Holly Buschman, Vice President Sustainability Strategy & Community, South32

At South32, just four operations (Worsley Alumina, Illawarra Metallurgical Coal and our two aluminium smelters in Southern Africa) accounted for approximately 90 per cent of our Scope 1 and 2 emissions in 2021.

As South32’s Vice President Sustainability Strategy & Community, Holly Buschman supports delivery of South32’s commitment to continually improve sustainability performance globally. She has accountability for the strategic design of the company’s approach to climate change, social performance and sustainability-related reporting and disclosures.

Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Holly Buschman: There is no doubt that climate change and ESG are playing a key role in decision-making in our industry. At South32, we are sustainably reshaping our business through the lens of our climate commitments by increasing our exposure to the base metals critical in the transition to a low-carbon world. We produce the commodities needed for a low-carbon future and are investing further in base metals leveraged to the global transition. We have a goal of achieving net zero operational greenhouse gas emissions by 2050 and have set a target to halve our operational greenhouse gas emissions by 2035. We are directing capital towards projects that will help us achieve these targets. As a diversified mining and metals company operating in a number of jurisdictions, our decarbonisation plans include a broad range of options, shaped by different mining and processing methods, energy markets and regulations. At some of our operations we have the opportunity to decarbonise through processing or efficiency improvements, while for our refineries and smelters, the focus is procuring low-carbon energy and evaluating new technologies.

EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

HB: Our short-term emissions reduction activities are focused on process and energy efficiency projects. Over the medium to longer term, we are focused on the transition of our energy intensive assets to lower carbon alternatives. For example, studies are underway at Worsley Alumina for the transition from coal to gas as an interim step, followed by the potential deployment of renewable energy as these options become technically and commercially feasible. At Hillside Aluminium, we are working with Eskom, the South African public electricity company, government and other potential partners to identify options to procure low carbon electricity, given the current carbon intensity of the national electricity grid.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

HB: South32’s decarbonisation challenges over the medium and longer-term are differentiated from our peers by virtue of our portfolio. At South32, just four operations (Worsley Alumina, Illawarra Metallurgical Coal and our two aluminium smelters in Southern Africa) accounted for approximately 90 per cent of our Scope 1 and 2 emissions in 2021. Our decarbonisation plans are focused on these operations so that we can fundamentally reduce our carbon emissions. A key challenge for Worsley Alumina is that its energy demand is driven by the need for steam in the Bayer alumina refining process, with electricity generated as a by-product using the existing onsite power stations.

The large-scale deployment of renewable energy such as solar PV and wind, which do not generate steam directly, would require a change to the existing infrastructure and connection with the energy grid. In addition, existing energy markets and infrastructure do not currently support the commercial deployment of renewable energy alternatives such as hydrogen or electrification. Hydrogen markets will need to develop substantially to become a viable alternative for Worsley Alumina using the existing refining process given the scale required. In addition, the South West Interconnected System network in its current form would not support the volume of electricity required for the refinery.

Our South African aluminium smelter, Hillside Aluminium, sources its electricity from the South African electricity grid, which is owned and managed by the public electricity company, Eskom. While the South African Government has committed to decarbonisation, the Eskom grid is currently reliant on carbon-intensive energy coal.

To decarbonise Hillside, we must engage with the South African Government, Eskom and other potential partners to identify options for renewable energy infrastructure. This will require a coordinated approach and is likely to be challenging, but it will be critical in reducing the greenhouse gas emissions of Hillside Aluminium and supporting the growth of the South African economy as the world transitions to a low-carbon future.

These challenges encourage us to think differently about how to efficiently transition our energy supply.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

HB: No one person in particular comes to mind. I am most looking forward to hearing about all the great ideas for decarbonising the diversified mining sector in Australia, to enable a supply of the minerals and metals essential to the transition to a low-carbon future.

Holly Buschman will participating in the Keynote Panel: Mining’s Energy, Decarbonisation, and ESG, on Sept 6, 9:10 AM, Energy and Mines Australia Summit