Mexico's Industrias Peñoles advances decarbonization with electric vehicles

Industrias Peñoles, which operates eight mining units in Mexico, is advancing its decarbonization program with pilot tests of electric vehicles at two of its mines: Velardeña in Durango and Tizapa in Mexico state.

During a visit to its Capela polymetallic mine in Guerrero state, the head of the diesel maintenance area, Reyes Domínguez, said the company will not acquire electrical machinery for this asset in 2024 due to the characteristics of the underground deposit but “possibly later” as it carries out pilot tests in other units.

“The first tests are underway at the Velardeña mine, which is our pilot mine, in Durango. It was the one that started last year with electrical equipment,” Domínguez told BNamericas.

Capela, which began operations in March 2020, produces zinc, lead and copper concentrates; while Velardeña has only produced zinc since 2013, when it began commercial production, and has installed capacity of 2.8Mt/y of milled mineral.

José Alberto Loza, Capela’s industrial relations head, told BNamericas that electrical machinery was also being tested at the Tizapa polymetallic mine. The electric vehicles being tested are from Swedish brands Epiroc and, more recently, Sandvik.

Roadmap

In September 2022, the controller of Fresnillo Plc reported in its climate change progress report that the company incorporated emissions reduction targets into its capital investment process and strategic planning.

Likewise, Industrias Peñoles indicated that as part of its commitment to optimize the implementation of the TCFD standard, related to climate-related financial disclosures, the next step is to define absolute emissions reduction goals.

Although no goals have been quantified yet, the Mexican conglomerate established that in 2028, the consumption of electrical energy in its operations will be 100% from clean sources, to the extent the national regulatory framework allows.

“A better understanding of the implications of climate change on business, strategy and financial planning has led us to review our ESG governance framework and in particular the creation of a climate change network with the purpose of establishing the bases for the definition of a decarbonization roadmap that reduces our exposure to transition risks,” the company said in its report.

Fresnillo Plc also plans to develop a decarbonization plan for its Fresnillo and Herradura operations by the end of the year or early 2024, once a detailed analysis is concluded, CEO Octavio Alvídrez said during a conference call on the second-quarter results of the mining company.

“This year we are beginning and hope to complete a detailed analysis of our two largest assets, Fresnillo and Herradura … to better understand the type of technologies we have available and what type of goals we can set to decarbonize our mines,” the CEO said.

Controlled by Industrias Peñoles, Fresnillo Plc operates the Fresnillo, Saucito, Juanicipio, Ciénega, Herradura, Soledad-Dipolos, Noche Buena and San Julián mines.

In recent years, mining companies in Mexico have begun planning additional measures to reduce their environmental impact amid a worldwide push to achieve net zero carbon emissions.

Partly in response to investor demands, miners are incorporating ESG practices into their plans.