Miners are shifting out of fossil-based power sources, such as diesel, in response to investors’ pressure to cut carbon emissions. Easing their path is the rapidly falling cost of renewable energy, according to Bloomberg.
Fortescue, one of Australia’s largest iron ore miners, is spending $450 million on a hybrid generation project comprising gas, solar power, and battery storage. The project will supply low-cost, cleaner power to Fortescue’s Iron Bridge Magnetite project.
Further, Fortescue’s Chichester solar gas hybrid power project will reduce emissions by 40% and the use of diesel by 100 million liters annually.
In July last year, Enel agreed to supply up to 3 TWh of renewable energy per year to AngloAmerican’s Chilean mines over ten years effective 2021, enabling the miner to cut emissions by 70%.
BHP, too contracted with Enel and Colbún last year for the supply of renewable energy to its Chilean copper mines. The arrangement will displace 3 million tonnes of CO2 per year from 2022 compared to existing fossil fuels.
“There is a significant movement underway at remote mining operations to use more solar power and renewables,” said Gavin Wendt, senior resource analyst at Mine Life Pty in Sydney. “A lot of remote mine sites have used diesel, and that’s become increasingly expensive.”
Read the Bloomberg article HERE.
Image Source of Solar Panels on Tailings Pond: AngloAmerican