Pakistan has significant reserves of coal, natural gas, and oil. These will continue to be exploited for desperately needed electricity production for the foreseeable future. However, companies in this sector need a supportive investment climate to improve and grow their current businesses and pursue new directions to take advantage of the green energy sector.

The real surprise of the climate debate is that a low-carbon economy to reduce the use of fossil fuels and greenhouse gas emissions will not eliminate the need for mineral mining. In fact, the opposite will happen. Green technologies all depend on extracting and using minerals and metals in even greater volumes than before. This presents an opportunity for Pakistan to develop its nascent minerals industry by introducing a robust investment and regulatory system with modern, climate-friendly, sustainable practices and good governance, to position itself for a share of the growing but competitive global minerals market, including niche markets. 
A World Bank report from 2020, Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition, clarifies where the future potential lies. Its executive summary states that a low-carbon future will be very mineral intensive because clean energy technologies need more materials than fossil fuel-based electricity generation technologies. In addition, greater ambition on climate change goals (1.5oC-2oC or below), as outlined by the Paris Agreement, requires installing more of these technologies, leading to a larger material footprint. 

The report found that ‘the production of minerals, such as graphite, lithium, and cobalt, could increase by nearly 500% by 2050, to meet the growing demand for clean energy technologies. It is estimated that over 3 billion tons of minerals and metals will be needed to deploy wind, solar and geothermal power and energy storage required for achieving a below 2°C future.’ 
The easy way to visualize this is by looking at wind turbines as an example. Hundreds of thousands of wind turbines are transforming land and seascapes worldwide. Just one 3 megawatt wind turbine that stands approximately 135 metres high (about the height of the London Eye) contains 4.7 tons of copper, 3 tons of aluminium, 335 tons of steel, 2 tons of rare earth and 1,200 tons of concrete. More wind farms are coming up every day. Multiply that, and it is easy to see what that means as just one aspect of the growing raw materials footprint.
Some climate and environment activists believe that the answer to the climate change question is to stop mining by whatever means because of concerns that the environmental harm is greater than the benefits. That is wishful thinking and will not happen. The modern world depends on all forms of energy and minerals and the products and jobs that go with them. Another interesting and fun exercise to help understand this is to consider everything that is a part of our everyday lives for a moment. Where did that come from, and what went into manufacturing it? The chances are that it has been produced by digging up minerals worldwide and then processed using fossil fuels or green energy.
Minerals are found in almost every aspect of construction, windows, wiring, fittings, furnishings, and appliances; cooking utensils, crockery, and cutlery; salt; toiletries, shampoo, cosmetics, and toothpaste; our laptops, smartphones and all our electronics. The list is endless. Minerals and metals are everywhere. Batteries contain lithium and other minerals. The cars we drive, the roads we drive on and the bridges that we cross all require minerals and metals. To reiterate what has been highlighted in the World Bank report and others, alternative technologies like electric vehicles, wind, geothermal, and solar power will be about more minerals and metals, not less. 
There is no doubt that humans have been reckless with caring for the planet. Global warming is too serious an issue to be taken lightly, and the evidence that it cannot be ignored is clear and robust. Climate change negotiations have pressured countries and industries to reduce their greenhouse gas emissions by 2050 and reduce their carbon footprint. Achieving this is easier said than done, but change is gradually happening. 
The global mining sector has always been perceived as one of the ‘villains’ in the environment and climate debate. It has not been an unfair criticism in many instances. Flawed practices in mining projects have led to terrible environmental and human catastrophes, mostly in developing countries. In some countries, workplace health and safety practices have been absent, regulatory systems and enforcement inadequate, water management uncontrolled, and the rights of local populations given insufficient or no respect. Unethical practices have abounded. 
However, it is worth looking at some of the ways global mining companies are responding to the pressure to improve practices and address the emissions challenges as they shift from old ways to a greener industry and what Pakistan can learn from those to prepare its minerals sector for future growth.
Modern mining companies are focusing on the need to meet increasing government regulatory legislation in many countries to reduce their emissions and improve their operations, business processes, water management, and sustainability practices. Of course, profitability and creating shareholder value are always crucial, but a successful corporation must now show something else. Look through the websites, annual reports, and detailed investor information of the largest mining companies worldwide, including BHP, Rio Tinto, Glencore, Anglo American, Vale, Barrick Gold, or Newmont. They are remarkably similar in one area—sustainability reporting. 
Every mining company must be transparent and accountable for their operations. They must report on their activities and expenditures related to managing sustainability, environment, climate change, respect for communities and culture, human rights, ethics and compliance, inclusion and diversity, workplace safety and health, tailings and storage, water management, and regeneration of sites. They also must report on corporate social responsibility (CSR). Failure to comply with these standards can result in an investor and public backlash and the potential for massive and lengthy lawsuits, possibly costing a company billions of dollars in fines and damages. 
Although many smaller mining companies worldwide have not yet reached this level of reporting, these are goals to work towards. It should be noted that the bigger mining and exploration companies in Pakistan are increasingly adopting the same kind of reporting to their shareholders and investors on best practices in their operations, sustainability, and CSR. This level of transparency and accountability is highly sought by investors and communities alike and positions a company well for the future.
Globally, new environmentally sensitive mining technologies are being introduced to significantly improve mining efficiency, reduce environmental impact, manage water usage, and produce less waste. In addition, mining companies are increasingly embracing emerging technologies, including Artificial Intelligence (AI), to optimize processes, enhance decision-making, derive value from data, and water management, improve safety, and reduce the massive costs associated with mining.  
The focus on research, science and new technologies will also provide careers for new generations of scientists, researchers, and talent in AI. Existing jobs will also undergo upskilling processes in many companies as processes automate further. Therefore, universities and training institutes in countries like Pakistan must emphasize the skills necessary to be career-ready for emerging markets in all aspects of the mining sector. This is now a common feature in countries which have successful mining industries.  
But while the focus is on larger mining companies to be more sustainable in their practices, there is less focus on artisanal and small-scale mining of minerals, including gold, precious and semi-precious stones, and cobalt. As the United Nations (UN) Sustainable Development Goal (SDG) 12--Responsible Consumption and Production–points out in notes to the accompanying data, ‘the lifestyles of people in the richest nations are heavily dependent on resources extracted from poorer countries.’ 
Reports suggest that as many as 40 million people in developing countries work in mining, including informal ones. Pakistan has many small mines that fall into this category. With the global surge for minerals increasing, it seems the right time to make more vigorous efforts for governments to bring informal mining activities into the mainstream and ensure they, too, can benefit in the future.
Fossil fuels will remain a valuable energy source and other products for years and coexist alongside the growing use of green energy. More than 80 per cent of the world is still fully or partially dependent on fossil fuels–coal, oil, and gas–for energy generation. Fossil fuels are also the key exports of numerous countries, including Russia, Canada, Indonesia, Australia, the United States, South Africa, Canada, Vietnam, Colombia, India, Mongolia, Saudi Arabia, Russia, Iraq, Nigeria, Iran, the UAE, Qatar, Norway, Kazakhstan, Australia, Canada, Germany, and Algeria. Over the years, investment in mining has transformed the economies of all those countries. So, why not Pakistan? It is time to catch up a little.
Pakistan has significant reserves of coal, natural gas, and oil. These will continue to be exploited for the desperately needed electricity production for the foreseeable future. However, companies in this sector need a supportive investment climate to improve and grow their current businesses and pursue new directions to take advantage of the green energy sector.
The global mining market has grown to around USD 2.1 trillion for 2023, but Pakistan's mining income is only minuscule. Pakistan’s resources are well known to include coal, gold, copper, bauxite, mineral salt, chromite, sand, iron ore, oil, gas and numerous others. It also has precious and semi-precious stones, including rubies, topaz, emeralds, amethysts, sapphires, garnets, peridot, and other desirable gems. Unfortunately, the entire mining sector has languished for so many years for want of change when the economic benefits are so obvious.
The dire economic climate is a significant hindrance. Added to this is the lack of clarity in legislation and regulations covering every aspect of the industry, including investment, environment, climate change, investment and tax laws, community rights, workplace health and safety. These barriers must all be addressed by both federal and provincial governments now, not later, and in consultation with stakeholders from all relevant ministries and departments, industry, investors, communities, and interest groups. 
A critical point to address will need to ensure that environmental damage is not exacerbated in the race for development. Water management will remain a sensitive issue given that mining is water-intensive and Pakistan is water-scarce. However, again, this is just one of the severe considerations for consultation and negotiation, and there are lessons to be learned from other countries.

Investors need clarity before sinking massive amounts of money into new projects. Disputes that hinder development in the industry have created wariness amongst potential foreign investors. For example, the Reko Diq project struck years of delays when it was caught up in an international court battle, leading to a USD 6 billion fine against Pakistan. Fortunately, the parties eventually reached a new agreement in 2022 which has kickstarted the project again and provides for a more equitable outcome for the investor mining company, the people of Balochistan, and Pakistan. 
The lessons learned from this dispute can be valuable in establishing more robust legal and dispute resolution mechanisms for future projects to resolve disagreements before the situation becomes irreparable. It will also encourage more confidence by international investors to enter into direct or joint ventures with local entities in Pakistan’s mining sector and also enhance community support in the contentious areas to calm local concerns.
Another barrier hindering progress is the surprising lack of development of downstream processing facilities. This also substantially impacts exports as raw materials are heavier to transport and export. This reduces the country's self-sufficiency as raw materials are sometimes exported for processing and reimported as products. It also reduces Pakistan's competitiveness in accessing foreign markets. Pakistan must resolve this issue to make the most of its natural resources. Developing a robust value chain based on modern technology, a trained workforce, downstream processing facilities, and a disciplined international branding and marketing mechanism will be transformative. If these steps are taken, a modernized, competitive and sustainable mining industry could be an engine of progress for Pakistan. 
The answer to the question about ‘where we would be without minerals’ is simple. We would be back into the dark ages. The modern world will continue consuming more of everything daily as the population grows. This will continue to increase the materials footprint and the opportunities for participation. The world cannot progress without minerals and the companies that mine them, but it can be better managed to reduce greenhouse gas emissions. 
Many very tough challenges are ahead in adapting to better and cleaner processes, managing water, environmental issues, inclusiveness, and robust investment systems. However, if Pakistan can fully and effectively embrace change and get serious about taking action now, developing the minerals sector can be an engine for economic progress.

The writer is an Australian Disaster Management and Post-Conflict Reconstruction and Rehabilitation Advisor who lives in Islamabad. She consults for Government and UN agencies and has previously worked at both ERRA and NDMA.
E-mail: [email protected]