224 1. INTRODUCTION: STRUCTURAL TRANSFORMATION IN THE MINING SECTOR Mining has long played a critical role in economic development by providing the raw materials necessary for infrastructure, energy systems, and technological progress. Today, the global transition toward electrification and low-carbon energy is significantly increasing demand for critical minerals such as copper, lithium, nickel, and cobalt, elevating mining from a cyclical commodity sector to a strategic enabler of energy transition and industrial transformation (IEA, 2024; World Bank, 2020). Figure 1 – Rising Demand for Critical Minerals in the Energy Transition, Rocky Mountain Institute At the same time, expectations regarding mining performance have expanded beyond operational efficiency. Investors, regulators, and downstream industries increasingly evaluate mining companies based on governance, traceability, and sustainability performance, recognizing that long-term value creation depends on responsible and transparent production (CFA Institute, 2023; OECD, 2022). This shift reflects a broader evolution in the role of firms within society. As Tirole (2017) argues, sustainable economic performance requires aligning private incentives with the common good, particularly in industries with significant environmental and social footprints. For mining companies, competitiveness increasingly depends not only on operational performance, but also on legitimacy, trust, and the ability to demonstrate measurable environmental and social outcomes. Historically, sustainability in mining has been addressed primarily through complianceoriented ESG approaches focused on reporting and risk mitigation. However, the growing strategic importance of critical minerals and increasing investor scrutiny are reshaping this paradigm. Impact investing offers a framework to integrate financial returns with measurable environmental and social performance (GIIN, 2021; Cohen, 2020). This paper argues that transitioning toward impact-oriented mining models is essential to ensure long-term competitiveness, access to capital, and social legitimacy.
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