CREATIVE DISASSEMBLY OF THE METAL SUPPLY ASSEMBLAGE

The metal supply assemblage is the collection of organizations and institutions that produce metals used by society. Mining companies produce a metal or a mineral concentrate that is turned into pure metal by smelters and refineries. Some production processes or activities might be outsourced to suppliers and technology providers. Once refined, the metals are sold to manufacturers or other consumers. Different levels of government, communities, and various financial institutions each have specific interests in the operation of the companies involved in metal supply.

The increasing demand for metals due to economic growth and to the energy transition will exert considerable pressure on the assemblage. Further pressure can be expected if the metals are to be produced using processes that have low social and environmental footprints so as to contribute to achieving specified ESG goals and one or more sustainable development goals (SDGs). Given methods and paradigms of the current assemblage, it is unlikely that the conflicting demands and goals can be reconciled.

Obvious remedies for this conundrum lie either in technology innovation or organizational innovation. Because technology takes time to develop and implement, a faster remedy may likely be found in local re-organization of the metal supply assemblage. We propose a process of creative disassembly to enable such re-organization. Disassembly refers to understanding how the parts of the metal supply assemblage function and recognizing an opportunity to change them or their configuration to enable extraction of more metal. The creative part is determining the best way to make the change. This could involve removing or mitigating any barriers to entry, devising new organizational structures and business models, and implementing new technologies, and embedding ESG goals and SDGs within the business models. The resulting modified assemblage collection would provide more access to metals, produce metal that would otherwise not be produced, and promote achievement of ESG goals and SDG goals.

Such organizational changes have occurred and are described. Examples of other possibilities are provided.