Adoption of circular economy practices in the mining sector: Evidence from Chile

This paper explores the adoption of Circular Economy (CE) practices in the mining sector. Large-scale mining is essential for global material supply and the energy transition but poses significant environmental challenges. Adopting CE strategies and practices can help mitigate these challenges by reducing waste, improving resource efficiency, and minimising environmental impacts. However, existing CE frameworks are focused on downstream value chain segments and lack crucial conceptual elements to guide CE adoption in upstream industries like mining. The study advances the literature on CE, responsible sourcing of minerals and sustainable raw material extraction by identifying three crucial conceptual elements missing from existing CE frameworks: (1) a clear communication of the goal and boundary of the industrial production system that the adoption of CE practices is targeting; (2) an identification of the source and type of inputs used by the system; and (3) a consideration of the resource state of these inputs and the subsequent structural wastes generated from them. These new conceptual elements allow for a system-level analysis of CE adoption tailored to the context of the mining industry.

Using the case of Chile, the study demonstrates how this new conceptual approach can be applied to map existing CE practices and strategies used in the mining sector. Findings reveal that Chilean copper and lithium mining companies are successfully adopting CE practices, such as using seawater in ore processing, remining and repurposing tailings, and remanufacturing mining machinery. This shows that there is significant potential for the mining industry to adopt CE thinking. However, the case study also highlights prevalent tendencies of a lack of systems thinking and additionality in the design of CE practices, which present significant challenges for the sector to adopt CE practices at scale.