Australia’s resources sector, including mining and oil and gas (O&G) operations, produced 99 million tonnes (mt) of carbon dioxide equivalent (CO2e) emissions in 2022. This accounts for 23% of the country’s total emissions, according to the Climate Change Authority (CCA). Fugitive emissions from coal mines (mostly underground) were the largest contributor, responsible for 25% of the sector’s emissions. Diesel fuel combustion at mines, primarily linked to haulage fleets and equipment, accounted for 20% of emissions. On-site power usage across mining and O&G operations accounted for 11%. Decarbonising the sector will require widespread electrification and deployment of fugitive abatement technologies in oil, gas, and coal mining, the CCA states.
Australian Mining Companies’ Emission Reduction Efforts
Many Australian mining companies are moving quickly to cut emissions, setting 2050 as the target year for achieving net-zero carbon emissions. Shorter-term goals typically aim for around a 30% reduction by 2030. Fortescue is targeting net zero for Scope 1 and 2 emissions across its Australian iron ore operations by 2030, while Rio Tinto aims for a 50% reduction in emissions compared to the 2018 baseline by 2030.
“Mining is a challenging sector to decarbonise,” says Martina Raveni, a strategic analyst at GlobalData. “That said, shifting power sources is the main priority for the mining industry.”
“This shift has already begun, with small diesel-powered haul trucks being slowly replaced by battery-electric and hydrogen fuel-cell alternatives,” she adds.
A significant advancement occurred in September 2024 when Fortescue signed a $2.8bn deal with OEM Liebherr to jointly develop and validate a zero-emission fleet. The collaboration will provide 475 electric Liebherr machines to Fortescue’s operations in Western Australia, replacing around two-thirds of the diesel fleet. This includes an autonomous battery-electric haulage solution for large-scale mining operations, set to be validated in early 2025. Fortescue aims for “real zero” by 2030 at its Australian iron ore operations.
Some mining companies have also proposed the use of sustainable fuels as a transitional decarbonisation strategy. However, challenges remain, with Glencore noting that biofuels are “currently cost-prohibitive, supply-constrained, and have ethical issues that may make them unsuitable for large-scale deployment.”
The CCA also points to pre- and post-mine drainage in underground coal mines as an emissions reduction strategy. Various other technologies are being explored for this purpose.
Emissions Reductions Progress
Many miners have reduced their emissions over the past five years, according to data from GlobalData, Mining Technology’s parent company. However, challenges remain, and it’s unclear whether emissions will continue to decline in the near term.
BHP has already met its 2030 target of at least a 30% reduction in operational emissions compared with fiscal year 2020 (FY2020). This decline was primarily driven by reductions in Scope 2 emissions at its copper operations, achieved through renewable PPAs.
However, recent figures from the company’s Climate Transition Plan 2024 predict that Scope 1 and 2 emissions could rise by 3% between FY2024 and 2030, considering the range of uncertainty.
Fortescue, aiming for net zero by 2030, projects that Scope 1 and 2 emissions across its Australian iron ore operations will continue to rise until around FY2026, before beginning to fall in response to decarbonisation activities. This is mainly driven by operational expansions such as at Eliwana, and construction at the Iron Bridge magnetite mine, which produced its first ore in May 2023.
The CCA identifies several barriers to further progress, including hesitance to pay a “green premium,” lengthy approval processes for renewable energy and infrastructure, and supply chain uncertainties regarding electric mining equipment and low-emission fuels. A shortage of skills needed to support decarbonisation, such as electrical and trade skills, and increased demand for higher order capabilities across analytics and data science, may also prove challenging.
A Global Stage for Australia’s Climate Leadership
With Australia bidding to host COP31 in 2026, all eyes will be on the country’s delegation in Baku. The country has a unique opportunity to showcase its climate leadership on a global stage.
Matt Kean, chair of the CCA, emphasized the need for Australia to “seize this once-in-a-generation opportunity to ensure a rapid and orderly transition as the world transforms to avert the worst impacts of climate change.” This will require a major reorganisation of supply chains, production systems, industrial zones, energy sources, public and private finance, infrastructure, and workforces, for which the mining/commodities sector will have a significant role to play.
What Will It Take to Decarbonise Australia’s Mining Industry?
The sustainability revolution driving the race to 2050 net zero relies heavily on mined resources. The amount of copper needed for green infrastructure by 2040 is almost double the current demand. In a practical sense, more copper must be extracted from the ground before 2050 than has been mined throughout history.
Australian miners, known for technological innovation, are leading the global charge. The Clean Energy Finance Corporation’s Mining in a Low-Emission Economy report states that mining represented 6.2% of Australia’s energy demand in 2019 and 9.5% of the nation’s greenhouse gas emissions. There is a significant opportunity for emissions abatement in the sector.
However, pressures are mounting both from within and outside the sector for better performance. An environmental, social, and governance (ESG) focus is now considered a minimum operating standard by stakeholders, including investors, with reporting of Scope 3 emissions soon becoming mandatory for many big businesses.
Internationally, Australian miners may face new challenges in the form of carbon border taxes in territories with more advanced carbon trading markets.
The Pathway for the Mining Industry
“It is possible, but it is ambitious,” says Clare Larkin-Sykes, Managing Director of Forelight Advisory. “The process of discovering, extracting, and processing ores will need to significantly change, but there is currently much activity underway to change those processes.”
Larkin-Sykes highlights the need for new ways of discovering and extracting resources, reducing the use of diesel through a shift to electrification and automation. This involves optimisation across the entire mining value chain through interoperability between various processes.
“It’s about how we power our operations,” she says. “That starts with the adoption of renewable energy systems into our operations, whether they’re standalone or grid-connected.”
Automation will occur across the mining system, from individual pieces of equipment to the management of entire facilities. This creates dual benefits of more efficient systems and processes, as well as reducing many operational risks.
“We are already seeing breakthrough automated technology in Australian mining,” Larkin-Sykes says, including digital operations and fleet management systems, autonomous mining trucks, and robotic ore sampling.
A green mining industry is not science fiction. The process of transforming an existing mine’s processes to achieve net zero or real zero can seem overwhelming, but with the right steps, it’s achievable and increasingly relevant.