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Demand for critical metals and minerals, which are essential to the modern economy, advanced technology, the energy transition and the defense sector, has risen sharply worldwide. However, their supply chains are vulnerable and can be disrupted for geopolitical or economic reasons.
A panel discussion titled “Critical Mineral Resources and Green Transition: Global Responsible Supply Chains” was held on the sidelines of COP17, with the participation of Zangezur Copper Molybdenum Combine (ZCMC), Armenia’s Environmental Protection and Mining Inspection Body, and international partners.
Metals have played a very important role since the dawn of human civilization. It is impossible to imagine humanity’s further development and the progress of the green transition without metal extraction. The key to solving a number of environmental problems worldwide lies in the mining industry.
Vardan Jhanyan, First Deputy General Director of ZCMC, said mining should be carried out in a way that minimizes harm to nature and the environment.
“One of the most important issues having a major negative impact on biodiversity is climate change. The solution to climate change is the transition to renewable energy. By switching to renewable energy, many issues, including the rise in global temperatures, which has a very negative impact on biodiversity, can be addressed. The energy transition is impossible without metal extraction. There are relevant international standards and sustainability standards that mining companies can follow to minimize their impact. By following them, a mining company can not only minimize its impact but also transparently demonstrate how a particular mining operation operates and what impact it has on the ecosystem,” Jhanyan said.
Asked to what extent mining can be considered compatible with biodiversity conservation and a sustainable future, Armen Stepanyan, Deputy General Director and Director of Sustainable Development at ZCMC, explained:
“Perhaps not in Armenia, but worldwide, mining has repeatedly demonstrated that the two are compatible. That is why international standards and regulations exist. If you adhere to them strictly, compatibility is possible. Today, we have embarked on this path. There is a lot of work to do, but the feedback we receive from our international partners shows us that we are on the right track, and we hope this experience will spread to all our partners.”
Stepanyan also outlined several of ZCMC’s initiatives aimed at nature restoration and sustainable development.
“Look at the forest restoration work we are doing. We do not want it to be reduced to simply saying, ‘We cut down a tree and planted a tree.’ We want it to be a sustained effort that requires commitment and investment. When we implement such measures, they are not simply good things to do or mandatory requirements; they are necessary steps to ensure the long-term viability of the business. Such measures demonstrate how important they are from a business perspective. The capacity to carry out sustained work needs to be developed not only within companies but also within the government and oversight bodies, so that through our collective efforts we can achieve the targets we discuss every day on various platforms. COP17 is a very important event for Armenia, and we hope that concrete joint steps will be taken in its aftermath.”
John Lindberg, Policy & Government Affairs Principal at the International Council on Mining and Metals (ICMM) and a speaker at the panel discussion, emphasized the mining industry’s role in the green transition.
“Mining plays an absolutely central role in the green transition. Ultimately, the technologies needed to enable this transition require mineral raw materials, whether for the production of wind turbines, solar panels, batteries, electric vehicles or other technologies. However, the challenge is that we need to extract more, but we must do so responsibly. If internationally recognized, reliable and stringent standards that take into account impacts on nature, climate and other factors are not applied in the course of operations, there is a risk that we will pay the price in the form of nature loss. Recently, the Armenian Mining and Metallurgy Association (AMMA) joined ICMM, becoming one of its association members. We are confident that through AMMA, Armenia will continue to move toward responsible practices.”
Asked what mining companies should do to ensure responsible and transparent supply chains for mineral resources, Lindberg said they should first ensure that reliable and stringent standards are applied at all their operating sites.
“If you apply international standards that have been tested and refined in different countries around the world, you can be confident that your operations are based on sound, sustainable and responsible principles. In fact, every mining company operating in the world should be guided by these principles. But setting standards for your own operations alone is not enough. Companies that purchase raw materials and other supplies should also require their partners to apply the same standards,” he said.
Hovhannes Martirosyan, Head of Armenia’s Environmental Protection and Mining Inspection Body, noted that subsoil use is one of the few types of economic activity that affects every sector. He said practical measures are being taken to ensure proper oversight of this activity and accurately document its results.
“In the Republic of Armenia, mining oversight is risk-based. The methodology for determining risk levels has been approved by the government, and under this methodology, it is determined when each company should be inspected. The oversight process operates according to this approach. Mining is a major economic activity that affects various environments, including biodiversity. Mining companies are subject to expert assessment requirements and have approved project plans. During inspections, we examine whether their activities comply with the expert assessment requirements, whether they meet the requirements of their approved project plans, and so on. What mechanisms are needed to make oversight much more effective and ensure that companies comply more fully with all requirements? To this end, the Inspection Body is undergoing digital transformation. We are developing a platform equipped with digital technologies aimed at the early detection and prevention of violations. According to our plans, the system will begin operating in early 2029. I believe that changing the philosophy and logic of oversight will help us address this issue. Companies themselves are also ready to introduce technologies into their operations, as this is very important for them too in terms of becoming more transparent and accessible. Since 2022, the Inspection Body has been using digital technologies, particularly in the field of subsoil oversight, increasing efficiency by dozens of times," he said.
Armenia had a major metallurgical complex as far back as 5,000 years ago, discovered through excavations at Metsamor. Today, with its considerable potential, Armenia can play a distinctive role in these global changes.