How Technology is Helping Miners Deliver on Net-Zero Strategies

When it comes to going green, the mining and metals industry is feeling pressure on many fronts. 

First, there is pressure to deliver on tough carbon reduction goals – such as achieving net zero by 2050. Next, there is the opportunity to profit from the growing demands for the very materials needed to achieve net zero, such as supplying lithium, cobalt, and nickel to support the next generation of electric vehicles. Lastly, going green comes with expensive up-front costs, such as removing diesel engines from sites. 

Ultimately, the global transition to low-emissions technologies, such as renewables, battery storage, and EVs, depends on vast quantities of metals and raw materials provided by the mining sector.  

For example, demand for nickel for batteries is estimated to grow by over 500% in the next decade. However, supporting renewable energy sources means mining companies must also embrace everything from battery-electric trains to battery-powered underground mining trucks and support wind and solar projects.  

Let’s take a closer look at net zero and how the mining industry can lean into sustainability, its challenges, and how technology can help. 

What is Net Zero?    

Put simply: net zero refers to reducing “greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere,” according to the United Nations. 

Greenhouse gas (GHG) emissions are one of the main causes of rising global warming and the metals and the mining industry account for approximately 4% to 7% of worldwide greenhouse gas emissions.  

Another challenge: McKinsey reports mining companies must also prepare for climate hazards. Today, 30% to 50% of the production of copper, gold, iron ore, and zinc is concentrated in areas already experiencing water scarcity. 

On the road to net zero, many companies seek to reduce three scopes of emissions. Scope 1, Scope 2, and Scope 3 are used to categorize greenhouse gas emissions based on their source and origin. For example:   

• Scope 1 covers direct emissions from operations. This includes fossil fuels burned on-site or in a company fleet for machinery, equipment, and power generation. 
• Scope 2 covers indirect emissions from the generation of electricity, heat, or steam consumed. 
• Scope 3 covers all other indirect emissions. This is considered the most challenging for mining to quantify and control since it extends beyond a company's direct operations and requires collaboration and data sharing with other entities along the value chain. 

Within mining, Scope 1 and Scope 2 emissions account for 4%-7% of global greenhouse gas emissions. This rises to 28% of global emissions when accounting for Scope 3. 

How Mining is Addressing Net Zero 

S&P Global Market Intelligence found that 21 of the 30 largest metals and mining companies have set some level of net-zero targets or are already claiming carbon neutrality, hoping to prove their commitment to reducing their emissions. 

Progress toward net-zero emissions varies across different mining companies and regions. Some have set ambitious sustainability goals and are actively working to reduce their carbon footprint and implement sustainable practices. This includes investing in renewable energy sources, adopting more efficient mining technologies, improving waste management, and promoting responsible mining practices. 

The very nature of its operations means the mining industry faces a tough road ahead. Everything involved in extracting minerals and metals is energy-intensive, which can negatively impact the environment. 

Achieving net-zero emissions is a monumental task. It will require not just technological advancements, but collaboration across the entire value chain—from mining companies to equipment manufacturers to consumers. Achieving progress will also depend on government policies, public support, and the availability of sustainable technologies. 

Climate Action Plan in Place for Australia 

In Australia, one of the hardest challenges is how the mining industry will break its reliance on diesel fuel. Specifically, displacing diesel from a mining fleet can remove up to 40% of a mine site’s emissions.  

According to the Australian Renewable Energy Agency, the mining sector uses 10% of the country’s energy usage. It consumes approximately five billion liters of diesel annually. For example, this could amount to AUD 1 billion of a project’s annual operating expenditure across its mining portfolio.  

Miners will need to reduce diesel consumption to achieve their Scope 1 and Scope 2 emissions targets. This will lead to either electric mining vehicles or mining vehicles fueled with hydrogen or biofuels. 

As outlined in their "Climate Action Plan," Australia still hopes to achieve net-zero emissions by 2050. The plan was developed by the Minerals Council of Australia (MCA), a mining association representing various mining companies in the country. 

According to the report, the Australian Government has updated its goals to: 

• Reaffirm Australia’s commitment to net-zero emissions by 2050.
• Commit Australia to reduce greenhouse gas emissions by 43% below 2005 levels by 2030 – a 15% increase on Australia’s previous 2030 target of 26-28% below 2005 levels.

Individual mining companies in Australia have also made their own commitments to address climate change and reduce their carbon footprint. 

Australian mining giant BHP Group announced it was on track to reduce its operational emissions by at least 30% by 2030 from its 2020 levels. But they admit their path to net-zero carbon emissions would be uneven. The company expects to spend most of its capital expenditure budget of $4 billion toward the end of the decade, as technology matures.  

Rio Tinto, another major mining company, has also pledged to reduce its carbon footprint and work towards net-zero emissions by 2050. 

Also, some mining companies have been investing in renewable energy projects and exploring sustainable technologies to reduce their reliance on fossil fuels and lower their emissions. 

No doubt, the pace and extent of commitments and actions will vary among different mining companies. Overall progress in the Australian mining industry will depend on policy changes, technological advancements, and societal expectations.