Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) vowed today to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at its Kamoa-Kakula joint-venture in the Democratic Republic of Congo (DRC), as the project nears first copper production.
The miner said it was committed to work with Kamoa-Kakula's partners to ensure it becomes the first net-zero operational carbon emitter among the world's top-tier copper producers.
The Vancouver-based company noted the mine and concentrator plant at the site are already powered by clean, renewable hydropower, so the focus of its net-zero commitment will be on electrifying the project's mining fleet.
"Industrial-scale electric and fuel-cell mechanized underground mining equipment is being tested around the world and it is only a matter of time until they become available for commercial use in the size that we require for our large-scale, bulk mining operations," Robert Friedland, Ivanhoe Mines co-chair, said in a statement. "We plan to be among the first of the early adopters of the technology."
Ivanhoe also said that once the mine reaches net-zero Scope 1 and 2 emissions, it will turn its focus to achieving net-zero total emissions, which will include all indirect emissions, whether upstream or downstream, also known as Scope 3 emissions.
Commodity extraction and its use are responsible for 4% to 7% of global greenhouse-gas emissions, and up to 32% to 35% when considering Scope 3 emissions, analysts at Morgan Stanley said in a new report published on May 4.
"The transition will define boards' capital allocation priorities, links between climate performance and executive remuneration, capex/opex intensity, and ultimately returns and their appeal to ESG-focused [environmental, social and corporate governance] investors," Morgan Stanley said. "Adequate strategies will minimize business risks over time, lower costs of capital and boosting equity values."
First production at Kakula, the first mine planned at the Kamoa-Kakula concession, is expected by early June.
The operation is initially forecast to generate 3.8 million tonnes of mineralized material a year at an average feed grade "well in excess of 6% copper," over the first five years of operation.
Kamoa-Kakula is a strategic partnership between Ivanhoe Mines (39.6%), China's Zijin Mining Group (39.6%), Crystal River Global Ltd. (0.8%) and the DRC government (20%).