1、 Global mining industry faces "net zero" pressure
Mining accounts for 4% - 7% of global greenhouse gas emissions
The raw materials mined by the mining industry are the starting point of the global economic supply chain. Decarbonization of the mining industry is very important to achieve the global emission target, especially when the energy transformation has increased the demand for a large number of clean energy raw materials. According to Tania constable, CEO of the Australian minerals Commission, only minerals and other raw materials provided by the mining industry can be used in the future It can achieve net zero emission.
The mining industry accounts for 4% to 7% of global greenhouse gas (GHG) emissions and also faces pressure from governments, investors and society to reduce emissions. The CO2 emissions of mining industry range 1 (direct emissions) and range 2 (indirect emissions) (generated through mining operations and power consumption, respectively) It is 1%, and the unorganized methane emission from coal mining is estimated to be 3% to 6%. However, 28%, a large part of the global emission, is regarded as range 3 (indirect, upstream and downstream activities - upstream and downstream supply chain). The emission is related to mining, such as coal-fired power generation and heating.
Mining companies around the world are trying to reduce greenhouse gas emissions, but many large mining companies have not aligned their goals with the international goal of achieving net zero emissions by 2050.
Governments around the world such as Europe are consolidating the zero net goal in laws and regulations, and global investors are promoting enterprises to take greater action on climate change. For example, many countries begin to reduce investment in carbon related commodities and increase development and investment in commodities used for batteries or other renewable energy. In the mining industry, consider replacing diesel transport trucks with electric mines In other words, the demand for coal will continue or even decline rapidly, while new technologies supporting decarbonization, including wind power generation, solar photovoltaic power generation, electric trucks and energy storage, will increase the demand for other mining raw materials. Electric mineral cards and battery energy storage may create growth markets for raw materials such as lithium, nickel and cobalt. At the same time, emerging technologies such as hydrogen fuel cells and carbon capture The technology may stimulate the demand for platinum, palladium and other catalyst materials.
The role of mining in the supply chain
Tania constable, chief executive officer of the Australian minerals Commission, said that only through minerals and other raw materials provided by the mining industry can net zero emissions be achieved in the future. The diversity of mining operations needs to be differentiated because fossil fuels and raw materials are traditionally associated with large greenhouse gas emissions. Therefore, mining companies are increasingly reducing fossil fuels and supply chains The problem is that once the product mineral raw materials leave the mine, mining companies can no longer control future emissions.
NMA National Mining Association It calls for policies to support coal demand and reduce emissions through more deployment of carbon capture, utilization and storage technologies. Conor Bernstein, a spokesman for the association, said that the association is also raising people's awareness of raw material supply chain issues. The mining industry is the front end of the supply chain of every energy technology we use, and technologies vital to our economy, including energy technologies, are more important than ever before Minerals and metals are used more intensively at any time, and the elements used cover all the contents of the periodic table of elements.
To make decarbonization successful in the mining industry, experts pointed out that according to a recent report of the Rocky Mountain Institute, it is necessary to formulate an action table for the mining industry, including setting emission reduction targets according to climate science; strictly, consistently and openly tracking progress; assessing long-term climate risks and opportunities; actively exploring and developing technologies and strategies to reduce carbon emissions, etc.
The world's major mining companies are moving
BHP Billiton group (BHP) It is the world's largest mining company by market value. Although coal is still an important part of the company's portfolio, the company has announced its plan to withdraw from thermal coal. The mining giant's five-year greenhouse gas emission target came into effect on July 1, 2017. While the company's business continues to grow, the total operating emissions in fy2022 remain at or below the level in fy2017. BHP Billiton The group has set a long-term goal of achieving zero net greenhouse gas emissions from its operations by the middle of the century. By accelerating the integration of renewable energy into its operations, the company is moving towards zero emissions.
Glencore, a diversified mining and trader, has been criticized for continuing to develop a large thermal coal project in Australia despite its recent commitment to limit annual coal production. The company has committed to the strategy of the Paris Agreement and expects to reduce its direct and indirect emissions by 30% by 2035.
Vale SA announced in mid May that it would invest at least US $2 billion to reduce direct and indirect absolute emissions by 33% by 2030. Vale also set an internal carbon pricing of US $50 tons per hour.
FMG (Fortescue Metals Group), the world's fourth largest iron ore producer, updated its policy in June to accelerate its net zero emission target to 2040.
2、 McKinsey suggests how the mining industry can face and change
McKinsey & company gives the following suggestions on how to deal with the climate challenge:
Mining companies must be prepared for climate disasters. Today, 30% - 50% of production of copper, gold, iron ore and zinc is concentrated in areas with high water shortage. Climate change is expected to lead to more frequent droughts and floods, change water supply and disrupt operations. Even in areas with low water shortage, some water intensive mining processes may be endangered. Germany is not a vulnerable country Drought affected countries. In the summer of 2018, a potash miner was forced to close two sites due to severe water shortage, each losing nearly $2 million a day.
Another problem faced by mining companies is the change in the demand for mineral raw materials. The significant growth of low-carbon technologies such as wind power generation, solar photovoltaic power generation and electric vehicles should stimulate the demand for raw materials required by these technologies. With the continuation of global industrial electrification, electric vehicles and batteries will create growth markets for cobalt, lithium and nickel. The deep decarbonization of the industrial industry will also be possible It is conducive to green hydrogen and biomass, not coal. According to McKinsey's analysis, to reach the temperature of 1.5 degrees Celsius, the amount of coal used to make steel needs to be reduced by 80% compared with the current level by 2050. At present, thermal and metallurgical coal account for about 50% of the global mining market and will be the most obvious victim of this transformation.
In addition, any serious effort to achieve the Paris Agreement's goal of limiting global warming requires the participation of the entire mining value chain. The complete decarbonization of Mines requires a lot of capital investment, but some measures, such as the use of renewable energy, electrification and operational efficiency, are economical for many mines today. Even in an off grid environment, the shift to renewable energy is becoming more and more important Feasible because the cost of the battery pack is expected to be halved from 2017 to 2030. For example, Codelco uses solar energy at a copper mine in Chile, while Fortescue Metals Group is investing in renewable energy at an iron mine in the Pilbara region of Australia. BHP Billiton, a multinational mining company, recently signed a renewable energy contract at its Escondida and Spence copper mines. Another economic opportunity At present, only 0.5% of mining equipment is all electric. However, in some cases, the total cost of ownership of pure electric transportation equipment is 20% lower than that of traditional diesel engine drive.
Future regulatory and technological developments may change the feasibility of some decarbonization actions, but one thing is certain: the business case of each mine and company will be different. In order to effectively deal with the impact of climate change, mining leaders should take five main actions:
Make an end-to-end diagnosis of the impact of climate change on enterprises to understand which assets need to be protected from the impact of actual climate change and which assets need to benefit or suffer from decarbonization
Mobilize senior management and the board to set ambitious climate goals
Switch to renewable energy, which can reduce the power cost of mines and reduce fluctuations
Introduce "climate intelligence" into decision-making processes, such as capital allocation
Participation through reporting, partnerships and other initiatives, such as climate risk disclosure, will become more important as climate expectations mature
3、 How can China's mining industry face the challenge under "double carbon"
This year is the first year of "double carbon" in China's mineral energy industry. It is also an important year for transformation and upgrading, as well as the reform of Mining Administration and the revision of mining law. How can the mineral energy industry face the opportunities and challenges? How can the top-level system be designed to meet the "double carbon" goal? How can the legal guarantee system be constructed? How can the integration of mining services be promoted?
This year's China Mining rule of Law Summit Forum was held in Beijing. Many industry experts from the development research center of the State Council, China University of Geosciences (Beijing), Tianjin University, China University of political science and law, China Coal Geology administration, China Gold Group and other industry experts focused on "focusing on the construction of dual carbon target rule of law and helping the transformation and upgrading of mineral energy" Theme, and put forward multi angle observations, thoughts and suggestions for the high-quality sustainable development of China's mineral energy industry.
The participants expounded their views from the strategic, academic and legal perspectives on China's mining policy reform, the revision of mining law, "double carbon" rule of law construction, the integration of mining related services, the withdrawal of mining rights, mining going out, mining arbitration, green mine construction, ecological restoration, mining think tank construction, mining culture communication and other issues.
The mining system and regulations have been continuously improved
"Comprehensively promoting the rule of law is an extensive and profound revolution in national governance, and the rule of law is an important tool for governing the country. Establishing good laws and promoting good governance is a very urgent and realistic topic in the field of mineral resources and energy resources to deal with the great changes that have not been seen in a century," said Yu Guang, executive vice president of the Institute for strategic development of natural resources of China University of Geosciences (Beijing).
Sun Youhai, executive director of China Green Development Research Institute of Tianjin University, said that after years of deliberation, the mineral resources law has been reported to the State Council and is soliciting opinions. At this moment, it is very necessary and timely to explore the construction of the rule of law in mining, especially suggestions and suggestions on the revision of the mineral resources law.
Ren Hui, deputy secretary of the Party committee and deputy director of the General Administration of coal geology of China, said in a speech with the theme of research on mining system and mining industry development that the mining system and regulations lag behind and do not adapt to the basic laws and logic of mining development, such as geological law, natural resource law, environmental law and economic law.
Ren Hui bluntly said that the phenomena of "Kowloon water control" are serious, such as blowing their own trumpets and singing their own tunes, and the mismatch between visible administrative means and invisible market changes.
Fu Ying, former vice president of China Academy of natural resources and economics, said that building a modern mining industry is the only way for China's mining development in the next 30 years. There are three basic characteristics of modern mining industry, namely, science and technology drives high-quality development, harmonious coexistence between man and nature, domestic circulation of industrial chain supply chain and mutual promotion of domestic and international circulation. These three characteristics lead to three major tasks in the future, namely Build a modern mining industry with high-quality development driven by science and technology, a modern mining industry with harmonious coexistence between man and nature, and a modern mining industry with a new pattern of double circulation.
"Building a modern mining industry with harmonious coexistence between man and nature is a macro manifestation of the common development of ecological environment protection and mining industry," Fu Ying said.
How to realize green and low-carbon development
In addition to the modernization of mining rule of law, the healthy development of mining industry under the goal of "double carbon" is also a hot topic discussed by experts. Zhao Laping, vice president and chief editor of China Mining newspaper, has long paid attention to mining industry. He said, "why should mining reduce carbon? Carbon reduction needs legal support" This paper expounds from five aspects: solemn commitment, general trend, correct evaluation, accurate implementation of policies and protection of laws and regulations.
He said that at present, 126 countries in the world have promised to achieve carbon neutralization, and China's per capita carbon dioxide emissions are less than a quarter of that of the United States. Why is this great pressure? Because China's total emissions are relatively large. Moreover, developed countries generally have a transition period of 50 to 70 years, while China has only a transition period of about 30 years. "Mining is the process of mineral exploration, mining and beneficiation, which is directly or indirectly discharged, mainly in metallurgy, transportation, non-metallic mineral products, electric power and other industries." in terms of precise policy implementation, he believes that it is necessary to distinguish what mining does.
"We should also see that mining will cause environmental pollution in the process of mining, not necessarily carbon emission." he said that the generation of wastewater and waste residue will pollute the environment, which is the harm caused by mining, but not direct carbon dioxide emission. We should distinguish who emits it, so as to reduce emissions targeted.
Chang Jiwen, deputy director of the Institute of resources and environment of the development research center of the State Council, delivered a speech entitled "double carbon" goals and green development of China's mining industry ". He said that it is inevitable to study the development of fossil energy and the methods of carbon peaking and carbon neutralization in the study of mining industry. "At present, the proportion of all kinds of clean energy accounts for about 25% of the national energy. By 2060, the proportion of carbon neutralization and all kinds of clean energy will reach 80%. That is to say, in the future, we must vigorously control and increase the proportion of clean energy in terms of traditional energy." Chang Jiwen said that further research found that fossil energy is still the mainstream, and there is a highly positive correlation between controlling energy intensity and total energy consumption and controlling carbon dioxide emissions, not necessarily a straight line. In the development of mining and related energy, we must increase revenue and reduce expenditure.
He believes that the energy revolution will reduce the carbon emissions of thermal power plants by 90%, and the pressure on industrial emission reduction will be much less. "But this process should be stable and I hope not to act recklessly." He added that it is inappropriate for some places to adopt a one size fits all approach. In the future, fossil energy will undergo transformation, which does not mean that there is no need to exploit fossil energy. For example, in coal chemical industry, coal must also be mined, not necessarily to use coal to make oil, but coal may be used to produce chemical products. In the future, the smelting of diesel and gasoline may be less, or even significantly reduced. But generally speaking, it is still necessary Petrochemical industry.
How can China's mines develop green under the goal of "double carbon"?
Chang Jiwen, deputy director of the Institute of resources and environment of the development research center of the State Council, believes that efforts need to be made from four aspects: ecological restoration, consolidation and development of carbon sink; comprehensive utilization of tailings; comprehensive utilization of solid waste in mining industry; technological innovation, low-carbon production of Mines and low-carbon smelting of metals and non metals.
Experts believe that under the background of carbon peak and carbon neutralization, China's mineral energy industry should give priority to the rule of law, constantly improve the legal system of China's mineral energy industry, and adhere to the road of green and low-carbon development.
