Can Mining and Minerals Achieve Net Zero While Staying Profitable? Yes, We Can!
Inaction on sustainability isn't a viable option and the time to act is now!
In the Mining and Minerals sector, we have reached a crossroads where inaction on sustainability isn't a viable option and the time to act on low emissions strategies is now. ‘Business as usual' is no longer acceptable in the age of a burgeoning green political moment, environmental watchdogs overseeing boardrooms, the Paris Agreement and a generation that understands the impact of greenhouse gas emissions and demands to see action. It's essential that the industry adapts to new demands, conditions and business models and doesn't see this as another wave of costly and time-consuming bureaucracy, but as an opportunity to secure a sustainable pathway for growth for generations to come.
It should be noted that without mining there can be no energy switch, but miners will have to adapt their ways. The Electric Mine Consortium has given us a vision of how we can harness clean energy to transform mine sites towards zero emissions, for example. While hydrogen technology has progressed a great deal as an alternative energy source, in my view there are no silver bullets or white knights riding to our rescue. We are better off counting on a range of complementary sources of clean energy to achieve the zero emissions target. There is much more to do, and the sector needs to rise up to the challenge.
But for that to happen, the industry will need to embrace change. This is much easier said than done. The challenge lies in change management, which will include everything from implementing new technologies and attracting talent to adapting to new engagement and business models.
The urgency of the need for that change is visible everywhere. Think about the worrying sight of mining engineering and geology courses being shut down for the lack of students. We need to improve the reputation of the industry and highlight the importance mining plays in providing critical minerals to enable the energy switch, for example. If we don't hammer this message home, we will only limit our hiring from a shrinking pool of talent. Close collaboration between the industry and the government and the state will also be critical, which will help provide the infrastructure and backing that will wean us off dependence on fossil fuels and make access to renewables not only possible, but profitable.
Various experts have said that there is potential for Australia to be "the Saudi Arabia of renewable energy". There is no doubt that Australia can play a key role in supplying critical minerals. In Brisbane, we've seen the remarkable work of Pure Battery Technologies and The University of Queensland, which has developed and commercialised green, low-cost processes for producing nickel and cobalt battery materials. By adding value to essential minerals, companies are re-inventing themselves in order to adjust to expectations and demands from modern society. One example is Prony Resources that has changed its product line in order to produce Mixed Hydroxide Precipitate, that is being used to produce critical battery materials such as precursor Cathode Active Materials (pCAM) used in lithium-ion batteries. And in New South Wales, Newcrest Mining has shown us the possibilities of low-cost, long-life gold mining being realised. Australia and other mining beacons from Scotland to Nevada and New Caledonia can be the dynamos for a new economy.
The mining sector has not always been viewed as a pioneer in technology adoption, but we all need to get on board with exploring exciting developments. From leveraging automated equipment and driverless vehicles, to AI and Machine Learning, to harnessing Virtual Twin technology for creating virtual models of our real-world operations sites - we can become faster, more efficient, adaptive and planet-friendly.
Technology and emerging frameworks will also help us get to the root cause of sustainability issues that come not just from mining itself, but from a gamut of other factors from waste management and air travel to goods consumption. Monitoring, measuring and reducing Scope 3 emissions across our value chains is complex, but every miner needs to be creating and building on the baseline audits that are our starting points.
The bottom line is: We can make the switch to zero emissions and still retain profitability. The mining industry will survive and thrive, but only if we see zero emissions as an opportunity. The energy switch requires mining, and demand is greater than ever for critical minerals. At the end of the day, the industry needs to mine responsibly and face up the complex challenges of the next era.
Authored by Gustavo Pilger, Director, Worldwide GEOVIA Research & Development Strategy & Management at Dassault Systemes for MiningMonthly.com