Canada鈥檚 Ivanhoe Mines (TSX: IVN) to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2)聽at its Kamoa-Kakula joint-venture聽in the Democratic Republic of Congo (DRC), as the project nears first copper production.
The miner said it has committed to work with Kamoa-Kakula鈥檚 partners to ensure聽it becomes the first net-zero operational carbon emitter among the world鈥檚 top-tier copper producers.
The Vancouver-based company noted the mine and concentrator plant at the site聽are already powered by clean, renewable hydropower, so the focus of its net-zero commitment will be on electrifying the project鈥檚 mining fleet.
鈥淚ndustrial-scale electric and fuel-cell mechanized underground mining equipment聽is being tested around the world聽and it is only a matter of time until they become available for commercial use in the size that we require for our large-scale, bulk mining operations,鈥� Robert Friedland, Ivanhoe Mines co-chair, .
鈥淲e plan to be among the first of the early adopters of the technology,鈥� he added.
Friedland did not specify a target date for realizing the goal of becoming the first net-zero operational carbon emitter among the world鈥檚 top-tier copper producers.
Scope 3 next
Ivanhoe also said that once the mine reaches net-zero Scope 1 and 2 emissions, it will turn its focus to achieving a net-zero total emissions, which will include all indirect emissions, whether upstream or downstream or 鈥淪cope 3.鈥�
Commodity extraction and its use are responsible for 4% to 7% of global greenhouse-gas emissions, and up to 32% to 35% when considering Scope 3 emissions, analysts at聽Morgan Stanley said in a new report published on Tuesday.
鈥淭he transition will define boards鈥� capital allocation priorities, links between climate performance and executive remuneration, capex/opex intensity, and ultimately returns and their appeal to ESG-focused [environmental, social and corporate governance] investors,鈥� Morgan Stanley said.
鈥淎dequate strategies will minimize business risks over time, lower costs of capital and boosting equity values,鈥� according to the report.
First production at Kakula, the first mine planned at the Kamoa-Kakula concession,聽is聽expected by early June.
The operation is initially forecast to generate 3.8 million tonnes of ore a year at an average feed grade 鈥渨ell in excess of 6% copper鈥� over the first five years of operation.
Kamoa-Kakula is a strategic partnership between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).