Tag Archives: net zero mining

South32 making engineering and design headway at Hermosa project

A stellar set of annual financial results has provided the ideal backdrop for South32 to update shareholders on its rapidly progressing Hermosa project in Arizona, USA.

Released late last month, the company’s 2022 financial year results showed off record earnings of $2.6 billion, record free cash flow from operations of $2.6 billion and record return on invested capital of 30.1%.

With group copper-equivalent production expected to increase by 14% in the next financial year, South32 looked to be well leveraged to in-demand metal markets at the right time.

The company has progressively been repositioning its portfolio toward metals critical for a low-carbon future, having already established a pipeline of high-quality development options. One of these high-quality development options is Hermosa.

Hermosa, which the company acquired outright back in 2018 as part of a takeover of Arizona Mining, is key to the company’s critical metals pursuit, having exposure to base and battery metals that are expected to grow in demand – both domestically in the US and internationally.

It is being designed as South32’s first ‘next generation mine’, according to Hermosa President, Pat Risner, with a series of technical reports highlighting its use of automation and technology to minimise its impact on the environment and target a carbon-neutral mining scenario in support of the group’s goal of achieving net zero operational greenhouse gas emissions by 2050.

These same reports also highlighted the potential to develop a sustainable, low-cost operation producing zinc, lead and silver from the Taylor deposit, with the bonus of possible battery-grade manganese output for rapidly growing domestic markets from the Clark deposit.

In the latest results, the company said it was devoting $290 million of growth capital expenditure in the 2023 financial year to progressing Hermosa as it invests in infrastructure to support critical path dewatering and progress study work for the Taylor Deposit. This is ahead of a planned final investment decision expected in mid-2023, which should coincide with the feasibility study.

South32 is devoting $290 million of growth capital expenditure in the 2023 financial year to progress Hermosa

Some $110 million of this was assigned to construction of a second water treatment plant (WTP2) to support orebody dewatering at the asset, alongside dewatering wells, piping systems and dewatering power infrastructure.

An additional $95 million was slated for engineering and initial construction ahead of shaft sinking at the operation, plus work to support power infrastructure and road construction.

The remaining amount was expected to support work across the broader Hermosa project, including Clark study costs and the Taylor feasibility study.

All signs from these results are that the company is laying the groundwork to develop this project ahead of that mid-2023 deadline.

In another sign of progress, South32 recently signed a “limited notice to proceed” for shaft engineering and design at Hermosa with contractor Redpath, Risner confirmed, adding that the award represented a positive step forward for the project.

“We look forward to continuing our engagement with local communities and all of our stakeholders as we make further progress with the project,” he said.

Redpath will no doubt be evaluating the technical studies that have been signed off to this point and informing future reports.

The PFS design for Taylor is a dual shaft mine which prioritises early access to higher grade mineralisation, supporting zinc-equivalent average grades of approximately 12% in the first five years of the mine plan. The proposed mining method, longhole open stoping, is similar to that used at Cannington, in Australia, and maximises productivity and enables a single stage ramp-up to the miner’s preferred development scenario of up to 4.3 Mt/y.

Yet, the Clark deposit opportunity – which has become even more tantalising with the US Government invoking the Defense Production Act and supporting the production of critical metals including manganese – could see the plan change.

The company says it may accelerate the prefeasibility study for the Clark deposit, which is spatially linked to the Taylor deposit. A scoping study has previously confirmed the potential for a separate, integrated underground mining operation producing battery-grade manganese, as well as zinc and silver from the deposit.

South32 previously said Clark has the potential to underpin a second development stage at Hermosa, with future studies to consider the opportunity to integrate its development with Taylor, potentially unlocking further operating and capital efficiencies.

With a PFS selection study expected later this year, investors and interested parties will soon know the role Clark could play in the wider Hermosa project.

What is easy to gauge already is that Hermosa is progressing on a track that many other development projects in in-demand sectors have gone down.

Teck to trial carbon capture utilisation and storage tech at Trail Operations

Teck Resources has announced a Carbon Capture Utilisation and Storage (CCUS) pilot project at its Trail Operations metallurgical complex in southern British Columbia, Canada, in support of its Net-Zero Climate Change Strategy.

The CCUS pilot is expected to begin operation in the second half of 2023 and is expected to contribute to the company’s aim of reducing the carbon intensity of its operations by 33% by 2030 and achieve net-zero emissions by 2050.

“This carbon capture pilot is an important step towards our knowledge building for the application of carbon capture, utilisation and storage as an emissions reduction solution, as we work to evaluate pathways to reduce greenhouse gas emissions across our operations and achieve our net-zero goal,” Don Lindsay, President and CEO, said. “The pilot also provides us with a technical platform to assist our steelmaking coal customers in materially reducing the carbon intensity of their steel production.”

The pilot plant will capture carbon dioxide (CO2) from the acid plant flue gas at Trail Operations at a rate of 3 t/d. The pilot project will also evaluate options for the utilisation and/or storage of the captured CO2 at Trail Operations, Teck says.

If successful, the project could be scaled up to an industrial CCUS plant with the potential to capture over 100,000 t/y of CO2 at Trail Operations, the equivalent emissions of more than 20,000 cars.

Teck acknowledged the support of the CleanBC Industry Fund for its funding contribution towards the CCUS Pilot Plant Feasibility Study, which was an important step in advancing the pilot. The CleanBC Industry Fund highlights the alignment between industry and government in achieving Canada’s goal of net-zero emissions by 2050, it said.

CEEC prepares for next chapter in growth with personnel changes

The Coalition for Eco Efficient Comminution (CEEC) has announced several major changes in its governance and operation, with CEO, Alison Keogh (right), stepping down, Janine Herzig (left) joining CEEC as Executive President and Board Director and Marc Allen taking over from Michael Battersby as Chair.

After six years of working as CEO to promote CEEC, Keogh has decided to step down from the position, and to welcome in new leadership for CEEC’s next chapter, CEEC said, adding that it will make an announcement shortly about the appointment of additional operational staff and Directors.

Keogh says she is proud to have been an early mover to help industry share critical knowledge on installing renewables and progressing net zero emissions approaches. She grew the group’s global reach, led international workshops across three continents and developed free webinars and podcasts to reach more people, CEEC said. She also initiated CEEC’s first workshop on Water Curves in North America and helped raise awareness of how important comminution and processing are to reduce energy, emissions and water footprint across mining worldwide.

More recently, she steered CEEC through the global pandemic and oversaw the organisation’s 10-year anniversary milestone in 2021.

“I am honoured to have led CEEC, which helps industry share practical solutions and innovative advances that are so important for the sustainable minerals needed for our world’s future,” she said. “Collaboration is vital to accelerate the world’s transition to net zero emissions. CEEC brings leaders and innovators together to share knowledge of cutting-edge processing to reduce mining’s footprint.

“I look forward to CEEC’s next chapter led by Marc Allen and Janine Herzig and encourage visionary leaders to contribute to this inspirational and global group.”

CEEC’s Board of Directors has undertaken a strategic review to consider the ever increasing environmental, social and governance (ESG) requirements of the resources sector. The outcome of this analysis is that CEEC has created the role of Executive President and has brought in Janine Herzig in this position.

Herzig is a Director of MetVal Consulting Pty Ltd, Convenor of the MetPlant Conference Series, former Non-Executive Director of Base Resources Ltd and former Director and Immediate Past President of the Australasian Institute of Mining and Metallurgy (AusIMM). She has over 30 years’ experience in the resources sector, across multiple commodities; starting her professional career as a graduate metallurgist in Mount Isa and later working in various operational and project roles across on numerous sites, including 10 years with Iluka Resources.

As General Manager – Minerals and Industrial, with Amdel, she then led a major expansion and transformation of the company, which then became Bureau Veritas.

A Fellow and Chartered Professional (Metallurgy) of the AusIMM, Herzig is currently the Chair of the AusIMM ESG Board Advisory Group, Chair of the AusIMM International Advisory Forum, and Chair of the AusIMM Awards Committee Highest Honour Panel. She is also Co-Chair of the Global Mineral Professionals Alliance (GMPA) and its Global Action on Tailings (GAT) initiative.

Herzig is also a member of the Steering Committee for the NExUS program, the Advisory Board for the ARC Training Centre for Integrated Operations for Complex Resources, presenter for the AusIMM Professional Certificate in ESG and Social Responsibility and is on the Advisory Board of the Australian Society for Off-Earth Construction (ASOC) which operates out of the Andy Thomas Centre for Space Resources.

“I am delighted to assume this comprehensive leadership role with CEEC, having been a CEEC Advocate for the past two years,” she said. “It allows me to combine my passions for mineral processing, ESG initiatives, technical excellence and giving back to an industry that I love.”

CEEC’s Board has appointed Marc Allen as Chair of CEEC, taking over from Michael Battersby.

Allen is an energy and emissions expert who joined the CEEC Board as a Director in 2019. He is the Technical Director at engeco, a Singapore-based consultancy providing advisory services primarily in energy and greenhouse gas management and strategy, as well as broader sustainability, across Australasia.

He has over 20 years’ experience in a variety of operational and consulting roles with INPEX, Energetics, Simulus and BOC. His experience has focused on sustainability, process engineering, carbon management and energy efficiency to enable the transition to a low-carbon economy through development and implementation of robust strategies for greenhouse gas and energy management. He has published several papers on renewable energy, energy efficiency and carbon pricing, and holds a Bachelor of Engineering (Chemical) degree from the Curtin University of Technology. He is also a mentor for the Curtin Next Step mentoring program.

Outgoing Chair, Michael Battersby, welcomed Allen to the position: “I have been honoured to hold the position of Chair of CEEC for the last four years. However, renewal is always beneficial. I will join Joe Pease in becoming a past Chair and will continue as a Director.

“Having worked with Marc Allen during my time as Chair, I know he will lead CEEC to new heights in the coming years.”

Allen commented: “I have been involved with CEEC since 2018 and am very much looking forward to fulfilling the role of Chair and working to continue our mission to maximize energy efficiency across the minerals processing industry. I’m appreciative of the leadership shown by both Joe Pease and Michael Battersby during my time at CEEC so far and hope to continue to work with them closely while they remain on the board.”

CEEC will be announcing additional changes to prepare for the next evolution of the organisation and its growth and expansion. These include an increased focus on net zero, decarbonisation and ESG, finalisation of the Water Curves project, the release of new ‘Spotlight Leader Conversations’ video interviews and more episodes of the new ‘CEECing Change’ podcast.

The winners of the 2021 CEEC Medals were announced on June 21 and will be officially awarded by President, Janine Herzig, at the upcoming IMPC-APAC Conference in Melbourne in August.

WHSP completes acquisition of ‘net zero’ focused electrical engineering firm Ampcontrol

Washington H Soul Pattinson and Company Limited says it has completed the acquisition of 100% of Ampcontrol in a deal that should help accelerate the privately owned electrical engineering company’s ambitions to help facilitate a net-zero carbon environment.

WHSP has held a major shareholding in Ampcontrol since investing in the company in 2005 and has now acquired the remaining shareholdings.

The acquisition comes as Ampcontrol accelerates its strategy to be at the forefront of developing and supplying advanced technology for the net-zero age. This was evidenced recently when Ampcontrol and its technology partner Tritium were announced as a winner in the Global “Charge on Innovation Challenge” launched by BHP, Rio Tinto and Vale to accelerate the commercialisation of effective solutions for charging large electric haul trucks.

The Ampcontrol and Tritium solution selected by the challenge was an end-to-end ultra-fast modular recharging station that is fully automated, relocatable, scalable and cell agnostic for mining haul truck battery swapping. Drive-in/drive-out, an autonomous transfer robot swap batteries in 90 seconds, significantly reducing safety risks and increasing productivity by excluding personnel from the swap process, according to the partners.

Todd Barlow, Managing Director of WHSP, said: “Ampcontrol is uniquely positioned to capitalise on the significant investment in resources, infrastructure and energy solutions, as the world transitions to a lower carbon economy. Ampcontrol is a high-quality platform upon which we can continue to invest and grow a world-class business, taking advantage of strong industry tailwinds and their talented people, technology and engineering excellence.”

Ampcontrol Managing Director & CEO, Rod Henderson, said: “The acquisition marks a remarkable new era for the Australian manufacturing business and the next chapter in its growth story. The increased ownership of WHSP will provide us with the stability and resources to take advantage of the organic and inorganic growth opportunities that the decarbonisation thematic presents.”

Zenith Energy to roll out 5B Maverick solar system across Australian mine sites

Renewable energy penetration is set to increase on major mine sites in the Goldfields and Pilbara regions of Australia, after Zenith Energy and 5B signed a deployment agreement that could see the 5B Maverick™ system rolled out.

Zenith, one of Australia’s leading independent power producers, and 5B, a clean energy technology provider, signed an Ecosystem Framework Agreement-Deployment, permitting Zenith to be a deployment partner of the 5B Maverick system within Australia.

The 5B Maverick system solar array is prefabricated, allowing rapid deployment while increasing the ability of Zenith to expand renewable assets across existing and future sites, Zenith said. Each 5B Maverick array consists of up to 90 solar panels, mounted on specially designed racks, and optimised for the 540-550 W module class of the utility scale solar industry.

Zenith Managing Director, Hamish Moffat, said the partnership represents the next step in reducing emissions across Zenith’s legacy portfolio.

“We’ve been looking to increase renewable assets across multiple sites for some time; the question has always been around how we can achieve that in such a way that is economically viable,” he said. “The 5B Maverick system is re-deployable, meaning it can be integrated on mines with shorter tenure, and moved at the end of operations at those sites.”

He added: “It offers Zenith greater ability to leverage value from our initial capital expenditure, making it more cost effective to offer expanded renewable energy solutions for our clients.”

5B Co-Founder and CEO, Chris McGrath, said the strategic partnership is an important validation of 5B Maverick’s ability to reduce deployment complexity.

“This has been a major barrier for solar installations on mine sites worldwide,” he said. “The agreement also shows that our cost reduction efforts over the past two years have worked – we’ve hit the price point where 5B Mavericks can be viably packed up and redeployed elsewhere, substantially reducing the risk of stranded assets in mining, agricultural and industrial operations.”

Moffat said Zenith is looking to integrate the 5B Maverick system across three sites initially. These include:

  • Nova: The 5B Maverick will play a major role in Zenith’s industry first ‘engine-off’ project at IGO’s Nova nickel mine, allowing the site to operate on up to nine consecutive hours of renewable energy through the installation of an extra 10 MW of solar, and a 10 MW battery energy storage system;
  • Warrawoona: Zenith recently committed to the supply, installation, and commissioning of a 4 MW DC Solar Farm, using the 5B Maverick, as well as a 3 MW/3 MWh AC battery energy storage system at Warrawoona, owned by Calidus Resources. The hybrid power station configuration will reduce gas use, which in turn results in a reduction in emissions; and
  • King of The Hills: Work is currently underway to install 2 MW of 5B Maverick on the Red 5 site, also supported by a battery energy storage system.

Moffat said the 5B agreement is another key milestone on the company’s journey toward ‘net zero’.

“Our 2035 ‘net zero’ target strikes a balance between ambition and ability to achieve, with the 5B partnership a clear demonstration of our progress and commitment to this goal,” he said.

McGrath said 5B was keen to partner with Zenith, given the independent power producer’s strong reputation and credibility in providing renewable energy solutions to the mining and resources industry.

“We’re keen to develop mutually beneficial partnerships with like-minded companies, and Zenith definitely fits the bill,” he said. “It is great to see Zenith leveraging the ability of the 5B Maverick solar arrays to deploy up to 10 times faster, more safely than single axis tracker and fixed tilt solar systems, to deliver a full solution for their customers.”

Moffat said the partnership offers both Zenith and 5B the opportunity to continue to lead the industry, demonstrating the ability and capacity to effectively integrate renewable energy solutions.

“We have continually said we want to be part of the renewable solution, not just by developing the concepts needed, but by also actively deploying and proving the technology,” he said. “The partnership with 5B allows us to do this and continue to bring our clients on the glide path to ‘net zero’.”

ERM on executing the mining sector’s sustainability strategies

With sustainability close to the number one topic shaping the business landscape, the mining industry faces perhaps more scrutiny today than ever before. From stakeholder engagement to employee welfare and the emissions generated from using mined commodities, there is a spectrum of issues on which mining companies are judged. Not just by traditional critics such as NGOs, but increasingly by policymakers, investors and consumers themselves.

As a result, mining companies are seeking the advice of consultants that live and breathe environmental, social and governance (ESG) issues to adapt to this evolving backdrop (see the mining consultants focus in IM October 2021 for more on this).

In this regard, they don’t come much bigger than ERM, which calls itself the largest global pure play sustainability consultancy. With a remit that goes into strategic, operational and tactical challenges, the company’s services have been in serious demand of late.

Louise Pearce, ERM Global Mining Lead; Jonathan Molyneux, ERM Mining ESG Strategy Lead; Peter Rawlings, Low Carbon Economy Transition Lead; and Geraint Bowden, Regional Client Director – Mining, were happy to go into some detail about how the company is serving the industry across multiple disciplines.

In demand

According to the four, there is increasing demand for services from miners interested in energy/battery minerals (lithium, cobalt, nickel, copper, platinum, palladium and rhodium (PGMs)) on the back of rising numbers of new mines coming onto the scene, “shorter supply chains to customers”, the perceived need to secure domestic supply of these minerals, and requirements of “evidence of responsibly-produced certifications from industry organisations such as the Initiative for Responsible Mining Assurance (IRMA)”.

Such trends have been underwritten by a shift in both the requirements and considerations around the extraction of these minerals, according to Molyneux.

“In the last five to seven years, the main ESG incentives for change have come from access to capital (ie investor ESG preferences, especially in relation to catastrophic incidents),” he said.

“Over the last three years, we have seen a strong rise in expectations from downstream customers, particularly leading brands.”

Jonathan Molyneux, ERM Mining ESG Strategy Lead

Automotive original equipment manufacturers like BMW and Daimler are placing sustainability at the centre of their brands, according to ERM. Their initial focus has been on ‘net-zero’ driving/electrification – and they have made progress on this with several major electric car launches. They then shifted to examining the carbon emissions and ESG, or responsible practices, of tier-one and tier-two component manufacturers. The last step has been a full analysis of the ESG credentials of input materials right back to source, ie the mine.

“We see a shift from the historic lens of customers managing supply risk by sourcing from organisations which ‘do little/no harm’ (eg human rights compliance, catastrophic incident avoidance) to supply partners that can contribute to the ‘do net good’ or ‘create value for all stakeholders’ (ie communities, workforce, nature positive),” Pearce said.

Such a shift has resulted in more clients considering “circular thinking” in their operational strategy, as well as carrying out risk reviews and transformation projects focused on a company’s social or cultural heritage. Tied to this, these same companies have been evaluating their water use, biodiversity requirements and, of course, decarbonisation efforts.

It is the latter on which the steel raw materials companies predominantly have been looking for advice, according to ERM.

The focus has been on ‘green’ iron ore, low-carbon steel and ‘circular’ steel, according to Molyneux and Bowden, with ERM providing input on how companies in this supply chain can integrate sustainability into their strategy and operations.

On the thermal coal side, meanwhile, it is a very different type of ERM service in demand: mine retirements, closure/local/regional regeneration transitions and responsible disposals.

Delivering on decarbonisation

The mining industry decarbonisation targets have come thick and fast in the last 18-24 months, with the latest announcement from the International Council on Mining and Metals (ICMM) seeing all 28 mining and metals members sign up to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.

Many have gone further than Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company) emissions, looking at including Scope 3 (all other indirect emissions that occur in a company’s value chain) targets.

Fortescue Metals Group, this month, announced what it said is an industry-leading target to achieve net zero Scope 3 emissions by 2040, for example.

These are essential goals – and ones that all interested parties are calling for – in order to deliver on the Paris Agreement, yet many miners are not yet in the position to deliver on them, according to Pearce, Molyneux, Rawlings and Bowden.

“Miners need to look at decarbonisation at a holistic level across their operations and value chain, and cannot just delegate the net zero requirements to individual assets,” Rawlings said. “The solutions needed require investment and are often at a scale well beyond individual assets/sites.”

Much of this decarbonisation effort mirrors other industries, with the use of alternative fuels for plant and equipment, accessing renewable electricity supplies, etc, they said.

Process-specific activities can present challenges and is where innovation is required.

“These hard to abate areas are where a lot of efforts are currently focused,” Rawlings said.

Tied into this discussion is the allowance and estimates made for carbon.

There has been anecdotal evidence of miners taking account of carbon in annual and technical reports – a recent standout example being OZ Minerals inclusion of a carbon price in determining the valuation of its Prominent Hill shaft expansion project in South Australia – but there is no current legislation in place.

“We are seeing a broad spectrum of price and sophistication (targeted audience, knowledge level), but it is an active board level discussion for most clients,” Bowden said on this subject. “Most clients view this as market-driven requirements as opposed to a voluntary disclosure.”

This has been driven, in part, from the recommendations of the Task Force on Climate-Related Financial Disclosures, which many miners – including all the majors – are aligning their reporting with.

Some clients are also looking into scenarios to work around carbon regimes such as the Carbon Border Adjustment Mechanism, which proposes a carbon-based levy on imports of specific products.

Having acquired several companies in recent months focused on the low carbon economy transition – such as E4tech, Element Energy and RCG – ERM feels best placed to provide the technical expertise and experience to deliver the sustainable energy solutions miners require to decarbonise their operations.

“With these companies, combined with ERM’s expertise, it means we can support clients on the decarbonisation journeys from the initial strategy and ambition development through to implementation and delivery of their roadmaps,” Rawlings said. “We can support clients from boots to boardroom as they assess decarbonisation options and technologies; help them understand the financial, policy and practical aspects linked to deployment of solutions; and access the financing necessary to support deployment.”

ESG dilemmas

There is more to this evolving backdrop than setting and meeting ambitious environmental goals, yet, in ERM’s experience, the advice provided by consultants – and requested by miners – has historically been focused on individual ESG domains.

“This has often been driven by their realisation that their (miner’s) in-house policies and standards require updating,” Pearce said.

Louise Pearce, ERM Global Mining Lead

A siloed or disaggregated approach to ESG strategy development often reduces risk, but rarely generates value for the enterprise at hand, according to Pearce.

“What we have learned is that in order for organisations to create value, they need to focus on value drivers for the corporation,” she said. “These value levers are typically influenced by an integrated suite of ESG dimensions. For example, this could be looking at carbon emissions, connected with water use and nature, connected with local socio-economic development.”

“Sustainability and ESG are about understanding the inter-relationships between our social, natural and economic environments over the longer term. It cannot be about addressing one topic at a time or responding to the loudest voices.”

This is where ERM’s ‘second-generation’ ESG advice, which is driven by data and opportunities to create value as well as manage risk, is fit for the task.

“We are also finding that, at its heart, the central issue to second-generation ESG performance delivery/improvement for our clients is not just the strategy, but a willingness of organisations to reflect on their core values, how these have driven their traditional approaches and decisions and how they will need to evolve these if they want to achieve a genuine brand and reputation for ESG and achieve impact on the value drivers they have selected,” she added.

Such thinking is proving definitive in ERM’s mining sector mergers and acquisition due diligence.

“We have multiple experiences where clients have asked us to carry out an ESG review of a target portfolio, only to find that there is too great a gap between the target’s ESG asset footprint to align them with the client’s standard – or, that the carbon, water, closure or tailings profile of the target carries a too high-risk profile,” Molyneux said.

This is presenting clients with a dilemma as they want to increase their exposure to certain minerals, but are, in some instances, finding M&A is a too high-risk route. At the same time, the lead time to find and develop their own new assets is longer than they would wish for building market share.

Such a market dynamic opens the door for juniors looking for assets early in their lifecycles, yet it places a high load on the management teams of these companies to think strategically about the ESG profile of the asset they are setting the foundations for to eventually appeal to a potential acquirer.

“This is, in itself, a dilemma because, typically, the cash scarcity at the junior stage leads management teams to focus on the immediate technical challenges, sometimes at the cost of also addressing the priority non-technical challenges,” Bowden said.

Those companies who can take a strategic view on the ESG requirements of the future – rooted in a deep understanding of how to deliver change on the ground – will be best placed in such a market, and ERM says it is on hand to provide the tools to develop such an appropriate approach.

(Lead photo credit: @Talaat Bakri, ERM)

Ferrexpo sets decarbonisation course to 2030 and 2050

Iron ore pellet producer Ferrexpo has announced inaugural decarbonisation targets that includes a commitment to achieve net zero carbon emissions from its operations by 2050.

In addition, the group has undertaken an initial commitment to achieve a minimum of a 30% reduction in combined Scope 1 and 2 emissions by 2030, against the group’s baseline year for emissions (2019), in line with its peer group.

The company is engaging with climate change specialists Ricardo Plc to help develop science-based decarbonisation targets as a second-phase of publishing carbon commitments.

Ricardo has also been hired to enhance the group’s existing climate change scenario reporting and review the role of Ferrexpo’s iron ore pellets within the circular economy. Results of this analysis is expected to enhance the group’s carbon reduction targets and to further develop climate change reporting in 2022, it says.

In the 18 months to June 2021, the group has recorded a carbon reduction in excess of 20%, according to Jim North, Interim Group Chief Executive Officer. This, he said, is a demonstration of the company’s commitment to the environment.

“Through working with Ricardo, it is our intention to engage with stakeholders in 2022 with a clear, science-based understanding of our carbon journey that lies ahead,” he said.

Tim Curtis – Energy & Environment Managing Director, Ricardo Plc, added: “In setting targets to decarbonise the manufacturing of their iron ore pellets, Ferrexpo is driving change in the industry which will contribute to a low carbon transition and benefit organisations using Ferrexpo products in their supply chain.”

Some of the carbon reduction targets the company has pursued to this point include plans for a 5 MW pilot solar plant, use of sunflower husks in its pelletiser, and the potential use of a trolley line at its iron ore operations.