Pod 4: Hydrogen for mid-tier mines

The final content pod of the conference focused on hydrogen applications and approaches for midtier miners. While they may lack the research and development capital that tier one miners have access to, midtier miners cannot afford to let the hydrogen opportunity pass them by, as they too will need to decarbonize their operations soon. Peter Mann, Australia and New Zealand Regional Energy Transition Lead at Partners in Performance, identified three strategies for smaller miners to get involved: Wait and see, which is low-risk but puts them at risk of being left behind; partner with OEMs looking to test applications, which presents a small risk to production; and non-competitive collaboration, whereby miners make modest investments in hydrogen while maintaining flexibility. “There are various pathways available and which one you choose will change over time, but you need to be flexible because this is a very dynamic market,” Mann warned.

One of the mid-tier miners that is actively pursuing green hydrogen opportunities is Blackrock Metals, a critical minerals producer in Quebec, Canada. The company plans to start operations using grey hydrogen made from natural gas in its metallurgical processing plant, but gradually switch to green hydrogen. “This will allow us to become the lowestcost, lowest-carbon iron project worldwide. It will take time, which is why a phased approach makes sense, because green hydrogen has to move to economic viability, but we expect this to happen over the next three to five years,” said Sean Cleary, Chairman and CEO of Blackrock Metals.

Alexandre Meterissian, Vice-President, Government Affairs at the firm, explained that the strategy was driven by the project’s very long mine life, and by the expectation of “draconian” carbon taxes after 2030. “We’re going to have to work with the utilities, gas distributors and other large companies in the natural gas space that have huge amounts of capital and are looking to invest in green hydrogen. This is a long-term game. If you’re in hydrogen to make a quick buck, you’re going to lose,” he added.

Of course, in mines with shorter lives, it is much more difficult to explore hydrogen options. But speakers advised grouping various operations in project assessments: “Maybe the next operation stands to reap the benefits”, said Jason Floyd, General Manager, Transformation and Effectiveness at Evolution Mining. Another attractive option for smaller miners would be in setting up green hydrogen production hubs in mining regions and transporting the hydrogen locally to various offtakers who would then share the risk.

But once again, time is of the essence. Andrew Cooper, Energy Specialist at New Gold Inc, encouraged miners of all sizes to start making assumptions. “What are your plans leading up to 2030, that you can implement in the short to medium term? You can assume that in 2030 there’s going to be a 250-tonne hydrogen-powered haul truck for the mining industry. Once you assume that, have you got your hydrogen supply? Now is the time to start planning for the technology that will be available by 2030,” he urged the audience.