MCA Climate Action Plan

13 51 6 Al Sb C Aluminium Solar cells Antimony Carbon

27 29 79 Co Cu Au Cobalt Copper Gold Batteries

26 3 25 Fe Li Mn Hydrogen Iron Lithium Manganese

12 28 41 Mg Ni Nb Magnesium CCUS Nickel Niobium

50 92 30 Sn U Zn Tin Uranium Zinc EV & hybrids

Nuclear Mineral Wind Rare earth energy sands energy elements

Supporting ongoing climate action by Australia’s minerals industry

The MCA and all of its Sustained climate action across all nations is 4. Accelerated development of the This 2020-2023 plan furthers the minerals well as taking a lead on commodity stewardship required to reduce the risks of human-induced minerals required for a low emissions sector’s public commitment to addressing looking at global procurement practices, circular members are taking serious climate change and to support world-wide future including aluminium, copper, nickel, climate change on an ongoing basis consistent economy, and traceability of commodities action on climate change decarbonisation as we transform to a lower zinc, iron, uranium, base metals, lithium, with the MCA’s climate statement. It outlines a through their lifecycle. emissions future. minerals sands, and rare earths series of actions focused on three key themes: and are committed to the Practical and cost-effective options are already Our sector improves the lives of millions of 5. Global and domestic partnerships 1. Support developing technology pathways to being developed and put into action across the Paris Agreement and its goal people in Australia and overseas through the with governments, regulators, customers, achieve significant reductions in Australia’s minerals value chain. of net zero emissions. responsible mining of minerals that are essential technology developers, universities, greenhouse emissions The sector will play its part so that Australia’s for everyday life. NGOs and other relevant groups to drive 2. Increased transparency on climate change minerals can be sustainably mined, refined This is a global undertaking of major new technologies that cost-effectively related reporting and informed advocacy and consumed to support more sustainable technological, economic and social challenge reduce emissions economic growth and social progress in in which Australia and the minerals sector must 3. Knowledge sharing of the sector’s responses alignment with the United Nations Sustainable 6. Policies that foster continued economic to addressing climate change. play their part. growth and investor confidence in Australia. Development Goals and the global climate goals This plan will be reviewed annually to ensure it of the Paris Agreement. To achieve an ambition of net zero emissions The scale of the technology-led transformation in Australia, and reflecting the importance of remains consistent with Australia’s climate policy This Climate Action Plan is part of the ongoing required cannot occur without the minerals ambitions in support of the Paris Agreement. The technology- rapid action, requires a stable national policy and raw materials provided by the Australian commitment of Australian minerals companies framework that includes: mining sector. With this plan, the sector acknowledges led transformation to environmentally sustainable and responsible 1. Substantially increased research, the critical importance of technology in mining and processing. Our sector is already making major investments reducing emissions. It lays the groundwork required cannot development and investment in technologies to significantly reduce emissions such as and processes to reduce mine site emissions for the Australian minerals sector to share its occur without the renewable energy investments at mine sites knowledge and support emission reductions 2. Widespread deployment of low and and collaborations with partners on low within the sector. minerals and raw zero emission technologies including emissions technologies and processes. consideration of all technologies The minerals industry has already taken a strong materials provided Australia’s ability to successfully adapt to proactive approach on research, development Tania Constable 3. Credible, verified low cost abatement options, climate change will rely on a strong economy and deployment of technology applications by the Australian Chief Executive Officer including domestic and international offsets including a strong and internationally competitive across our businesses. Major opportunities exist Minerals Council of Australia Australian mining industry. Our sector will in pursuing decarbonisation including through minerals sector. continue to deliver the raw materials and operational efficiencies, abatement, developing contribute to the new technologies which will and deploying low emissions technologies underpin necessary resilient infrastructure and including renewables, hydrogen, proven, safe and act on new opportunities that will drive lower reliable Carbon Capture Utilisation and Storage emissions for the minerals industry. (CCUS) and advanced nuclear solutions, as well as digitisation, automation, and electrification. The sector will support the development of cleaner energy options through the development of critical minerals to enable their application as

MAKING THE SWITCH Australian miners embrace renewable energy Remote mine sites are increasingly powered by solar, wind and battery energy. In February 2020, Rio Tinto announced a 34MW solar farm will power its new Koodaideri iron ore mine in the Pilbara. The 100,000-panel photovoltaic plant, along The MCA is proud to release its Climate Action Plan while with a lithium-ion battery at Tom Price, will help Rio Tinto reduce its annual carbon recognising the shadow cast by COVID-19. This has not and will emissions by about 90,000 tonnes – the equivalent of taking around 28,000 cars not deter Australia’s minerals sector from further implementation off the road. Expected to be operational in 2021, the solar farm will join more than a of this Plan. The minerals sector stands ready to help lead our dozen green energy projects at mining operations across the country. nation’s economic recovery post-COVID-19. CLIMATE THEMES AND ACTIONS

Developing technology pathways to achieve significant Increased transparency on climate change 1 reductions in Australia’s greenhouse gas emissions 2 reporting and informed advocacy Encouraging substantial investment across a broad range of low-emissions technologies. Providing timely, accurate and reliable information to enhance members’ capacity to act.

ACTION 1 ACTION 2 ACTION 3 ACTION 4 ACTION 5 ACTION 6 ACTION 7

Enhance national and Define a greater role for the Support the development of Understand the Build the capacity of Share member company Engage in the ongoing global discussions on low minerals sector in the global policies and technologies to opportunities and risks Australia’s minerals sector approaches to scenario development of current emissions technologies and national transformation to achieve least-cost abatement of net zero emissions for the relating to climate-related analysis and how it is being policies including the and report on the potential lower emissions. in order to help meet the net Australian minerals sector financial disclosures strategically used within the Safeguard Mechanism. of innovative mitigation and zero emissions goal of the having regard to the Australian (including from the Taskforce sector to address climate- adaptation technologies. Paris Agreement and maintain Government’s commitments on Climate-related Financial related opportunities and risks. the competitiveness of under the Paris Agreement Disclosure). energy-intensive and trade- and the aspirations set by the exposed sectors. states and territories.

CLIMATE ACTIVITIES

ACTIVITY 1.1 ACTIVITY 1.4 ACTIVITY 1.8 ACTIVITY 3.1 ACTIVITY 3.4 Pursue climate partnerships Explore technology potential Work with finance community Support public data repository Report on technology uptake Identify domestic and international Consider aspirational uptake rates and Identify innovative business models that can Work with government officials to improve Release a biennial statement on progress partnerships relevant to the minerals timeframes across a broad portfolio of low- support the uptake of nascent low-emissions mineral sector datasets, including remote towards achieving aspirational technology sector to advance the climate goals of emitting and high-abating technologies. technologies. power options, centralised power system uptake rates suggested in Action 1.4. the Paris Agreement. costs and low emissions technologies. ACTIVITY 1.5 ACTIVITY 2.1 ACTIVITY 3.5 ACTIVITY 1.2 National technology roadmap Support renewable energy ACTIVITY 3.2 Publicly support ARENA Climate Change Advisory Panel Inform and help implement the Government’s Encourage the uptake of renewable energy Advocate long-term policy Support ARENA to continue accelerating Establish and convene an independent Technology Investment Roadmap. sources at the mine site. Longer-term policy advocacy consistent with the uptake of clean energy. Supporting the panel of experts to advise the MCA on the MCA’s Climate Statement to enable the sustainable pathways to decarbonisation. ACTIVITY 1.6 ACTIVITY 2.2 sector to decarbonise. ACTIVITY 3.6 shift towards a Develop minerals sector roadmap Support zero emissions Access international abatement ACTIVITY 1.3 Partner with relevant organisations to develop Support innovative solutions for zero ACTIVITY 3.3 Advocate for private sector access to lower emissions Demonstrate technologies a minerals-specific technology roadmap. emissions energy production at mine sites. Advocate climate programs international low-cost abatement for Support the demonstration of technologies Advocate for programmatic support to voluntary and compliance purposes. mining sector that can help reduce fugitive emissions by ACTIVITY 1.7 ACTIVITY 2.3 enable deployment of mining technologies collaborating with relevant organisations. Explore low carbon opportunities Support electric vehicles to assist in the sector’s decarbonisation. ACTIVITY 3.7 in Australia Release a statement on the opportunities Support the uptake of electric vehicles at Review innovation systems associated with transforming the minerals the mine site and promote the associated Periodically review the health of the national sector in support of a decarbonised future. opportunities for the sector. innovation system in regard to research, development and demonstration (RD&D) relevant to the minerals sector. minerals.org.au

Knowledge sharing of the sector’s responses Implementation of the Climate Action Plan to addressing climate change 3 The MCA Board, assisted by its The MCA will promote evidence-based international cooperation to enhance sectoral Improving members’ understanding of global climate change initiatives and partnerships. knowledge-sharing to help members manage understanding and build capacity to act. advisory committee, the Energy emissions. This will include sharing ways The MCA will also encourage peer to identify and estimate future emissions and Climate Change Committee, learning by providing members with pathways consistent with Australian opportunities to attend relevant meetings, will oversee the implementation Government policies and the climate goals including international climate negotiations, of the Paris Agreement. of the action plan. along with hosting relevant workshops and Environmental, social and governance enabling contributions by the industry to (ESG) related topics will also be included scientific and technological work in Australia in discussions such as waste and water and overseas. management, deployment of innovative solutions, and opportunities for national and ACTION 8 ACTION 9 ACTION 10

Showcase commitments Lead discussions on the Positively engage in and practices in mining opportunities of commodity relevant climate agendas MAKING THE SWITCH operations. stewardship. and public consultation The future of mining includes electric vehicles processes including Mining companies are increasingly making the switch to electric vehicles – from light UNFCCC, Sustainable passenger utilities to employee buses and even large haul trucks. Anglo American, Development Goals (SDGs), in its effort to drive operations towards carbon neutrality, is developing a hybrid haul Intergovernmental Panel on truck that uses both a lithium-ion battery and a hydrogen fuel cell module. It will be the Climate Change (IPCC), as world’s largest hydrogen powered truck if testing later this year is successful. In Australia, well as collaboration with electric vehicles are also appearing on mine sites. BHP is expanding its pilot program relevant organisations. for electrified Land Cruisers to its Western Australian iron ore and nickel businesses after successful testing at Olympic Dam in South Australia.

ACTIVITY 4.1 ACTIVITY 6.1 ACTIVITY 8.2 ACTIVITY 9.2 MAKING THE SWITCH Economics of net zero emissions Assist climate planning Supporting adaptation Report on blockchain technology Model the opportunities and costs of Explore reputable publicly released Understand the types of adaptation Report on the application of blockchain Glencore looks to future with net zero emissions to the minerals sector climate scenarios and their significance investments needed in the minerals sector, technology in the minerals sector. carbon capture in Surat Basin consistent with national commitments under for the minerals sector, and survey members especially in regard to operations, employee Glencore is leading the research the Paris Agreement and the aspirations set to compare commitments and use of health, supply chains, water use, energy ACTIVITY 9.3 and development of low emission by the states and territories. scenarios and report on key findings. resources and local communities, to Support value-adding activities technology solutions with its help minimise the adverse impacts of Partner with organisations to showcase the Carbon Capture and Storage (CCS) ACTIVITY 5.1 ACTIVITY 7.1 a changing climate. importance of minerals extraction to their demonstration project in the Surat Host climate disclosure forum Climate policy barometer value-adding activities, including climate- ACTIVITY 8.3 Basin (Qld). CCS technology captures Host bi-annually a climate-related Survey members to identify and understand smart minerals and metals. financial disclosure forum to raise awareness the nature of climate-related policy issues Supporting resilience CO2 from coal and gas-fired power stations and other industrial processes and share knowledge. and opportunities, and report on key findings Understand and share how mining operations ACTIVITY 10.1 and stores it deep beneath the ground. to transparently set expectations on MCA are assessing and managing the physical International climate agenda ACTIVITY 5.2 The Surat Basin features suitable advocacy priorities. impacts of climate change on site to build Engage productively in the business of the Align disclosure practices operational resilience. United Nations Framework Convention on geological conditions to sequestrate ACTIVITY 8.1 large quantities of CO . The Identify current disclosure practices Climate Change including the implementation 2 amongst members to inform their alignment Establish online registry ACTIVITY 9.1 demonstration project will establish of the Paris Agreement and the work of the with TCFD recommendations. Establish an online registry including Report on circular economy Intergovernmental Panel on Climate Change. the technical viability and safe minerals sector climate-related collateral Report on the role of the minerals sector in operation of the technology on behalf (initially targeting members but could allow helping transform to a circular economy. of industry and government. future public access).