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There are \u201cfew more pressing challenges facing all industrial and economic sectors than the need to rapidly decarbonize in order to stabilize the climate.\u201d So John Mulligan, climate change lead at the World Gold Council, began his response on the question of net zero in mining. It was a question posed by North American Mining to a number of different industry experts, from different backgrounds, but who all echoed Mulligan\u2019s initial sentiment. <\/p>\n\n\n\n
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The World Gold Council\u2019s perspective<\/strong> \u201cIn several countries, particularly in Africa, these represent the most substantial examples of self-generated clean power. Meanwhile, in South Africa, a desire to reduce emissions by precious metals mining companies has contributed to a more flexible policy environment, and helped catalyze the economic viability and increased availability of local renewable energy solutions.\u201d<\/p>\n\n\n\n Mulligan noted the following projects from World Gold Council members, which are moving \u201cat pace and scale to decarbonize their operations\u201d: <\/p>\n\n\n\n \u201cIf current plans to transition to lower-carbon energy sources become commonplace across the sector in the next decade, these changes \u2013 coupled with continued reductions in the emissions intensity of grid power and investor preference for the development of lower-emission mining projects \u2013 should place a net-zero target within reach,\u201d concluded Mulligan. <\/p>\n\n\n\n <\/p>\n\n\n\n The miner\u2019s perspective: Anglo American<\/strong> According to Dunn, it is therefore \u201ccritical that the industry plays an active part in the solution, both because it is right for the long-term sustainability of our business, but also because it is right for society. For Anglo American, this means establishing a clear pathway to operational carbon neutrality by 2040, so that we can continue to deliver the metals and minerals essential to unlocking a cleaner future for our plant and to meeting the needs of a growing population, while also acting decarbonizing our value chain.\u201d The company also has an interim target to achieve a 30% reduction in greenhouse gas (GHG) emissions \u2013 and eight carbon neutral sites \u2013 by 2030. <\/p>\n\n\n\n Technological innovation will be critical in achieving these goals. \u201cOur ongoing deployment of the FutureSmart Mining program across the portfolio will see a step-change in low- and zero-emissions technologies,\u201d continued Dunn. \u201cThis will see a significant reduction in our Scope 1 emissions, for example, by displacing diesel at the mines, as demonstrated when we unveiled the world\u2019s first hydrogen fuel cell powered haul truck in May 2022.\u201d<\/p>\n\n\n\n The application of FutureSmart Mining technologies will also help lower Scope 2 emissions (those associated with purchased energy), e.g., with solutions to drive energy efficiency in ore processing and to reduce energy consumption and intensity through the company\u2019s Operating Model and P101 asset productivity program. The Operating Model approach targets stability and predictability at every level of the business, as the foundation for improved performance through the value chain. P101 builds on that stability to target and accelerate improvements for maximum impact. <\/p>\n\n\n\n To further address Scope 2 emissions, the mining company is increasing the proportion of renewable energy in its mix. <\/p>\n\n\n\n \u201cWe have already secured 100% renewable energy supply for our operations in South America, and we will move to 100% renewable electricity supply from 2025 in Australia,\u201d said Dunn. \u201cIn South Africa, we announced last year a renewable energy partnership with EDF Renewables to form Envusa Energy. This included the launch of 600 MW of wind and solar projects in the first phase \u2013 a major step towards the development of an ecosystem that is expected to generate 3 GW to 5 GW of renewable energy by 2030.\u201d<\/p>\n\n\n\n Dunn also recognized the challenge posed by Scope 3 emissions, which result from assets not owned or controlled by the reporting organization, but that the organization indirectly affects in its value chain. According to Dunn, the mining major is working to understand both \u201cthe levers we can pull, and the influence each of those levers could have on our Scope 3 emissions.\u201d Informed by its assumptions on the speed of decarbonization in the steel value chain, Anglo American aims to reduce its Scope 3 emissions by 50% by 2040.<\/p>\n\n\n\n <\/p>\n\n\n\n Stantec: the view of the technical advisor Treen also noted that energy consumption is the initial focus for most companies coming to address the net-zero challenge. \u201cWe are helping review mine designs, processing plants, or tailings systems to reduce energy consumption for the global goal of net zero. Plus, people are thinking more about the supply chain: for example, the cost to haul fuel to a mine site. How can we reduce the need for transportation \u2013 either in distance or the quantity of the material? Thinking about the whole supply chain can result in a cost reduction, while reducing Scope 3 GHGs.\u201d<\/p>\n\n\n\n \u201cSome companies are also already making great strides in implementing clean energy,\u201d said Treen. For example, Stantec provided project management services to TransAlta on the Northern Goldfields solar project for BHP. This project is the first solar photovoltaic build for TransAlta in Australia, and the first large-scale onsite solar farm and battery installation that BHP has commissioned. It also supports BHP\u2019s target to deliver lower-carbon, sustainable nickel. <\/p>\n\n\n\n Despite these frontrunners, \u201cmany companies remain in the planning phase,\u201d said Treen. \u201cThey are still putting together a roadmap and weighing potential solutions as a critical place to get started.\u201d<\/p>\n\n\n\n Treen also mentioned the impact that net zero could have on other issues facing mining company, such as safety and resourcing risks. \u201cWith battery electric vehicles (BEVs), new risks arise (like battery fires) but benefits abound too: BEVs require less ventilation operate, produce less noise, improve operator comfort and offer other economic benefits.\u201d In a bigger sense, net zero also has the power to change the image of mining: \u201cAttracting people into mining is another challenge, but a net zero mining operation would help attract a new generation to this industry.\u201d <\/p>\n\n\n\n <\/p>\n\n\n\n The professional services consultant: Deloitte Mining & Metals<\/strong> Once its emissions footprint is understood, \u201cthe company can delineate its emissions reduction targets and examine the various abatement projects that can be implemented across their sites to reduce emissions,\u201d Diasselliss continued. \u201cA prioritization or optimization exercise is often then undertaken to balance competing concerns, such as available capital, a project\u2019s emissions impact, local and community impacts and how to stage the various abatement projects to deliver the highest value, while moving towards their emissions target.\u201d<\/p>\n\n\n\n According to Diasselliss, there are four main areas that mining companies are currently examine to support their net-zero transition: <\/p>\n\n\n\n \u201cThe first three areas are things that the mining sector can do to address Scope 1 and 2 emissions,\u201d he said. \u201cBut Scope 3 emissions also account for a significant portion of a mine\u2019s total emissions. Many mines are therefore having conversations with downstream customers and suppliers to consider ways that the carbon intensity of downstream products can be reduced.\u201d<\/p>\n\n\n\n This collaborative approach could bring benefits beyond emissions reduction. As Deloitte noted in its Tracking the Trends 2023 report, \u201cembracing their potential as influencers and helping other organizations to lower their footprints\u201d mining companies also have the potential to \u201ccreate exciting new roles, speak to younger generations who are keen to work in a purposeful sector, and invite new ways of thinking and working.\u201d\u00a0<\/p>\n\n\n\n <\/p>\n\n\n Navigating the road to net zero<\/strong> Location: Mines are often remote, which \u201ccan limit the ability to procure or generate renewable generation to reduce Scope 2 emissions,\u201d said Deloitte\u2019s Diasselliss, who pointed out that on-site renewable generation both requires space to install, as well as energy storage to ensure electricity is available as and when it is needed. \u201cRemote locations may also require additional logistics (with associated emissions) for goods and services delivered to or from site,\u201d he added. <\/p>\n\n\n\n Availability of technology: The ability for mines to electrify equipment \u201cremains a significant challenge,\u201d continued Diasselliss. \u201cAlthough some manufacturers are developing heavy-duty battery electric vehicles (BEVs), there remain many types of mining equipment that are not currently available \u2013 especially for open-pit mines. This means either that BEVs cannot be deployed, or that mining operations need to consider new operating models to allow for smaller equipment to be deployed. In either scenario, electrification creates the need to evolve maintenance strategies and safety precautions.\u201d<\/p>\n\n\n\n \u201cContinued work should be done to understand and advance technologies and processes that can be scaled and deployed in mining and in other sectors,\u201d continued Diasselliss. \u201cThis will allow economies of scale to be obtained and to drive down costs.\u201d <\/p>\n\n\n\n Linked to this, will be the speed at which new technologies are adopted. The mining industry is not usually associated with its quick uptake of new technologies. And there are good reasons for that, given the longevity of assets and the criticality of health and safety. But to reach net zero, the sector will need to become much more agile, said Stantec\u2019s Treen. \u201cWe need to put tests and trials into place and adopt a more agile approach, where we are fast to share when solutions work. We also need to be fast to fail, if solutions don\u2019t work, and so move to the next idea.\u201d<\/p>\n\n\n\n Automation: Achieving net zero will depend on efficiency, Treen continued. \u201cOne major efficiency upgrade comes from incorporating autonomous technology. Automated systems allow mines to operate for more hours in a day, which is efficient for fixed energy consumption. Mines run many secondary systems, such as ventilation and heating\/refrigeration, all day and night, whether people are working in the mine or not. Being able to automate processes and have the mine extracting or processing product for more hours in a day cuts down on the overall project time, and thus the required energy for the ancillary systems.\u201d <\/p>\n\n\n\n Useful life of the mine: With mine location and operations dictated by the mineral deposit, it is \u201cnot always feasible to re-deploy technologies or equipment from one mine to a different or new mine,\u201d explained Diasselliss. \u201cThe useful life of existing mines therefore plays a significant role in assessing what technologies or processes will be deployed in order to decarbonize operations. This may prevent decarbonization initiatives from being implemented, if the time it would take to decarbonize is greater than the remaining mine life.\u201d<\/p>\n\n\n\n Increased demand for minerals and metals: The energy transition and global push for decarbonization are expected to increase demand for many minerals and metals. But this may also result in an increase both in total mining GHG emissions and emissions intensity, as ore grades deteriorate and mining becomes more complex. \u201cThe industry may face increased scrutiny as a result of these emissions, even though they are driven by emissions-reduction activities (e.g., renewable energy generation),\u201d noted Diasselliss.<\/p>\n\n\n\n \u201cOne of the biggest roadblocks is the huge amount of metals required for the energy transition in all industries \u2013 which will impact mining,\u201d agreed Stantec\u2019s Treen, who also noted the impact this could have on the availability of critical minerals. \u201cAs industries and consumers move towards battery equipment, the supply of battery metals could become a bottleneck to the global energy transition, including in the mining industry, increasing the time to reach net zero.\u201d<\/p>\n\n\n\n Complexity of supply chains: The mining supply chain comprises hard-to-abate sectors, both in the form of heavy transport industries, as well as its direct customers. In many cases, these depend on fossil fuels to process and market refined products. \u201cWith significant differences in regulatory environments and shareholder values among value chain players, the task of reducing the industry\u2019s Scope 3 emissions is complex,\u201d said Diasselliss. \u201cIn the longer-term, the drive for circularity also brings the potential for disruption to the mining value chain such that industry incumbents may be forced to redesign current business models.\u201d<\/p>\n\n\n\n Investor attitudes: Investors will \u201cneed to adopt longer-term strategic thinking not only in terms of their support for potential actions to decarbonize site operations, but also when it comes to industry\u2019s potential to support and enhance management of climate risks for local economies and communities,\u201d said the World Gold Council\u2019s Mulligan.<\/p>\n\n\n\n One way of assisting investors and other industry stakeholders in understanding the net-zero transition is through the adoption of comprehensive and transparent reporting standards, such as those produced by the Taskforce for Climate-related Financial Disclosures (TCFD). This route is being taken many in the industry, including Anglo American, which has been a formal supporter of TCFD since 2018 and continues to produce its climate-related disclosures in line with this framework. The World Gold Council and its members have also collectively committed to reporting their positions and plans on climate-related risks in alignment with TCFD recommendations. <\/p>\n\n\n\n \u201cThe TCFD recommendations and reporting framework is widely recognized as the preferred method for embedding climate change into the governance, strategy and risk management systems of organizations, and the means by which they disclose comprehensive and high-quality information on these factors to investors and stakeholders,\u201d explained Mulligan. <\/p>\n\n\n\n Competition concerns: \u201cThere is an argument to be made for further knowledge sharing across the industry \u2013 something we have sought to facilitate and encourage,\u201d continued Mullligan; however, collaboration also brings its own issues.<\/p>\n\n\n\n \u201cGiven the overlapping priorities across mining companies and shared suppliers of technologies and equipment, establishing alliances and partnerships could enable quicker progress,\u201d said Deloitte\u2019s Diasselliss. \u201cHowever, companies will need to balance the desire to decarbonize against their internal concerns of sharing internal company data and knowledge.\u201d <\/p>\n\n\n\n \u201cWhile it is a business advantage to keep proprietary innovation information, some amount of sharing will be necessary to advance the industry to net zero,\u201d agreed Stantec\u2019s Treen. \u201cWe need to share successes.\u201d <\/p>\n\n\n\n It was therefore heartening to hear that Anglo American also prioritizes partnerships, which are \u201ccrucial to both our individual and shared success,\u201d as Dunn explained. \u201cWe will continue to work with government, host communities, suppliers, customers and our peers, among others, to tackle emissions along the value chain. This approach reflects the simple fact that climate change is affecting us all and that navigating the transition is both a shared and urgent endeavour.\u201d<\/p>\n\n\n\n Policy: \u201cA strong case might be made for closer of co-ordination with local and national governments to create amenable environments in which low-carbon solutions might flourish,\u201d added the World Gold Council\u2019s Mulligan. \u201cMany nations lack a clear route to achieve their emissions reduction obligations. These might benefit from establishing a more amenable and collaborative policy landscape that allows responsible corporate actors, such as large-scale mining companies, to be more ambitious in decarbonizing and building climate resilience.\u201d<\/p>\n\n\n\n <\/p>\n\n\n\n The success of net zero lies with mining\u00a0<\/strong> This is best illustrated by the need for electrification required in a 1.5\u00b0C pathway. To achieve this, primary copper demand will grow by almost 50% in the next decade. Anglo American\u2019s new Quellaveco mine in Peru expects to deliver around 300,000 tonnes per annum of copper on average in the first 10 years of operation, making it one of Peru\u2019s biggest new copper mines, and the company has further copper growth opportunities in our portfolio at Los Bronces and Collahuasi. <\/p>\n\n\n\n Mining also has a role to play in activities with which it is not normally associated \u2013 at least in the popular mind, e.g., by creating a more sustainable and resilient food supply. Thus, polyhalite from Anglo American\u2019s Woodsmith project has a lower carbon emissions profile compared to many other fertiliser products, while long-term use of polyhalite also improves soil strength and structure, which can improve the soil\u2019s carbon sequestration capacity. <\/p>\n\n\n\n The imperative is therefore clear: \u201cwe need net-zero mining because all other industries rely on mined materials to become net zero,\u201d Stantec\u2019s Treen summed things up. \u201cWe need to learn how to get mining companies into a green space. It is critical to create mines that are safer, more efficient, and with a higher focus on ESG requirements, so we can get them permitted quickly and get metals and minerals into market.\u201d <\/p>\n\n\n\n And the time for talking this talk is now. As Deloitte\u2019s Diasselliss concluded, \u201cit is important that the industry makes progress on decarbonizing mining activities. We should not let a focus on reaching net zero stop us from taking actions now that move us along the way.\u201d<\/p>\n\n\n Net zero is one of today\u2019s buzziest of buzz words. But it is more than clickbait. Achieving net zero is the challenge of a generation. What progress is being made and where to do we go from here? By Jonathan Rowland There are \u201cfew more pressing challenges facing all industrial and economic sectors than the need to rapidly decarbonize in…<\/p>\n","protected":false},"author":8,"featured_media":4516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[391,1918,1919,1917,337,1047,1916],"coauthors":[1635],"class_list":["post-4515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-anglo-american","tag-deloitte-touche-llp","tag-emissions-footprint","tag-north-american-mining","tag-stantec","tag-sustainable-mining","tag-world-gold-council"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
One of \u2013 if not the \u2013 most significant elements to achieving net zero is how mining will source power going forward. \u201cDecoupling electricity \u2013 whether it be self-generated or grid-sourced \u2013 from fossil fuel emissions is a vital step,\u201d said Mulligan. \u201cWe are witnessing this transformation already with a notable shift to renewable energy sources.\u00a0<\/p>\n\n\n\n\n
\u201cClimate change is the defining challenge of our time,\u201d said Jonathan Dunn, head of International Policy and UK Government Relations, at the mining major. \u201cIn particular, there is a growing awareness of the centrality of mining to the energy transition, as well as the important contribution we can make to delivering on the shared global aspiration to achieve a net zero future.\u201d\u00a0<\/p>\n\n\n\n
<\/strong>The net-zero challenge \u201cprovides both a technical and financial challenge,\u201d according to Jon Treen, senior technical advisor \u2013 Sustainable Mining, at Stantec, who also highlighted the importance of innovation to address these challenges. \u201cAutonomous vehicles, electric vehicles (battery or trolley assist), and carbon capture have become major initiatives for mining companies in recent years. The amount of collaboration within the industry to develop solutions to the net zero challenge is also growing rapidly, and mining companies are increasingly looking at other industries to leverage their knowledge and experience.\u201d<\/p>\n\n\n\n
\u201cMost mining companies are still working to understand their emissions footprint,\u201d said John L Diasselliss, principal \u2013 Mining & Metals at Deloitte & Touche LLP. \u201cHistorically, this has been around Scope 1 and 2 emissions, but we are now seeing greater movement to understanding Scope 3 emissions as well.\u201d<\/p>\n\n\n\n\n
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\u201cAll sectors must undergo significant changes to support the net zero transition, but the pace and difficulty of transition will vary,\u201d said Anglo American\u2019s Jonathan Dunn. When it comes to mining, there are a range of specific issues to be navigated.<\/p>\n\n\n\n
Although there are many issues still to navigate, \u201cthe challenge that climate science sets, as so clearly stated in the Intergovernmental Panel on Climate Change\u2019s Sixth Assessment report, is to decarbonize the global economy as quickly as possible,\u201d said Anglo American\u2019s Dunn. And the success of decarbonization relies on mining. \u201cMining has a critical role to play in providing the metals and minerals needed for the net-zero transition, and much of our growth is aligned to a net-zero transition \u2013 from base metals (including copper and nickel) portfolio, to platinum group metals and polyhalite.\u201d\u00a0<\/p>\n\n\n\n![\"\"](\"https:\/\/northamericanmining.com\/wp-content\/uploads\/2023\/04\/Screen-Shot-2023-04-29-at-10.30.26-PM.png\")
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