Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
BHP and US copper cable and wire manufacturer Southwire have completed their first transaction involving the delivery of carbon neutral copper from BHP’s mines in Chile to Southwire’s processing activities in the US state of Georgia.
The pilot forms part of a collaboration between BHP and Southwire under a memorandum of understanding signed in March 2021 that reflects BHP’s Climate Transition Action Plan commitment to support industry to develop technologies for improved traceability and the pursuit of carbon neutral production.
In a first for BHP, the pilot involved tracing BHP copper cathodes and associated greenhouse gas emissions through Southwire’s rod production operations utilizing supply chain traceability provider Circulor’s blockchain-based technology and BHP’s carbon offsetting capabilities.
“The pilot aims to leverage BHP’s carbon offsetting capabilities to offer Southwire a carbon neutral copper product during the transition period as we pursue operational decarbonization, and is achieved by the retirement of high-quality carbon offsets against emissions from the production, transportation and Southwire’s processing of the designated copper shipments,” BHP said in Friday’s news release.
The carbon offsets were sourced from a project in Peru that provides additional sustainability co-benefits, such as biodiversity conservation, improved water quality and support for local communities, it added.
Through this collaboration, the global miner aims to enhance supply chain transparency and demonstrate the broader downstream demand potential for carbon neutral products across the copper value chain, underpinned by credible greenhouse gas emissions measurement, reporting and tracing.
“We are taking concrete action to significantly reduce greenhouse gas emissions in the copper value chain. Partnerships like the one with Southwire enable industry to collaboratively move forward in building a low-carbon world and to reduce emissions from existing products,” BHP’s Minerals Americas President Rag Udd said in the media statement. “
We are committed to helping lead this change, to create social value through sustainable copper production practices, and to working together to support greenhouse gas emission reductions in the copper value chain.”
“This is our first ever ‘carbon neutral’ sale of any of our commodities. The pilot helps improve understanding of greenhouse gas emissions in the copper value chain and demonstrate the role high-quality offsets can play, as a complement to operational decarbonization,” said BHP’s Group sales and marketing Officer, Michiel Hovers.
