Introduction
The Thursday, May 5, 2022 the Regional Event "..." was held virtually.Mining of the future: New trends towards 2050"The event is the sixth in a series of eight virtual events on mining and climate change organized by the Raw Materials and Climate Project (MCCP).MaPriC) with the support of the LEDS LAC platform. MaPriC is a project implemented by the German Development Cooperation (GIZ) together with the Colombian Ministry of Mines and Energy (Minenergia). This sixth event was co-organized with the Chile MaPriC Project and was attended by 154 participants from 16 countries.
The event included welcoming remarks by Guillermo Soto, Head of the Sustainable Energy Division of the Ministry of Energy of Chile, Gabriela Encina Vera, Head of the Sustainable Development Division of the Chilean Ministry of Mining, and Tatiana Lorena AguilarDirector of Corporate Mining of the Colombian Ministry of Mines and Energy. Next, Laura MottolaDirector of Digital Transformation at Flow Partners Chile (a Canadian management consulting firm that supports the mining industry) gave a conceptual presentation on the mining of the future.
Then began the panel of experiences with the participation of Felipe Toro, Energy Specialist, Antofagasta Minerals, Antofagasta Minerals de AMSA (international mining company based in Chile), Carlos AdrianzénChairman of the Environmental Affairs Committee of the National Society of Mining, Petroleum and Energy (SENA).SNMPE(a business organization constituted as a non-profit civil association), Maria Maturana, Energy Project Manager of AngloAmerican Chile (diamond, copper, platinum, platinum, iron ore, coal and nickel mining company) and Paulina GonzalezCEO of Robótika (Chilean company dedicated to process automation with industrial robots).
The recording and video materials can be found at here.
Key messages
Opening of the event
Ministry of Energy of Chile
Currently in Chile, 42% of the energy of industrial activities corresponds to mining and the percentage of renewable energy use in the sector is 47%. For this reason, there is a desire to continue advancing towards carbon neutrality. On the part of the government, a plan for the sector to 2026 has been drawn up that includes issues of just transition, energy poverty, rural activities and resilience with a cross-cutting focus on gender and modernization. The energy efficiency law has also been promoted, which affects large energy consumers and urges them to report their electricity consumption in order to be more energy efficient.
Chilean Ministry of Mining
The current climate crisis is palpable for Chile and the territories in which mining activity takes place. In this context, some important steps taken by the sector are the correct management of emissions and technology transfer. However, the goal is very ambitious and more efforts are needed to be sustained over time. The objective is for Chilean mining to be an example not only for its high production but also for the management of its impacts.
Ministry of Mines and Energy (Minenergia) of Colombia
In Colombia there is already a route to the new mining; the four key pillars are: (1) circular mining, (2) good practices, (3) climate change management and (4) hydrogen route.
For the roadmap it was necessary to strengthen mining exploration to boost the activity in the territory. Financial inclusion is also proposed so that the mining activity can offer quality jobs. The mining of the future will not be achieved if the population does not have confidence that it is good and that it is compatible with other activities in the territory.
Mining of the future and trends towards sustainable, resilient and low-emission development
Pressures from civil society or governments are mobilizing sustainable investments. As a result of these market changes, issues such as the environment, carbon neutrality or social issues have gained new relevance. Banks are reacting and new frameworks are being created to evaluate industries. To address these issues, there are four main trends:
- Energy transition: The aim is to change and decarbonize energy generation systems.
- Decarbonization: Achieve decarbonization of its direct and indirect emissions.
- ESG (Environment, Social and Governance) practices: Includes social impact and community involvement because sustainability goes beyond environmental care and social responsibility. These changes also mean new business opportunities.
- Technology and Innovation: New technologies are needed.
To achieve these trends, a structural and phased approach is needed. For decarbonization, this translates into a Decarbonization Roadmap that includes costs, impacts, emissions reductions, operational risks or manuals that will help plan investment and next steps. With a range of technologies working together it is possible to reduce emissions over the life of mining operations. The structured approach starts with an analysis in which the emissions baseline is defined. Then, in planning, solutions such as mining electromobility, green hydrogen, carbon capture, energy efficiency and digital transformation are identified. For each solution, the risks, costs, schedule constraints and its emissions reduction potential are analyzed. Finally, the plan is implemented and improved along the way.
Historically the focus has been on the production stages but there is now an opportunity to extend sustainability to all stages of the business. The window for action is getting smaller and smaller and realistic and detailed plans are now needed in order to make informed investments in the coming years.
LAC Experiences
The MaPriC Project has been working since 2019 in Colombia and Chile on mining and climate issues. Its objective is to promote the reduction of greenhouse gases (GHG) in the mining sector following four fields of action: (1) environmental and climate change policy instruments and measures, (2) corporate environmental standards and development of national regulations, (3) energy efficiency measures in companies, and (4) capacity building and exchange of experiences.
Antofagasta Minerals (AMSA) is a private mining group composed of 4 mining companies specialized in copper. Their climate commitment includes their electromobility plan since 66% of the mine transportation uses diesel. Currently, they already have electric loading equipment or drills, which has generated a great reduction in emissions. CAEX (high tonnage extraction trucks) technology is part of this strategy since they use a diesel engine together with an electric motor. In order to switch to hydrogen or batteries, a test has been carried out with the trolley assistance system at Minera Los Pelambres. A technology not developed in the country was adopted and linked to the Charge On project (open innovation challenge at group level). The Hydra Project is currently in a testing period, working on the necessary enabling conditions. The objective is to co-create a smaller scale prototype using hydrogen and electric batteries to scale up the replacement of diesel used by CAEX.
The National Society of Mining, Petroleum and Energy (SNMPE) is the main mining association in Peru. In 2020, they committed to address climate action and carbon neutrality by promoting adaptation and mitigation measures through 5 axes: (1) Develop technologies to include climate change in business management systems; (2) Public-private alliance to work with the public sector, cooperation and the financial sector; (3) Strengthen the sector's communication lines; (4) Promote the development of monitoring, reporting and verification mechanisms (MRV); (5) Strengthen the knowledge or climate action capabilities of employees.
Of the companies in the guild, 156 climate actions have been identified: 67% of the actions are focused on mitigation and 33% on adaptation. However, partnerships are lacking, as only 6.6% of the actions are implemented in coordination with the central government and 12% with local governments. In addition, only 24% of the mitigation actions and 64% of the adaptation actions had the acceptance of the local population.
Angloamerican Chile is a leading mining company that wants to move towards carbon neutrality and improve people's lives throughout its impact area. To achieve their objectives they have developed a sustainable mining plan and have applied the Future Smart Mining approach. Their goals include making all their operations carbon neutral by 2040 and 50% of Scope 3 carbon neutral. To achieve this, they are changing their fossil fuels, such as the diesel consumed by their trucks. For this, they are betting on hydrogen as the solution in which they integrate renewable energies. In Chile, the pilot of green hydrogen production was carried out in their operations for mobility. Work was done on the regulatory framework with the Ministry of Energy and training was carried out to increase local skills. In addition, suppliers, academia and technology development centers were actively involved.
From Robotika has been working to offer the mining sector a wide range of unmanned vehicles that also respond to the urgency of carbon neutrality by 2050. With the Climate Smart Mining approach, Robotika aims to innovate technology adding value to the mining industry. Its goal is to improve efficiency throughout the mine life cycle and achieve lower environmental impacts with technology. The company has a wide range of electrical equipment with different levels of intelligence. One example is its Elise 900 equipment, which saves 26,855 liters of diesel in a year, which translates into 71,165 kg of CO2eq. For each electrical equipment that replaces a diesel one, the savings increase exponentially.
There is now an awareness of climate urgency and public commitment. In addition, technology and human capital are already available. However, there is still a major barrier, which has been resistance and adaptation to change.
Closing of the workshop
Concrete actions, collaboration, learning and capacity building are needed. At the same time, in order for innovation to continue to make a contribution, it is necessary to work collaboratively and jointly.