Tag Archives: greenhouse gas emissions

OceanaGold to set GHG emission targets on its way to ‘net zero’ goal

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OceanaGold has become the latest miner to make a climate change pledge, releasing a position statement on the subject that includes an emissions reduction goal to achieve net zero emissions from its operations by 2050.

Included within this position statement is a plan to decarbonise its electrical energy supply and mobile equipment fuel.

The goal is core to OceanaGold’s environmental management strategy to mitigate the risks associated with climate change, establish measures and targets to improve the efficiency of its energy use and to minimise its greenhouse gas (GHG) emission intensity, the company said.

Michael Holmes, President and CEO of OceanaGold said: “OceanaGold has been strongly committed to responsible mining for 30 years, and, with current emissions lower than global industry average, we are already on the journey to reduce our carbon footprint.

“OceanaGold fully supports the Paris Agreement’s goal of limiting the increase in global average temperature to well below 2°C above pre-industrial levels. In line with this objective, we are setting a goal to achieve net zero GHG emissions from our operations by 2050, and we will establish milestone intensity targets (GHG emissions per ounce of gold produced) by 2022 to support this goal.”

Delivery of net zero carbon emissions production will rely on step changes from new and emerging technologies to decarbonise OceanaGold’s electricity supplies and mobile equipment use and incrementally improving energy use, efficiency and reducing energy consumption, the company said.

Since 2018, OceanaGold has been implementing a company-wide program of automation, digital and process transformation called ADaPT. This is helping define the company’s journey to operate the mines of the future, it said.

“Digital transformation presents an industry-wide opportunity to enhance performance and reduce impact,” Holmes said. “Successful implementation of the rapid advances in technology, innovation, automation, digitisation and electrification are central to achieving OceanaGold’s commitment to reduce our environmental impact.”

OceanaGold has established a roadmap of strategic actions to help reduce its carbon footprint and improve energy management, including:

  • Setting the goal to achieve net zero GHG emissions by 2050;
  • Establishing milestone interim emission targets by the end of 2021, linked to employment performance incentives;
  • Establishing a climate change Technical Coordinating Committee to identify opportunities to reduce GHG emission intensity and identify risks, opportunities, priorities and costs across OceanaGold; and
  • Undertaking climate change management and reporting to meet the requirements of the Task Force on Climate-related Financial Disclosures (TCFD).

Targets will be achieved through the implementation of four key strategic areas: improved energy efficiency and energy reduction; decarbonisation of electrical energy supply; decarbonisation of mobile equipment fuel; and carbon sequestration, the company said

BHP and China Baowu take on steel industry GHG emission reduction challenge

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BHP has signed a memorandum of understanding (MoU) with leading steel producer, China Baowu, with the intention, it says, to invest up to $35 million and share technical knowledge to help address the challenge of reducing greenhouse gas emissions facing the global steel industry.

The five-year partnership will focus on the development of low carbon technologies and pathways capable of emission intensity reduction in integrated steelmaking, according to BHP. Under the MoU, the deployment of carbon capture, utilisation and storage in the steel sector will also be investigated at one of China Baowu’s production bases.

BHP’s investment will be funded under the $400 million Climate Investment Program, set up last year to coordinate and prioritise projects, partnerships, R&D and venture investments to reduce Scope 1, 2 and 3 emissions, offsets and support development of technologies with the highest potential to impact change.

BHP Chief Executive Officer, Mike Henry (pictured left), said the companies would collaborate on technical solutions to use low carbon fuel sources such as hydrogen injection in the blast furnace, and explore other low emission options in support of China Baowu and the steel industry’s low carbon transformation and green development goals.

“This MoU further strengthens our longstanding relationship with China Baowu and reflects our joint determination and commitment to help reduce emissions in line with the Paris Agreement goals,” Henry said.

“BHP will invest in supporting the development of low emissions technologies, promote product stewardship and partner with others to enhance the global policy and market response to climate change. Our investments are focused on actions that can create real change in emissions.”

In September, BHP awarded a tender for world’s first LNG-fuelled Newcastlemax bulk carrier to carry iron ore between Western Australia and China, which will reduce emissions by more than 30% per voyage.

In October 2019, China Baowu, meanwhile, announced the establishment of a Low Carbon Metallurgy Innovation Centre and plans to establish a Global Low Carbon Metallurgy Innovation Alliance.

China Baowu Chairman, Chen Derong, said the MoU with BHP will further enhance and broaden the existing strategic partnership between the companies, and establish a model of joint industrial efforts to promote technological innovation and a sustainable transition to a lower carbon world.

“At the UN General Assembly, President Xi Jinping delivered an important speech that outlined China’s low carbon transformation and development,” Chen Derong said. “Low carbon transition and green development represent a major disruption to the traditional steelmaking value chain.

“As a leading company in the sector, China Baowu will take an active role in implementing low carbon technologies, working together with upstream and downstream partners.

“The global steel industry needs an open platform to jointly explore low carbon technology and roadmaps, as well as showcase to the world the efforts to reshape the steelmaking value chain.”

Consistent with the ambitions of China Baowu and BHP to drive efficiency and address emissions across the global steel industry, both companies will work together to establish a China Baowu-BHP Low Carbon Metallurgy Knowledge Sharing Center, to link complementary research and share low carbon and green development knowledge with domestic and international steel industry stakeholders, the two companies said.

Atalaya Mining looks to solar power for Proyecto Riotinto GHG emission, cost reductions

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Atalaya Mining is looking to take advantage of a natural abundance of sunlight at its Proyecto Riotinto copper operation in Spain with the development of a 50 MW solar plant.

The company announced today that it has started the permitting process for the plant build, with the 50 MW generated set to be used for “self-consumption” at the operation.

Technical studies carried out by a third party during the past months have indicated that, in addition to making a significant contribution to reducing carbon emissions, the solar project is economically viable and could potentially contribute to reducing Proyecto Riotinto’s operating costs, Atalaya said.

“The decision to pursue the solar project is in line with Atalaya’s ongoing commitment to environmental sustainability and to continue to have a positive impact on the people, environment and society surrounding the mine,” it added.

During the permitting period, the company will evaluate the various financing options being proposed by industry players in Spain.

Subject to completing the permitting process and securing financing, construction is targeted to commence by mid-2021.

Alberto Lavandeira, CEO of Atalaya Mining, said: “We are pleased to be committing to this solar initiative which will be one of the largest projects of renewable self-consumption in the industry. This is only a first step in achieving our long-term sustainability goals, but one that will have a positive and near term impact on Proyecto Riotinto.”

Earlier this year, Atalaya Mining completed an expansion of the operation to hit 15 Mt/y, up from the previous rate of 9.5 Mt/y.

BHP to cut Queensland coal operation emissions with CleanCo deal

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BHP has signed an agreement that could help it reduce emissions from electricity use in its Queensland, Australia, coal operations by 50% by 2025.

The renewable power purchasing agreement to meet half of its electricity needs across its Queensland coal mines from low emissions sources, including solar and wind, is with Queensland’s state-owned clean energy generator and retailer CleanCo, which has a target to support 1,000 MW of new renewable energy generation by 2025. The pact will run for five years from January 1, 2021.

“This will effectively displace an estimated 1.7 Mt of CO2e between 2021 and 2025 – equivalent to the annual emissions of around 400,000 combustion engine cars,” the company said.

BHP owns 50% of the BHP Mitsubishi Alliance (Mitsubishi holding the other 50%), which operates several coal mines across Queensland.

The agreement is the first of its kind signed by BHP in Australia and follows the company’s shift to 100% renewables in its Chile operations at Escondida and Spence from the mid-2020s. It will also support the development of new solar and wind farms in Queensland – the Western Downs Green Power Hub, due for completion in late 2022, and Karara Wind Farm, due for completion in early 2023.

BHP’s President Minerals Australia, Edgar Basto, said: “This is an important step forward in BHP’s transition to more sustainable energy use across our portfolio, and a first for our Australian operations. It will diversify our energy supply, help to reduce our energy costs, and reduce BHP’s Australian Scope 2 emissions by 20% from FY2020 levels.”

He added: “This is a prime example of prudent business decisions going hand-in-hand with social value, strengthening our business and benefitting the community.”

BHP Mitsubishi Alliance (BMA), Asset President, James Palmer, said: “This contract will help our operations across Queensland to further increase their sustainability through reducing the greenhouse gas emissions we generate from electricity use by half. It will also support two greenfield renewable projects that, in turn, are expected to generate regional jobs in Queensland.”

Over the five-year agreement, power will be provided via the grid, and predominantly contracted from a combination of solar, wind, hydro and gas generation, according to BHP.

For the first two years, power will be contracted from CleanCo’s low emissions portfolio which includes hydro and gas generation assets. From late 2022, the newly operational solar and wind farms are expected to progressively contribute up to half the electricity requirements, with the remainder supported by CleanCo’s low emissions portfolio. Combined with large-scale generation certificates, this will enable BHP to reduce Scope 2 emissions from its Queensland operations by 50% by 2025, based on the company’s 2020 financial year levels.

The contract will contribute to BHP’s medium-term, science-based target for the reduction of Scope 1 and Scope 2 operational greenhouse gas emissions – due to be announced shortly.

Australian Mines makes history with certified carbon neutral status

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Australian Mines says it has become the first mineral resources company to be certified a “Carbon Neutral Organisation” under the Australian Government’s Climate Active program.

Climate Active is the most rigorous and credible carbon neutral certification available in Australia, according to the company, and meeting the “Climate Active Carbon Neutral Standard” means Australian Mines’ carbon neutral status is based on best practice, international standards and genuine emissions reductions.

Last month, the Queensland Government offered a conditional financial support package to Australian Mines’ 100% owned Sconi cobalt-nickel-scandium project in the north of the state. When fully developed, Sconi is forecast to be one of the most cost competitive cobalt-producing, nickel operations in the world, Australian Mines says.

The 2018 Sconi bankable feasibility study outlined a three open pit, 2 Mt/y operation that could produce some 8,496 t/y of cobalt sulphate, 53,301 t/y of nickel sulphate and 89 t/y of scandium oxide over the 18-year mine life.

“Australian Mines ability to maintain carbon neutral certification will underpin its position as a sustainable business that incorporates leading environmental, social and governance (ESG) practices,” it said. The company is already an approved member of the Initiative for Responsible Mining Assurance (IRMA), which independently verifies and certifies socially and environmentally responsible mining.

Australian Mines’ Managing Director, Benjamin Bell, said becoming the first Climate Active Carbon Neutral mineral resources company is consistent with Australian Mines’ commitment to leading on ESG.

“It follows the approval in March 2020 of our membership of IRMA and the Queensland Government recognising our commitment to the communities where we operate by granting ‘Prescribed Project’ status to our flagship Sconi project in 2019,” he said.

Australian Mines’ primary focus is to sustainably develop the Sconi project into a globally significant, ethical, reliable source of technology metals to meet the rapid growth in the electric vehicle and energy storage industries, it says.

A key part of sustainably developing Sconi is the company’s carbon neutrality plan designed to reduce greenhouse gas emissions by implementing energy saving initiatives coupled with offsetting any unavoidable emissions.

“Being certified Carbon Neutral by Climate Active is part of building a sustainable future for Australian Mines, long-term value for our shareholders and a better environment for all our stakeholders,” Bell said. “Members of the Climate Active Network are responsible for over 22 Mt of carbon emissions being offset, which is the equivalent of taking all of Sydney’s cars off the road for two years.”

Polymetal and SMT Scharf sign underground electric vehicle MoU

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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).

Hudbay invests in comminution energy efficiency research with CEEC sponsorship

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The Coalition for Energy Efficient Comminution (CEEC) has announced new sponsorship from base and precious metals mining company, Hudbay Minerals Inc.

Hudbay, a diversified mining company producing copper, zinc, gold and silver, owns three polymetallic mines, four ore concentrators and a zinc production facility in Canada and Peru (Constancia, pictured), as well as copper projects in the US. Its vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas, CEEC says.

CEEC CEO, Alison Keogh, said that with growing global demand for minerals such as copper to support the shift towards low-carbon technologies, the need for lower footprint mineral processing was becoming even more critical.

“Rock crushing and grinding can typically account for more than half of a mine’s energy consumption,” she said. “By working together as an industry to understand and optimise comminution challenges, we have the opportunity to improve efficiency and environmental outcomes.

“We’re delighted that Hudbay has joined our list of visionary sponsors, each committed to collaborating with CEEC’s global network of miners, suppliers and researchers to advance efficient, cost-effective, lower footprint mining.”

Peter Amelunxen, Hudbay Vice President of Technical Services, said increasing performance and delivering sustainable value involves a combination of operational know-how and technical sophistication.

“We recognise that collaboration with CEEC is a positive step in our commitment to continuous improvement.”

Amelunxen said Hudbay was particularly interested in “adding a metric to our success” by contributing to the CEEC Energy Curves database. This free tool allows users to benchmark the energy efficiency of sites and visually assess potential energy and cost benefits through various operational scenarios.

“We’ve always approached what we do in terms of improving cost and energy efficiencies,” he said. “However, we’re most excited about using the Energy Curves to quantify, pound for pound, the energy reduction piece.

“This will help inform our decisions around targeted enhancements to existing sites and plan best practice operations in future mines. The bottom line is that this tool will enable us to demonstrate how we are improving environmental management while also improving returns for shareholders.”

David Clarry, Hudbay Vice President of Corporate Social Responsibility, said data sharing through the CEEC Energy Curves, and broader initiatives such as participation in the CDP (formerly Carbon Disclosure Project), were important for the industry.

“By being transparent and sharing knowledge, we can learn from each other and find novel approaches for achieving environmental benefits in a cost-effective way,” Clarry said. “Tapping into all the resources that CEEC offers gives us cutting-edge learnings so we can continue to pursue economically viable opportunities to improve energy efficiencies, reduce greenhouse gas emissions and better manage climate-related risks.”

Keogh said with the COVID-19 pandemic affecting many businesses around the world, Hudbay’s sponsorship during this time was commendable.

“As a lean, virtual not-for-profit, we thank all our sponsors for their continued support during this period of uncertainty,” she said. “This ongoing commitment will help CEEC and the industry to weather the storm and come out stronger and more sustainable on the other side.”

University establishes GHG framework to help miners with climate change challenge

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University of Queensland researchers say they have developed a framework that aims to reduce the mining industry’s impact on climate change by accounting for sources and sinks of greenhouse gas (GHG) emissions.

The proposed framework, published in Nature Geoscience, will allow the mining industry to better monitor, gather and assess emissions data, identify measurement gaps and evaluate and apply mitigation strategies, according to the researchers.

UQ Sustainable Minerals Institute (SMI) Researcher and Lead Author, Dr Mehdi Azadi, said primary mineral and metal production accounted for about 10% of the world’s energy-related GHG emissions in 2018.

He said the framework addressed climate change related issues by identifying major mitigation pathways.

“Rising standards of living have led to increasing demand for mining activities to provide the minerals and metals required by many technologies,” Dr Azadi said. “While the mining sector contributes to global emissions, it is also increased affected by climate change.

“Our framework examines the sources of GHG emissions across the mining supply chain – from mining, ore processing, transportation, to waste management – and identifies ways to improve mitigation strategies.

“Fugitive emissions reduction, resource efficiency, energy usage, and biological solutions are the four major pathways we have identified as major opportunities for GHG mitigation in mining. These pathways will allow policymakers and miners to create flexible plans for addressing GHG emissions by taking into account operational requirements and external factors.”

He said the framework was flexible enough to be tailored to a specific commodity, mining operation, climate or country.

“Using this framework, we hope to collaborate with governments, the mining industry and research institutions to create guidelines or toolboxes for certain commodities, climates, countries and operations,” Dr Azadi said.

“Our framework will help the industry reduce its carbon footprint and provide financial benefits by lowering energy consumption across the supply chain, while also decreasing the adverse environmental impacts caused by mining operations.”

For green technologies to be effectively implemented, Dr Azadi said it was essential the mining industry accurately and transparently accounted for GHG emissions.

“But this isn’t just about reducing mining’s effect on climate change, it is also about reducing climate change’s effect on mining; the industry needs accurate data to reduce its carbon footprint and improve risk management.”

The article is co-authored by SMI Associate Professor, Mansour Edraki, UQ and University of Delaware Professor, Saleem H Ali, and University of Technology Sydney’s Dr Stephen Northey.

Professor Ali said carbon accounting in mining was increasingly important because minerals for clean energy infrastructure are being widely explored.

“Understanding the full carbon budget of extraction is important in considering a range of potential supply sources and processing technologies,” he said.

SMI Director, Professor Neville Plint, said the framework reflects the institute’s commitment to working with the minerals industry to implement sustainable changes.

“An important part of improving mining’s role in sustainable a sustainable world is working with industry to develop and implement solutions that are practical and effective – this framework is a great example of that,” Professor Plint said.

New initiative to track GHG emissions in materials supply chain

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Rocky Mountain Institute, MIT Sustainable Supply Chains, the Columbia Center on Sustainable Investment, and the Payne Institute for Public Policy at the Colorado School of Mines have announced the Coalition on Materials Emissions Transparency (COMET).

This effort aims to build a standard method for measuring greenhouse gas (GHG) emissions in materials, “an important step in decarbonising mineral and industrial supply chains”, the partners said.

The COMET method will provide insight into the carbon content of consumer products like cars, buildings, and phones, and will help both corporations and consumers purchase materials and products with fewer embedded CO2 emissions, according to the partners.

Paolo Natali, Director of the Materials Initiative at Rocky Mountain Institute, said: “We all know that you can’t manage what you can’t measure. Until people know the climate impact of the products they’re using, it will be impossible for them to demand lower-carbon goods, and it will be impossible to decarbonise the industrial sectors that are responsible for 40% of annual greenhouse gas emissions.”

While climate disclosure is increasing, it remains a challenge to compare greenhouse gas emissions across companies and supply chains, the partners said. “There is currently no consistency in data collection or reporting across methods, and no framework that spans the entire supply chain,” they said. “This means there is no universally accepted way to know the emissions intensity of products or materials.”

The COMET method will change that by making GHG disclosure comparable across the existing reporting mechanisms and helping to develop a clear picture of emissions from the production of key materials like steel, copper, and cement, it said.

Suzanne Greene, Program Manager for MIT Sustainable Supply Chains, said: “Our ultimate goal is transparency of climate impacts across the supply chain. An emissions calculation method for mineral and industrial supply chains is an important first step for consumers and investors to understand and drive the decarbonisation of the goods we use every day.”

COMET will initially focus on developing sector-specific guidance for metals and minerals.

Teck examines solar power options with acquisition of SunMine energy facility in BC

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Teck Resources says it has purchased the SunMine solar energy facility in Kimberley, British Columbia, from the City of Kimberley.

SunMine, located on fully reclaimed land at Teck’s former Sullivan Mine site, is a 1.05 MW solar facility that has been operational since 2015. It is the first grid-connected solar facility in the province and the first built on a reclaimed mine site. It also has potential for future expansion, according to Teck.

Don Lindsay, President and CEO of Teck, said: “Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development, and supporting the global transition to a low-carbon economy.

“SunMine will help us gain first-hand experience with solar power generation as we advance the use of solar power at other operations.”

Teck has been involved with SunMine from its beginning, having provided the land and site infrastructure for development of the solar facility. Teck’s former Sullivan mine was a major producer of zinc, lead and silver, operating for nearly 100 years before closing in 2001, and close to 1,100 ha of the former mining area has since been reclaimed.

Development of SunMine aligns with Teck’s approach to working with stakeholders to develop post-mining land uses, from wildlife habitat to economic diversification, the company said.

Since 2011, Teck has implemented projects and initiatives to reduce greenhouse gas emissions at its operations by 289,000 t – the equivalent to taking over 88,000 combustion engine cars off the road, according to Teck – and 81% of Teck’s total electricity consumption is from renewable energy sources.

The sale amount is around C$2 million ($1.53 million), equal to the City of Kimberley’s outstanding debt obligation for SunMine, Teck said.