Economy at Large Mining: Decarbonization and Profits

AUTHOR: David Jarrett and Team Editor@ RDJ Publishing and RDJ Group ChiefExecutiveOfficer

Natureprovides. Courtesy:Swakopuranium.com

With COP 29 looming and to be held in Baku, Azerbaijan, another round of pressure related to decarbonisation will be building and the global growing pressure to align with global sustainability goals The need to decarbonise operations is not just an environmental imperative but also a strategic necessity for maintaining competitiveness and profitability in a rapidly changing global market.

With mining as a cornerstone of Namibia's economy, contributing about 10 percent to the GDP and providing a substantial portion of the country’s export earnings The industry however is dominated by diamond mining, but other minerals such as uranium, gold, copper, and zinc are also significant. With such reliance on mining, any shift in global economic or regulatory landscapes can have farreaching consequences for Namibia’s economic health in renewable energy, such as solar and wind, present viable options for reducing the carbon footprint of mining operations

Namibia, with its abundant sunshine and wind resources, is well-positioned to capitalize on these technologies. Additionally, improvements in energy efficiency, electrification of mining equipment, and carbon capture and storage (CCS) technologies offer pathways for reducing emissions A good example of this already exists such as with the B2Gold solar power plant that is expected to reduce dependency on other sources of electricity by some 30 percent. This will reduce their Scope 1 or Scope emissions

Courtesy:NAMDEB

Multiple other mines have followed a similar path. Namdeb for example, has proceeded to take this further, incorporating e-mobility into its operations.

“The Electric Bus forms part of a pilot testing in relation to battery electric vehicles to reduce the use of diesel. A total of approximately 30 drivers and 15 mechanics are expected to undergo driving and maintenance training of which 50% have been completed since the arrival with training scheduled in sessions. Trial testing of the bus is currently underway in the town of Oranjemund. The bus is currently being prepared to ensure that it is fit for purpose both from a safety and operational side.”

-Namdeb Press Release (October 16, 2023) E-mail: shangelao.ndadi@namdeb.com

Moreover, decarbonisation can enhance a company’s reputation, making it more attractive to international investors who are increasingly factoring Environmental, Social, and Governance (ESG) criteria into their investment decisions. While the transition to a low-carbon model may involve significant upfront costs, the long-term financial benefits are clear.

Companies that lead in decarbonisation are likely to gain competitive advantages, including access to new markets, reduced regulatory risks, and enhanced brand loyalty Furthermore, as the global supply chain increasingly values low-carbon products, Namibian mines that can demonstrate reduced emissions may find themselves at an advantage in negotiationsandcontracts

The mining sector must, however, carefully manage this transition to ensure it does not undermine profitability Strategic investments in technology and infrastructure, combined with partnerships with government and international organizations, will be critical The Namibian government’s role in facilitating this transition through supportive policies, incentives, and infrastructure development cannot be overstated Epangelo Mining, a private mining company of which the Government of the Republic of Namibia is the sole shareholder puts it brilliantly “our promise – beyond mining”.

Ultimately as the world moves towards a low-carbon future, Namibia’s mining industry must evolve to meet these new realities, ensuring that it can continue to thrive in a changing global landscape. As always the conversation continues infocus@rdjpublishing.africa

Readings:

https://unfccc int/cop29 https://www b2gold com/news/2023/b2gold-targets-30-reductionin-ghg-emissions-by-2030-and-announces-expansion-of-the-fekolasolar-plant https://www namibian com na/swakop-uranium-projects-firstprofit-since-inception/ https://www epangelomining na/about html