Mining has long been a contentious issue, often accompanied by a trail of corruption, human rights abuses, and environmental degradation, especially in the Global South. As protests against mining practices erupt in Panama, the underlying tensions are emblematic of a broader struggle. The world’s relentless hunger for minerals fuels this industry, but the ethical implications are increasingly coming under scrutiny.
In recent years, there has been a push for more responsible mining practices. Companies are now expected to engage more meaningfully with local and indigenous communities, commit to decarbonisation, and enhance transparency. However, as the energy transition accelerates, the urgency to secure critical minerals, particularly in the West, raises alarms. Experts warn that despite the rhetoric, significant loopholes in mining legislation remain, allowing for the continuation of harmful practices.
Alex Kopp, a senior campaigner at Global Witness, puts it bluntly: while there’s been some progress, much of it amounts to “talk and greenwashing without real change.” The extractive sector is notorious for corruption, with OECD data indicating that it accounts for one in five cases of transnational bribery. Initiatives like the Extractive Industry Transparency Initiative (EITI) have made strides toward transparency, but they are largely voluntary and insufficient to tackle the entrenched issues.
The recent case against Glencore highlights the systemic problems within the industry. Fined $700 million for a decade-long bribery scheme, Glencore’s penalty pales in comparison to its vast earnings, making it clear that financial repercussions often fail to deter corrupt practices. Kopp argues for a more robust approach, advocating for transparency in contracts and payments between companies and governments to be embedded in international agreements. Without such measures, the risk of a “race to the bottom” persists, where companies may compete to secure concessions through bribery in corrupt countries.
The human rights dimension of mining is another pressing concern. While anti-bribery regulations exist in some Western countries, laws addressing human rights abuses are often lacking. NGOs like Earth Rights International are calling for stronger protections, suggesting a version of the US Foreign Corrupt Practices Act focused on human rights. Such a law could provide companies with the legal backing to resist extortion by armed groups or corrupt officials, thereby holding them accountable for their actions abroad.
On the regulatory front, the EU is taking steps to ensure responsible sourcing of minerals through its Corporate Sustainability Due Diligence Directive, which will come into effect in 2027. This directive mandates that companies assess and mitigate human rights and environmental impacts throughout their supply chains. Additionally, upcoming regulations on lithium batteries will require due diligence for critical materials, emphasizing the need for accountability from the ground up.
As protests in Panama spotlight the ongoing struggles against mining practices, the industry stands at a crossroads. The path forward demands not just dialogue, but concrete actions that prioritize ethical practices over profit. With increasing pressure from civil society and regulatory bodies, the mining sector may finally be forced to reckon with its past and reshape its future. The question remains: will the industry rise to the occasion, or will it continue to falter under the weight of its own contradictions?
