THOUGHT LEADERSHIP ARTICLE
Towards a zero-carbon mining sector By Tsakani Mthombeni, Implats Group Executive for Sustainable Development
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limate change will present a fundamental challenge in coming decades. with the global focus on reducing greenhouse gas emissions to net-zero in a bid to preserve a liveable climate. There is now global consensus that the consumption of fossil fuels has led to an increase in the accumulation of greenhouse gases. Mining and its associated processing and refining activities are energy-intensive. However, the mining sector is capable of progressive decarbonisation in a bid to reach carbon neutrality. Many of the largest mining houses have committed to carbon neutrality between 2040 and 2050, with ambitious emissions cuts by 2030. Now is the time for the mining sector to act by accelerating efforts to decarbonise. Emissions from mining comprise, broadly, Scope 1 (emissions from diesel and gas), Scope 2 (emissions from purchased electricity), and Scope 3 (emissions from transport and supply chains). Research from McKinsey shows that 40% to 50% of CO2 emissions in the mining sector are from the diesel used in mobile equipment, with another 30% to 35% from non-renewable electricity. A switch to renewable electricity and increased energy efficiency would thus address a large proportion of current Scope 2 emissions from miners still reliant on carbon-intensive power supply. Largescale renewable energy plants – wind and solar - are a viable and cost-effective solution for decarbonisation in emerging markets, ensuring emission reductions. While they might be variable in nature, they offer an alternate, secure electricity supply. They present an opportunity for mining companies to save on electricity input costs and, importantly, leave a
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Tsakani Mthombeni, Implats Group Executive for Sustainable Development
positive legacy for mine communities. There is a near-perfect storm when it comes to the application of renewable energy in mining, driven by reductions in renewable energy and storage technology costs and the increasing ability to recoup these costs, given the rising fossil-based energy prices. For example, lithium-ion battery costs reduced 97% between 1991 and 2018, and solar and wind are now among the cheapest sources of new energy generation in much of the world. In most cases, mining operations are on vast open pieces of land, which offers prime space for renewable energy development while contributing to job creation and positive social impacts in mine communities. Large-scale solar plants also offer the exciting potential to produce green hydrogen as an energy storage medium and, by
FINANCIAL MAIL ESSENTIALS • GREEN ECONOMY 2022
extension, drive the use of platinum group metals (PGMs) in electrolysers for hydrogen generation and in fuel cells for storage. This is essential to addressing Scope 1 emissions. To go fully carbon neutral, a shift to sustainable drivetrains is imperative. The focus in the mining sector should be on replacing diesel with clean energy technology options. Hydrogen fuel cells and battery electric vehicles are long-term options, with several mining companies already investing in research and development and trialling prototypes of alternative drivetrains. In the transition to a low-carbon economy, PGMs are critical to enabling associated technologies. Decarbonisation presents a significant opportunity for competitive players to differentiate themselves and lead the way toward zero-carbon mining. We are excited to be at the forefront of these developments.
