Sustainability / Environment / Climate change

Climate change

We recognises the environmental, social and economic threat posed by climate change and the need for co-ordinated, global action to reduce greenhouse gas emissions.

Approach

Xstrata recognises the environmental, social and economic threat posed by climate change and the need for co-ordinated, global action to reduce greenhouse gas emissions to address these risks. Mining industry activities contribute to global carbon emissions through the direct release of greenhouse gases, in particular methane and carbon dioxide, and through the intensive use of energy, primarily generated from fossil fuels.

Our approach to climate change comprises:

reducing direct greenhouse gas emissions (GHG) from our operations, primarily through abating methane emissions from coal mining where possible and improving the efficiency of on-site fossil fuel use;
reducing carbon emissions attributable to the electricity we purchase by improving the energy efficiency of our operations and investigating using renewable energy sources;
supporting projects to develop and commercialise low emissions technologies to reduce the carbon emissions from burning the coal we produce;
engaging with governments and other stakeholders on the development of equitable, efficient regulatory frameworks to reduce GHG emissions;
improving our understanding of the potential physical and weatherrelated risks of climate change on our operations and logistics networks and incorporating adaptation of these into longer-term planning;
improve operational energy efficiency, to reduce GHGs associated with mining, concentrating, smelting and refining, as well as product transport and business travel;
investigate opportunities to switch to low-carbon energy sources; and
identify opportunities to reduce the lifecycle carbon footprints of our products.

Performance

In 2008 our total direct and indirect CO2e emissions were 24.9 million tonnes, 7% higher than 2007 (23.3 million tonnes restated). Fugitive methane remained our greatest source of direct CO2e emissions in 2008 accounting for 41% of total direct emissions. The increase is partly due to the additional 1.5 million tonnes CO2e (mostly methane) resulting from the newly acquired underground coal operations at Ravensworth and Tahmoor in Australia. Our coal and alloys businesses were responsible for over two-thirds (68%) of the Group’s total GHG emissions in 2008.

Reducing operational greenhouse gas emissions

Xstrata’s climate change strategy is to minimise our energy consumption and GHG emissions, and increase the share of energy we use that comes from low-carbon sources. We aim to reduce the carbon intensity of our products, measured as the GHGs emitted per tonne of product.

Methane and waste gas capture and use

Fugitive methane represents our most significant source of direct GHG emissions. We aim to use methane from mining operations in energy generation where possible, or convert the methane to CO2. Methane is drained from underground operations as a safety measure and is either burned to convert the gas into less potent CO2 or, when in sufficient quantities, used to generate electricity to reduce GHG emissions.

Supporting low emissions technologies

We invest in the development and commercialisation of low emissions technologies in partnership with other coal producers, governments, and scientific and academic organisations.

We believe that all sources of energy will be required to satisfy the world’s growing energy needs, including renewables, nuclear, coal and other fossil fuels. A number of advanced low emissions coal technologies for electricity generation are already being trialled throughout the world.

Xstrata contributes to the funding of the following projects:

Engagement on climate change

We engage with a broad range of stakeholders on the topic of climate change and we participate in the development of climate change policy in our key operating regions. Our engagement includes advocacy for international market-based frameworks and the development of equitable policies to reduce GHG emissions.

Last Modified on September 18 2009, 09:26:03 PST

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