Spotlight: LatAm miners setting tougher climate targets

At least three of Latin America’s top gold and silver miners signed up to new or tougher greenhouse gas (GHG) reduction targets this year, with others taking steps toward establishing initial goals.

The commitments by major precious metals producers fall within Paris Agreement goals of limiting global warming to well below 2 degrees Celsius, and preferably to 1.5C, compared to pre-industrial efforts, including a target of zero net emissions by 2050.

Mining is a significant carbon emitter, responsible for 4-7% of global GHGs, according to consultancy McKinsey.

Reducing emissions – including through less polluting sources of power, improved efficiency and electric vehicles – has become a key demand for investors, who are increasingly looking to firms’ climate-related transparency, including through the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) program.

TOUGHER TARGETS

Barrick Gold – one of LatAm’s biggest gold producers – announced an updated 2030 emissions reduction target of 30% in April, compared to the 10% set in early 2020.

The tougher commitment follows work to identify further emissions reduction opportunities, the company said.

Barrick is already on target to meet an interim reduction target of 15%, based on projects which are already being implemented, while maintaining steady production.

“Ultimately our aim is to achieve net zero carbon emissions by 2050, achieved primarily through GHG reductions and offsets for some hard-to-abate emissions,” CEO Mark Bristow said.

The new target puts Barrick in line with rival gold miner Newmont – LatAm’s top gold producer - which pledged zero net emissions by 2050 last year.

In the region, Barrick has the Pueblo Viejo mine in the Dominican Republic, a 60:40 JV with Newmont, and the Veladero and Zaldívar JVs in Argentina and Chile, respectively.

Agnico Eagle Mines also updated its GHG targets at the end of April.

The company, with mines in Mexico, Canada and Finland, said it will set a net zero carbon target this year for 2050.

“Pathways to achieve net zero, more specific reduction targets and other key climate-related targets will be evaluated in the coming years as we continue to move forward on improving our performance on all climate-related matters,” the company said in its 2020 sustainability report, released on April 29.

In Mexico, permits have been received for construction of an electricity power line to supply the La India mine, which will replace more polluting diesel power generation, the report added.

Construction is planned when the COVID-19 situation improves.

Yamana Gold – a top five LatAm gold producer – also formally adopted a climate strategy in February.

This strategy is underpinned by a net-zero 2050 emissions target, which the company described as aspirational, and a commitment to limit global warming to 2C.

Yamana, with mines in Brazil, Chile, Argentina and Canada, plans to determine its emissions baseline and identify abatement pathways to meet the 2C limit in 2021.

WORK IN PROGRESS

Other mining companies have announced progress towards establishing GHG targets in the first months of this year.

Pan American Silver, with silver and gold assets in Peru, Mexico, Argentina, Bolivia and Canada, is working to quantify water, energy and carbon footprints under various strategic business scenarios in order to establish “appropriate and realistic” medium and long-term climate objectives, it said in its 2020 sustainability report earlier in May.

This includes estimating energy demand for all mines based on current life of mine plans.

“We expect to set science-based targets for the year 2030 based on that evaluation of our assets and the potential availability of renewable energy through the transition to a low-carbon economy in the countries where we operate,” the report said.

Pan American is committed to advancing efforts toward net-zero emissions but warned this goal is subject to factors beyond the company’s control, including the emergence of new technologies, carbon capture use and storage, and valid carbon offsets.

“We will continue to monitor the development of technological and offset solutions to climate change with the intention of reaching net zero emissions in 2050 or much earlier,” it added.

Equinox Gold is also developing its GHG strategy.

This included an energy and greenhouse management assessment workshop involving senior management in 2020 to help form a strategic plan to reduce energy consumption and GHG emission intensity.

During this year, Equinox will be working towards establishing science-based targets in accordance with the Paris Agreement, it said in its 2020 ESG (environmental, social and corporate governance) report.

The company has mines and projects in Mexico, Brazil, the US and Canada.

Mexico-focused Torex Gold is also developing its climate change strategy and targets, and plans to release a climate report aligned with TCFD recommendations later in 2021, CEO Jody Kuzenko said in April.

The company signed an agreement with Scatec to build a 8.5MW solar plant at its Morelos property, which hosts the El Limón-Guajes mine and Media Luna project, and which is expected to reduce Scope 2 GHG emissions by up to 8.6%.