How labour governance is key to securing critical mineral supply chains

ILO News (Washington, D.C.) – Critical minerals are strategically important to national security, defence and advanced manufacturing, yet their extraction and processing can be associated with significant labour risks, including forced labour and child labour. These conditions not only raise ethical concerns but can also undermine supply chain reliability and distort fair competition.

During a briefing organized by the ILO Office for the United States and Canada on 25 February 2026, Casper N. Edmonds, Head of Unit, Extractives and Camila Meireles, Energy and Manufacturing, explored how stronger labour governance can contribute to more stable and responsible mineral supply chains.

“The ILO’s role in this space draws from its tripartite system, which brings together governments, employers and workers to identify labour risks, strengthen institutional capacity, and support the implementation of internationally recognized labour standards that underpin transparent and resilient supply chains,” Edmonds said.

To illustrate how these principles translate into practice, Edmonds highlighted three country-level initiatives, each reflecting a different labour challenge within the critical minerals sector.

• In the Democratic Republic of the Congo, artisanal and small-scale mining operations remain heavily reliant on child labour and expose workers to unsafe conditions. The ILO is engaged through targeted programmes aimed at eliminating child labour from these operations and improving working conditions. This work reflects the ILO’s core objective: ensuring that growing global demand for critical minerals does not come at the expense of vulnerable workers.
• In Indonesia, the challenge takes a different form. As home to the world’s largest nickel reserves, the country has pursued an ambitious strategy to move beyond exporting raw ore and build a domestic industry spanning smelting, refining and processing. However, rapid industrial expansion has also exposed serious occupational safety and health risks. A series of explosions at smelters and refineries, along with rising fatalities, points to systemic gaps in workplace safety. These failures not only harm workers but also undermine fair competition by making it harder for responsible companies to compete on equal footing. The ILO’s work in Indonesia therefore focuses on strengthening occupational safety and health systems, reinforcing fundamental labour protections, and promoting responsible business practices across the sector.
• Argentina is one of the world’s leading producers of lithium but faces significant workforce development challenges. The ILO has worked with provincial governments across the country’s three main lithium-producing regions to assess employment trends along the lithium value chain. The analysis revealed substantial skills gaps: more than half of labour demand is for technical and operational professionals that current training systems are not producing in sufficient numbers. Through consultations with governments, employers and workers, stakeholders agreed that targeted policies and coordinated investment in training are essential to closing these gaps. The project is now entering a second phase focused on strengthening technical and vocational education, workforce development, and the broader lithium supply chain.

“Together, these three examples illustrate the diversity of labour challenges associated with the critical minerals sector,” said Meireles. “They also highlight the ways in which labour governance is closely connected to the long-term sustainability and reliability of these supply chains.”

The briefing also examined the broader tools available to strengthen oversight and drive improvements across the sector. Technology was highlighted as a promising avenue for improving supply chain transparency and traceability, though significant challenges remain.

While mining supply chains may appear relatively straightforward, tracing a metal or mineral back to its precise origin is often extremely difficult in practice. Despite decades of traceability initiatives, many have proven costly, difficult to implement in remote areas, and limited in their effectiveness.

Trade agreements represent another important lever for advancing labour standards and strengthening labour governance in global supply chains. The ILO provides technical assistance to countries implementing labour provisions within these frameworks, and research suggests that such provisions can help strengthen compliance, improve working conditions, and support fair competition.

The briefing concluded with a recognition that the critical minerals sector presents a wide range of opportunities to advance decent work, but also significant labour governance challenges across different countries and supply chains.

“When labour standards are weak or poorly enforced, it creates significant risks not only for workers but also for companies and governments seeking to build stable sourcing arrangements. Addressing these risks will require continued cooperation between the ILO, governments, employers and workers to strengthen labour governance and mitigate risks in critical mineral supply chains,” said Amber Barth, Director of the ILO Office for the United States and Canada.