The mining industry is at a critical juncture as recent industry insights reveal that electric mines can operate at costs 56 per cent to 88 per cent lower than their diesel-powered counterparts.
Despite this significant economic advantage, only 60 per cent of industry professionals indicate that their next mining operation will transition to electric.
The primary obstacle to adopting electric equipment, cited by 76 per cent of miners, is the high capital cost.
This concern is rated 1.5 times more significant than the next major issue: confidence in operational effectiveness.
Furthermore, 84 per cent of industry professionals believe that Australia’s mining sector will not meet the government’s goal of achieving 82 per cent renewable energy penetration by 2030.
Graeme Stanway, chair of the Electric Mine Consortium, emphasised the health implications of diesel particulates in mining operations.
“With diesel particulates posing severe health risks such as lung cancer, and with current Australian standards being over six times higher than levels considered safe by Safe Work Australia for underground miners, electrification is not just an economic opportunity; it’s a health imperative,” Stanway stated.
These findings are based on the first and most extensive collaborative financial modelling exercise on mine decarbonisation undertaken in the Australian mining industry.
The study allows executives to identify in granular detail the risks, opportunities, and pathways to electrify.
Mark Norwell, Managing Director & CEO of Perenti, highlighted a recent study conducted in collaboration with IGO and ABB on converting an underground mine’s fleet from diesel vehicles to Battery Electric Vehicles (BEVs).
“The study we recently conducted demonstrates that we are getting closer to an all-electric mine and that collaboration is the key to make it happen,” Norwell said.
Brendan Harris, CEO of Sandfire, noted their commitment to sustainable copper mining, with renewable energy already accounting for 73 per cent of their electricity needs.
The company has a decarbonisation plan to reduce emissions by 35 per cent by 2035 and achieve Net Zero emissions by 2050.
Ivan Vella, Managing Director and CEO of IGO Limited, emphasised the importance of industry-wide collaboration in achieving decarbonisation goals.
Transitioning to electric mines offers substantial benefits, including:
- 100 per cent reduction in Scope 1 and 2 emissions for fully electric mines powered by renewables
- Up to 30 per cent reduction in overall operating costs
- Up to 50 per cent reduction in energy costs
- 20 per cent decrease in maintenance costs
- 30 per cent reduction in ventilation costs
As the mining industry grapples with these challenges and opportunities, there is a growing call for government support through tax incentives to accelerate the decarbonisation of mine sites.
