Leading Supply Chain Innovators Reducing Emissions
1. Electrification of Equipment & Vehicles
Battery-Electric Haul Trucks & Loaders: Companies like Caterpillar & Sandvik have developed electric heavy equipment to replace diesel-powered machines.
Electric Rail & Conveyors: Moving ore and waste via electric-powered systems reduces reliance on diesel trucks.
2. Renewable Energy Integration
On-site Solar & Wind Farms: Mines are integrating renewables to power operations & reduce dependency on fossil fuels.
Green Hydrogen Projects: Some companies (e.g., Anglo American) are piloting hydrogen-powered trucks and fuel systems.
3. Low-Carbon Fuel Alternatives
Biodiesel & Synthetic Fuels: Used in transitional strategies where electrification isn’t yet feasible.
Compressed Natural Gas (CNG): A cleaner-burning alternative to diesel, used especially in remote transport.
4. Smart Logistics & AI Optimizatio
AI Route Optimization: Machine learning helps reduce fuel use by optimizing transportation routes and fleet operations.
Digital Twins & Real-Time Tracking: Simulations help manage supply chain disruptions & reduce wasteful rerouting.
5. Remote Operations & Automation
Remote-Controlled & Autonomous Vehicles: Reduce idle time, improve fuel efficiency, & limit human exposure.
Tele-operations Centers: Centralized control reduces the need to fly personnel to remote sites, lowering air travel emissions.
6. Circular Supply Chains & Recycling
Metal Recovery & Waste Reprocessing: Extending the life cycle of materials by recycling or reprocessing mining waste.
Supplier Engagement for Emission Targets: Mining firms are pushing suppliers to adopt sustainable practices.
7. Blockchain for Transparent Sourcing
Traceability: Ensures raw materials come from low-emission or ethical sources, promoting greener supplier choices.
8. Modal Shift in Transport
Switching from Road to Rail/Ship: Rail & water transport produce fewer emissions per ton-kilometer compared to trucking.
COMPANIES & SUPPLIERS actively implementing these supply chain innovations to reduce emissions:
1. Anglo American (South Africa/Global)
Innovation: Launched the world’s largest hydrogen-powered mine haul truck at the Mogalakwena platinum mine.
Renewables: Committed to running all South American operations on 100% renewable energy.
Smart Supply Chain: Uses blockchain to track responsible sourcing of raw materials like diamonds & copper.
2. BHP (Australia/Global)
Electric Vehicles: Piloting electric light vehicles & underground haul trucks across its operations.
Green Steel Initiatives: Partnering with steelmakers in China to lower emissions from iron ore processing.
Supplier Engagement: BHP is working with Caterpillar to develop battery-electric trucks.
3. Rio Tinto (Australia/Global)
Rail Electrification: Operates AutoHaul, the world’s first autonomous heavy-haul long-distance rail network.
Renewables: Signed a major solar and battery project to power its Weipa bauxite operations.
Low-Carbon Alumina: Developing technology to reduce emissions in alumina refining.
4. Teck Resources (Canada)
Cleaner Fuels: Replaced diesel with natural gas at several mining sites.
Supply Chain Monitoring: Uses digital platforms to track and reduce Scope 3 emissions.
Collaborations: Working with logistics partners to cut transportation emissions.
5. Vale (Brazil)
Green Shipping: Partnered with shipbuilders to develop Guaibamax—the world’s most efficient ore carrier.
Electric Locomotives: Testing battery-electric locomotives for internal mine rail networks.
Biochar Projects: Using reforestation & carbon removal strategies to offset indirect emissions.
6. Glencore (Switzerland/Global)
Autonomous Trucks: Deployed in multiple coal & copper mines to optimize fuel use.
Renewable Energy: Investing in wind & solar for its operations in Australia & South America.
Emission Reduction Targets: Partnering with logistics firms to electrify its commodity transport routes.
7. Newmont Corporation (USA/Global)
Electric Fleet Pilots: Investing in battery-powered underground mining equipment.
Net Zero Supply Chain Goal: Committed to a 30% reduction in Scope 3 emissions by 2030.
Smart Sourcing: Works with low-carbon suppliers & encourages eco-certifications.
Decarbonizing the Grid: Strategic Opportunities for Mining in the New Energy Economy
As countries around the world race to reduce greenhouse gas emissions and adopt cleaner energy systems, the energy grid is rapidly transforming. This transition is creating a surge in demand for critical minerals—such as lithium, nickel, copper, and rare earth elements—which are essential to power renewable energy infrastructure, electric vehicles, & large-scale battery storage.
For the mining industry, this shift represents not just a challenge, but a strategic opportunity to lead in the emerging low-carbon economy.
Here are some examples:
Glencore: Investing in Cobalt and Copper for Battery Technologies
Glencore, one of the world’s largest mining & commodities firms, has positioned itself at the heart of the clean energy supply chain.
With significant investments in cobalt & copper operations in the Democratic Republic of Congo & South America, Glencore is supplying key raw materials needed for EV batteries & grid electrification.
Teck Resources: Copper as a Cornerstone of Clean Energy
Canadian-based Teck Resources is ramping up copper production through its Quebrada Blanca Phase 2 expansion project in Chile.
Copper is essential for wind turbines, solar panels, & EVs. Teck’s focus on low-carbon metals aligns directly with the global push for sustainable electrification.
Vale S.A.: Scaling Nickel Production for Energy Storage
Brazilian miner Vale S.A., through its Canadian arm Vale Base Metals, is expanding its nickel operations—a critical component in high-performance lithium-ion batteries.
The company’s commitment to carbon neutrality by 2050 also strengthens its position as an ESG-aligned mining leader.
As the world moves toward a decarbonized grid, mining companies that invest in sustainable production, critical minerals, & green technologies will play a defining role in shaping the future of energy.
Innovative Approaches to Particle Separation: Boosting Recovery and Cutting Costs
As the mining industry continues to strive for higher efficiency, sustainability, and profitability, companies are adopting cutting-edge particle separation technologies that enhance mineral recovery, reduce energy consumption, and lower operational costs. Here are some leading innovations reshaping the mineral processing landscape:
Eriez – HydroFloat® and StackCell® Technologies
Eriez’s HydroFloat® coarse particle flotation enables the recovery of particles traditionally lost in tailings due to their size. Combined with the StackCell® compact flotation unit, this approach reduces grinding needs and enhances overall plant efficiency.
✅ Use Case: Anglo American’s El Soldado mine in Chile reported a 6% boost in copper recovery after adopting HydroFloat.
Metso – Planet Positive Cyclones & Flotation Units
Metso has developed a suite of eco-efficient separation solutions under its Planet Positive initiative. These include new cyclone designs and flotation mechanisms that improve classification precision and reduce environmental impact.
✅ Result: Better separation with lower water and energy use across grinding circuits.
TOMRA – Sensor-Based Ore Sorting
TOMRA leads the way with XRT and near-infrared ore sorting, identifying and separating valuable ore from waste rock in real-time.
✅ Use Case: The Renison Tin Operation in Tasmania saw increased tin recovery and significant tailings reduction.
Weir Minerals – Cavex® Hydrocyclones
The Cavex® line features a patented spiral inlet and air core suppression, leading to sharper classification and better throughput.
✅ Result: Enhanced mill performance and improved flotation feed quality across various operations.
Gekko Systems – Inline Pressure Jig and Modular Gravity Solutions
Gekko’s modular systems and gravity separation technologies are ideal for remote locations and greenfield projects, providing low-energy and chemical-free recovery.
✅ Use Case: Effective for gold, tin, and tungsten recovery where environmental constraints are tight.
Sepro – Falcon Centrifugal Concentrators
Falcon Concentrators offer high G-force centrifugal separation for ultra-fine particle recovery. They’re often deployed to recover free gold missed by traditional methods.
✅ Result:Higher recovery rates from tailings and primary gravity circuits without chemical input.
Final Thoughts
Innovative particle separation isn’t just a technical upgrade — it’s a strategic necessity. These technologies offer measurable improvements in recovery and cost-efficiency while aligning with the industry's push toward sustainability.
NPV in Preliminary Economic Assessments: A Reflection of Market Value?
Short Answer:
No, the Net Present Value (NPV) from a Preliminary Economic Assessment (PEA) is not directly indicative of the market value of a mineral property.
Why Not?
Early-Stage Assumptions
A PEA is based on inferred resources, early-stage engineering, and cost estimates that can carry large margins of error. The NPV derived is highly conceptual and speculative.
Market Value = What Someone Will Pay
The market value of a mineral property depends on real-world conditions:
Investor interest
Jurisdictional risk
Infrastructure
Permitting outlook
Commodity prices
Strategic value to a buyer
So, even if a PEA says a project has an NPV of $500 million, the actual market value might be a fraction of that — or more, if there's a bidding war.
Discount Rate and Price Assumptions
PEAs may use optimistic metal prices and lower discount rates. If the NPV is built on $2,000 gold but the market expects $1,600, the valuation becomes inflated.
No Proven or Probable Reserves
Unlike a Pre-Feasibility Study (PFS) or Feasibility Study (FS), PEAs do not include mineral reserves. Market valuations tend to reflect derisked, more certain assets, not conceptual ones.
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In Practice:
A project with a PEA NPV of $200M may trade at $5M–$30M depending on stage, risk, and investor sentiment.
Analysts may use a "market-adjusted" NPV multiple or discounted in-situ value to better reflect reality.
Financial Modeling in Mining: – Core Essentials- Fast Track
Financial modeling for a single-asset mining project involves creating a structured and dynamic spreadsheet model that captures the expected financial performance of a single mining asset, independent of any broader corporate portfolio. This type of modeling is critical for investment decision-making, financing, & project valuation, particularly in early-stage projects or when seeking external funding.
At its core, a stand-alone mining model focuses on the project’s capacity to generate free cash flow & support debt or equity investment based solely on its own operational & financial merits. It typically includes the following key components:
Technical and Operational Assumptions: These are driven by geological data, mine plans, processing methods, & throughput forecasts. Mining schedule, ore grades, recovery rates, & production volumes form the backbone of the revenue side.
Capital and Operating Costs: A detailed breakdown of initial capital expenditure (CapEx), sustaining CapEx, & operating expenditure (OpEx) is vital. These costs must be based on engineering studies like PEA, PFS, or FS & include contingency buffers.
Revenue Projections: These are derived from expected production, commodity prices (often using consensus forecasts), & off-take terms. Sensitivity to price volatility is crucial, especially for metals like gold, copper, or lithium.
Tax and Royalty Regimes: Local fiscal policies significantly affect net cash flows. A robust model must include royalties, depreciation schedules, tax holidays, & other local obligations.
Financing Structure: Stand-alone models often explore how project financing (e.g., debt, streaming, equity) affects returns. This includes repayment schedules, interest coverage, & debt service ratios.
Valuation Metrics: The primary output is usually the Net Present Value (NPV) & Internal Rate of Return (IRR). These reflect the project’s economic attractiveness. Models may also include payback period & scenario analysis.
Sensitivity & Scenario Analysis: Given the inherent risks in mining (e.g., commodity prices, cost overruns, delays), testing the model under various assumptions is essential to understand downside risks & upside potential.
In essence, a stand-alone financial model is both a quantitative tool & a decision-making guide, helping stakeholders judge whether a mining project can survive & thrive on its own.
WHEN DEMANDS FOR SOCIAL LICENSE BECOME AN ATTACK ON DEMOCRACY(Distinguished Lecturer Brian Crowley)
In his unique style, Mauro Chiesa of the World Bank, EDC &NYC Banks fame relates: "It is (not that) hard!!"
The graphical representation of Discoveries vs. Exploration- Running on Empty, is fascinating intelligence.
Astounding write-offs & loss of key financial supports, he quantifies 1975 to 2018 exploration expenditures & major discoveries.
In my 24 stimulating years in this industry, Chiesa is the first person I have heard to say, "For the Future, Forget the Past" & he prophetically tells us why.
My direct discussion with him wholly redefined my perspective of our industry.
If you would like to comment on this or any other "Intelligence Defined", please send to myself: lbonder@miningpublications.com
We are pleased to present a British Columbia discussion group meeting of the CIM Management & Economics Society entitled:
BEYOND BOOM AND BUST: DECOMMODITIZATION OF MANAGING MINING PRICE CYCLES (Price Cycles, Cost Curves and the Art of Mindful Management)
The author: Bish Chanda is well known to CEO Lewis Bonder of Mining Publications International.
We met in 1997 at CIM where I represented the organization on an international scale.
Throughout my eight year tenure there, Bish was an important source of mining knowledge & a true positively spirited gentleman to all during my formative years at CIM.
The objective of this presentation was to explore ways to moderate the effects of recessions, by keeping the gains achieved during an upturn.
I especially enjoyed his "mindful management practices" where he cites the correlation of ancient Buddist practices to this concept.
He writes: "In the mining context, companies should manage their current costs, which they can control, instead of trying to predict the future direction of prices, which no one can." Lewis Bonder