The Future of Mining - Supporting the Mining Industry through the Energy Transition
Written By
Partner
UK
I am a senior corporate finance lawyer, based in London, with 25 years' experience of advising on equity capital markets and public and private M&A transactions, predominantly in the natural resources and technology sectors. I act on transactions globally, including in many emerging markets.
The mining industry is perhaps uniquely exposed to the global energy transition.
Mining companies are coming under increasing pressure to supply the critical materials that underpin the move towards decarbonisation – the International Energy Agency predicts that by 2040 there will be a 50% rise in the demand for copper, a doubling of nickel and cobalt demand and an eightfold increase in the demand for lithium.
At the same time, the industry is itself having to adapt to the drive towards net zero, using new technologies, and radically changing its thinking, to be more efficient, sustainable and clean.
Mining accounts for 4-7% of global emissions, but paradoxically is essential for the energy transition due to the increased need for specific minerals and metals. And this isn’t simply about doing the right thing – the industry is realising that, for example, the cost of a renewables project can be significantly cheaper, and more secure, than reliance on the grid or diesel generation in remote locations. The economics, as well as the pressure to reduce emissions, are becoming compelling.
Bird & Bird’s global team is at the forefront of advising clients on the technological changes underpinning this revolution.
In addition to our core strength in traditional energy, utilities and infrastructure, we have a deep-rooted knowledge of technology and IP. We understand the key business processes and work closely with industry bodies to influence and shape markets. We help our clients to anticipate change, deliver solutions and implement strategies, as well as to protect their businesses and enhance their value.
Global clean energy investment across all industries doubled in 2024, exceeding $3 trillion for the first time. With energy demand increasing worldwide, we expect to see even more investment in 2025 to meet that need, and the mining industry will be no exception. Whilst interest rates have meant the era of cheap borrowing has come to an end, the impact on clean energy projects has been offset by fewer supply chain issues and lower prices for components. With solar panel costs 30% lower now than two years ago and crucial battery minerals also much lower, the trend on project economics through 2025 is positive.
Larger mining companies and OEMs are embracing this trend, with mining companies establishing specific ventures to develop and commercialise clean technology, improve their efficiency and reduce their emissions. Some of the majors are aiming to reduce their carbon emissions towards zero, rather than using offsets, by using solar and battery storage projects and developing their own proprietary technology, such as regenerating battery technology on trains and mine trucks. Others are developing novel and more energy-efficient mining techniques, or partnering with energy companies to develop and supply wind and solar energy solutions, at scale, amongst other initiatives.
Smaller mining companies are also seeing the benefits, and looking to secure access to renewables projects and other technologies. And OEMs are also developing new technology and adapting to supply the changing mining industry.
Our new guide highlights how the Bird & Bird global team can assist mining companies, OEMs and those developing technology for the mining industry, to navigate the threats and take advantage of the opportunities presented by the global move towards decarbonisation.
