Allegations of harms at China-backed transition minerals projects rise

Reports of human rights and environmental abuses linked to Chinese companies’ overseas investments in the mining and refining of minerals needed for the clean energy transition are on the rise, research by a monitoring group has found.

The number of recorded allegations of harm at projects tied to Chinese firms have increased every year since 2021, rising to 148 in 2025, according to the Business and Human Rights Centre (BHRC). On Wednesday it released new data showing that a total of 434 allegations of abuse were made against Chinese-backed projects over the five-year period in projects across the world.

The world’s top cleantech manufacturer, China is also the leading financier of critical minerals projects worldwide. The country has committed more than $120 billion in foreign direct investment into mineral mining and processing since 2023, Australian think-tank Climate Energy Finance recently found.

“China plays a central role in global transition mineral supply chains, and as such has a unique opportunity to raise the bar on human rights and community engagement at every stage of mining,” said Michael Clements, BHRC’s executive director.

“While there have been encouraging developments, from stronger regulations to more company engagement, there remains a gap between human rights commitment and action,” he said.

The report comes as communities affected by Chinese-backed mineral projects have filed the first two cases to a Beijing-based mediation mechanism intended to bring willing Chinese companies to the discussion table with affected communities.

Allegations of harms on the rise

BHRC’s latest analysis – including data for the period 2023-2025 – covered mining, smelting and refining projects for 11 minerals considered key to manufacturing clean energy technologies such as batteries, EVs and solar panels needed to move away from climate-heating fossil fuels.

The highest number of abuses was recorded in Indonesia, the world’s largest producer of nickel, which is used to make EV batteries. After the Indonesian government banned exports of raw nickel, Chinese firms invested billions of dollars to develop a large-scale nickel smelting and processing industry in the Southeast Asian country, largely powered by coal.

Other countries with a high number of recorded harms include the Democratic Republic of Congo, where Chinese firms dominate cobalt and copper production; Myanmar, where unregulated rare earths mining has caused widespread environmental destruction; Serbia, where Chinese-backed mining of some of Europe’s most significant copper and gold deposits is swallowing land and homes, and Zimbabwe, where Chinese investments have turned the nation into Africa’s top lithium producer.

Growing risks for people and nature

Allegations tracked by BHRC included negative impacts on local livelihoods, health and land rights, workers’ health and safety and work-related deaths, as well as water pollution and environmental contamination. In addition, 18 people were attacked for raising concerns about Chinese transition mineral projects between 2023 and 2025.

The report shows that 10 Chinese companies, including Zijin Mining, Tsingshan Group and Zhejiang Huayou Cobalt, accounted for nearly two-thirds of all allegations recorded in the last five years. It found that some Chinese companies “still appear to turn a blind eye to these issues” but noted that several others have been more responsive to allegations of abuse. However, even among companies with human rights policies, implementation remains a challenge, BHRC warned.

Zijin Mining and Zhejiang Huayou Cobalt repeatedly responded to the allegations of harm by saying they take environmental and social risks seriously and adhere to international standards. Tsingshan Group never responded to BHRC’s requests for comment.

Platform for dialogue between communities and Chinese firms

At the same time, Chinese authorities have made “significant progress” on introducing a more specific framework for managing environmental and social risks in overseas investment, BHRC said.

This includes global consultation on a draft Sustainable Mining Code, adherence to UN guiding principles on business and human rights, and greater emphasis on oversight of companies operating overseas.

The China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) set up a mediation and consultation mechanism intended to provide a platform for dialogue between affected communities or civil society groups that have raised concerns and Chinese companies.

More than three years since its launch, the mechanism has now received its first two complaints from local communities and many more are considering filing a case, Margaux Day, executive director at the nonprofit Accountability Counsel, told an event hosted by Climate Home News last month.

“This is incredibly exciting in that it fills a governance and accountability gap where often communities who are seeking to protect their rights and the environment can’t reach someone who will respond to them,” she told the panel discussion at London Climate Action Week.

Climate Home News understands that the complaints were filed by communities in Latin America and Southeast Asia over labour rights and resettlement issues. No information about the cases has yet been made public. The mechanism’s secretariat did not respond to Climate Home News’ questions.

The mechanism was set up after the Chinese regulator for banks and insurers called on investor-level institutions to establish complaints bodies to hear from communities outside of China. But whether the new initiative will prove effective in tackling grievances remains an open question.

“Real potential” for better mining practices

Participation in the mechanism is voluntary for Chinese firms and it doesn’t have a fact-finding function, nor can it impose provisions for compensation or compliance with human rights standards.

But Day told Climate Home News that, if successful, it could bring companies to negotiate an outcome that is better for people and the planet and leads to more sustainable mining practice.

Chen Yu, an independent China advisor for campaign group Global Witness, agreed that the mechanism holds “real potential”.

“There exists nothing else at a similar level to promote dialogue between communities and Chinese mining companies in particular,” she said.

For companies, the mechanism opens “a channel for problem-solving and dialogue with communities”, she added, as “Chinese companies often remain cautious of approaching affected communities directly, afraid of making the problem bigger”.

However, Chen said the mechanism remains at an early stage of development, faces resourcing challenges and is not yet sufficiently understood by communities in mining areas or Chinese firms.

To help it address some of these challenges, the secretariat is currently seeking technical support from a range of organisations, including civil society groups. But, Chen said, “it will take time for the mechanism to show its value”.

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