AngloGold Ashanti is aiming for a 30% reduction in its scope 1 and 2 greenhouse gas emissions by 2030, an exercise that will cost $1.1bn (R20bn) and has the aim of achieving net zero emissions by 2050.
These will be done through a combination of renewable energy projects, fleet electrification and lower-emission power sources, the gold miner said in a statement on Wednesday.
The company’s plans align with the Paris Agreement, a legally binding international treaty on climate change whose goal is to limit the increase in global warming to below 2ºC to mitigate climate-related disasters.
Scope 1 refers to emissions from within the mine site, while scope 2 covers indirect emissions through the purchase of electricity from third-party providers.
Of the capital cost of $1.1bn required to achieve these reductions over the coming eight years, $350m will be funded by AngloGold Ashanti and the remaining $750m through third-party funding, including from providers of renewable energy infrastructure.
The company plans in the coming weeks to initiate a process to secure a green funding facility of $250m-$300m to finance its portion of these decarbonisation initiatives across its business.
“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” CEO Alberto Calderon said in a statement. “This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business.
About 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana.
In addition, a pre-feasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery electric vehicles.
AngloGold exited SA in 2020 after selling its last SA mine to Harmony Gold.
Its decarbonisation journey started in 2008 when the company set a long-term target to reduce emissions intensity by 30% from its 2007 base. By 2021 it had achieved a 47% reduction in emissions intensity, through some fuel switching and efficiency improvements but also due to the closure and divestment of assets.
In 2021, the gold miner approved a new climate change strategy and published its inaugural climate change report in line with the guidelines and recommendation of the UN Task Force on Climate-Related Financial Disclosures.
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