Ahmad: Global demand for critical minerals to shape future of mining sector

Malaysia's Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, has emphasized the significant impact of the rising global demand for critical minerals on the mining sector's future. Speaking to CNBC Africa at the Future Minerals Forum in Riyadh, Saudi Arabia, Ahmad discussed the crucial need for sustainability in mining practices to meet the world's accelerating energy transition requirements. He underlined the importance of establishing resilient supply chains and implementing value-added processing techniques to ensure long-term economic benefits. Ahmad's insights shed light on the pivotal role that critical minerals will play in shaping the mining industry's trajectory as countries strive to meet their sustainability goals amidst increasing demand for these essential resources. The global demand for critical minerals has been steadily growing as nations seek to diversify their energy sources and reduce their carbon footprint. This shift towards cleaner energy technologies, such as electric vehicles and renewable energy systems, has led to an unprecedented need for minerals like lithium, cobalt, and rare earth elements. As a result, the traditional mining sector is undergoing a transformation to meet this surge in demand for these essential raw materials. Ahmad's remarks underscore the urgency for mining companies to adopt sustainable practices that minimize environmental impact and maximize long-term benefits for both local communities and the global economy. Furthermore, Ahmad emphasized the importance of building resilient supply chains to ensure the reliable and consistent delivery of critical minerals to various industries worldwide. Disruptions in the supply chain can have far-reaching consequences, affecting not only the mining companies themselves but also downstream manufacturers and end-users who rely on these minerals for their products. By focusing on creating robust supply networks, countries can enhance their energy security and reduce their dependence on a limited number of mineral suppliers, thus mitigating potential risks associated with supply shortages or geopolitical instability. In addition to sustainable mining practices and resilient supply chains, Ahmad highlighted the significance of value-added processing to capture more extensive economic benefits from critical minerals extraction. Value-added processing involves refining and processing raw minerals into intermediate or final products, thereby increasing their value and creating new revenue streams. By establishing local processing facilities, countries can retain a larger share of the value chain within their borders, generate employment opportunities, and stimulate economic growth in the mining regions. This strategic approach not only adds value to the extracted minerals but also contributes to the development of a diversified and sustainable mining sector capable of meeting evolving market demands. In conclusion, Nik Nazmi Nik Ahmad's insights at the Future Minerals Forum provide a compelling perspective on the future of the mining sector in the context of the growing global demand for critical minerals. His emphasis on sustainability, resilient supply chains, and value-added processing underscores the need for strategic planning and innovation to navigate the evolving landscape of the mining industry. As countries worldwide move towards a more sustainable and resource-efficient future, the responsible extraction and utilization of critical minerals will undoubtedly play a crucial role in shaping the mining sector's trajectory and ensuring long-term economic prosperity.