Sustainable innovation helping mining sector optimise vital role in green transition - Tech Digest

During a critical period in the mining industry, top figures from various countries will come together in Sydney next month for the Asia Pacific's International Mining Exhibition (AIMEX) to plan for the future. Revealed at the end of July, the conference's three-day itinerary highlights a strong emphasis on utilizing technological advancements and implementing measures to reduce carbon emissions in order to address the environmental consequences of a sector that currently holds a prominent position on the global sustainability agenda.

AIMEX's prompt focus on innovative mining practices that are environmentally sustainable aligns with the findings of PwC's Global Mine Report 2023, published in June. The report emphasizes the urgent need for major mining corporations to redefine their strategies in order to flourish amidst this period of transformation. This transformative phase is characterized by an increased demand from governments worldwide to procure substantial amounts of essential minerals like lithium, cobalt, copper, and others that are crucial for facilitating the transition towards clean energy.

By harnessing renewable energy, implementing circular economy principles, and adopting less intrusive advanced technologies, mining companies can safeguard the industry's future and significantly contribute to global decarbonization efforts.

The ongoing shift towards sustainability in important developed economies, specifically the United States and European Union, has caused a significant surge in the need for rare earth minerals. These minerals are essential components in solar panels, electric vehicle batteries, and various other vital technologies.

In July, the International Energy Agency (IEA) released a market analysis report showing that the need for these substances had increased twofold in the last 5 years. Specifically, there were significant increases of 40% for nickel, 70% for cobalt, and a whopping 200% for lithium. As a result, it is crucial to prioritize the development of essential minerals. Mining companies are fully aware of this urgency, evident from the 30% rise in investment towards exploration in the previous year.

However, according to Lauren Bermack, the leader of PwC Canada's mining team, mining companies will need to face two difficulties: reducing emissions and increasing production to meet the demand. The International Energy Agency (IEA) states that although carbon emissions from minerals used in the energy transition are currently minimal due to their low production quantities, they are expected to rise substantially in response to growing demand. This is especially true for lithium and nickel, which have higher greenhouse gas emissions rates during their development.

Besides emissions, mining operations that do not meet adequate standards have a highly negative effect on the environment in terms of the loss of biodiversity, the pollution of the air, the contamination of the ground, and the depletion of water. In light of these facts, Andries Rossouw, the Africa Mining Leader at PwC, has emphasized the importance of miners transforming and rethinking their approach to mining in order to seize new possibilities, or else face the risk of losing out.

Given McKinsey's recent calculations that the mining industry must decrease its emissions by at least 85% by the middle of this century, and the potential reduction of up to 80% in emissions by transitioning to fully-electrified mines powered by renewable energy, along with PwC and the IEA's emphasis on the significance of investing in energy efficiency, it is evident that the initial step towards decarbonizing the mining sector is apparent.

Excitingly, major mining companies like CMOC – a dominant player in the production of copper and cobalt worldwide – have already embraced sustainable practices focused on green energy, circular economy, and the preservation of biodiversity as the foundation of their operations. With a commitment to "responsible mining," CMOC has significantly increased its utilization of renewable energy to 38.8% in 2022, approaching its target of 40% by 2025. This accomplishment was made possible by investments in solar plants, biofuels, hydropower, and other innovative sources of renewable energy. In both its operations in the Democratic Republic of Congo and Brazil, CMOC now relies entirely on hydropower for its electricity needs, harnessing the vast energy resources of rivers.

In addition, CMOC has constructed battery-swap stations that are designed to use less energy. They have also been working hard to increase their waste recycling rates in order to contribute to a circular economy and reduce their impact on the environment. These efforts have been recognized by MSCI ESG Research, who upgraded CMOC's ESG rating from 'A' to 'AA' in May. This puts CMOC in the top 16% of companies in the global non-ferrous metals industry. Looking forward, CMOC's plan to be carbon neutral by 2050, which has a budget of $1.5 billion, proves that their commitment to sustainability is just beginning.

In addition to promoting clean energy and circular economy initiatives, innovative mining companies have started to incorporate cutting-edge technologies to balance the industry's environmental concerns with its production demands.

In this case, Plotlogic, a company specializing in mining equipment, has created a state-of-the-art technology called OreSense. This technology serves to increase the production of miners while also reducing wasted resources and energy usage. By utilizing a unique blend of artificial intelligence and sensors, OreSense is able to analyze samples, mine surfaces, and storage areas in real-time. This provides mining firms with the ability to quickly identify valuable mineral reserves without the need for exhaustive and disruptive exploration methods. Dr. Andrew Job, the CEO of Plotlogic, states that their clients often compare the use of OreSense to upgrading from a basic tool to a much more precise and efficient one.

Prominent players in the industry such as BHP, South32, and Vale have wholeheartedly embraced this technology. Vale, in particular, has taken significant strides in incorporating precise mining methods to reduce its environmental footprint while simultaneously increasing productivity. The Brazil-based company has become a leading advocate for solution mining, or In-situ Leaching (ISL), a sustainable approach that involves extracting essential minerals, such as lithium for clean energy, directly from the ore by permeating liquids underground. This method effectively minimizes surface disturbances and eradicates the production of useless rock material.

Additionally, Vale initiated a fund worth $100 million during the previous year to aid groundbreaking sustainable mining startups, demonstrating their dedication not only to implement, but also to enhance the progress of emerging technologies that will expedite the mining industry's shift towards environmental sustainability.

In order to meet the increasing need for essential minerals without hindering the progress of clean energy, it is crucial to swiftly and extensively implement a variety of sustainable mining actions.

However, although the responsibility of developing and executing green energy and advanced technology solutions lies with the private sector, governments need to acknowledge their vital contribution in this endeavor. This is especially important considering that their ambitious plans to reduce carbon emissions will be the main catalyst for the demand of minerals. Governments can play a significant role in fostering the widespread adoption of sustainable mining by offering substantial financial rewards, imposing strict regulations, and providing generous funding for mining tech startups and skill enhancement initiatives.

The upcoming AIMEX, scheduled for next month, has the potential to serve as a catalyst for the broader acceptance of these advancements. It is crucial for industry pioneers to exchange their expertise and experiences in order to effectively address the increasing demands for productivity and sustainability.

August 24, 2023 - Tech Digest Reporter It has come to our attention that there is an intriguing development in the world of technology.