Consistent with its commitment to sustainable mining, KGHM (55%) and South32 (45%)-owned Chilean copper-moly miner Sierra Gorda SCM late last year signed an innovative road transport contract for copper and molybdenum concentrate, which marked a historic milestone as it involves the first major fleet of liquefied natural gas (LNG)-powered transport trucks in the Chilean mining industry.
The initiative will incorporate into Sierra Gorda’s operations a fleet of 40 LNG-powered transport trucks equipped with 40 hermetically-sealed hoppers as well as two electric trucks. The miner said the equipment has the highest safety standards and the most modern technology to ensure clean and airtight transportation, reducing the emission of Scope 3 greenhouse gases, a classification given to emissions that are not directly produced by the company including those related to transportation and transfer of people, equipment and waste, amongst others.
Sierra Gorda SCM is set to begin transporting its copper and molybdenum concentrate using the LNG trucks from March 2025 through a strategic alliance with Grupo San Gabriel and Lipigas. Lipigas will be in charge of the LNG supply and is already completing the first service station of this type in the Antofagasta region. Grupo San Gabriel will operate the truck fleet.
The mining company told IM that the trucks are being supplied by Sweden’s Scania, and that they will be used to transport concentrate both to the Port of Antofagasta for shipment as well as to domestic Chilean customers. Last year, Lipigas signed a strategic alliance with Scania regarding the continued promotion of the use of LNG and Bio LNG in cargo transport. Lipigas is already the first company in Chile to develop an international corridor of LNG service stations for heavy-duty trucks. Additionally, the company is working to become the first company to produce and market Bio LNG in Chile in Q1 2025. This carbon-neutral gas will be generated based on the reuse of agricultural waste in a plant that is being built in the Ñuble Region.
This change represents a significant advance in Sierra Gorda’s commitment to reducing emissions and developing a green copper and molybdenum mining model that contributes to communities and respects the environment, allowing a reduction in the company’s carbon footprint of 40% compared to traditional transportation methods for copper concentrates with diesel trucks. The significant reduction is also achieved through the strategic location of the LNG supplier, which minimises the distances travelled by the fleet.
“Sierra Gorda SCM’s commitment to sustainability and innovation is a fundamental priority. This effort drives our goal of reducing our carbon footprint and reaffirms our vision of sustainable transportation, aligned with values such as inclusion, equity, and job security. In each of our processes, we work to integrate clean technologies and responsible practices that contribute to a greener future. We are proud to be part of an industry that is evolving towards a more conscious and efficient mining, with a comprehensive focus on the well-being of the communities and the care of the environment,” said Sandra Montiel, Vice President of Supply Chain at Sierra Gorda SCM.
The contract signed with Grupo San Gabriel incorporates rigorous emissions standards that are aligned with best international practices, evidencing the commitment of both companies to the development of a modern industry, respectful of the environment and the community. Sierra Gorda SCM’s new concentrate transport initiative joins its other advances in the field of sustainability, such as: the use of 100% renewable energy in its operations and the use of undesalinated seawater for its processes.