Mining companies under investor pressure to curb carbon emissions are weaning themselves off the most polluting power sources, and see lower costs in using alternatives.
Fortescue Metals Group joined rivals including BHP and Anglo American in flagging potential savings from new investments to switch mines to renewable energy as it expands a $700-million program meto add transmission lines, solar arrays and battery storage in Australia’s Pilbara region. With energy accounting for as much as a fifth of a mine’s costs, less polluting options can often be cheaper than shipping diesel to remote locations.
“We are very keen to utilise more renewables,” CEO Elizabeth Gaines said in an interview. “We know it’s the right thing to do. We want to reduce our emissions, and we want to stay low cost.”
The Perth-based iron-ore producer will install a hybrid solar and gas supply to serve its Iron Bridge project rather than using diesel, adding to a deal signed last year to switch its Chichester Hub to renewable sources.