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Moving towards sustainable mining using renewable energy
Pierre Delmas
Copper and lithium mines play a vital role in the global energy transition. Copper transports energy through cables, motors and electrical grids, while lithium stores it in batteries that power electric vehicles, computers and storage systems.
Global demand is skyrocketing, and Chile is the world’s leading producer of copper and one of the largest producers of lithium. However, the extraction and processing of these elements still rely heavily on fossil fuels, resulting in a high carbon footprint.
Why talk about renewable energy in the mining sector?
The context of mining in Chile
Chile is the world’s leading copper producer (24% of global production) [1] and holds more than 30% of the world’s lithium reserves [2], minerals that are essential to the global energy transition. Copper is used in electrical cables, transport networks and renewable technologies, while lithium is essential for electric vehicle batteries and solar and wind energy storage.
The mining sector accounts for around 12% of Chile’s GDP and 60% of its total exports, making it a fundamental pillar of the national economy [3].
However, extracting and processing these minerals requires high amounts of heat, which is still mainly produced from fossil fuels. Mining in Chile consumes around 55 TWh of energy per year, 51% of which is electricity and 49% heat [4], with the latter largely covered by diesel and natural gas.
As a result, the mining sector generates around 7% of the country’s greenhouse gas (GHG) emissions, with 7.9 MtCO₂e direct emissions in 2022, mainly related to the use of fuels in boilers, thermal processes and transport
Share of electricity and heat in total energy consumption, 2010–2024. Source: Cochilco
Barriers to decarbonation in the mining industry
Behind the energy challenge lie significant economic and technical obstacles, which explain why decarbonising mines remains complex:
- The need for significant CAPEX investments to improve energy efficiency by integrating heat recovery systems and renewable heat technologies.
- The need to modernise thermal technologies and equipment: many sites use low-efficiency diesel or gas boilers without waste heat recovery systems. In addition, some do not have thermal demand control, which leads to oversizing and overconsumption.
- Limited government support, mainly focused on electrification and power purchase agreements (PPAs), with few concrete measures to accelerate the decarbonation of heating.
However, heat production from fossil fuels is very costly and highly exposed to the volatility of international diesel and natural gas prices.
Renewable heat is a clean and reliable alternative to fossil fuels, capable of significantly reducing CO2 emissions and improving the sector’s competitiveness.
Technical and economic benefits of renewable heat for mining
The use of renewable heat in mining operations with Newheat enables to:
- Reduce or eliminate CO₂ emissions in thermal processes when diesel or gas are completely replaced.
- Ensure competitive costs, even lower than those of fossil fuels in remote areas.
- Limit exposure to diesel price volatility by securing the cost of heat over the long term.
- Improve the carbon footprint of minerals, promoting their differentiation and value on the market (low-carbon copper and lithium).
- Integrate energy efficiency and control solutions to optimise consumption.
- Remove the CAPEX barrier through long-term heat supply contracts (HPA).
With this in mind, Newheat is supporting mines in Chile reduce their carbon footprint. Through our local joint venture, Newheat Latam, we are combining our experience and local knowledge to accelerate the decarbonation of the mining sector.
We develop, design, build, finance and operate renewable heat production and recovery plants tailored to the needs of the mining industry.
Case of the Gabriela Mistral mine
The Gabriela Mistral copper mine, located in the Antofagasta region of northern Chile, is an open-pit mine owned by Codelco, which specialises in the treatment of oxidised minerals by leaching.
Operating 24/7 in one of the sunniest deserts in the world, the site has significant heating requirements to maintain the temperature of the solutions used in the leaching and electro-winning processes.