MINING’S EXISTENTIAL ISSUE

Image courtesy Liebherr

MINING’S EXISTENTIAL ISSUE

In this interview, Tom Juric, Divisional Director, Liebherr-Canada, discusses the steely determination required of the mining industry to achieve net zero, as well as the “mesh network” of energies necessary to displace fossil fuels. In a very optimistic look at mining decarbonization, Juric says capital investment, technological risk, and business tradeoffs should not deter an industry poised at the beginning of its Technology S-Curve.

ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?

TOM JURIC: ESG and adherence to climate standards will redefine the measures of success mining organizations that measure success beyond today’s traditional, financeoriented metrics should, and will be rewarded in the longer term. We are at the beginning of the Technology S-Curve (Taylor & Taylor 2012) and as such the initial investment return, or lack thereof may deter some industry participants. However, as an industry, I believe we cannot afford laggards. All links within the mining value chain have responsibility for the decarbonization of the sector because it is an existential issue we are tackling.

E+M: What are some of the challenges for mines trying to balance climate and ESG commitments with mine production, expansion, and commercial realities?

TJ: Trade-offs. We do not yet have a 1-for-1 substitute for fossil fuel. We are working to displace a supply chain that has been refined and streamlined for well over half a century; adjustments have therefore to be made to the business model. Nonetheless, as a pioneer in the adoption of cutting-edge technology and solutions, the mining industry will likely achieve a comparable, and arguably better result. However, it will require patience and a steely resolve to achieve that milestone. Moreover, it is incumbent upon the industry to define the decarbonization route of its own volition, because to wait is to invite the risk of regulation that could stifle innovation.

E+M: Which technologies are expected to be critical in meeting Scope 1 and Scope 2 carbon emissions goals for mining?

TJ: I believe there is no single energy source today that can compare with what a fossil fuel, such as diesel, has achieved in terms of scale, availability, and mobility. To accomplish our 2030 ambitions, a “mesh network” of energy acting in concert will be required to displace fossil fuels. That said, the speed of development and investment in the alternate fuel and electrification sectors is both astounding and highly encouraging. Given such a real capital investment by traditional and non-traditional sectors, who is to say that a sustainable, direct replacement of diesel is not one “eureka” moment away? However, the key takeaway here is that the industry is not sitting around waiting for eureka; instead, it is developing what it can in parallel to ensure no stone is left unturned in the quest for net zero.

E+M: Who are you looking forward to connecting with at the Energy and Mines Toronto Summit on November 1-2 at the Delta Toronto?

TJ: The real benefit I get from these events is conversing with like-minded people who share our common vision. I always try to learn something so I am keen to hear what the industry is working on, the successes achieved to date, and most importantly, the lessons some have learned through lessthan-successful endeavors. That said, I have never before in my mining career seen such a rapid transformation. Whoever says mining is a dying or obsolete industry, look out, we’ve only just begun!

Tom Juric is speaking at the Energy and Mines Toronto Summit, Nov 1, 3.00 PM on the panel Decarbonizing Fleets: The Road to Net Zero Haulage.