental management and monitoring obligations."

Harita itself issued a statement stressing an unwavering commitment to "ethical business practices and local laws." The company asserts that it has "continuously worked to address and mitigate any negative impacts." It denies claims of causing widespread deforestation and maintains that independently verified tests show the local water source still meets government quality standards. Moreover, the company states that there have been no instances of forced evictions, unfair land deals, or intimidation practices.

A year ago, the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC), initiated a grievance mechanism aimed at resolving complaints lodged against Chinese-owned mining projects. As spokesperson Lelia Li explains, individual companies often lack "cultural and linguistic understanding" needed to engage with local communities and civil society organizations. However, the mechanism is not yet fully operational.

Profit-Driven Expansion of Lithium Mining Operations

Meanwhile, China's expansion into global mining seems inevitable. Aditya Lolla, Asia programme director at Ember, a UK-based environmental think tank, suggests that this isn't simply a  "geopolitical power play" for market control. He notes sound business logic behind these acquisitions: "It's all about profits for Chinese companies."

This drive for profitability means Chinese workers will continue to be dispatched to mining ventures around the globe. For these individuals, these projects often provide the opportunity to earn significantly more than they could domestically.

Take Wang Gang, for instance. He has spent the past decade working in Chinese-operated cobalt mines in the DR Congo. He lives in company-provided accommodation, eats at the staff canteen, and works 10-hour shifts, seven days a week, with only four days off per month.

While the separation from his family in Hubei province is difficult, it's offset by his higher earnings. Plus, he's developed an appreciation for DR Congo's clear skies and dense forests. Though limited to a mixture of French, Swahili, and English, Wang communicates with local mine workers, but admits, "We rarely chat, except for work-related matters."

Even Ai Qing, who is fluent in her host country's language, interacts minimally with Argentines outside of work. She has begun a relationship with another Chinese worker and mostly socializes within that tight-knit expatriate community – a common response to being so far from home.

Lithium Mining's Complex Path to a Sustainable Future

One highlight for her is visiting the high-altitude salt flats in the Andes, where the lithium is extracted. Despite the altitude sickness – "I can't fall asleep, and I can't eat" – she finds the environment serene. "Things are much simpler up there, and there are no office politics," she reflects.

The world is grappling with a complex dilemma concerning green technology. On the one hand, the need to reduce greenhouse gas emissions is undeniable. Yet, securing the minerals vital for a clean energy future comes with a cost. These mining projects often leave scars on the landscape and disrupt the lives of local communities. However, to address these concerns, the industry as a whole – not just Chinese companies – must change.

Currently, it's hard to ascertain how much lithium, cobalt, nickel, or manganese is sustainably or responsibly mined. There are encouraging initiatives, such as the Global Battery Alliance and the Initiative for Responsible Mining Assurance. But these are still in their early stages and don't yet provide robust certification schemes consumers and manufacturers could rely upon.

Meanwhile, Western car companies and technology giants have begun establishing closer ties with miners who meet stricter environmental, social, and governance (ESG) standards. This signals a shift in the market, with a growing emphasis on responsible sourcing.

The Environmental Cost of Lithium Mining and the Global Race for Resources

Yet, even the most ethical mining operations leave some environmental footprint. For instance, lithium mining on salt flats in South America can involve the use of vast quantities of water – a scarce resource in arid regions. It also poses potential risks to ecosystems dependent on these salt flats.

Then there's the issue of recycling. At present, only a small percentage of lithium-ion batteries are recycled. While technology is developing, the infrastructure and economic incentives to support large-scale recycling lag behind. This places further pressure on the need for mining.

Despite these challenges, the race for resources continues. In January 2023, the world's largest copper mine, Escondida in Chile, announced a $4 billion investment plan to extend its lifespan by decades. The mine is owned by the multinational company BHP but relies on technology provided by the Chinese firm Sinomacs. Likewise, lithium operations across Argentina and Bolivia are receiving a fresh influx of capital and technical expertise from Chinese-led consortiums.

This investment reflects the high stakes at play for China. A 2022 report from the Center for Strategic and International Studies (CSIS) in the United States warned that Beijing's global mining ambitions could create "strategic advantages in critical supply chains." Meanwhile, Western governments are scrambling to play catch-up. In the US, the Inflation Reduction Act offers significant subsidies for sourcing battery minerals from nations with which the US has free-trade agreements. Similar initiatives are underway in the European Union.

Ensuring Fairness in the Green Transition

As this rivalry intensifies, there's a potential downside for local communities caught in the middle. "The world needs these minerals, so we won't be able to stop mining altogether," Nur Hayati, the teacher from Obi Island, concedes. "But the process needs to be more fair, and we must have a say in how it's done."

Christophe Kabwita, leading the opposition against the Ruashi cobalt mine in DR Congo, is also pragmatic. "We're not just against mining. We're against destructive mining practices and businesses that violate basic human rights."

Both Nur Hayati and Christophe Kabwita believe international pressure on their governments, and on the mining companies, is crucial. However, as Western companies seek out greener sources for the minerals they need, they shouldn't repeat the mistakes of the past. It is pivotal to avoid the pitfalls of 'green colonialism', where poorer countries bear the brunt of the world's energy transition, without seeing a fair share of the benefits.

To achieve a truly just green transition, it's imperative to work directly with affected communities and find solutions that benefit both people and the planet. The CCCMC's grievance mechanism is one small step towards improving communication and addressing concerns. Yet, for this mechanism to be truly effective, greater transparency and accountability are required from Chinese mining companies.

Initiatives and Consumer Responsibility in the Global Supply Chain

Fortunately, some companies are starting to show initiative. Huayou Cobalt, a Chinese mining giant with operations in DR Congo, has agreed to join the Fair Cobalt Alliance, an initiative promoting responsible practices within the industry. More companies embracing similar commitments would be a positive development.

In addition, governments can play a significant role. In Indonesia, civil society groups succeeded in convincing the government to temporarily revoke mining permits for 25 companies operating in protected areas. However, the fight is far from over, as these permits could be reinstated after a period of review.

There is also a growing movement to improve traceability in global supply chains. Companies like Circulor in the UK, and Everledger in Australia, are using blockchain technology to track minerals from mine to manufacturer. This empowers consumers to make more informed choices and encourages miners to adopt ethical practices.

Crucially, consumers in the Western world need to examine their own consumption habits. The latest gadgets and cars must not come at the cost of environmental destruction and human rights abuses in far-off countries. Reducing waste, reusing products, and opting for refurbished devices when possible can help ease the pressure on mining resources.

Towards Ethical Mining

The transition to a green economy is a complex and interconnected issue. There are no easy answers, and solutions that work in one community may not be the right fit for another. But as the world faces the reality of climate change, one thing is certain: the pursuit of green technology can't perpetuate the harmful practices of the past. Both Chinese and Western companies must demonstrate a commitment to environmental sustainability and respecting the rights of the communities hosting their operations.

It will also be crucial to invest in recycling technologies and support the development of a circular economy for the minerals used in green technologies.

By working together, governments, businesses, consumers, and communities living around mines can find a path towards a more sustainable and equitable future for all. This path requires honesty, collaboration, and a genuine commitment to prioritize the planet and its inhabitants.

Do you want to join an online course
that will better your career prospects?

Give a new dimension to your personal life

to-top