Scene-setting presentation by Perrine Toledano, Head of Extractive Industries, Columbia Center on Sustainable Investment (CCSI) at Columbia University

1. The Green Transition for mining: opportunities
and challenges
Perrine Toledano,
Head: Extractive Industries

2. 7 drivers that will shape the mining sector
 1. Access to resources in frontier areas
 Enabled by new technologies such as in-
situ leaching, block caving or bio mining,
asteroid or deep sea mining
 Unchartered territories
 2. New ways to finance and de-risk mining
 Royalty stream companies
 More JV or service agreements like in oil
 3. Social contract for mining to be renewed
 Fewer jobs from mining due to automation
 More water and energy intensive mining
 Projects going to closure with no plan
 4. Transition to modern mining workforce
 Automation speed will depend on industrial
dialogues and policies on retraining
 Competition with IT sector for data analysts
 5. Increase in transparency requests on policies,
processes, value chain and impacts from all
stakeholders supported by big data and traceability
tech
 6. Geopolitics of mining and rise of protectionism
 7. Transition to low carbon economy
 Losers and winners
 Own greening
 Automation goes with fuel efficiency
Source: CCSI for WEF’s Transformation Map

3. Low carbon technologies, in particular batteries, are mineral
intensive
Estimation: 5-7% of li-ion cells produce worldwide are
recycled.
Source: Norgate – Jahanshashi, 2010

4. Mines’ energy consumption is mostly fossil fuel based and
will only grow
Source: IEA Source: BP
Coal products
11%
Oil products
32%
Natural gas
13%
Heat
3%
Electricity
41%
Renewable
0.2%
ENERGY DEMAND MINING AND QUARRYING (2016)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WORLD ELECTRICITY GENERATION MIX
(2017)
Renewable
Hydro
Nuclear
Gas
Oil
Coal
~85% of energy consumed based on FF,
Energy demand to increase by 36% by 2035 given the mineral intensive energy transition and low grading

5. Hence some scary forecast for 2060
under BAU
 “Rapid growth in extraction of materials is the chief culprit in climate
change and biodiversity loss – a challenge that will only worsen unless the
world urgently undertakes a systemic reform of resource use”, (UN
Environment Assembly - 12 March 2019)
Source: IRP (UNEP), 2019

6. Response: World Bank –GIZ – Rio Tinto - AngloAmerican :
Climate Smart Mining Initiative
Integration of
Renewable
Energy in the
Mining Sector
Forest Smart
Mining within
Landscape
Management
Adoption of a
‘Circular
Economy’ for
Low Carbon
Minerals
Energy
Efficiency in
Mineral Value
Chain
Innovative
Tailings
Solutions
Low Carbon
Mineral Supply
Chain
Management
Innovation in
Extractive
Practices
Resource
Efficiency in
Mineral Value
Chain
Recycling of
Low Carbon
Minerals
Climate
Smart
Mining
WorldBankSupporttoDecarbonizeandReduceMaterial
FootprintofMiningSector
De-risking
Investments
for Low Carbon
Minerals
Robust
Geological
Data
Management
Enabling
Carbon
Markets
GHG Mitigation GHG Adaptation
Reducing Material
Impacts
Creating Market
Opportunities
Strong Governance and Adequate Regulatory Framework

7. Response: Requirements for carbon disclosure are growing

8. Carbon pricing initiatives are on the drastic rise
Number and share of emissions covered by carbon pricing initiatives
Post 2020 strengthening of EU Emission and Trade System + deployment of the national Chinese ETS
could put at (stranded asset) risk metal making industries (through reduction of free allowances and increase
of power/ fuel cost)

9. Competitiveness of renewable energies: good news!
Lithium-ion battery pack price
1 MW solar plant can :
- displace about 500,000 liters of diesel annually
- result in about 1,350 tons of CO2 abatement per year
- (RT, 2018: 28 Mt CO2)
LCOE of solar versus gas and diesel across geographies (2017)

10. Result: Interest is growing but not enough
Less than 10% total energy consumption (including grid)

12.  Answer is unclear as mining’s Co2 footprint is unclear
 There is no single standardized CO2 framework that covers all
minerals and end users, ie: cradle to grave emissions
 Mining companies’ CO2 disclosures are not comparable and
supply chain data is missing or inaccurate.
Renewable energies will decarbonize mining electricity demand but how urgent/
feasible/ critical is it to address the other sources of energy demand?

13. Collaborating on Materials
Emissions Transparency (COMET)
Mining and Metals Blockchain Initiative
 Antofagasta Minerals, Eurasian
Resources Group Sàrl, Glencore,
Klöckner & Co, Minsur SA, Tata Steel
Limited, Anglo American/De Beers
(Tracr) are founding members.
Sustainability Cloud - Salesforce
Using Salesforce consumers to help track
and analyze their C02. Streamlines the
process of measuring things like energy
usage and travel, use standard emission
factors to translate into C02 footprint.

14. Ultimate objective is to develop a differentiated market
for green minerals that sell at premium
Isolated cases of turning carbon risk
into comparative advantage
Down the value chain: Swedish
Hybrit producing zero carbon steel
by 2035
 Hybrit as in: Hydrogen Breakthrough
Ironmaking Technology
 Partnership between Swedish power utility,
Vattenfall, mining company LKAB, Steel
producer SSAB
 Replacing coking coal with “green” hydrogen
 Hoping to sell at premium in 2035
Apple Alcoa and Rio Tinto on a joint venture aimed at
smelting aluminum without emitting greenhouse gases and
using O instead of CO2
Source: Rio Tinto

15. http://ccsi.columbia.edu/
http://ccsi.columbia.edu/our-focus/investments-in-extractive-
industries/
FOLLOW UP AT : ptoled@law.columbia.edu
Thank you!
VISIT OUR RESEARCH AT: