Andrew Strickland, Head of Project Development, Blackstone Minerals

We are at a critical stage where equipment purchased now will have an operating life which spans from the existing fossil fuel world to the new renewables based mining operations.

Andrew Strickland was responsible for the development of the Blackstone Ta Khoa Project through PFS and DFS. He has now taken leadership of the Blackstone M&A activities.

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

Andrew Strickland: All mines need to consider their use of capital and returns for shareholders. We are at a critical stage where equipment purchased now will have an operating life which spans from the existing fossil fuel world to the new renewables based mining operations.

When spending this capital, miners need to consider where shareholder and community expectations will sit in 2030, as this will impact their social licence to operate, and potentially even financial performance if a carbon pricing system is introduced.

Mining is also in a unique position to positively impact climate change through delivery of critical materials for EVs. New battery mineral miners need to consider the expectations of their Customers and ultimately the end consumer (EV driver) and their demand for sustainable production of inputs into the EV fabrication process.

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

AS: Historically, mines with access to cheap power, regardless of source (coal, diesel etc) had a competitive advantage over those with a more expensive power supply. As the drive to decarbonise mining grows, mines with access to sustainable power will have a competitive advantage, and projects without will be faced with construction of new renewable generation capital costs, or onerous off-setting and potentially carbon tax losses. Mines are considering how best to use renewables, without the need for power storage. Other positive impacts of electrified mining operations are also gaining traction. A huge one is the removal of diesel particulate matter from underground operations. This drastically reduces the need for ventilation, and creates cleaner and quieter operating conditions for those underground.

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

AS: Technology is still immature and there are many potential options. Battery electric, with static charging, dynamic charging or battery change out? Hydrogen Fuel cell? Ammonia? To meet these goals, decisions need to be made now, but the future is still so uncertain. De-mystifying these technologies is critical for miners to be able to make the key decisions to develop carbon free, or convert to carbon free operations. There is also a heavy dose of scepticism in regard to decarbonisation of the industry. Many incumbents either believe that its not possible, or that its just not required. Changing these perceptions will need more and more companies to demonstrate that its not only the environmentally right thing to do, it is also economically the right thing to do.

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

AS: Other like minded individuals who can see the changing future landscape, and how we need to work together to achieve these goals.

Andrew Strickland is speaking on the panel The Fleet Technology Shift, September 7th at 11:40 AM, Energy and Mines Australia Summit 2022