The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Tuesday, September 27, 2022

Strategic CSR - Nickel

The article in the url below captures the complexity of the effort to make our economy more sustainable. Specifically, it tells the story of an exploratory mine in Minnesota, run by Talon Metals, that is seeking to extract nickel. One of the many reasons nickel is in demand is that it is essential for making the batteries we need to run electrical vehicles (see Strategic CSR – EVs):

"The company is proposing to build an underground mine near Tamarack that would produce nickel. … It would be a profitable venture for Talon, which has a contract to supply nickel for Tesla's car batteries, and a step forward in the country's race to develop domestic supply chains to feed the growing demand for electric vehicles."

All well and good, except for the fact that extracting nickel is a messy business:

"But mines that extract metal from sulfide ore, as this one would, have a poor environmental record in the United States, and an even more checkered footprint globally. While some in the area argue the mine could bring good jobs to a sparsely populated region, others are deeply fearful that it could spoil local lakes and streams that feed into the Mississippi River. There is also concern that it could endanger the livelihoods and culture of Ojibwe tribes whose members live just over a mile from Talon's land and have gathered wild rice here for generations."

Talon has said it will take every effort to prevent that from happening, but of course we would expect them to say that while they are still seeking permission to open the mine. Some remain suspicious, which is only natural given the track-record the extraction industries have earned for themselves:

"But some people in the community remain skeptical, including about the company's promises to respect Indigenous rights, like the tribes' authority over lands where their members hunt and gather food. Part of that mistrust stems from the fact that Talon's minority partner, Rio Tinto, provoked outrage in 2020 by blowing up a 46,000-year-old system of Aboriginal caves in Australia in a search for iron ore."

What I find interesting/frustrating about this story though is the conundrum it creates. If the only way to obtain the metals and other raw materials we need to transition from a fossil fuel economy is to raise the risk of additional environmental damage, it makes what is an extremely challenging transition that much harder. As Kelly Applegate, "the commissioner of natural resources for the Mille Lacs Band of Ojibwe" notes:

"'Talon and Rio Tinto will come and go — greatly enriched by their mining operation. But we, and the remnants of the Tamarack mine, will be here forever.'"

Take care
David

David Chandler
© Sage Publications, 2020

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Batteries to Power Electric Cars Need Nickel. A Plan to Mine It in the U.S. Faces Pushback
By Ana Swanson
September 1, 2022
The New York Times
Late Edition – Final
B1, B5