The energy transition is picking up pace. Governments around the world have set Net Zero targets aligned to the Paris Agreement. Most major companies have announced aggressive decarbonization objectives. Consumers are opting for more environmental solutions (like electric cars).
The energy transition also presents massive opportunities for companies in the mineral and mining space. Transitioning to cleaner and more sustainable energy sources is not just a response to regulatory demands and environmental pressures, but a strategic opportunity for innovation and growth.
Companies that adopt renewable and efficient energy solutions are positioning themselves ahead of the curve, not only improving their competitiveness but also contributing to a more sustainable future. Investing in clean technologies and sustainable practices can open doors to new markets, attract investors and enhance corporate reputation. The energy transition is a chance to lead, innovate and make a difference.
Shifting away from fossil fuels also makes operational and financial sense for mineral companies. Traditional energy sources can have volatile price fluctuations, while renewable energy sources tend to offer more stable (and potentially lower) costs in the long term. The energy transition is also expected to help reduce some of the climate change risks for business operations, such as supply chain disruptions and extreme weather events.
Embracing change
There are two big ways that mining companies can contribute to the energy transition. The first is through reducing their own carbon emissions and energy use. Many mining companies are already investing in renewable energies such as solar and wind, to power their operations. Others are investing in carbon offset projects to neutralize their emissions while transitioning to a cleaner energy mix.
Energy efficiency is also high on the agenda. Ausenco is working with clients to implement energy efficiency initiatives, such as modernizing their facilities with more efficient technologies, LED lighting and advanced HVAC systems, improving processes and evaluating projects with a lower environmental impact, whether by reducing a project's footprint or minimizing the use of steel and concrete.
The other big way that mining companies can contribute to the energy transition is through sustainable mining. Increasingly, copper, lithium, rare earths, gold, among others, will be required for manufacturing the components necessary to support the energy transition. In fact, according to the IEA’s Global Critical Minerals Outlook 2024, copper demand is forecasted to grow by nearly 50% between 2021 and 2040. Demand for lithium is set to increase from 101 kt/y in 2021 to 1,326 kt/y in 2040.
Yet the consumers of these minerals aren’t just looking for the best price. They also want to know their supplies were mined sustainably with as few carbon emissions as possible. New global carbon mechanisms (like Europe’s Carbon Border Adjustment Mechanism or CBAM) require manufacturers to account for carbon emissions at every stage of the supply chain. They are looking for any opportunity to reduce the embedded carbon in their products.
Bountiful Brazil
The opportunity for mineral and mining companies in Brazil is tremendous. Brazil holds a rather unique and strategic position in the global energy transition due to several factors that offer both advantages and significant opportunities.
Firstly, Brazil already has a relatively clean energy mix compared to many other countries. Most of the electricity generated in the country comes from renewable sources, largely hydroelectric power, which represents a significant portion of the installed capacity. In fact, renewables accounted for 84% of Brazil’s installed capacity in early 2024[1].
Brazil’s potential for solar and wind generation is massive. Favorable climatic conditions in various regions, particularly in the Northeast, present a significant opportunity to expand the production of these renewable sources, allowing for further diversification in the country's energy mix and contributing to a more sustainable transition.
Brazil also has large deposits of minerals essential for renewable energy technologies, such as lithium and rare earth elements. Lithium is crucial for energy storage batteries, and rare earths are used in various clean technologies. Sustainable exploitation of these minerals could position Brazil as a strategic supplier in the global clean technology market.
Working together
Ausenco is proud to play a central role in helping our clients adapt to energy transition demands by providing innovative and sustainable solutions tailored to the specific needs of each project. Our approach combines technical expertise with a deep understanding of decarbonization trends and challenges, enabling us to offer effective support in implementing energy transition strategies.
At the same time, we are also contributing to the energy transition by supporting the development of mining projects for energy transition metals. Developing these projects will ensure a secure supply of metals so that the energy transition does not lose momentum due to the availability of mineral resources.
We believe that companies operating in the minerals and metals space need to take a holistic and integrated approach that goes beyond simply swapping one energy source for another. At Ausenco, we take a multidisciplinary and integrated view of our client’s challenges, combining deep experience across the value chain, with technical expertise, continuous innovation and a strong commitment to sustainability. Our goal is to tailor solutions for our clients that maximize the efficiency and viability of their projects, always focused on finding a better way to achieve their objectives.
Contact us today to find out how we can help your organization.
_____
[1] https://renewablesnow.com/news/renewables-account-for-84-of-brazils-200-gw-of-installed-capacity-850863/