Mineral Resources Limited (MinRes) has implemented a groundbreaking decarbonisation fund across all its operations, effective July 1, 2024.
This initiative charges projects under MinRes’ operational control for every tonne of emissions produced, encompassing operational sites, exploration sites, warehouses, and corporate offices.
The fund’s proceeds will be invested in various decarbonisation initiatives, focusing on power generation and material movement.
These include the electrification and automation of mining, haulage, and transport systems.
Additionally, the fund will support the purchase of Australian Carbon Credit Units (ACCUs) for regulatory compliance under Australia’s Safeguard Mechanism.
MinRes has adopted a unique approach by setting the charge based on the true market cost of carbon.
Operations are billed using the preceding month’s average generic ACCU spot price for every tonne of Scope 1 and 2 emissions.
Emissions calculations are based on the operation’s consumption of energy commodities such as diesel, gas, electricity, and other sources.
Chacko Thomas, General Manager Decarbonisation at MinRes, emphasised the fund’s goal of creating lasting behavioural changes.
“We hope to materially change MinRes’ emissions profile by empowering and incentivising teams across the business to operate more efficiently and responsibly,” Thomas stated.
The initiative is expected to drive innovation in low-emission mining practices across MinRes’ operations.
By investing in energy efficiency improvements, the company aims to reduce both operating costs and emissions.
This decarbonisation fund aligns with MinRes’ commitment to achieving net zero operational emissions by 2050.
The company is focused on understanding and managing its climate-related obligations, opportunities, and risks.
MinRes’ efforts extend beyond its own operations, as the company aims to support decarbonisation across supply chains, operational assets, and the energy requirements of others, contributing to the global energy transition.
