Decarbonizing the Mining Industry: A Critical Analysis of Technological Advancements and Challenges

As the mining industry shifts towards a more sustainable future, decarbonization has become a pressing concern. The industry's significant contribution to greenhouse gas emissions and the growing demand for essential raw materials required for the energy transition make it imperative for miners to adopt cleaner technologies. This report provides an in-depth analysis of the decarbonization potential of various energy transition technologies, including electrification, alternative fuels, renewable energy, hydrogen, and CCUS. The study presents an overview of emissions performance, climate and net-zero targets from major mining companies, and assesses the commercial viability of these technologies.

Key Takeaways:

• Most major mining companies are targeting 2050 as the year to achieve net-zero operational emissions, with some aiming for net-zero Scope 3 emissions by 2050.
• A standard benchmark for interim emissions targets is a 30 percent reduction in Scope 1 and 2 emissions by 2030, with Fortescue setting an ambitious target of 'real' net-zero by 2030.
• There has been a notable increase in the number of Power Purchase Agreements (PPAs) signed by mining companies, serving as a key vehicle for scaling renewable electricity consumption.
• Electricity consumption from renewable sources has increased among major mining companies, with some companies exceeding 50% of their electricity consumption from renewable sources.
• Electrification remains the ultimate goal for the industry, driven by sustainability efforts and operational cost reductions. However, challenges hinder its commercial viability in the short term, prompting many companies to explore interim solutions.
• Alternative fuels, such as trolley-assist systems and biodiesel, are emerging as viable alternatives to reduce emissions in the short term.
• The industry's long-term solution lies in electrification, with OEMs playing a crucial role in advancing electrification within mining.
• Hydrogen and CCUS technologies hold promise for medium- to long-term decarbonization, with infrastructure development and cost savings being key drivers.

Statistics:

• 15 leading mining companies accounted for 54.2% of the total renewable energy capacity as of July 2025.
• The top mining companies had signed 264 PPAs between 2018-2025, with an average annual capacity of 13.6 GW.
• As of July 2025, 43.2% of mines used conventional fuels as their primary power source.
• By 2030, the biodiesel production capacity is expected to reach 193,500 barrels per day.
• Low-carbon hydrogen production capacity is expected to reach 43.4 million metric tons by 2030, with the majority being produced in Asia.
• CCUS capacity based on active and announced projects is expected to reach 343 million metric tons by 2030.

Sources:

• ResearchAndMarkets.com, "Decarbonizing the Mining Industry - 2025"
• Various company reports and statements from mining companies, OEMs, and energy providers.