Tag Archives: carbon emissions

Aggreko to energise Gold Fields’ Salares Norte mine with hybrid power solution

Aggreko, a leading provider of mobile and modular power solutions, has signed a contract with Gold Fields to provide a 25.9 MW hybrid solar and thermal power solution to the Salares Norte open-pit mine in Chile.

This “ground-breaking solution” has been designed to provide power for the entire mine, which sits at an altitude of 4,500 m in the Andes mountain range and is 190 km from the nearest town, Aggreko says.

The hybrid system will comprise both tailormade high-altitude performance diesel gensets and Aggreko Solar Power units, optimised for off-grid applications and ready to meet the extreme wind conditions these units will experience.

The gensets will each deliver 772 kW (for 16 MW of power in total) and will incorporate spinning reserve and cold reserve units to efficiently manage peaks in demand, the company says. This diesel generation system will be integrated with solar units, which, once installed, will provide 9.9 MW of emission-free power.

“The system will deliver a reliable, modular power supply across all five of the mine’s distribution points, whilst surpassing the Chilean government’s environmental standards as well as Gold Fields’ requirement for a minimum of 20% renewable power generation for mining operations,” Aggreko said.

Once complete, it will achieve $7.4 million in cost of energy savings over the next decade and a further $1.1 million in carbon tax offset over the Aggreko project lifetime in addition to 104,000 t of carbon emissions savings, Aggreko estimates.

“The modular rental solution also supports a consolidated capital expenditure outlay, allowing for greater cost control and variable commitments whilst ensuring continued operational excellence at the mine,” it added.

The deployment of this hybrid solution follows Aggreko’s recent launch of Aggreko Solar Power, which will be deployed to provide power at the site. This solution is designed for weak or off-grid energy applications, providing clean and efficient power supply to a range of operations without long-term financial commitments.

Pablo Varela, Latin America Managing Director from Aggreko, said: “As the energy transition continues to gather pace, our customers are increasingly looking for more flexible power solutions which can reliably support operations whilst reducing carbon emissions and lowering costs.

“Hybrid products, such as the one we are deploying for Salares Norte, enable a reliable and flexible power supply whilst reducing carbon emissions, thanks to the incorporation of Aggreko Solar Power units as part of the system. Having a standardised product such as this provides the kind of consistency and reliability which our customers have come to expect from us.”

The 10-year contract between Aggreko and Gold Fields for power generation at the mine represents the strong working relationship between the companies, reinforced with the recent installation of one of the world’s largest renewable microgrids at Gold Fields’ Granny Smith mine in Western Australia.

First production from the mine is set for early 2023, with Salares Norte having an 11.5-year life of mine with a production average of 450,000 oz/y for the first seven years of operations.

Shell to supply BHP’s LNG-fuelled Newcastlemax bulk carriers

BHP says it has awarded its first LNG supply agreement for five LNG-fuelled Newcastlemax bulk carriers, which will transport iron ore between Western Australia and China from 2022.

Shell has been awarded the contract to fuel the vessels, which BHP will charter from Eastern Pacific Shipping for a five-year term as part of a previously announced arrangement confirmed in September.

BHP Chief Commercial Officer, Vandita Pant, said: “The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain.

“LNG fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30% on a per voyage basis compared to a conventional fuelled voyage between Western Australia and China, and contribute to our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products.”

Steve Hill, Executive Vice President, Shell Energy, said: “I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers. Decarbonisation of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes.

“This LNG bunkering contract strengthens the bunkering market in the region and we look forward to working with BHP and other customers in the maritime sector on their journey to a net-zero emissions future.”

The contract is the result of a tender process that included potential suppliers across several geographies. Technical capability, available infrastructure and cost competitiveness were among the stringent criteria.

LNG bunkering – the process of fuelling ships with LNG – will take place through the first LNG bunker vessel in Singapore, ‘FueLNG Bellina’. The vessel is operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine. The bunker vessel will be able to bunker fuel at a rate of 100-1,000 cu.m/h.

“The LNG bunkering contract will enable BHP to manage fuel supply risk, build LNG operational capability internally, and also help to strengthen the emerging LNG bunkering market in the region,” Pant said. “This contract is expected to form up to 10% of forecasted Asian LNG bunker demand in FY2023 (financial year 2023).”

BHP Nickel West to reduce emissions with Southern Cross Energy contract extension

BHP has executed a 15-year contract extension to its power purchase agreement (PPA) with energy provider Southern Cross Energy (SCE) for the supply of electricity to its Nickel West operations in the Goldfields of Western Australia.

The agreement extends the current arrangement to 2038, giving Nickel West access to all electricity produced by SCE.

Nickel West Asset President, Eduard Haegel, said the PPA also provided Nickel West with the additional ability to integrate renewable electricity generation, including solar and wind, with energy storage technologies to meet its emissions reduction targets and deliver lower carbon, sustainable nickel to its customers.

Study phases for renewable energy supply and carbon emissions reduction under the extended PPA are underway, including an 18.5 MW solar photovoltaic farm at Nickel West’s Leinster and Mount Keith operations, supported by a battery energy storage system. A 17 MW waste heat steam turbine system at the Kalgoorlie smelter is also being evaluated to provide low-emissions electricity from furnace heat recovery, BHP said.

The combined projects have the potential to reduce Nickel West’s Scope 2 electricity greenhouse gas emissions by up to 15% by 2023, based on 2020 levels.

“These projects contribute to the first phase of our emissions reduction strategy, as we continue to evaluate plans for additional renewable energy supply to decarbonise our nickel operations,” Haegel said.

“We are at the beginning of an energy revolution that will transform our world and materially increase demand for nickel. BHP Nickel West is well placed to provide our nickel units sustainably, and with one of the lowest carbon footprints.”

BHP has committed to a science-based target of a 30% reduction in carbon emissions from 2020 levels by 2030, with a long-term target of net zero operational emissions by 2050.

“Our integrated value chain and the sulphide nature of our nickel deposits makes Nickel West one of the lowest carbon emitters in the industry and gives BHP a global advantage in the sustainable production of nickel,” Haegel said.

ABB, TAKRAF complete commissioning of Chuquicamata conveyor system

ABB, working with TAKRAF, has completed commissioning and testing of the world’s highest-powered gearless conveyor drive system at the Codelco-owned Chuquicamata copper mine in Chile.

ABB has provided engineering design, gearless conveyor drives (GCD), electrical equipment for power supply, energy distribution and automation of a new underground and overland conveyor system at one of the world’s largest copper mines.

Chuquicamata is currently transitioning from open-pit to underground mining, with the conveyor system, commissioned in just four months, part of a new underground project that is expected to extend operations for the next 40 years.

Project management and engineering for the full electrical, control and instrumentation scope was led by ABB in Germany, with long spells on site in northern Chile to work side-by-side with TAKRAF to equip the site’s new underground operation with a large conveying system that overcomes an altitude difference of 1,200 m and covers a distance of almost 13 km, ABB said.

The three principle 11,000 t/h conveyors feature GCDs equipped with large ABB AC synchronous motors with a rated power of 5 MW each, resulting in a motor shaft torque of about 900 kNm. With every line in constant use, high availability and low maintenance are essential. Designed with a minimum of transfer stations, just one was required underground, saving significant project cost, ABB said.

Based on continuous conveying technology, the infrastructure is completely truck-less, eliminating the need for 120 large haul trucks. This results in saving around 130 million litres/y of gasoline consumption, bringing the carbon emissions from 340,000 t/y down to 100,000 t/y. It is also the first transportation system in the world to employ premium steel cable belt technology, ST10000, for use on uphill tunnel conveyors, according to ABB.

ABB high power motors in position

“This mega project achieves a number of firsts, from the system’s installed drive power to the application of the ST10000 conveyor belt,” Marc Hollinger, TAKRAF Project Manager, said. “With this project, we firmly establish TAKRAF as one of the world’s only providers capable of delivering a mega project of this nature incorporating advanced technologies that push the boundaries of what has been done before. This is a complex project of the highest magnitude demanding global cooperation between internal and external parties.”

Ulf Richter, Global Product Manager for Belt Conveyor Systems at ABB, said: “This is a new milestone in underground applications for continuous mining. It is the highest drive power ever installed on a conveyor and uses a wide range of features for data acquisition, equipment assessment and process optimisation.

“In piloting this gearless drive application with TAKRAF, we have overcome tremendous technical and logistical challenges due to underground situations, elevation change and capacity requirements.”

ABB liquid-cooled MV voltage-source frequency converters, together with large synchronous motors, deliver a decrease in active and reactive power consumption at the operation. This is highly energy efficient, and without additional network filters, it says.

ABB’s Mining Conveyor Control Program ensures smooth belt operation and safe synchronisation between high power motors and high power hydraulic brakes, necessary for secure operation of steep uphill conveyors. The drive systems also work without mechanic backstops, ABB said.

A novel embedding concept, developed jointly by TAKRAF and ABB, enables straightforward installation and alignment of the GCD motors, saving installation time and longer deployment of maintenance teams. This was considered a major benefit compared with existing GCDs in cantilevered construction, ABB said. The concept also meant motors were 100% factory assembled and tested. They can also be mechanically disconnected from the drive pulley quickly so operations can continue if drive failure occurs. The total installed drive power for the entire system, including multiple feeder conveyors, totals 58 MW, of which there are 11 x 5 MW gearless synchronous motors.

ABB has also installed ABB Ability™ Ventilation Optimizer at Chuquicamata reducing carbon emissions and providing clean air to workers in line with the strict health, safety and environment requirements.

BHP weighs trolley assist and IPCC as part of decarbonisation efforts

BHP has provided an update on its progress on climate action, new climate commitments and how it integrates climate change into corporate strategy and portfolio decisions in a new report.

The company’s climate change approach focuses on reducing operational greenhouse gas emissions, investing in low emissions technologies, promoting product stewardship, managing climate-related risk and opportunity, and partnering with others to enhance the global policy and market response, it says.

“BHP supports the aim of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C,” the company clarified.

It explained: “BHP has been active in addressing climate risks for more than two decades, and has already established its long-term goal of achieving net zero operational (Scope 1 and 2) emissions by 2050 and its short-term target of maintaining operational emissions at or below financial year (FY) 2017 levels by FY2022, using carbon offsets as required.”

In the past year, BHP has made progress on this aim, announcing that the Escondida and Spence copper mines in Chile will move to 100% renewable energy by the mid-2020s, and, last week, awarding new renewable energy contracts for its Queensland coal assets, and the world’s first LNG-fuelled Newcastlemax bulk carrier tender.

BHP’s climate change briefing and 2020 climate change report outline how the company will accelerate its own actions and help others to do the same, it said. Today’s update sets out:

  • A medium-term target to reduce operational greenhouse gas emissions by at least 30% from adjusted FY2020 levels by FY2030;
  • Scope 3 actions to contribute to decarbonisation in its value chain. This includes supporting the steelmaking industry to develop technologies and pathways capable of 30% emissions intensity reduction with widespread adoption expected post-2030 and, in terms of transportation, supporting emissions intensity reduction of 40% in BHP-chartered shipping of products;
  • Strengthened linking of executive remuneration to delivery of BHP’s climate plan; and
  • Insight into the performance of BHP’s portfolio in a transition to a 1.5°C scenario.

The report also outlined some examples of emission reduction projects the miner is considering, which will be weighed as part of the maintenance capital category of its capital allocation framework. This includes solar power installations; alternative material movement technologies such as overland conveyors and in-pit crush and convey solutions; and trolley assist to displace diesel for haul trucks.

The company expanded on this in its report: “The path to electrification of mining equipment will likely include solutions such as trolley assist, in-pit crush and convey, overland conveyors and battery solutions.

“Diesel displacement represents a higher risk, higher capital step towards decarbonisation, so a phased approach to execution is proposed with particular emphasis on Minerals Americas-operated assets that are further advanced on the decarbonisation journey. Taking a transitional approach to electrification provides flexibility to allow for the potential for rapid development of emerging technologies and to resolve the complexities of integrating these technologies into existing operations.

“During FY2021, we will seek to collaborate further with International Council on Mining and Metals members, industry and original equipment manufacturers to progress research and development to reduce costs and assess any potential impacts from electrified mining equipment solutions to replace current diesel options.”

BHP Chief Executive Officer, Mike Henry, said of the report: “I’m pleased today to show how we are accelerating our own actions and helping others to do the same in addressing climate change. We see ourselves as accountable to take action. We recognise that our investors, our people and the communities and nations who host our operations or buy our products have increasing expectations of us – and are responsive to these.

“Our approach to climate change is defined by a number of key requirements. Our actions must be of substance. They must be real, tangible actions to drive emissions down. We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they control. To create long-term value and returns over generations, we must continue to generate value and returns within the strong portfolio we have today, while shaping our portfolio over time to benefit from the megatrends playing out in the world including decarbonisation and electrification.

“Our portfolio is well positioned to support the transition to a lower carbon world aligned with the Paris Agreement. Our commodities are essential for global economic growth and the world’s ability to transition to and thrive in a low carbon future. Climate change action makes good economic sense for BHP and enables us to create further value.”

Polymetal and SMT Scharf sign underground electric vehicle MoU

Polymetal and SMT Scharf have signed a Memorandum of Understanding (MoU) for a potential strategic cooperation in underground electric vehicles (EV) development in line with the miner’s climate strategy.

The MoU outlines that Polymetal and SMT will cooperate in the development, implementation and testing of zero-emission battery EVs. Initially, the collaboration is to be focused on mid-ranged LHDs and trucks, with potential involvement of drill rigs and utility vehicles in the future, Polymetal said.

IM understands Polymetal has previously tested RDH (now owned by Scharf under RDH-Scharf) battery-electric machines at some of its underground mines.

Two pairs of units (an LHD and truck) are going to be tested at Polymetal’s operations during the one-year trial with further collaborative re-design, signing of a distribution agreement and establishment of an after-sales support centre, Polymetal said, adding that the strategic cooperation is set to last for 10 years with an opportunity for further extension.

“The partnership with SMT grants us an easy access to customisable battery-electric vehicles which could positively contribute to our operating costs dynamics, greenhouse gas (GHG) emissions and personnel safety at underground mines,” Vitaly Savchenko, COO of Polymetal, said. “It fits well into our strategy to gradually involve EVs across the group’s operations and marks another step towards cutting carbon emissions by 5% in 2023.”

Polymetal’s GHG emissions from mining fleet and mobile machinery at the hubs with underground mines for 2019 were 334 Kt of CO2 equivalent, which is 12% of the group’s total emissions (Scope 1+ 2).

Cementation Canada ready to inject innovation into the underground mining space

Injection Hoisting first came to the attention of the global mining audience after Cementation Canada, the technology developers, took the top prize along with KORE Geosystems at the DisruptMining event in 2017. Back then, the concept was viewed as a potential alternative to the labour- and cost-intensive process of shaft sinking.

More than three years later, the concept has developed along with the list of potential applications. This has Cementation Canada, a pioneer in the shaft sinking market, and the man in charge of injection hoisting developments, Alun Price Jones, looking at a much wider underground market for the innovation.

The process as envisaged by Cementation Canada starts with material (ore/waste) being transported to an underground crusher and reduced to <52 mm (2 in). After this, the material is weighed and transported to a hopper, which feeds the raw material directly into a slurry mixture. This mixture is continuously fed through the injection pump and looped piping system before being injected into the flow of carrier fluid by the injector.

Ore/waste rock material is transported in a riser pipe to the surface where solid materials (ore/waste) are separated, with the former transported to the mill for further processing. The by-product fluids, meanwhile, are separated, filtered and recycled.

With the company having recently been awarded C$88,355 ($62,948) of funding from the Northern Ontario Heritage Fund Corporation (NOHFC), IM thought it was the perfect time to get an update from Price Jones.

IM: What will the funding from the NOHFC provide the company in terms of furthering its ambitions with the injection hoisting system?

APJ: Injection Hoisting (IH) offers a unique opportunity for mine operators to consider an alternative to traditional mine hoisting or trucking. The purpose of this funding is to assist Northern Ontario businesses to undertake applied research or pre-commercialisation activities required to further develop new technologies and move them to market. Our grant will be put towards patent costs, basic internal engineering costs, and peer review. The next step is to build a full-scale prototype, and Cementation is now looking to build a working installation in collaboration with mining companies.

IM: Since the IH system was introduced at DisruptMining, how has the concept/technology developed?

APJ: The concepts have been further developed, and the basic engineering advanced sufficiently for it to have been subject to formal peer review, completed by Patterson and Cooke who have worldwide experience in design of material transport systems by pipeline. The review gave a most favourable outlook on the proposed technology and considered some of our initial projected outcomes to be too conservative, and that the system is capable of higher levels of performance.

The IH system incorporates proven and effective existing technologies. The novel aspect of this system is the rock injection mechanism into the lift system, giving rise to a new hoisting methodology, which Cementation has patented. Patents have been granted in several jurisdictions, protecting the IH system for transport of ore and waste rock from deep underground to surface.

IM: What criteria was the proof of concept model built for? What scale is it at? Where was it built?

APJ: A proof of concept, small scale system was constructed at the Cementation workshops in North Bay (Ontario). It was built using clear plastic pipe to study flow, to trial different slurry injection manifolds, and observe mixing, to evaluate the effectiveness and demonstrate production rates with 50 mm (2 in) flow lines over a height of 4 m. The principal of injecting a rock slurry into a constantly moving flow of carrier fluid was verified. The system consistently moved 37.5 kg in just over two minutes, equivalent to over 1,000 kg/h (1 t/h).

The Injection Hoisting system process with the rock injection mechanism into the continuous loop, carrier fluid lift system

The results led into the next stage for an envisioned prototype attaining 24 t/h (circa-500 t/d). Further engineering indicates the IH system is capable of higher levels of performance with projections for commercial systems scaled up to 150 mm (6 in) pipe, or 200 mm (8 in) heavy pipe capable of delivery rates in the range 1,000-2,000 t/d over a vertical lift of circa-600 m (up to 2,000 ft).

Systems would be scalable to perform as mine production increases (production and/or depth increase). Applications would include ore and waste hoisting from any underground mine as an alternative to traditional skip hoisting or trucking.

IM: Which applications currently have the strongest business case/are easiest to employ?

APJ: IH is an innovative alternative approach to conventional hoisting or trucking ore/waste rock from underground mines. The benefits are many and include:

  • Capital and operating costs reductions through – reduced shaft size and headings, reduction or elimination of the headframe and surface infrastructure, reduction in shaft station and shaft bottom excavation, elimination of expensive hoisting and/or mobile equipment costs;
  • Reduction of carbon footprint through lower energy consumption especially when compared with traditional mine truck applications, reduced carbon emissions through reduction/elimination of underground mine trucks, lower ventilation demand through reduction of trucking emissions that allows for smaller excavation cross sectional areas; and
  • A safer operating environment directly related to a reduction in exposure of workers to open holes and mobile equipment. The system would be intrinsically safer in both installation and operation. There are no issues in respect of current regulations in all the jurisdictions we have reviewed, which we see as an enabler.

IM: Is there a lot of interest in combining mechanised shaft sinking and development with this type of application where rock cutting could facilitate the size distribution that the pumps require without further processing?

APJ: This could be an ‘enabling technology’ for other developments, such as mechanised development or mechanised shaft sinking, to remove cuttings from the face/bottom. It could also be linked with large diameter raiseboring to remove muck the operating mine may otherwise not have the capacity to handle.

IM: What are the timelines for the next phase of the project (to construct and fully install a fully operational system in an underground mine)?

APJ: The next step is to install at depth a working prototype system based on a capacity of circa-500 t/d, and a vertical lift of 600 m. This would be suited to run-of-mine product reduced in size to <52 mm (2 in). The trial would prove the throughput tonnage, and provide the basis for development of a system capable of 1,000-2,000 t/d.

IM: What about potential commercialisation?

APJ: Studies indicate significant opportunities for capital and operating cost savings over traditional methods. Re-purposing existing, proven technologies reduce the risk of implementing this innovation, while maintaining existing maintenance procedures and skill sets.

With potential commercialisation, initial estimates based on a representative system capable of 500 t/d, from a depth of approximately 600 m, indicate a capital reduction of 30-50%; and operating cost reduction of between 30-70%.

Along with the reduction in capital and operating cost savings, there is time saving potential to reduce the overall shaft schedule by six months. Compared with trucking, the system has the potential for emissions reductions of approximately 12,250 kg/d of CO2. Other situations can be examined using project specific details and specifications.

Future business models for this technology could be varied, and it is open for discussion with interested parties to propose, develop and implement relevant commercial models.

Teck Resources intensifies carbon cutting strategies

Teck Resources has announced a target to reduce its carbon intensity by 33% by 2030 as part of its new sustainability strategy and goals.

This news builds on Teck’s previously announced commitment to be carbon neutral across all its operations and activities by 2050. It also follows the company announcing it was withdrawing the regulatory application for the Frontier oil sands project in Alberta, Canada.

Don Lindsay, President and CEO, said: “At Teck, we are always challenging ourselves to improve sustainability performance, so we can be sure we are providing the mining products needed for a cleaner future in the most responsible way possible.

“We have set ambitious new goals for carbon reduction, water stewardship, health and safety, and other areas because we believe that a better world is made possible through better mining.”

Teck’s sustainability strategy has been updated with new long-term strategic priorities, supported by short-term milestone goals. Highlights include:

  • Be a carbon neutral operator by 2050;
  • Reduce the carbon intensity of its operations by 33% by 2030;
  • Procure 50% of electricity demands in Chile from clean energy by 2020 and 100% by 2030;
  • Accelerate the adoption of zero-emissions alternatives for transportation by displacing the equivalent of 1,000 internal combustion engine vehicles by 2025 (a topic IM heard much about at the recent SME MineXchange Annual Conference and Expo);
  • Transition to seawater or low-quality water sources for all operations in water-scarce regions by 2040;
  • Implement innovative water management and water treatment solutions to protect water quality downstream of all our operations;
  • Preferentially consider milling and tailings technologies that use less water for both new mines and any mine life extensions at existing mines;
  • Work towards disposing zero industrial waste by 2040;
  • By 2025, develop and implement a responsible producer program and “product passport” that is traceable through the value chain;
  • By 2025, all operating sites would have and implement plans to secure a net-positive impact on biodiversity;
  • Eliminate fatalities, serious injuries and occupational disease;
  • Increase the percentage of women working at Teck, including women in leadership positions, and advance inclusion and diversity initiatives across the company by 2025; and
  • Achieve greater representation of Indigenous Peoples across the business by 2025 by increasing employment and procurement through business development, capacity-building, education and training opportunities.

In releasing its 2019 Sustainability Report today, Teck showed it had reduced its annual greenhouse gas emissions by 297,000 t of CO2 equivalent since 2011. This is the equivalent of taking 90,500 cars off the road.

BHP builds its ‘green’ copper credentials at Escondida, Spence

BHP says new renewable energy contracts it has recently signed in Chile will reduce energy prices for its Escondida and Spence copper mines by around 20% and help displace up to 3 Mt/y of CO2 emissions from these operations.

These agreements not only benefit BHP’s business but generate strong environmental and social value, according to Daniel Malchuk, President Operations for BHP’s Minerals Americas business.

BHP operates and own 57.5% of the Escondida mine, a leading producer of copper concentrate and cathodes from a copper porphyry deposit, in the Atacama Desert in northern Chile. Spence, which is 100% owned by BHP, is also in northern Chile.

He said: “Population growth and higher living standards combined with greater electrification are expected to push up demand for copper. This means that copper in products such as electric cars and renewable energy infrastructure, which are vital to the world’s sustainable growth, must be produced to the highest environmental aspirations.”

The new energy contracts, along with BHP’s investment in desalinated water in Chile, demonstrate social value in action and help drive the wider agenda for sustainable green copper, according to Malchuk.

Social value is one strategic pillar the company embeds in all its decision-making and informs the way in which it provides resources and generates long-term, sustainable value. This was the subject of BHP Chief External Affairs Officer, Geoff Healy’s speech in London earlier this month.

Malchuk said the company has negotiated four new power contracts that will meet its energy requirements at Escondida and Spence from 100% renewable energy sources by the mid-2020s.

“When fully operational, these renewable supply arrangements will eliminate virtually all of Escondida and Spence Scope 2 emissions (emissions from purchased energy), effectively displacing up to 3 Mt of CO2 annually compared to the fossil fuel contracts they replace,” he said. “This is the equivalent to annual emissions from about 700,000 combustion engine cars and accounts for around 70% of BHP’s Minerals Americas total greenhouse gas emissions.”

These actions also support Chile’s wider “Energia 2025” power policy target for 20% of all Chilean energy to come from renewable sources by 2025.

Following a competitive tender process, Escondida and Spence agreed separate 15-year contracts for 3 TWh/y and 10-year contracts for 3 TWh/year with ENEL Generación Chile and Colbún respectively. The ENEL contracts will begin in August 2021 and the Colbún contracts in January 2022, BHP said, with power supplied from solar, wind and hydro sources.

Malchuk said: “These contracts are practical examples of our commitment to social value that are linked to a sound business case. We estimate the agreements will reduce energy prices at our Escondida and Spence copper mine operations by around 20%, provide our operations flexibility and security of supply, and strengthen our ability to deliver sustainable copper across our supply chain.”

On top of this, the company has confirmed that its Spence operations will begin using desalinated water as the main source of supply from mid-2020 upon completion of a 1,000 l/s capacity desalination plant. This was part of a plan the company outlined in 2017 to grow the Spence operation.

This is on top of the more than $4 billion, 2,500-l/s desalination plant the company built at Escondida.

Malchuk said: “Water is a precious commodity that is critical to our operations in Chile and to the communities where we operate in the Atacama Desert, one of the driest regions in the world. We recognise our operations have an impact on the environment given the immense amount of water they consume.”

He added: “Our Water Stewardship position statement, launched last month, outlines our vision for a water secure world by 2030. It sets out our actions to improve water management within our operations and contribute to more effective water governance beyond the mine gate.

“We strongly support the UN Sustainable Development Goals on access to clean and affordable water. That’s why we will set public targets and engage industry, communities and governments to improve governance, transparency and collaboration in water management.”

Rio Tinto aims for carbon emission cuts across steel value chain

Rio Tinto has signed a Memorandum of Understanding (MOU) with China’s largest steel producer, China Baowu Steel Group, and Tsinghua University, one of China’s most prestigious and influential universities, to develop and implement new methods to reduce carbon emissions and improve environmental performance across the steel value chain.

The China Iron and Steel Association (CISA) invited all three to sign the MOU at its China International Steel and Raw Materials Conference, held in Qingdao.

The MOU will enable the formation of a joint working group tasked with identifying a pathway to support the goal of reducing carbon emissions across the entire steel value chain, which accounts for 7-9% per cent of the world’s carbon emissions, according to 2017 figures from The World Steel Association.

The working group will establish a joint action plan on how to best use the three entities’ complementary strengths in research and development, technologies, processes, equipment, logistics, industry coordination and policy advisory capacities to combat climate change and improve environmental performance, Rio, one of the world’s biggest iron ore producers with one of the largest operations in the Pilbara of Western Australia (pictured), said.

Rio Tinto Chief Executive, J-S Jacques, said: “This pioneering partnership across the steel value chain will bring together solutions to help address the steel industry’s carbon footprint and improve its environmental performance.

“The materials we produce have an important role to play in the transition to a low carbon future and we are committed to partnering with our customers and others to find the most sustainable ways to produce, process and market them. We are already doing this in aluminium and now, through this partnership, we will be doing it in the steel industry.

“We thank CISA for its support and look forward to collaborating with China’s largest steel producer, China Baowu, and Tsinghua University, a global leader in climate change research and collaboration.”

China Baowu Chairman, Chen Derong, said: “China Baowu is committed to ecological and sustainable development. We will promote sustainable production through intelligent manufacturing. We want to make a difference to the iron and steel ecosystem by developing greener factories and enterprises to deliver a cleaner, more sustainable steel industry.

“We hope to jointly address climate challenges with our partners, and create a model of harmonious coexistence between cities and steel mills.”

Tsinghua University Vice President, You Zheng, said: “Tsinghua is committed to providing solutions to climate change challenges and contributing wisdom to sustainable development. Initiating the Global Alliance of Universities on Climate is an important milestone, and just one example. The signing will enable us to work closely with the upstream and downstream of the steel industry value chain to jointly find the solution to the industry’s low-carbon transformation.”