Mining companies are racing to reach net-zero greenhouse gas emissions: Can they accomplish this? How will they get there? This presentation talks about pathways mining companies are taking to reduce greenhouse gas emissions and why it's so important.

1. The Race to
Net Zero Mining
Amber Bieg, Partner
415-601-3279 cell | 208-918-1707 office
amber@warmspringsconsulting.com
www.warmspringsconsulting.com 12.8.2021
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2. The Race to Net
Zero Emissions
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3. 3
Where are we in the clean energy transition?
Images sourced from U.S. Energy Information Administration: https://www.eia.gov/energyexplained/us-energy-facts/

4. 4
Why Do We Need Minerals?
Lithium
Cobalt
Gold
The renewable energy transition needs critical minerals
Image sourced from: World Bank

5. 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

6. 6
Where are Critical Minerals in Canada?
Source: USGS

7. 7
Where are Critical Minerals in the US?
Source: USGS

8. 8
Climate-related risk - Rain on snow/snowmelt events
Images sourced from scenariosglobalchange.org: Future Climate Projections for North America from CMIP5 model simulations
Change (%)

9. 9
Projects at Risk
“In the past 50 years, 63 major
tailings dam failures have been
reported worldwide, with an
upward trend in
high-consequence failure events
since 1990.”
“From 1961-2019, more than
2,375 people have lost their
lives to tailings dam failures . . .
the failure rate after 2000 has
increased to a frequency of five
to six significant tailings dam
failures annually.”
-Journal of Disaster Risk Reduction
Reference: J.R. Owen,D. Kemp,É. Lèbre,K. Svobodova,G. Pérez Murillo. Catastrophic tailings dam failures and disaster risk disclosure. International Journal
of Disaster Risk Reduction. Elsevier. Jan 2020

10. 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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Reference: J.R. Owen,D. Kemp,É. Lèbre,K. Svobodova,G. Pérez Murillo. Catastrophic tailings dam failures and disaster risk disclosure. International Journal
of Disaster Risk Reduction. Elsevier. Jan 2020
In 2019, 96 institutional investors representing $10.3
trillion in assets issued an open letter to 658 mining
companies requesting public disclosure on 20 specific
questions about tailings dams.
$2bn by 2030
Brazil’s Vale SA commitment
to reduce emissions

11. Why are Miners Racing to Net Zero GHG Emissions?
1. OPEX savings
2. Investor/shareholder
mandates
3. Supply chain mandates
4. Policy - cap and trade and
carbon tax
5. Tracing exposure to resource,
energy and climate-related
risks - reducing risk
6. Positive engagement with
employees, suppliers and
consumers
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12. The Race to Net-Zero Mining
Institution Name Market Cap ($B) Climate Goal
BHP Group Diversified metals and mining 116.1 Committed to net-zero emissions by 2050
Rio Tinto Diversified metals and mining 95.2 Net-zero emissions by 2050
Vale S.A. Steel 52.4
Net-zero Scope 1 & 2 by 2050, reduce
Scope 3
Fortescue Metals Group Ltd. Steel 29.4 Net-zero emissions by 2040
Anglo American Plc. Diversified metals and mining 28.6 Net-zero emissions by 2040
Wheaton Precious Metals Corp. Diversified
metals and mining
19.7 Claims already carbon neutral
Sumitomo Metal Mining Co. Ltd. Diversified
metals and mining
7.7
Plans to reduce emissions in second half of
century
South32 Ltd. Diversified metals and mining 6.8 Net-zero emissions by 2050
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13. Global Carbon Pricing Trends
“Carbon
pricing needs
to be set at a
minimum of
$40–$80/tC
O2 by 2020
and $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

14. Carbon Pricing - $50/ton
Cap and trade or
carbon fee and
dividend are likely to
be implemented in
the US by 2030.
These programs both
have large corporate
and bi-partisan
support.
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Data Source: The World Bank

15. Framework/Standard What they report on/require
SASB Minerals and Mining
Standards
Sustainability accounting standards that include annual
reports, financial filings, company websites, and sustainability
reports.
GRI (Global Reporting
Initiative)
Equal weighting on environmental, social, and governance
factors. Also references UN sustainable development goals.
Initiative for Responsible
Mining Assurance
Environment and social issues – big focus on water
CDP (Carbon Disclosure
Project)
Climate Change, Forests and Water Security, Supplier
Engagement
TCFD (Task Force on
Climate-related Financial
Disclosures)
Governance, Strategy, Risk Management, Metrics & Targets
Frameworks and Standards

16. Carbon Accounting: Setting the Baseline
Scope 1
Scope 2
Scope 3
“Miners must ‘own’ the
decarbonisation of the entire value
chain to become the keystone of
the energy transition.”
- James Whiteside, Research Director,
Global Head of Multi-Commodity Research
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17. What Are Scopes 1, 2 & 3?
Scope Definition Examples
Scope 1: Direct Emissions Emissions from operations that
are owned or controlled by the
reporting company.
Emissions from direct operations: Equipment,
combustion in furnaces, vehicles, etc.;
emissions from chemical production in owned
or controlled process equipment.
Scope 2: Indirect Emissions Emissions from the generation of
purchased or acquired electricity,
steam, heating, or cooling
consumed by the reporting
company.
Use of purchased electricity, steam, heating, or
cooling - often from utility.
Scope 3: Indirect Emissions All indirect emissions (not included
in scope 2) that occur in the value
chain of the reporting company,
including both upstream and
downstream emissions.
Emissions from the transportation of
purchased products or use of sold products.
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18. Scope 1 & 2 (Energy):
Fuel and Electricity
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Reference: Decarbonization Pathways for Mines, Total Scope 1 and 2 Emissions of ICMM Members in 2016, ICMM
Total Scope 1 & 2 Emissions of ICMM members

20. Typical Mining Emissions Scope 1 & 2 Breakdown
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Source: Warm Springs Consulting

21. Scope 1: Emissions Reduction Opportunities to Explore
Battery Electric Vehicles (BEVs)
● In development from manufacturers such as
CAT, Komatsu, Kuhn-Gruppe, Belaz, etc.
● Commercial availability timeframes range from
1-5 years
● Diminishing returns as truck capacity increases
● Battery type and capacity rapidly improving
○ Belaz 90t capacity in R&D
○ Operational Kuhn/Komatsu 110 ton truck
○ Hitachi development contract with ABB
○ Komatsu unveiled 250 ton truck at Mine
Expo 2021.
● Work well with Trolley Assist (ABB)
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Additional Benefits
● Increased energy efficiency
○ EVs convert >77% of energy
vs. gasoline at 12-30%
Additional Costs
● Charging infrastructure and
procedures
● Training

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Fuel Cell Electric Vehicles (FCEV)
Green Hydrogen
● Similar benefits as BEVs
● In development from Weichai, Williams Advanced
Engineering - first 250 ton truck being developed by
Anglo-American.
● High energy density
● FC power motor and charges battery for demand
response
● Komatsu 930E 290 Ton haul truck with 800 kW -
tested this year - Market deployment within 2-4 years
(1.1 MW battery)
● 200 Ton haul truck (Weichai)
Scope 1: Emissions Reduction Opportunities to Explore
Additional Benefits
● Transportable fuel
● Faster refueling than BEV
Additional Costs
● Costly and energy intensive to
make hydrogen

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Scope 1: Emissions Reduction Opportunities to Explore
Electric Rail Systems
● Power production on downhill haul
● 1/10 typical haulage OPEX
● Some projects can see $80-100 million in fuel
savings
Additional Benefits
● Increased safety
● Less wheel friction - more efficient than tires
● Less dust
● Maintenace jobs vs driver jobs
Additional Costs
● Capital costs for installation
● Increased electric demand
● Training

24. Haul Roads:
● Length
● Grade
● Path changes as
mine develops
Important Operations considerations
Production increases over
life of mine:
● Does initial investment need
to cover max production
capacity?
● Can equipment capacity be
scaled to meet needs?
Air Quality:
● Levels needed for only
particulate matter
Backup Systems
● Risk planning for battery
failure (less than
combustion engines, but
not zero)
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25. Scope 1: Emissions Reduction Scenarios = Higher Profit
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

26. Scope 2 Emissions Reduction Option 1: Rely on
Utilities to Clean the Grid
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Utility grid modernization:
● Software and
● Updated infrastructure
A modern grid is more efficient, making
better use of renewable energy.
Renewable Energy Credits (RECs)
● Energy generated by renewable
energy sources (solar/wind)
● Credits are purchased and represent
the renewable energy generated on
your behalf
● RECs prices range based on the
market (Aug 2021: about $10/MWh)
Idaho Power Company

27. Scope 2 Emissions Reduction Option 2: Install
Onsite Renewable Energy
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Microgrid solar power systems offer a
commercially viable path to increase
renewable energy while reducing energy
costs.
● Total electricity savings over a 25
year life of mine can from $50 million
to over $600 million depending on
○ Percent of power supplied by
solar
○ Battery storage needs
○ Who develops and owns the
project.
● Returns on investment (ROI) range
from 120% to over 500%
The Sunmine Solar farm in Kimberley B.C. Photo David Dodge,
Green Energy Futures

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“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.
Gold mining vs Bitcoin Mining Comparison
Reference: Visual Capitalist, source Bitcoin Energy Consumption Index, Digiconomist

29. Scope 3: Upstream and
Downstream Impacts
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30. Scope 3 will Become 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

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1 Purchased Goods & Services
•Cradle-to-gate emissions from products and services to support business operations (IT, marketing, materials, cloud services,
consulting, legal, etc.).
2 Capital Goods •Cradle-to-gate emissions from the production of fixed assets (e.g. equipment, machinery, buildings, facilities)
3 Fuel- and energy-related activities •Upstream emissions of purchased fuels, electricity, T&D and generation.
4 Upstream T&D •T&D of products between tier 1 suppliers & company: 3rd party transportation and logistics
5 Waste Generated in Operations •3rd party disposal and treatment of waste generated in operations
6 Business Travel •Business-related employee transportation in vehicles owned or operated by third parties.
7 Employee Commute
•Employee transportation between their homes and their worksites. Optional inclusion of emissions from energy use related to
teleworking i.e., employees working remotely
8 Upstream Leased Assets •Assets leased by the company (acting as lessee) not already included in Scope 1+2 inventory (e.g. machinery, facilities)
9 Downstream T&D •T&D of sold products from company to consumer in vehicles not owned or controlled by the company
10 Processing of Sold Products •Processing of intermediate products subsequent to sale
11 Use of Sold Products •Total expected lifetime emissions of sold products/services from end users, e.g. kWh use of tablets or benefit from solar panetls
12 End-of-life Treatment •Waste disposal and treatment of products sold at the end of their life, i.e. landfill, recycling
13 Downstream Leased Assets •Assets leased by the company (acting as lessor) to other entities, that are not already included in Scope 1+2 inventory
14 Franchises •Business operating under a license to sell/distribute another company’s goods/services
15 Investments •Emissions associated with a company’s investments in the reporting year
What Are The Scope 3 Categories?

32. The Ambri Battery
Case Study: Scope 3 emissions
(Category 11 Use of Sold products): Reducing
overall Scope 3 emissions for Perpetua
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33. Scope 2 Emissions For Perpetua Antimony & Gold
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Antimony + Calcium Battery
Antimony
Estimated/projected energy consumption breakdown

34. Antimony Processing and Ambri Battery Comparison
Total energy provided by Ambri + Solar power system
(over 20 years) ~200,000 GWh
Total electricity used in processing antimony at Stibnite over
Life of Mine ~17 GWh
Households powered by Ambri + solar power system ~1,000,000 Typical US households
Comparison to Perpetua Energy use in processing Antimony 10,000+
Times the estimated power
consumption for processing
antimony at the Stibnite
project over the life of mine
Emissions savings over 20 years by deploying Ambri Battery 60,000,00+ Metric Tonnes CO2e
Avoided Emissions Comparison to Perpetua Total Life of Mine
Emissions 20+
Times the estimated
emissions from Stibnite
project over the life of mine
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Note: These calculations are based on WSC’s independent estimated analysis - as the project is still in design and engineering.

35. Questions?
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