As the world progresses toward the renewable energy transition, the demand for minerals increases exponentially. According to the International Energy Agency (IEA) 2021 Net Zero by 2050 Report, critical mineral production needs to grow six times in order to combat climate change. It’s estimated that four to seven percent of global greenhouse gas (GHG) emissions come from the mining sector’s Scope 1 and 2 (direct and indirect) emissions. Including Scope 3 (upstream, downstream, and embedded) emissions, the sector accounts for 28% of global GHG emissions. In a typical mining operation, diesel fuel is the biggest source of direct GHG emissions, and haulage is often the main source of diesel emissions. If a mine can electrify its hauling operations, it can significantly reduce GHG emissions and lower costs. Large haul trucks have been the industry standard for over 50 years and offer flexibility, relatively low capital cost (especially with equipment lease options), and guaranteed technology with known maintenance. The challenge will be to justify their continued use when there are more economical options that lead to significant reductions in GHG emissions.

1. Mining and The Race To
NET ZERO
Mining Sector’s Pathway to Net Zero
Greenhouse Gas Emissions and Lower Operating Costs
Environment | Technology | Sustainability
Keywords: Energy Transition | Electric Mining | Electricity Supply | Sustainability

2. The Energy Transition is Driving Growth in Mining
To achieve global net
zero carbon emissions,
mining of minerals will
need to grow
6x by 2050
- IEA 2021 Net Zero by 2050
Report
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Chart sourced from: IEA 2021 Net Zero by 2050 Report

3. Where do the Minerals for Li-Ion Batteries Come From?
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Five critical
minerals for
lithium-ion
batteries:
- Lithium
- Cobalt
- Manganese
- Graphite
- Nickel
Images sourced from elements.visualcapitalist.com
China
currently
owns more
than 62% of
battery
manufacturing

4. Mining Industry Under Pressure for Clean Minerals
"Half of global emissions come
from 50 companies, 20 of
which are mining companies."
- S&P Global Platts
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5. Cap and Trade or Carbon Tax Policies Worldwide
“Carbon
pricing
needs to be
set at a
minimum of
$50–
$100/tCO2
by 2030 to
reach the
objectives of
the Paris
Agreement”
- Carbon Market
Watch
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Image Source: The World Bank, 2021

6. Mining is Largest Contributor to Global Carbon
Emissions
Scope 1
Scope 2
Scope 3
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-McKinsey & Co.
Global Greenhouse Gas (GHG) emissions = 40.8 Gt CO2e (2021)
Mining Scopes 1 & 2 = 2.4 Gt CO2e.
Scope 1 and Scope 2
emissions for mining sector
represents 4-7% percent of
global emission.
The Mining Sector’s Scope 3
emissions is estimated at
28%of global emissions.”

7. The World’s Largest Mining Companies Aim for Net Zero
Name Market Cap ($B) Climate Goal
BHP Group $225.59 Net-zero emissions by 2050
Rio Tinto $106 Net-zero emissions by 2050
Glencore $76.65 Net-zero emissions by 2050
Vale S.A. $73.94
Net-zero Scope 1 & 2 by 2050,
reduce Scope 3
Fortescue Metals
Group
$52.99 Net-zero emissions by 2040
Anglo American
Plc.
$43.97 Net-zero emissions by 2040
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8. Where you source your energy matters!
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Depending on site and
topography for a mine, it’s
often the case that haulage
represents the majority of
the fuel consumption.

9. 1 2 3 4 5 6 7
Diesel-Electric Haul
Trucks BEV Haul Trucks Fuel Cell Trucks Railveyor
Diesel-Electric
Heavy Rail
Long Haul Diesel
Trucks Conveyor
The purpose of this study is to compare seven haulage
options in terms of greenhouse gas emissions (GHG),
using the methodology defined by the Greenhouse Gas
Protocol Scopes 1, 2, and 3 (Category 2).
Additionally, this analysis compares operating and
capital costs associated with the seven haulage
options (both emerging and proven technologies):
Haulage Systems for Comparison
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10. Direct and Indirect Emissions and Operating Costs
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Of all seven haulage
options, Railveyor is
estimated to be the most
efficient hauling method
in both terms of
emissions and operating
cost per tonne-km.
If renewable electricity
used to power Railveyor,
all Scope 2 emissions
would be eliminated.
Scope 3 would account
for renewables supply
chain emissions.

11. Apples to Apples Mine Scenario
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12. Investments in Operational Efficiency
1. Business as Usual
Standard operations with
diesel fuel use for all mining
equipment
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3. Full Electrification
Replace all equipment with
most similar plug-in, battery,
hydrogen fuel cell electric
alternative
2. Partial Electrification
(50% of haul trucks)
Transition to electric
systems for everything but
ore hauling
Blasting

13. 13
“Digital assets (like cryptocurrency)
can be deceiving in that they appear
out of thin air, but there is real power
usage behind mining bitcoin.”
- Visual Capitalist
Bitcoin mining is nearly 15x more
carbon intensive than mining the
equivalent value of gold.
Scope 2: How Much Energy You Use Matters Too
Reference: Visual Capitalist, source Bitcoin Energy Consumption Index, Digiconomist

14. Combine Multiple Generation Sources in a Microgrid
1. Replace high CAPEX with recurring
OPEX by utilizing local generation and
avoiding utility transmission lines
2. Reliable low cost power supply from
reputable 3rd party microgrid developers.
3. Resilience to grid disturbances/power
interruption - like wildfire, or other
demand.
Savings over a 25 year life of
mine can from $50 million to
over $600 million.

15. Scope 3 is Increasingly Important
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"Mining is responsible for 4% to 7% of
global greenhouse gas emissions in
terms of the sector's Scope 1 and Scope
2 emissions. Including Scope 3 emissions
links the sector to around 28% of global
emissions."
- McKinsey & Co
Scope 4 asks:
What is the downstream
benefit of the minerals
you produce?

16. Other Opportunities: Waste Rock to Carbon Credits
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Olivine can sequester up
to 60%
of it’s own weight in CO2
Basalt can sequester up
to 30%
of it’s own weight in CO2

17. Other Opportunities: Geothermal - drilling
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Enhanced
Geothermal can
store energy for
nearly a year
Deep Well
Geothermal
At 6,000 meters,
we can get the right
temps across many
parts of the world

18. Questions?
Amber Bieg, Partner, Warm Springs Consulting
amber@warmspringsconsulting.com
208-918-1707
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