Upstreaming Mining Innovation
Mining Climate and Resource Challenges
The global demand for metals has never been higher. Demand for critical metals such as copper and iron have grown steadily over the past decade. Growth in steel production jumped significantly in rapidly developing and expanding economies such as India (17.8% from 2020 to 2021), Japan (15% from 2020 to 2021) and the United States (18% from 2020 to 2021).
Additional demand is driven by decarbonization and net-zero sectors. Battery storage, electric vehicles, solar power generation, wind turbines, and electricity networks are already driving a surge in demand for both critical and rare earth metals.
Meeting this skyrocketing demand for both critical and rare earth minerals poses significant sustainability and productivity challenges. Mining is a highly energy- and resource-intensive industry with a significant climate impact. Roughly 4%-7% of global emissions are due to mining activity. However, when Scope 3 emissions are considered, the mining industry is responsible for up to 28% of global greenhouse emissions.
Additionally, mining sites and supply chains are susceptible to physical climate risks such as extreme weather, heat waves, and drought which threaten operational efficiency, production, and safety and increase costs and emissions. Currently, water stress affects between 30% and 50% of critical metal production such as copper, iron ore, and zinc. These water-stressed sites were evaluated at about $150 billion in total assets in 2017. But climate projections suggest a sharp increase in water-stressed mining sites. In some cases drought will affect 100% of sites for resources such as copper by 2040.
In addition to climate impact and physical hazards, it is becoming more difficult to find and access high quality ore. Overall, ore grades have been steadily decreasing for years. On average, the ore grade of copper has dropped 25% in the last decade. As high-quality ore resources are depleted, it becomes more expensive and energy-intensive to respond to the demand for metals.
Facing political and public pressure to address climate impact, as well as rising costs of physical climate risk, most major mining companies have established emissions reductions and decarbonization goals.
Essentially, Scope 1 and 2 are those emissions that are owned or controlled by a company, whereas Scope 3 emissions are a consequence of the activities of the company but occur from sources not owned or controlled by it. Scope 1 and 2 are mandatory to report, whereas Scope 3 is voluntary and the hardest to monitor.
Many of these targets, however, are relatively long-term, focusing primarily on Scope 1 and 2 emissions, and do not address the increased energy use and operations costs of limited availability of high quality and easily accessible ore.
Site Identification and Extraction Innovation
Mining vehicles are responsible for roughly one-half of Scope 1 mining emissions. Electrification of these vehicles is therefore the low-hanging fruit of mining decarbonization. However, as the demand for mined minerals grows and resources are increasingly depleted, the energy and operational costs of excavating and extracting minerals increases sharply.
For example, in the past decade it is estimated that while copper production has increased by 30%, related energy use has increased by 46% . Innovators are developing identification and visualization solutions to increase the accessibility of high quality mineral deposits and optimization technologies to optimize the extraction process to reduce both costs and emissions.
Innovation in site identification includes the use of AI, sensors, and innovator visualization processes such as muon tomography --3D imaging leveraging muonic X-rays (e.g., Muonvision, Ideon Technologies) and subterranean satellite mapping (e.g., Lunasonde) to digitally explore and create visual representations of mineral deposits and other mining assets (e.g., Kobold Metals, EarthAI, RockMass).
Other innovators are developing a mix of hardware and software solutions to optimize the extraction process. Novamera´s smart drilling technology allows access to challenging and previously inaccessible deposits as well as minimizing conventional excavation, significantly reducing energy use, and maximizing mineral retrieval. Similarly, ore classification and intelligent routing decision solutions combine hardware and software to optimize extraction and minimize waste (e.g., Minesense).
Looking Forward
In response to declining ore grade and availability, look for innovators developing solutions to upgrade low-grade metals (particularly iron ore) and leverage mining waste streams (such as mining tailings). In terms of electrification, look for innovators facilitating the transition to renewable power sources and reducing transition risk, such as developers of fuel-agnostic engines and generators (e.g., ClearFlame Technologies, IPG). For an overview of mining vehicles, check out the Zero and Low-emission Off-road Commercial Vehicles Insight from earlier this year.
Nicole Cerulli, Analyst, Cleantech Group
