PROGRESS REPORT 2021
INSIDE Survey trends and analysis Progress report 2021 Climate actions on the ground How Australia’s minerals are helping to build a sustainable future CLIMATE ACTION PLAN OBJECTIVES
PROGRESS REPORT 2021 TECHNOLOGY TRANSPARENT KNOWLEDGE PATHWAYS to reduce REPORTING and SHARING and carbon emissions informed advocacy enhanced partnerships
EMISSIONS REDUCTIONS KEY ACHIEVEMENTS
30% 18 7 ANNUAL ABATEMENT MCA MEMBERS TYPES OF ACTIVITIES 1. Average annual abatement Full members reporting to Identified to facilitate BASELINE CLIMATE RESPONSE established of potential of surveyed activities National Greenhouse and >100,000 tCO2 emissions relative to emissions Energy Reporting Scheme reductions per annum member actions, emissions, and abatement potential to monitor future progress MEMBER COMMITMENTS (% OF SURVEYED FY2020 EMISSIONS) 2. 20% 61% 100% TASKFORCE ON NET ZERO BY 2040 NET ZERO BY 2050 NET ZERO EMISSIONS CLIMATE-RELATED Emissions target of MCA’s Emissions target of MCA’s All MCA members support FINANCIAL DISCLOSURES NGERS reporting members NGERS reporting members the Paris Agreement (TCFD) recommendations supported by the MCA Board
CLIMATE ACTION PLAN PROGRESS 3. FOUNDATIONAL 90% 67% 20 TECHNOLOGY YR 1 WORK STREAM FULL WORK STREAM MEASURES UNDERWAY ANALYSIS completed First year measures 67 per cent of the three-year Individual measures that in support of sectoral started and underway work stream commenced have commenced decarbonisation
IDENTIFIED RISKS IDENTIFIED OPPORTUNITIES 1. Impact of government policy changes 1. New energy technologies 2. Changing stakeholder expectations 2. Greater operational resilience and performance 3. Market demands and fluctuations 3. Increased resource efficiencies
MINERALS COUNCIL OF AUSTRALIA Phone. +61 2 6233 0600 Email. [email protected] Web. minerals.org.au PROGRESS REPORT 2021
The task of lowering mining emissions is underway as the industry looks towards net zero
It is with pleasure I present this (NGERS) expressed an expectation The MCA is committed to helping report on the progress made in that their investments in abatement members achieve their environmental, implementing the MCA’s Climate projects could reduce annual social and governance ambitions. Action Plan over the past year. emissions by about 30 per cent. This includes our recent adoption of the Towards Sustainable Mining This report pulls together reported This abatement potential includes (TSM) initiative which aims to support emissions data for the first time and 39 diverse activities that commenced members managing key environmental establishes a baseline against which over the past 18 months ranging and social risks. The Climate Action future climate actions by the minerals from autonomous haulage and rail Plan was purposefully designed to sector can be measured and reported on. electrification to on-site renewable complement initiatives like TSM. power coupled with utility scale The MCA Climate Action Plan was battery storage, and fugitive I commend our member companies launched in June 2020 as a clear emissions abatement. for their vision in supporting the MCA commitment to do the work needed in the implementation of the Climate to achieve net zero emissions, to share Analysis of the most recent publicly Action Plan and TSM. knowledge and experience across the reported information shows that minerals industry and to build on the aggregate emissions of MCA members momentum already underway. have fallen. This has been despite increases in some other sectors of The plan consists of three overarching the economy. goals and 10 climate actions supported by 30 individual measures over a three- It is evident that the sector and year rolling work program. Collectively Australia continues to implement a Tania Constable the measures aim to assist all members technology-led transformation which Chief Executive Officer to implement their own independent in turn is minerals intensive in the Minerals Council of Australia short and longer-term climate responses manufacture of cleaner energy and low and enhance the sector’s capacity to emissions technologies. This inevitably transform to net zero emissions. increases the reliance on Australia’s key metals and minerals such as Despite the disruption of the lithium and copper. global pandemic, members have continued to act on the climate Importantly, the MCA Board has challenge and prepare appropriately also expressed its support for the for future carbon-related risks recommendations of the Taskforce on and opportunities. Climate-related Financial Disclosures. Major minerals industry emitters who report under the National Greenhouse Gas and Energy Reporting Scheme 3 Survey analysis
ALL MCA MEMBERS SUPPORT CLIMATE DISCLOSURES ABATEMENT POTENTIAL THE PARIS AGREEMENT and Share of NGERS reporting full Average annual abatement the transition to net zero emissions. members committed to working potential of surveyed activities In addition, the following NGERS towards aligning with the TCFD relative to emissions reporting full members have publicly stated a net zero emissions target date. By 2040 Anglo American By 2050 78% 30% BHP Downer EnergyAustralia Glencore Idemitsu Newcrest MCA Board supports the Sample abatement activities Newmont recommendations of identified by MCA members Rio Tinto the TCFD could reduce surveyed St Barbara emissions annually by 30%
Establishing an emissions performance baseline MCA analysis of the Safeguard 0.6 per cent for the facilities reporting Scope 1 emissions fell by 1.7 per cent, Mechanism (SGM) scope 1 emissions in both periods. and scope 2 emissions were flat. This data for MCA members (minerals compares to a reduction of 2.6 per These reductions compare to the sector only) shows modest reductions cent for all NGERS reporting facilities in their aggregate scope 1 ‘reported SGM’s total scope 1 ‘reported covered’ economy-wide. covered’ emissions in the latest emissions growth of 4.1 per cent (raw It is important to note that the latest reporting period for FY2019. data) and 3.8 per cent for all facilities reporting in both periods. publicly available data in NGERS and For MCA members that were the SGM as used in the above analysis explicitly identified as a controlling The minerals sector continues a predates the commencement of the entity, aggregate emissions fell by strong record of compliance under MCA Climate Action Plan, as well as 2.8 per cent (raw data), compared to the SGM by consistently meeting member climate related investments a 3 per cent reduction for the facilities and beating its allowed aggregate made in the FY2021 period. reporting in both FY2018 and FY2019. emissions baseline. The types of individual activities When all MCA member minerals For the National Greenhouse and identified as facilitating emissions sites emissions including associated Energy Reporting Scheme (NGERS), reductions at scale (greater than joint ventures are added, aggregate total emissions (scope 1 and 2) of 100,000 tCO2 per annum) include: emissions fell by about a 4.2 per cent MCA members fell by 1.3 per cent in energy efficiency initiatives, renewable reduction (raw data) and by about the latest reporting period of FY2020. energy to replace current energy
4 PROGRESS REPORT 2021
39 ABATEMENT ACTIVITIES Sample of abatement activities identified by MCA members:
AUTONOMOUS ARTIFICIAL WATER OPERATIONS INTELLIGENCE MANAGEMENT (Drilling, loading, (Analytics, machine (Treatment haulage) learning) technologies)
FUEL SWITCHING DIGITISATION LOW CARBON (Hybrid diesel, (Data processing, ELECTRICITY out of diesel) interfaces) (Renewables, CCS, SMRs) ENERGY FUGITIVE EMISSIONS EFFICIENCY REDUCTION ORE PROCESSING (Lighting, motors, (Ventilation Air Methane, IMPROVEMENTS pumps, conveyors) CH4 capture and use) (Bulk processing efficiency) RENEWABLE ENERGY ELECTRIFICATION (Procurement, (Mine processes, HYDROGEN PPAs, on-site) transport) FUEL CELLS (Electricity, machinery) BATTERY TAILINGS STORAGE MANAGEMENT OTHER (Energy storage, (Emissions capture (RD&D, grade electric vehicles) and mineral carbonation) engineering)
Member climate actions Risks and opportunities sources, divestment of high-emission Members are responding appropriately Surveyed members broadly business streams, additional flaring and positioning themselves to manage consider the most significant risks and gas capture equipment, flaring future climate challenges. to their organisation as categorised of underground emissions, ventilated by the TCFD to be policy (impact NGERS reporting full members were air methane (VAM) abatement, and of policy changes), reputational asked to identify statements applying funding medium-longer term carbon (changing customer or community to their organisation. It is clear the neutral outcomes. perceptions), and market (shifts in majority of members have announced supply and demand) related. The expected aggregate annual or are considering climate-related average abatement potential of positions including emissions reduction Significant opportunities are seen these projects alone is estimated targets for the period between now as new energy sources (transition to be over 30 per cent of surveyed and 2050 including net zero emissions, to renewables, nuclear, biofuels, and FY2020 emissions (N=15 representing and aligning corporate reporting with carbon capture and storage), greater 83 per cent of MCA members covered the recommendations of the TCFD. resilience (new production processes, by NGERS). and developing new products) and Other initiatives include comprehensive resource efficiency (technological reporting of corporate approaches innovation to assist transitioning to governance and strategies for to more efficient production and managing climate change in annual distribution processes). sustainability report disclosures.
5 PROGRESS
SCHEDULED COMMENCED AND COMMENCED TO START PROGRESS SLOW AND ON TRACK Progress report Themes and actions ACTION 1 Developing technology pathways to achieve significant 1 reductions in Australia’s greenhouse gas emissions ACTIVITY 1.1 YEAR 1 ACTION 1 Enhance national and global discussions on low emissions technologies and report on the potential Pursue climate partnerships of innovative mitigation and adaptation technologies. Identify domestic and international partnerships to advance the climate ACTION 2 Define a greater role for the minerals sector in the goals of the Paris Agreement. global and national transformation to lower emissions. • Partnerships map developed for board ACTION 3 Support the development of policies and technologies consideration in the second half of 2021 to achieve least-cost abatement in order to help meet • Member sectoral partnerships with the net zero emissions goal of the Paris Agreement the Extractive Industries Transparency and maintain the competitiveness of energy-intensive Initiative, Coalition for Energy Efficient and trade-exposed sectors. Comminution, Hydrogen Council, Paris Pledge for Action and many others.
Increased transparency on climate change reporting PROGRESS 2 and informed advocacy ACTIVITY 1.2 YEAR 1 ACTION 4 Understand the opportunities and risks of net zero emissions for the Australian minerals Climate Change Advisory Panel sector having regard to the Australian Government’s Establish and convene an independent commitments under the Paris Agreement and the panel of experts to advise the MCA on aspirations set by the states and territories. sustainable pathways to decarbonisation. • Four independent minerals experts ACTION 5 Build the capacity of Australia’s minerals sector relating appointed on pro-bono basis, ten to climate-related financial disclosures (including from meetings held, discussions including the Taskforce on Climate-related Financial Disclosure). topical issues such as value-adding ACTION 6 Share member company approaches to scenario to critical minerals analysis and how it is strategically used within the sector • Panel to share their views with the to address climate-related opportunities and risks. MCA Board in late 2021. ACTION 7 Engage in the ongoing development of current policies PROGRESS including the Safeguard Mechanism. ACTIVITY 1.3 YEAR 1 Knowledge sharing of the sector’s responses to Fugitive abatement technologies 3 addressing climate change Support the demonstration of technologies that can help reduce fugitive emissions by ACTION 8 Showcase commitments and practices in mining collaborating with relevant organisations. operations. • Member investment in flares and gas ACTION 9 Lead discussions on the opportunities of capture equipment and a ventilation air methane (VAM) mitigation concept study commodity stewardship. • Collaboration with industry bodies (LETA, ACTION 10 Positively engage in relevant climate agendas QRC), coal companies, governments and and public consultation processes including R&D community (ACARP, ACALET) on UNFCCC, Sustainable Development Goals (SDGs), demonstration initiatives. Intergovernmental Panel on Climate Change (IPCC), 6 as well as collaboration with relevant organisations. PROGRESS ACTIVITY 1.4 YEAR 1 ACTIVITY 1.8 YEAR 3 ACTIVITY 2.3 YEAR 2 Explore technology potential Work with finance community Support electric vehicles Consider aspirational uptake rates and Further discussions to identify innovative Support the uptake of electric vehicles at timeframes across a broad portfolio of low- business models that can support uptake the mine site and promote the associated emitting and high-abating technologies. of nascent low-emissions technologies. opportunities for the sector. • Members surveyed on the potential • Extensive engagement with domestic • Member companies continued to of a diverse range of abatement and international financial institutions explore the potential of electric technologies they invested in over and stakeholders i.e. Climate Action vehicles. Some members are also the past 18 months 100+, ANZ, CBUS, CEFC, Australian trialling electric haul trucks to reduce • Not started yet as reliant on Activity 1.6, Council of Superannuation Investors, diesel consumption. and is expected to commence in the Local Authority Pension Fund Forum latter half of 2021. and Aviva Insurance, among others.
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ACTIVITY 1.5 YEAR 1 National technology roadmap Inform and help implement the Australian Government’s Technology Investment Roadmap. • Extensive member engagement both directly and indirectly through the MCA in relevant public consultations • Waiting for the Australian Government to begin its public consultations to update its Low Emissions Technology Statement. ACTION 2 ACTION 3 PROGRESS
ACTIVITY 1.6 YEAR 1 ACTIVITY 2.1 YEAR 2 ACTIVITY 3.1 YEAR 2 Develop minerals sector roadmap Support renewable energy Support public data repository Partner with relevant organisations to Encourage the uptake of renewable Work with government officials to improve develop a minerals-specific technology energy sources at the mine site. mineral sector datasets, including remote roadmap. • Members examined renewable energy power options, centralised power system • Many members use internal technology options ranging from procurement of costs and low emissions technologies. roadmaps to inform climate responses renewable power to off-grid renewable • Commenced informal discussions with • Preliminary analysis on technological power plants and utility-scale batteries a number of Commonwealth agencies options developed for the MCA in • Continued support of ARENA in its on data science and reporting. mid-2021. A second report will explore development of various programs such cost-effective pathways to decarbonise as the Industrial Energy Transformation the sector and is expected in late 2021. Studies co-investment fund.
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ACTIVITY 1.7 YEAR 2 ACTIVITY 2.2 YEAR 3 ACTIVITY 3.2 YEAR 1 Explore low carbon opportunities Support zero emissions Advocate long-term policy Release a statement on the opportunities Support SMR zero emissions solutions Longer-term policy advocacy consistent associated with transforming the minerals for potential mine site application. with the MCA’s Climate Statement to sector in support of a decarbonised future. • Advocated strongly for technology enable the sector to decarbonise. • Explored the growing mineral intensity neutrality in MCA submissions and • Authored over 15 public climate- of the clean energy transition with appeared at federal and state inquiries related submissions including: ERF organisations such as the World Bank’s on nuclear energy methodology on carbon capture and Climate-Smart Facility • Released Untapped potential and the storage; Corporate Emissions Reduction • World Bank to present keynote speech case for nuclear energy, with a second Transparency; ERAC on waste coal mine at MCA’s Minerals Week Climate report on small modular reactors to be gas; and three on end of mine life under Change Forum in June 2021. released mid-2021. the Safeguard Mechanism (SGM).
PROGRESS PROGRESS PROGRESS ACTIVITY 3.3 YEAR 1 ACTIVITY 3.7 YEAR 2 ACTIVITY 5.1 YEAR 1 Advocate climate programs Review innovation systems Host climate disclosure forum Advocate for programmatic support to Periodically review the health of the Host bi-annually a climate-related enable deployment of mining technologies national innovation system in regard to financial disclosure forum to raise to assist in the sector’s decarbonisation. research, development and demonstration awareness and share knowledge. • Engaged in public consultation (RD&D) relevant to the minerals sector. • Hosted inaugural forum in mid-2021 with processes to further develop existing • Members innovated to improve energy contributions from TCFD membership, programs including ARENA, ERF, efficiency, fuel switch from diesel to TCFD Knowledge Hub, World Business Technology Investment Roadmap, hybrids and bio-fuels, and pursued Council on Sustainable Development NGERS, and several issues relating technology such as automation and the University of Melbourne to the SGM. • Informally engaged mineral research • Commenced planning for second organisations on sector innovation. forum scheduled for late 2021.
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ACTIVITY 3.4 YEAR 3 ACTIVITY 5.2 YEAR 2 Report on technology uptake Align disclosure practices Release a biennial statement on Identify current disclosure practices progress towards achieving aspirational amongst members to inform their technology uptake rates suggested in alignment with TCFD recommendations. Action 1.4. • Secured MCA board decision and • Measure is dependent on completion identified ahead of schedule the of Activities 1.4 (technology potentials) current disclosure practices and 1.6 (technology roadmap) • Surveyed members on their climate- and complements the Australian related disclosure practices and Government’s 2020 Technology commitments. Investment roadmap. ACTION 4 PROGRESS PROGRESS
ACTIVITY 3.5 YEAR 1 ACTIVITY 4.1 YEAR 2 Publicly support ARENA Economics of net zero emissions Support ARENA to continue accelerating Model the opportunities and costs of the uptake of clean energy. net zero emissions to the minerals sector • Publicly supported the continuation of consistent with national commitments ARENA and the further development under the Paris Agreement and the of its programs. This position has been aspirations set by the states and territories. reaffirmed in relevant written public • Informally engaged with a number of submissions. experts on the economics of climate change and net zero emissions. ACTION 6 PROGRESS PROGRESS
ACTIVITY 3.6 YEAR 1 ACTIVITY 6.1 YEAR 1 Access international abatement Assist climate planning Advocate for private sector access to Explore reputable publicly released international low-cost abatement for climate scenarios and their significance voluntary and compliance purposes. for the minerals sector, and survey • Continued to strongly advocate this members to compare commitments and position in relevant public submissions use of scenarios and report on key findings. • International climate agenda including • Ongoing agenda within MCA’s Energy negotiations on Article 6 hampered by and Climate Change Committee. Will the global COVID-19 pandemic and continue to evolve due to its inherent postponement of COP26. complexity, commercial sensitivity, and ACTION 5 importance to all climate planning. PROGRESS PROGRESS
8 ACTIVITY 8.2 YEAR 3 ACTIVITY 9.2 YEAR 2 Supporting adaptation Report on blockchain technology Understand the types of adaptation Report on the application of blockchain investments needed in the minerals sector technology in the minerals sector. in regard to operations, employee health, • Preliminary discussions with a supply chains, water use, energy resources number of expert organisations on and local communities, to help minimise the future role of the blockchain the adverse impacts of a changing climate. technologies in the mining sector. • Preparedness to engage with the Australian Government’s update of the National Climate Resilience and ACTION 7 Adaptation Strategy. PROGRESS PROGRESS
ACTIVITY 7.1 YEAR 1 ACTIVITY 8.3 YEAR 3 ACTIVITY 9.3 YEAR 1 Climate policy barometer Supporting resilience Support value-adding activities Survey members to identify and Understand and share how mining Partner with organisations to showcase understand the nature of climate-related operations are assessing and managing the importance of minerals extraction to policy issues and opportunities, and the physical impacts of climate change on their value-adding activities, including report on key findings to transparently set site to build operational resilience. climate-smart minerals and metals. expectations on MCA advocacy priorities. • Continued to adapt to and plan for • Ongoing discussions with organisations • Surveyed members on policy issues to greater resilience to the threats posed including the Australian Aluminium better inform MCA advocacy efforts by climate change. Council and World Bank on the • Established a tracking process of potential economic and abatement relevant national and international benefits of on-shoring mineral climate matters on a quarterly basis. processing activities.
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ACTION 8 ACTION 9 ACTION 10
ACTIVITY 8.1 YEAR 1 ACTIVITY 9.1 YEAR 2 ACTIVITY 10.1 YEAR 2 Establish online registry Report on circular economy International climate agenda Establish an online registry including Report on the role of the minerals sector in Engage productively in the business of minerals sector climate-related collateral helping transform to a circular economy. the UNFCCC including implementation of (initially targeting members but could • Preliminary discussions with a the Paris Agreement and the work of the allow future public access). number of expert organisations on Intergovernmental Panel on Climate Change. • MCA member portal launched in the the future role of the circular economy • Contributed an expert review first quarter of 2021 in the mining sector, including Tyre through Working Group III to the • Commenced scoping of an online Stewardship Australia on recycling and Sixth Assessment Report (AR6). registry with the aim of strategically alternative end-use opportunities for • Application made to become sharing and showcasing innovative off-road tyres. an accredited UNFCCC observer. abatement projects among members. Confirmation expected prior to COP26.
PROGRESS PROGRESS PROGRESS ...on the ground Case studies Rollout of renewables Carbon capture and storage Methane capture and conversion CLIMATE TARGETS Electric and autonomous vehicles Battery storage and hydrogen trials NEWMONT’S Exploration efficiencies $500 MILLION CLIMATE INNOVATION FUND Technology centres to drive Newmont has committed to an industry-leading climate target of a change at Kirkland Lake Gold 30 per cent reduction in emissions by 2030, with an ultimate goal of becoming net zero carbon by 2050. As a part of this commitment, it will invest US$500 million in climate change initiatives over the next five years to 2025 to help identify and build the pathways necessary to meet its GHG emissions reduction targets. This will require the use of various technologies, including renewable energy, electrification, fuel switching and carbon capture, and involve investigatory projects such as the piloting of new technologies, investing in renewable energy and improving Kirkland Lake Gold will invest support to the communities in which microgrid energy storage. US$75 million each year for the next the company operates in the areas five years in environmental technology of senior citizen care, mental health, centres aimed at further reducing its addiction, youth training and skills carbon footprint through technology development. The company also and innovation. aims to be a net zero greenhouse gas emission company by 2050 or sooner. The technology centres will focus on advancing and commercialising Sustainability is an essential aspect of alternative fuel and energy sources, operations at Kirkland Lake Gold. The building the smart mines of the future investment is part of its commitment with a focus on automation, digitisation to integrate and promote sustainability and connectivity, and providing more across all facets of the business.
10 PROCUREMENT OF RENEWABLES Renewables to power BHP’s QLD coal mines BHP signed a five-year clean energy deal with CleanCo to help halve FY2020 electricity emissions for its Queensland coal mines by 2025. Energy will come from CleanCo’s lower emissions portfolio initially which includes hydro and gas, with wind and solar expected to follow from late 2022. Between 2021 and 2025, it will save about 1.7 million tonnes of CO2e, or approximately the emissions from 400,000 combustion engine cars. This contract will help support 800 new regional jobs in Queensland at the Karara and MacIntyre Wind Farms and BHP also signed a renewable power purchasing agreement for its Kwinana Nickel Western Downs Green Power Hub. Refinery in WA, where it also installed EV charging stations for its team members.
CARBON CAPTURE UTILISATION AND STORAGE Global partnership underpins CCUS in Australia
Glencore’s Carbon Capture Transport to capture CO from the Millmerran Glencore Australia 2 Surat Basin and Storage Company (CTSCo) and coal-fired power station and store it the China Huaneng Group Clean safely underground. The project has Energy Research Institute Co. Ltd. the potential to become a large scale have signed a Memorandum of CCUS hub in Queensland. Understanding on carbon capture The MOU also demonstrates utilisation and storage (CCUS) Glencore’s commitment to supporting commencing with the CTSCo project at the deployment of low emissions Millmerran power station in Australia. technologies like CCUS to reduce With support from Low Emission emissions from the use of fossil fuels Technology Australia, CTSCo aims and other industrial processes.
METHANE CONVERSION WASTE GAS FROM COAL MINES POWER QLD HOMES Methane captured at Anglo American’s emissions by about 5 million tonnes
Moranbah North, Grosvenor and of CO2e per annum. Capcoal underground metallurgical Anglo American is also undertaking coal mines is being used by nearby a concept study into the abatement power stations to generate more than of dilute ventilation air methane 140 MW of electricity per annum, or (or VAM) which could ultimately enough to power 90,000 homes. contribute to a commercial scale By capturing the methane which is demonstration of VAM abatement otherwise vented as a waste product, to address fugitive emissions at Anglo American is also reducing its Australian coal mines. 11 ELECTRIC VEHICLES Electric haul truck trial at Tropicana gold mine
AngloGold Ashanti is upgrading its current diesel haul fleet at its Tropicana gold mine by trialling a fleet of six new Liebherr T264 electric haul trucks to reduce diesel consumption. The T264’s unique combination of a high-horsepower engine (2,700 hp), Autonomous haul truck an efficient Litronic Plus AC drive fleet at Boddington system and powerful electric wheel motors (4,425 hp) allow for faster cycle Newmont’s Boddington mine will times, making the T264 exceptionally be the world’s first open pit gold mine productive and cost-efficient. with an autonomous truck fleet when fully operational later this year. AngloGold Ashanti seeks to embed sustainability into all aspects of its Newmont is investing almost business and value chain, from the $200 million in automated haul trucks initiation of exploration activities which can reduce fuel usage and to post-closure activities. associated emissions by using lower and more constant revs.
AUTONOMOUS VEHICLES FROM PIT TO PORT WITH HYDROGEN POTENTIAL AUTONOMOUS TRAINS New technology solutions for Aurizon Rio Tinto has invested $940 million in its AutoHaul™ program, an automated Aurizon hauls much of Queensland’s heavy-haul long distance rail network. coal production to the ports and has committed to net zero operational The 2.4 kilometre long trains are emissions by 2050. monitored remotely from an operations centre in Perth and travel across a The company will invest $50 million vast network of 1700 kilometres of to find low carbon technologies for track in outback Western Australia. its trains including the development They have already safely travelled over of battery and hydrogen-powered 4.5 million kilometres autonomously solutions. Prototypes could be since they were first deployed in 2019, running on the rail network within delivering iron ore from 16 mines to five years. ports in Dampier and Cape Lambert. also removed the need for and Aurizon is already using its electrified The deployment of AutoHaul™ has saved the emissions from almost rail network in Central Queensland, improved productivity, increased 1.5 million kilometres of road travel and an increasing proportion of flexibility, and reduced bottlenecks per year previously required to renewable energy will deliver further in Rio Tinto’s iron ore system. It has transport drivers. emissions reductions. 12 RENEWABLE ENERGY Newcrest’s Cadia mine to run on renewables
Newcrest intends meeting the future energy requirements of its Cadia gold mine through renewable power sourced from the Rye Park wind farm located in New South Wales. It recently struck a 15-year power purchase agreement (PPA) contracting for more than 40 per cent of Cadia’s projected energy demand from 2024, which is when the wind farm is expected to commence operations. The PPA is expected to help deliver a 20 per cent reduction in Newcrest’s emissions intensity and is a significant step towards achieving its target of a 30 per cent reduction by 2030.
EXPLORATION INNOVATION Exploration efficiencies a focus for ANSTO
The Australian Nuclear and Science The procedure complements and is Technology Organisation (ANSTO) now as quick as traditional X-rays. This has developed a technology that may means the search for valuable minerals improve exploration efficiency. and their processing can be carried out in a more targeted manner, reducing Scientists are using ‘Dingo’, one of the environmental effects of mining. the highest intensity neutron imaging machines in the world, to reduce the The technique is already extensively time needed to measure the exact used to examine hundreds of well- mineral content of core samples. preserved fossils still encased in rock, enabling researchers to learn how The non-destructive neutron-imaging animals and plants evolved to thrive A 3D neutron image of a technology creates a full 3D map of through changing conditions. drillcore from a gold-lead-zinc- the core revealing the mineral content copper-silver mineral deposit for metal-rich and dense ores. in central Western NSW.
SOLAR ENERGY RIO TINTO DEPLOYS SOLAR AND BATTERY STORAGE AT GUDAI-DARRI
Rio Tinto is installing a 34MW annual greenhouse gas emissions by photovoltaic solar farm at Gudai- about 90,000 tonnes compared to Darri in Western Australia. The farm conventional gas powered generation. will consist of around 100,000 solar At the end of 2019, over three quarters panels made up of photovoltaic cells. of Rio Tinto’s electricity consumption Together with a new lithium-ion across its managed operations was battery energy storage system, the sourced from renewable energy solar plant is estimated to reduce (solar, hydro and wind). 13 Reporting methodology The national reporting schemes of Finally, the SGM reports only scope National Greenhouse and Energy 1 emissions while NGERS reports Reporting Scheme (NGERS) and scope 1 and 2 emissions, and the Safeguard Mechanism (SGM) neither attribute Australian and require entities with operational New Zealand Standard Industrial control of eligible facilities to report Classification (ANZSIC) codes their emissions annually. Accurately to facilitate segmentation into estimating the emissions attributable economic sectors. to MCA member companies from It is important to note that the these data sources is difficult for latest publicly available data in the following reasons. NGERS and the SGM predates All reporting facilities, and the commencement of the not just those in the minerals MCA Climate Action Plan, as sector, typically have complex well as member climate related ownership structures and so are investments in the FY2021 period. not necessarily wholly owned by a In this respect, the emissions data single legal entity. Some facilities should be regarded as an indicative need not submit their emissions baseline for MCA member emissions data in every reporting year due covered under these federal to a need to meet minimum compliance schemes. threshold requirements. The SGM data precedes the The SGM requires reporting COVID-19 pandemic and so there only for facilities with emissions are clearly no associated reductions greater than 100,000 tCO 2 in emissions, while the NGERS data pa. NGERS requires reporting does include some of the early by facilities with emissions months of COVID-19. greater than 25,000 tCO2 pa and/or corporate group greater The minerals sector continued than 50,000 tCO2 pa) and/or production through the pandemic administrative arrangements such in compliance with all necessary as multi-year reporting periods. health and safety protocols. The impact of COVID-19 on mineral MCA member facilities under sector emissions during this NGERS are aggregated at the COVID-19 still remains uncertain, corporate group level which with the effects likely to be realised includes all emissions and not just in the next reporting period. those generated by the minerals sector. NGERS provides no facility All survey results in this report level emissions details while the are for NGERS reporting full SGM reports at the facility level MCA members. with no corporate group details.
14 Australia’s minerals Building a sustainable, zero emissions future
Minerals required to manufacture various Australia’s resources low emissions energy of critical minerals technology WIND TURBINESSOLAR PANELSHYDRO POWERNUCLEAR CARBONENERGY CAPTUREELECTRIC &BATTERY VEHICLES STORAGE STORAGE 5.7Mt Aluminium LITHIUM Coal The world’s 2nd largest lithium resources Cobalt
REO Copper 4.03Mt Gold RARE EARTH ELEMENTS The world’s 6th largest rare Graphite earth elements resources Iron ore 93.4Mt Lithium COPPER Manganese The world’s 2nd largest copper resources Mineral sands Rare earths 21.2Mt Silver NICKEL Australia has the world’s Nickel largest nickel resources Silicon 1.4 Mt Uranium COBALT Vanadium The world’s 2nd largest cobalt resources Zinc Source: Geoscience Australia, Australia’s Identified Mineral Zirconium Resources 2020
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PROGRESS REPORT 2021
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