The deal is part of Kinross’ Climate Change Strategy and greenhouse gas (GHG) reduction action plan, which includes the company’s commitment to working towards the goals of the 2015 Paris Agreement.
GHG reduction action plan
The Climate Change Strategy is also aligned with Kinross’ previously-announced goal of being a net-zero GHG emissions company by 2050, and has set a target to achieve a 30% reduction in intensity per ounce produced of scope 1 and scope 2 emissions by 2030. As the company advances its strategy, it says it will also work with its suppliers on addressing Scope 3 emissions.
“The Climate Change Strategy is in line with Kinross’ values and commitment to sustainable mining, and builds on its strong record in this area. These commitments are also consistent with the company’s sustainability policies, and its commitment to ESG, ethical conduct and human rights, and align with the Just Transition framework to ensure that employees’ and communities’ rights and livelihoods are protected as the company implements its strategy,” said the firm.
The strategy is structured into five main pillars. First, incorporating energy efficient and renewable energy projects into operations. The company is budgeting $50 million in 2022 for ESG-related capital expenditures, which includes developing a 34 MW solar power plant at Tasiast in Mauritania, and studying building a power line to connect the Udinsk project into the regional grid in Russia, as opposed to self-generating electricity with diesel. Kinross also signed a power purchase agreement for 100% renewable power at the La Coipa project in Chile, and incorporated electric shovels, solar power for the camp, and an ore conveyor system to reduce the use of haul trucks in the Lobo-Marte project plan.
The second strategy involves partnering with equipment manufacturers and energy suppliers to reduce GHG emissions and energy use. “As 90% of the company’s current Scope 1 and Scope 2 emissions are from power generation and mine fleets, a significant part of its GHG reduction strategy will include strategic partnerships with equipment manufacturers and energy suppliers.” Current initiatives include the mentioned agreement with Komatsu on Zero Emission Haulage.
It also includes supporting research for a new crushing and grinding system that could radically reduce energy use in commination circuits. Third, embedding climate change considerations into strategic business decisions while the fourth includes maintaining robust governance and transparent reporting. The final strategy will include enhancing the business’ resiliency to climate change to mitigate risks.