70+ attendees voted for the following presentations for the Audience Choice Session at next week's The Decarbonised Mine. The session will take place at noon on May 7th.

The energy transition and decarbonisation is a capital allocation problem
 
Your organisation only has one pot of money to finance investments. Traditional metrics of NPV and IRR don’t work for emissions reduction projects and a carbon price has significant limitations.

• Investments in production will impact emissions and investments in emissions reduction may impact both production and operating costs as well as consuming some of the capital budget.
• Some assets are more profitable than others and some are easier to decarbonise.
• How do you find the optimum capital allocation strategy to satisfy corporate targets and constraints, including emissions reduction ambitions, and what is the impact vs BAU?
• What happens with different sets of macro-economic assumptions and how do they affect the optimised capital allocation strategy?
• How do you account for the non-linear relationships and interdependencies inherent in mining?

 
Using techno-economic modelling, scenario analysis and portfolio optimization techniques borrowed from the oil and gas industry it is possible to evaluate a vast range of available investment options across multiple assets under different sets of macroeconomic assumptions to inform and iterate on the optimised path to net zero. If you are interested in understanding how, vote for this session.

Mark Thomson, Executive Director, Carbon Transition Pathways

 

Electrification NPVs not stacking up? How ESG valuation transforms fleet decisions.

Recent studies undertaken with Australian underground miners have shown that a financial NPV gap continues to exist between the lifecycle costs of diesel fleets against electrified solutions.  This raises critical questions: 
Are financial-only viewpoints obscuring opportunities to deliver long-term value? 
How can we properly characterise the environmental and social impacts of continuing with diesel-powered options?
We know that there are other factors at play, such as the health and environmental impacts of diesel particulate matter (DPM) emissions, nitrogen oxide emissions, maintenance hours, and heat. By ascribing credible risk cost ranges to these factors using industry data and economic valuation methods, we can understand their relative impact and make better decisions.

Results have demonstrated that incorporating these values could narrow the NPV gap between electric and diesel fleets to 1% under base case conditions. Sensitivity analysis reveals that electric fleet options could become economically superior in a majority of cases. For example, testing cases with higher future energy costs and an increasing focus on sustainability factors, electric vehicles can become superior to diesel, resulting in millions of dollars of financial and non-financial (ESG) benefit.

Michael Marinovich, Technical Director, Adaptus

 
Australia, We Need to Talk: Closing the Gap to 2030 and Beyond
 
Australia has set ambitious decarbonisation targets to reduce greenhouse gas emissions by 43% by 2030 and achieve net-zero emissions by 2050. This presentation will examine the nation’s current progress toward these goals. 
Australia has made significant progress against its 2030 target through the expansion of renewable energy, while gaps remain in other sectors such as transport. This presentation will provide an overview of achievements to date and identify areas where further action is needed to accelerate decarbonisation efforts. 
The Net Zero Plan to 2050 remains a work in progress, however this presentation will explore the insights from the Resources - Sector Pathway Review, which directly informs the broader Plan. This assessment will highlight the technology opportunities within the resources sector and assess their alignment with varying levels of technology development, deployment and adoption.

Siobhan Cribb, Founder, Connect Zero

 
The Crop Thickens: Harness redundant land and wastewater to unlock new revenue and decarbonisation through vertically integrated biofuel production.

In an era of heightened sustainability demands and regulatory scrutiny, the mining sector stands at a pivotal crossroads: adapt to reduce emissions or face escalating compliance costs and erosion of shareholder trust. Our transformative strategy offers a visionary pathway, harnessing redundant land and wastewater to drive sustainable growth and profitability.

By strategically integrating bio-crop cultivation and biofuel production within existing mining operations, companies can significantly lower diesel emissions without the heavy burden of fleet overhaul or unproven technology. This innovative approach not only diminishes environmental impact but also unlocks lucrative revenue streams through the sale of excess biofuel and carbon credits. Moreover, repurposing wastewater from mine dewatering for irrigation turns a potential environmental liability into a vital asset, fostering bio-crop growth and enhancing cash flow.
This strategy effectively utilizes unused land, deferring mine rehabilitation costs, and positioning companies as frontrunners in sustainability.

Join us to explore how this model elevates mining firms to sustainability leaders while bolstering financial performance. Discover how environmental stewardship can be seamlessly transformed into a strategic advantage, ushering in a new era of responsible and profitable mining.

Dan Demilew, Director, PWC