Abstract:

To achieve net carbon emissions by 2050, we need to cut emissions by 8% every year starting now. The transition to a low-carbon economy is more minerals intensive and will require an increase of more than double of the current supply for several minerals. In 2020, $17 trillion in investments were chosen according to ESG criteria. However the perception of mining as non-ESG friendly, could lead to insufficient financing for the sector to fully innovate and invest in low-carbon technologies. The current available mining financing alternatives are highly dilutive, can force bankruptcy or are expensive generally and often include life of mine contracts. In this paper, we will present an alternative green finance for mining companies with repayment flexibility to counterbalance metal price cycles. Mining operations that meet ESG criteria will receive better funding and operations that do not meet the criteria can receive it for implementing decarbonization technologies along expansion projects. The net carbon mine of the future can only be achieved with access to capital to implement new technologies and efficiency programs.

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Juliana Morrow

Biography