The decarbonisation opportunity for metals and minerals

Rohitesh Dhawan, President and Chief Executive Officer, International Council on Minerals and Mining

Believe it or not, my message is actually found in comic books, science fiction and even the Bible.

Have you ever heard the phrase “With great power comes great responsibility”? Spider-Man fans will recognise that. And what about “There’s no such thing as a free lunch”? Credit for that goes to science fiction writer Robert Heinlein. And finally, the idea that “to whom much is given, much will be required” from Luke 12:48 in the Bible.

They all say essentially the same thing – that with privilege and opportunity comes responsibility. So, what does that have to do with decarbonising mining? Well, everything actually.

As we have heard many times, mining is essential to decarbonising the world. Metals and minerals like copper, lithium and cobalt are critical inputs to clean energy technologies like electric cars and wind turbines. As a mining industry, that is our privilege; our opportunity to be the backbone of the world’s transition to clean energy – a transition that needs to happen, and fast.

But it comes with a responsibility – to not add to the problem we exist to solve. As the provider of materials for decarbonisation, the production of metals and minerals itself needs to become emissions-free. Only then can we be a true partner to the energy transition. Otherwise, it would be like taking a pill to cure an illness, only for that pill to make your illness worse!

I am very sensitive to the principle of common but differentiated responsibility. That means that while we all have a role to play in fighting climate change, richer and historically developed nations must assume a greater share of the burden than countries with lower per capita incomes, whose development should not be unfairly curtailed.

Even so, the beauty of decarbonising mining is that it is, in fact, a huge opportunity, and companies in all countries— developed or developing - will find it in their interest to do so. Removing CO2 from the ways metals and minerals are produced and used can help make operations leaner, cheaper, and more efficient.

As an industry, our privilege is the opportunity to be the backbone of the world’s transition to clean energy – a transition that needs to happen, and fast. But this comes with a responsibility – to not add to the problem we exist to solve.

So, what will it take, and where is the opportunity? Five key numbers illustrate what is needed:

• Zero: Or Net Zero, to be precise. This represents the commitment made in 2021 by the members of ICMM –who collectively represent one-third of the global mining and metals industry – to our Scope 1 and 2 emissions by 2050 or sooner.

Many companies have individual targets that are even more ambitious, but net zero by 2050 provides the North Star for the decarbonisation journey for mining companies. And by committing to such a goal, it opens up a world of possibilities.

• Fifty: This is the percentage of a mine’s emissions that are typically associated with the use of diesel in mining trucks, although it can go as high as 70%. There are an estimated 28,000 mining trucks in operation globally, producing 67 million tonnes of CO2

This has so far seemed like an insurmountable challenge, as batteries or hydrogen technology has not been viable at scale to move loads of up to 400 tonnes. Thanks to initiatives like ICMM’s – Innovation for Cleaner Saver Vehicles (ICSV) initiative – we should have zero-emission vehicles available at scale by 2030, a full 10 years ahead of the best estimates when we started this programme in 2018, which brought the CEOs of mining companies and equipment manufacturers together to accelerate development cycles. Even better, switching to zero-emission alternatives also often provides the window to make these vehicles safer, thus helping meet our highest priority of keeping workers safe at all times.

• One hundred: This is the percentage of renewables in the energy mix of many large mines, today. Antofagasta –one of the world’s largest copper producers, uses 100% renewable energy. As does Vale – one of the world’s largest iron ore miners – for all operations in Brazil. So does Anglo American across all their operations in Latin America and Australia.

There are many more examples, and through these, mines have been the catalytic force for the growth of renewables for entire regions and countries. All while reducing costs and improving operational reliability – not to mention the brand and reputational benefits.

• Ninety-five: This is the percentage of the total footprint of some mined commodities that is generated from processing and use, known as Scope 3 emissions. While some other sectors have sought to distance themselves from their Scope 3 emissions, I am proud of the fact that leading mining companies recognise their responsibility to help decarbonise the value chain of metals and minerals, including the parts we don’t directly control. This is best done by using our influence with suppliers and customers, developing solutions that help them decarbonise, and jointly investing in R&D.

• Seventy: This is the number of new initiatives launched by ICMM members since the signing of the Paris Agreement to reduce the Scope 3 emissions of our mined materials. These include joint investments in lower-emission steelmaking technologies, efforts to decarbonise the shipping of our ores, and the development of new products like iron briquettes that reduce emissions in their processing.

What’s more, many of these were undertaken in partnership – sometimes with competitor mining companies, other times with customers and suppliers. This shows what we can achieve when we work together, to reduce emissions from the value chain of metals while building new business lines that are fit for the future.

However, more does not equal better. In fact, in some cases, we need fewer initiatives. There are currently many overlapping and duplicated voluntary standards of responsible mining, covering decarbonisation as well as other aspects of ESG.

And on this front, I have great news for companies who are scratching their heads as to which of those standards to follow.

Four of the leading voluntary standards of responsible mining – including ICMM, the World Gold Council, Copper Mark and the Mining Association of Canada – are in the process of consolidating our four individual standards into a consolidated global standard with an independent multi-stakeholder oversight system. The Consolidated Mining Standard, which will be launched next year, will be available for all mining companies to adopt, no matter where you are in your sustainability journey. The first of two public consultations has just been launched and you can follow progress on the Consolidated Mining Standard Initiative’s website.

So, whether you get inspiration from comic books, science fiction, or religious texts, the message is the same. As miners, our role in the energy transition is essential. And therefore, so is our responsibility to decarbonise our operations and products.

By committing to net zero, adopting emissions-free mobile equipment, investing in renewable energy, embracing our Scope 3 emissions, and working in partnership with others, we can turn this responsibility into our greatest opportunity.

A version of this speech was delivered by Rohitesh Dhawan, President and CEO, ICMM at the FT Live's Energy Transition India Summit in October 2024.