Evolving the Bowen Basin: a new era for sustainable mining

Barry Tudor, Chairman and Chief Executive Officer, Pembroke Resources

As the founder of the world’s newest steelmaking coal complex, I have witnessed firsthand the profound transformations occurring within the world’s premier steelmaking coal basin.

It’s no secret that this region’s rich deposits of metallurgical coal are a critical component in producing the new steel that is essential to the development of many of the world’s largest economies. In this regard, the Bowen Basin is one of the world’s greatest 'engine rooms'. However, in addition to this role, the Bowen Basin is also at the forefront of a much-needed evolution in the mining sector.

The growing societal expectations and demands from stakeholders necessitate an evolution in traditional mining practices toward a broader, more responsible and ethical approach.

The call for change

The global landscape has shifted dramatically in recent years. As developing nations in Southeast Asia accelerate their industrialisation efforts, the demand for high-quality metallurgical coal from the Bowen Basin has never been stronger. However, this demand comes with increasing expectations.

The future of mining lies in showcasing tangible results that affirm a commitment to biodiversity, positioning the industry as a vital player in the global pursuit of sustainability.

Today’s customers, whether they are steel producers in Japan, South Korea, Europe or India are not only seeking reliable products but are also demanding sustainable and ethically sourced materials.

In response to this, the coal mining industry in Queensland is evolving.

Traditionally, the overwhelming focus has been on maximising productivity and meeting the customers’ technical coal quality specifications. However, the new paradigm demands that we also prioritise environmental standards and social responsibility.

Stakeholders, including customers, employees, traditional owners, governments, and financiers expect coal mining operations to demonstrate accountability, transparency, and a commitment to sustainability.

Implementing a new approach for customers and the environment

Environmental Stewardship

Environmental performance has become a non-negotiable expectation for modern mining companies. Consumers today want coal producers to actively reduce carbon footprints, enhance biodiversity outcomes, and mitigate the impacts of mining activities across a wide range of areas including delicate ecosystems, water sources, and air quality. Where financing operations used to be overwhelmingly focused on profitability and return on investment, many lenders now prioritise an operation’s Environmental Social and Governance (ESG) credentials. New mines must now implement initiatives that prioritise environmental and social goals. Even the mining industry now celebrates such achievements in equal part to traditional productivity through environmental and Indigenous awards.

Biodiversity – the new focus

Biodiversity is poised to become the defining topic in the ESG conversation, potentially surpassing carbon emissions as the focal point of sustainability discussions. As the global community increasingly recognises the interdependence of ecosystems and human well-being, stakeholders are demanding that mining companies take proactive steps to protect and enhance biodiversity. This shift highlights the need for robust environmental practices that not only minimise harm but also demonstrate a net positive impact on ecosystems.

Mining can be nature-positive by integrating biodiversity considerations into every aspect of operations, from planning and extraction to rehabilitation and closure. Companies are now challenged to implement strategies that enhance local habitats, protect endangered species, and promote ecosystem resilience. By doing so, mining operations can contribute to broader conservation efforts while maintaining their social license to operate. The future of mining lies in showcasing tangible results that affirm a commitment to biodiversity, positioning the industry as a vital player in the global pursuit of sustainability.

Accountability and transparency

Transparency in operations has become essential as customers seek clear communication about environmental impacts and supply chain accountability. In 2024, we must recognise that our stakeholders expect us to report on social investment initiatives, sustainability projects, and updates on our environmental performance.

To meet these expectations, companies now actively share metrics related to greenhouse gas emissions, water usage, and rehabilitation efforts. Mining companies are also engaging third-party auditors to verify their claims, ensuring that they uphold their commitments and maintain trust with stakeholders.

Embracing renewable energy

As the world increasingly shifts toward renewable energy sources, we understand that our operations must adapt. Customers are now looking for coal companies that can demonstrate a commitment to transitioning toward cleaner energy solutions. This involves becoming more energy-efficient and diversifying energy portfolios to include nontraditional sources of energy.

Several operations in the Bowen Basin are integrating the use of natural gas generated from mining and solar as new energy sources, significantly reducing reliance on traditional energy sources. This not only lowers our greenhouse gas emissions but also enhances the sustainability of our mining activities. The vast open spaces of the Bowen Basin and natural resources make it an ideal location for such initiatives, enabling us to harness natural energy resources efficiently.

Beyond compliance

The landscape of regulations surrounding carbon emissions and environmental standards is rapidly evolving. Modern customers expect coal companies to be proactive in anticipating these changes. This means going beyond mere compliance with existing regulations; it requires demonstrating responsibility and foresight.

By anticipating regulatory changes, we can position ourselves as leaders in the industry rather than reactive participants. This proactive approach not only meets customer expectations but also fosters trust among investors and stakeholders who are increasingly focused on ESG criteria.

Social responsibility and community engagement

The role of coal companies extends beyond extraction. We must actively engage with local communities and traditional owners. Modern expectations demand that we understand and respond to the needs of these stakeholders.

This includes developing partnerships and programs that provide employment, training, education, and infrastructure. Several Bowen Basin miners have initiated community engagement programs focusing on mental health support, childcare, and housing, thereby addressing emerging community needs alongside our mining operations.

By involving local stakeholders in decision-making processes, we can exceed customer expectations and secure our social license to operate.

Innovation and technology: the path forward

Innovation is at the heart of modern mining practices. Our customers expect us to leverage new technologies that enhance efficiency, reduce costs, and minimise environmental impacts. This encompasses a range of innovations, including automation, carbon capture and storage (CCS), and methane abatement strategies.

Automation and AI-driven monitoring systems allow us to optimise our operations, reduce risks, and limit carbon emissions associated with traditional mining methods. By embracing these technologies, we can demonstrate our commitment to modernisation and sustainability - essential qualities for maintaining our position as a leading supplier of metallurgical coal.

Real - not theoretical sustainable practices

In order for any environmental or ESG practices to gain credibility, they should pass the ‘pub test’. They need to be real, not merely theoretical. Many companies have historically touted ambitious sustainability initiatives and goals without providing concrete evidence of their implementation. To truly resonate with stakeholders, businesses must demonstrate tangible results and a genuine commitment to their practices. This means showing how sustainability is embedded in their operations, allowing them to point to specific achievements that validate their claims.

Credibility is built on transparency and accountability. Companies should clearly outline their initiatives, such as effective water management, biodiversity efforts, and rehabilitation projects, and provide specific examples and measurable outcomes. Wherever possible, these actions should go beyond superficial compliance. They should reflect a deep-seated commitment to preserving the environment and enhancing community well-being.

Real and demonstrable collaboration with local communities is essential. Engaging with stakeholders like Indigenous groups and regional centres ensures that operations respect cultural heritage and contribute to local economies. An integrated approach not only strengthens the business’s social license to operate but also fosters a sustainable future for all parties involved.

Ultimately, true sustainability is about walking the talk and making a real, tangible, positive difference. A truly holistic approach is not just about compliance; it’s about building a sustainable future for everyone involved.

A future-oriented vision

As we navigate the complexities of a rapidly changing world, it is clear that the Bowen Basin must evolve beyond its traditional role as a coal-producing region. The pressures of climate change and societal expectations are compelling us to embrace a more sustainable, transparent, and socially responsible approach to mining.

This shift is not merely about meeting current demands - it is essential for securing our long term relevance in the market. As consumer expectations continue to rise, we must look to best practices and innovative solutions that ensure we remain the world’s leading supplier of quality metallurgical coal on a sustainable basis.

The mining industry is at a crossroads. By prioritising environmental stewardship, transparency, and social responsibility, we can position ourselves as leaders in the new era of mining. Together, we can ensure that the Bowen Basin not only meets the demands of today but also paves the way for a sustainable future. This is the path forward for our industry, one that aligns with the values of our customers and the needs of our communities.