There are reports that there is a new trend in mining – that miners are diversifying into the recycling sector. Mining Technology noted that the reason for diversification is “Industry experts say this trend is being driven by a perfect storm of rising demand for critical minerals, increasing lead times for new mining projects – which have risen from an average of 12.7 to 17.9 years, according to recent data – changing policy and increasing sustainability requirements.”
According to the United States Geological Survey (USGS), minerals that are “critical” are both essential to the Nation’s economy or national security and have supply chains that are vulnerable to disruption are categorized as critical minerals. The latest non-fuel critical minerals list was published in 2022, and contains 50 minerals. Many of these minerals are needed for green energy, electronics, medical, aerospace and other industries. However, all of them are needed to manufacture the materials for products we use every day.
An International Energy Agency (IEA) report on the recycling of minerals underscores the essential role of recycling in helping to ensure the sustainability and security of supply for minerals critical to clean energy technologies, such as lithium, cobalt, rare earth elements, and others. These minerals are crucial for batteries, wind turbines, and electric vehicles, among other technologies.
Buying the scrap metal recycling company, not just the scrap metal
Acquiring a scrap recycling company can provide mining companies with strategic advantages in terms of resource management, cost efficiency, regulatory compliance, and sustainability, ultimately contributing to long-term business success, more specifically:
- Resource Diversification: By acquiring a scrap recycling company, a mining company can diversify its resource base. This can help mitigate risks associated with fluctuating prices and availability of raw materials.
- Sustainability and Environmental Responsibility: There’s increasing pressure on industries to adopt sustainable practices. Owning a recycling company allows a mining company to enhance its environmental credentials by promoting recycling and reducing the need for virgin material extraction.
- Cost Efficiency: Recycling metals and other materials can often be more cost-effective than mining new resources. This can help improve the company’s overall cost structure and profitability.
- Regulatory Compliance: Governments around the world are implementing stricter environmental regulations. Owning a recycling operation can help a mining company comply with these regulations more easily and avoid potential fines or sanctions.
- Market Control and Stability: By controlling both the mining and recycling aspects of the supply chain, a company can better manage supply and demand dynamics, stabilize prices, and ensure a steady supply of materials.
- Innovation and Technology: Recycling companies often use advanced technologies to recover materials. These technologies can be integrated into the mining company’s operations to improve efficiency and reduce waste.
- Corporate Image and Brand Value: Demonstrating a commitment to recycling and sustainability can enhance a company’s brand image and reputation among consumers, investors, and other stakeholders.
- Circular Economy Participation: Engaging in recycling supports the circular economy model, where products and materials are reused and recycled, reducing waste and resource consumption. This aligns with global sustainability goals and can open up new business opportunities.
XRF Technology helps identify metals in both industries
The good news for mining companies is if they are using handheld X-ray fluorescence (XRF) analyzers in their mining exploration efforts, then they can easily adopt the same technology in scrapyards, or at least make sure that any metal recycling companies they consider are using the XRF technology to help ensure they are accurately identifying metals and alloys. At the mine site, portable XRF analyzers help identify drill targets, increase discovery rates, enable on-site decisions, and pinpoint where to focus on the grid – ultimately guiding geochemical decisions and optimizing mining operations.
Scrap metal companies use handheld XRF analyzers because they offer a highly efficient and accurate method for analyzing the composition of various metals and alloys. XRF technology allows for rapid, non-destructive testing, which is crucial in the fast-paced environment of scrap metal processing.
By quickly identifying the precise elemental composition of scrap materials, companies can help ensure proper metal sorting and valuation, leading to optimized recycling processes and maximized profits. Additionally, the accuracy of XRF technology helps in meeting regulatory standards and customer specifications, enhancing the company’s reputation for quality and reliability. The portability of modern XRF analyzers also enables on-site testing, which saves time and reduces the need for sending samples to off-site laboratories. Overall, the adoption of XRF technology can significantly improve operational efficiency, accuracy, and profitability for scrap metal companies.
More recycling is needed
Experts across various industries agree that recycling metals significantly conserves energy and reduces environmental impact. The World Steel Association highlights that energy conservation in steelmaking is crucial, with recycled steel being less energy-intensive than primary steel production. Similarly, International Aluminum notes that recycling aluminum saves about 95% of energy costs compared to mining bauxite. The US EPA and EIA report substantial energy savings in recycling steel and aluminum, with secondary production being markedly more efficient. The World Resources Institute adds that recycling copper can save up to 85% of the energy required for primary production, reducing pollution and greenhouse gas emissions.
Currently, recycling rates for many of the critical minerals are low due to several challenges, including economic barriers, technological limitations, and insufficient regulatory frameworks. The IEA report highlights that enhancing recycling processes can significantly contribute to meeting future demand, reducing environmental impacts, and lowering greenhouse gas emissions.
The IEA identifies key strategies to improve recycling rates: advancing recycling technologies, creating economic incentives, implementing robust regulatory policies, and fostering international collaboration. The report stresses the need for investment in research and development to overcome technical hurdles and make recycling more economically feasible.
Further, the report calls for a circular economy approach, where materials are reused and recycled to the maximum extent possible, thereby minimizing waste. By adopting such measures, countries can reduce their dependency on primary raw materials, mitigate supply risks, and support the transition to a more sustainable and resilient clean energy system.
The IEA concludes that coordinated global efforts and supportive policies are crucial to realizing the full potential of recycling critical minerals.
XRF appropriate for both industries
Whether mining companies invest in more mines or in teaming up with scrap metal recycling facilities, XRF technology can help optimize operations. With substantial capital investments at stake, it is crucial for mining operations to quickly identify and recover the most economically viable resources, in the mine or the scrapyard.
Resources
- Mining Technology article: https://www.mining-technology.com/features/miners-diversifying-into-metals-recycling/
- United States Geological Survey (USGS): https://www.usgs.gov/programs/mineral-resources-program/science/what-are-critical-minerals-0
- Critical Minerals List: https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals
- International Energy Agency (IEA) report: https://www.iea.org/reports/recycling-of-critical-minerals/executive-summary
- Mining XRF technology: https://www.thermofisher.com/us/en/home/industrial/cement-coal-minerals/mining-minerals/technologies.com?icid=CAD_blog_mining_2025March#x-ray-fluorescence
- World Steel Association: https://worldsteel.org/wp-content/uploads/Fact-sheet-energy-in-the-steel-industry-2021-1.pdf
- World Resources Institute: https://www.wri.org/insights/pivotal-role-recycled-copper-energy-transition#:~:text=Copper%20produced%20from%20recycled%20materials%20can%20save,gas%20emissions%20across%20the%20entire%20supply%20chain
- International Aluminum: https://international-aluminium.org/landing/aluminium-recycling-saves-95-of-the-energy-needed-for-primary-aluminium-production/
- US EPA: https://archive.epa.gov/epawaste/conserve/smm/wastewise/web/html/factoid.html
- Scrap metal XRF technology: https://www.thermofisher.com/us/en/home/industrial/spectroscopy-elemental-isotope-analysis/portable-analysis-material-id/portable-metal-manufacturing-inspection-recycling-solutions/portable-scrap-metal-recycling-analysis.html?icid=CAD_blog_mining_2025Feb
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