Abstract

Most of the mining companies are engaged and committing to decarbonize their operations to reduce new associated business risks and being compliant with new ambitious regulations and goals.

Aiming a decarbonization and sustainable development, the industry has a responsibility to minimize its environmental footprint as it is seen sector wide. And the speed being taken for actions to decarbonize are adequate in terms of use of combinations of renewable energy and electrification, while also improving governance to align with decarbonization standards.

Fast decisions, if not holistically approached, could have a very negative financial impact on the company. The financial risk can also be faced as climate change effects are being experimented especially in extreme weather locations.

Traditional electrification of in-situ fossil fuel generation might be a challenge to reduce emission. Location and life-of-mine can prevent those long terms solution economically sound or technical viability imminence, preventing long term investments or expensive outside-the-fence agreements.

A multivariable analysis can be done to quickly adopt plans in the short, medium and long terms, by roadmaping combined possibilities like:

Renewable energies

Combinations of wind, solar and other renewables are increasingly becoming options to get dependability in their power supply. Complementary solutions are being assessed, including energy storage solutions for peak shaving and or to compensate the intermittency of some renewable production patterns.

Electrification

Electrification will substitute traditional fossil heat and powertrain sources. Hence, electrical boilers and heaters can replace fossil gas type equivalents all while fleets of electric vehicles can reduce emissions, costs and improve the health and safety of workers.

While location, life-of-mine and design considerations will need to be factored into the decision to go electric, there is a cost-reduction potential for moving to battery electric vehicles. Research shows the total cost of ownership of a battery electric vehicle for mining could be around 15% to 20% lower than diesel trucks due to lower maintenance and fuel costs.

Hydrogen

Along with Electrification, Hydrogen produced from renewable sources is an energy vector that can be utilized in fuel cells to produce electricity for electrical vehicles or other applications, as well as an energy source for heating. Although Hydrogen can be a good energy vector for mining, we are still missing a regulatory and standard component for Hydrogen applications in the mining industries when it comes to using it for fuel cells in mining vehicles or other applications. Some worldly efforts are being made to improve this in countries, and with large mining truck OEMs.

Low Carbon and Renewable Fuels

Low Carbon and Renewable Fuels being synthesize from air carbon capture and direct capture combined to hydrogen from renewable electrolysis is currently very expensive, but economics will improve with time. The benefit is that you can use these Renewable Low Carbon Fuels with our existing vehicle powertrains.

Carbon offsetting

Carbon offsets are expected to be an important part of net-zero action plans aiming decarbonization targets, particularly for remarkable emissions.