Net Zero Strategies in the Mining Sector – Strategic Intelligence

Net Zero Strategies in Mining Strategic Report Overview

Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy. Most mining companies have set 2050 as the target year for achieving net zero carbon emissions. In the interim (2025-2035), they will implement shorter-term emission reduction goals, typically aiming for around a 30% reduction by 2030.

The “Net Zero Strategies in Mining” strategic intelligence report offers a comprehensive analysis of the key approaches being implemented by companies to reach net zero carbon emissions goals. The report also features prominent mining companies making significant progress towards achieving this goal, along with detailed case studies showcasing specific strategies in action. Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for 20 major mining companies, providing valuable insights into their environmental impact reduction efforts.

A Typical Net Zero Strategy

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Net Zero Strategy – Diesel Displacement

Mining companies are adopting intermediate strategies, including alternative fuels, trolley-assist systems, and hybrid equipment, to cut diesel use.

Alternative fuels: Many mining companies are adopting lower-emission alternative fuels, mainly biofuels like biodiesel and renewable diesel, to rapidly reduce operational emissions from fossil diesel. Industry estimates suggest that renewable diesel can cut major CO₂ emissions as compared to fossil diesel.

Trolley-assist: It is a system of powering heavy-duty haul trucks on uphill routes by connecting them to overhead electrical lines.

Hybrid equipment: Hybrid mining equipment merges traditional combustion engines (typically diesel) with electric power systems. Mining companies are trialing diesel-electric and hybrid loaders to improve fuel efficiency and reduce emissions.
The industry’s longer-term strategy to displace diesel is full electrification. Most electrification will be phased in over the next 10 to 15 years as these technologies develop, with widespread adoption expected by 2040.  A few companies are already working on all-electric mines.

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Net Zero Strategy - Renewable Energy

The mining industry’s main strategy to meet Scope 2 emission targets is increasing its use of renewable energy. This can be done either through power purchase agreements (PPAs) or directly via on-site power plants. Many miners have made significant progress in transitioning to renewable energy sources over the past five years, with various companies setting short-term 100% renewable energy targets.

The shift to renewables is clear when comparing current on-site power generation to projects in development at mines. Furthermore, solar makes up an increasing share of renewable power on developing mine sites, with natural gas also supporting the transition from high-emission fuels like coal, diesel, and heavy fuel oil.

Share of On-Site Power Generation Capacity in Mines by Power Type and Plant Status, 2024

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Net Zero Strategy - Transition Materials and Decarbonizing Supply Chains

Around 60% of mining emissions come from the value chain, categorized as Scope 3. These emissions are mainly generated downstream during product processing, transportation, and distribution. Miners are working with downstream industries to jointly develop emission reduction initiatives such as low-carbon technologies for green steelmaking. They are also optimizing transport methods, using cleaner sources of energy, and diversifying the portfolio toward transition materials.

Miners are focusing on transportation, supplier engagement, and carbon offsets as additional methods to reduce Scope 3 emissions. They are encouraging suppliers to adopt net-zero emissions targets and reduction pathways, with some firms making these commitments a condition for continued business. They are also collaborating with suppliers to scale green technologies for decarbonizing steel and aluminum production. Furthermore, various miners are turning to carbon offsets to address hard-to-abate Scope 3 emissions. However, the industry is divided on their role and effectiveness in achieving meaningful emission reductions.

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Net Zero Strategies in Mining – Competitive Landscape

A few energy companies practicing net zero strategies are Harmony, Fortescue, Newmont, RioTinto, and Vale, among others. Companies can ensure their targets are ambitious enough by getting them verified by the Science-based Targets Initiative (SBTi). Most mining companies expect to achieve net zero emissions by 2050.
Fortescue: Fortescue is leading the race to net zero among the 20 mining companies analyzed for this report. ​The company is committed to achieving ‘real’ net zero in its operations by 2030 and net zero for Scope 3 emissions by 2040.
Vale: Vale aims to achieve net zero for Scope 1 and 2 emissions by 2050. The company mines several materials critical to the energy transition including nickel and copper, with coal entirely absent from its portfolio. In 2023, Vale met 100% of its energy needs in Brazil with renewable sources, two years ahead of schedule.

Net Zero Strategies in the Mining Market Analysis by Companies

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Scope

This report offers a comprehensive analysis of net zero strategies within the mining industry, highlighting the key approaches being implemented by companies to reach this goal.

It features prominent mining companies making significant progress towards achieving net zero emissions, along with detailed case studies showcasing specific strategies in action.

Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for 20 major mining companies, providing valuable insights into their environmental impact reduction efforts.

Key Highlights

The mining sector is concentrating on three main strategies to reach net-zero:

Diesel displacement to address Scope 1 emissions. Miners are transitioning to alternative fuels and hybrid equipment to reduce diesel usage in the short term, with fleet electrification the long-term strategy.

Integration of renewable energy to tackle Scope 2 emissions.

Utilization of transition metals and decarbonization of supply chains to address Scope 3 emissions.

Reasons to Buy

• GlobalData’s thematic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
• This report is essential reading for senior executives to understand how the mining industry is striving towards net zero.