Australia plans for net zero by 2050 ahead of COP26, passing no laws

The Government of Australia has set out plans for a national net-zero target for 2050. Unlike most other developed economies, Australia will not enshrine the target in law. Instead, the government expects consumers and companies to take action with investment but no legal incentive.

The plan brought Australia closer to the plans of international allies ahead of this week’s COP26 climate conference. In a press conference, Australian Prime Minister Scott Morrison presented his government’s climate plan. Australia is the world’s largest exporter of coal, and one of the largest exporters of gas.

Morrison said: “It is not a revolution, but a careful evolution to take advantage of changes in our markets. It’s not a ‘set and forget’ plan. It has an insurance policy review mechanism to make sure that it keeps delivering for regional Australia.”

These reviews would occur every five years. The federal government will invest A$20bn ($15bn) by 2030, helping to develop hydrogen, energy storage, and ultra-cheap solar. The funds will also help decarbonisation technologies for steel and aluminium production, alongside carbon capture and storage.

BHP explores carbon capture with nickel mine waste

BHP Group is reportedly weighing the potential of capturing and storing carbon using waste from its nickel mining operations in Australia.

The firm plans to make use of the waste, which contains high magnesium oxide, from its Nickel West operations in Western Australia for the proposed work. This waste has the potential to extract carbon from the air to create magnesium carbonate, which is a stable compound in the form of a salt, reported Reuters citing BHP chief technical officer Laura Tyler.

Following the studies, the firm plans to undertake field trials at its Mt Keith tailings dam in WA this financial year. The dam has a capacity to store 40,000tpa of CO₂ from the atmosphere, which is equivalent to offsetting 15,000 average-sized combustion engine cars.

According to researchers, the dam has the potential to store even more CO₂ each year if the rate of mineral carbonation is increased using various processes and engineering solutions. Tyler also noted that the firm is incorporating new technologies to explore key minerals critical to the energy transition, such as nickel and copper, deep underground.

Fortescue commits to net-zero scope 3 emissions by 2040

Australian miner Fortescue Metals Group has committed to an ambitious target to mitigate the environmental footprint of its iron ore mining process and achieve net-zero scope 3 emissions by 2040.

Fortescue committed to addressing its emissions across its entire global value chain, including crude steel manufacturing, which accounts for 98% of its scope 3 emissions.

To achieve this, the miner plans to develop projects and technologies focusing on reducing emissions from iron and steel making and working with current and prospective customers on the application of the technology and the supply of green hydrogen and ammonia.

In addition to the long-term net-zero goal, Fortescue also set several medium-term targets. Firstly, a reduction in emissions intensity levels from Fortescue’s ores shipping by 50% by 2030. Secondly, a reduction in emissions intensity levels from steelmaking by Fortescue’s customers of 7.5% by 2030, to 100% by 2040.

Commenting on the announcement, Fortescue chief executive officer Elizabeth Gaines said: “Climate change is the most pressing issue of our generation and at Fortescue, setting stretch targets is at the core of our culture and values. We are proud to set this goal to tackle emissions across our value chain.”

Australian environment minister approves third coal project in a month

Australian Environment Minister Sussan Ley has approved a third coal mine extension in the space of a month. The extension at Glencore’s Mangoola thermal coal mine in New South Wales follows extensions at the Whitehaven coal mine and the Wollongong coal mine in September.

The extension at the Glencore site will allow the mine to run for another eight years and produce 52 million tonnes of coal.

In a statement covering the reasons for the approval of extension, Australian Environment Minister Sussan Ley stated: “The mine itself will contribute approximately 0.00073% to global emissions per annum. Based on this estimate, [the mine] … is unlikely to influence global emissions and climate change trajectories.”

Glencore had stated that the mine would create upwards of 100 construction jobs and secure ongoing employment for Mangoola’s workforce of approximately 400 employees. In addition, the miner noted that it had invested more than five years in detailed studies and consultation from the project.

However, the decision has caused significant controversy, especially amid COP26, where the phasing out of coal power is one of the main talking points. Australia is the world’s biggest coal exporter, and in 2020, the export value of coal from Australia was approximately A$54.62bn.

Australian Government gives A$2bn boost to critical minerals

The Australian Government has announced that it will establish a loan facility to help secure the resources needed to drive the new energy economy and support the resources jobs of the future. The facility will receive an investment of A$2bn to support companies within the critical mineral industry.

The scheme plans to aid in supporting Australia’s position as a world leader within the mining and downstream processing of in-demand resources, as well as support jobs and communities, particularly in regional Australia.

The demand for critical minerals needed for clean technology applications, like high powered magnets and batteries, is expected to grow exponentially over the coming decades. Critical minerals include lithium, graphite, vanadium, tungsten, cobalt, and rare earths with applications in sectors such as renewable energy, aerospace, defence, automotive and electric vehicles in particular, as well as telecommunications and agriculture technology.

“The commercial dimensions of the critical minerals market mean it is a difficult place to get established,” said Prime Minister Scott Morrison. “We want to ensure that Australia’s resources producers do get established so that they can link up with others in our supply chains in a free and open Indo-Pacific.”

Glencore considers sale of CSA underground copper mine in Australia

Diversified miner Glencore has reportedly received interest from the undisclosed firm for its CSA underground copper mine in New South Wales.

The sale of the mine, which produces about 50,000tpa of copper, marks the firm’s third attempt in six years. The Swiss company was cited by the Australian Financial Review as saying that it has received interest in the CSA copper mine.

Glencore said: “We are currently considering proposals and may decide to enter into a sale process for this asset. These talks are at an early stage and there is no guarantee a transaction will materialise. Any sale of CSA mine would need to be to a responsible operator and represent value for our shareholders.”

In 2019, Aeris Resources tried to acquire a CSA mine from Glencore for $575m. However, the firms were unable to agree to the terms, which resulted in the termination of the sale process. In the same year, Aurelia Metals entered talks with Glencore but was cancelled due to a split between the then-board and Aurelia CEO. The 2019 sale campaign for the CSA mine followed a 2015 campaign, which received interest from firms, including OZ Minerals and EMR Capital.