Carbon pricing pushing mines to look at renewable alternatives

JOHANNESBURG (miningweekly.com) – Carbon pricing is pushing mining leaders to consider renewable-energy options as a way of further reducing greenhouse-gas emissions and stabilising energy costs, according to information source for energy and mining Energy and Mines director Adrienne Baker.

"Carbon pricing in Canada is having an impact on the energy choices of mines. With carbon becoming a commercial liability, mines are evaluating renewables for remote sites and integrating alternative energy into feasibility studies for new operations as a way of limiting carbon exposure," she says.

Energy and Mines points out that Canadian mining companies currently leading carbon reduction and renewables integration include Barrick Gold, Iamgold, AurCrest Gold, Goldcorp and TMAC Resources.

These companies are investing in renewables and mine electrification to significantly reduce their carbon exposure, stabilise energy costs and boost social licence to operate.

"The projects these mines are doing and the approaches they are taking to energy are models for the entire sector to mitigate carbon risk and address energy challenges," notes Baker.

Internationally, Conference of the Parties 21 targets, as well as emerging carbon policies in key mining jurisdictions – including Chile, Argentina and South Africa – are also pushing mining leaders to integrate carbon exposure into their energy choices.

Energy and Mines notes that mining leaders are adopting shadow prices - the estimated price of a good or service for which no market price exists - on carbon and introducing carbon risk into their energy plans for global operations, which is a big change over the last two years, when the core focus has been energy savings.

"Many miners, including Newmont and Gold Fields, are elevating carbon risk to a strategic level and integrating it into their energy plans," she adds.

Carbon pricing and the role of renewables will be a key topic at the fourth yearly Energy and Mines World Congress, taking place in Toronto, Canada on November 21 and 22, which will bring together over 300 mining, renewables and finance leaders to discuss carbon mitigation and renewables integration.

Solar energy company Lightsource Renewable Energy is the event sponsor, which drives connections between global mining and renewables experts to accelerate sustainable energy for mines.

The event will also celebrate mining companies for their achievements in renewable energy for the first time this year.