Mineral Resources (MinRes) has made strides in decarbonising its operations to achieve net-zero by 2050, namely through its decarbonisation fund.
The decarbonisation fund was designed to provide a financial incentive for all of MinRes’ business units – including operating assets, exploration projects, warehouses and corporate offices – to implement decarbonisation targets as part of its routine operations.
Since July 1, all of MinRes’ facilities have been charged for every tonne of Scope 1 and 2 emissions produced. The emissions are calculated based on the facility’s consumption of energy sources such as diesel, gas and electricity.
The fund adopts the true market cost of carbon based on the preceding month’s average generic Australian carbon credit unit (ACCU) spot price.
Capital generated from the fund will be invested in MinRes’ decarbonisation initiatives such as the electrification and automation of mining, haulage and transport systems, such as the construction of a 3.8-megawatt solar array at the Ken’s Bore site in Western Australia. The fund will also help MinRes meet its Safeguard Mechanism compliance obligations through the purchase of ACCUs.
MinRes general manager decarbonisation Chacko Thomas said the decarbonisation fund aims to inspire more innovative solutions for low-emission mining across MinRes’ facilities.
“We hope to materially change MinRes’ emissions profile by empowering and incentivising teams across the business to operate more efficiently and responsibly,” Chacko said.
“Investing in meaningful decarbonisation initiatives that improve energy efficiency across our operations will help reduce our operating costs and emissions.”
The decarbonisation fund also provides funding for group wide decarbonisation projects.
Decarbonisation projects seeking financial support from the fund are considered by the MinRes Decarbonisation Working Group, with final decisions made by the decarbonisation steering committee.
“We want MinRes to be a leader in mitigating and adapting to climate change and this approach will support our commitment to achieving net-zero operational emissions by 2050,” Chacko said.
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