Mining is an energy-intensive process, and its need for consistent power has historically led to the use of fossil fuel generators. However, looming emission reduction targets, combined with the increasing cost competitiveness of renewables, and the rising adoption of electrification across mining operations and activities, have driven a growth in renewable electricity adoption among miners in recent years.
Many miners have made significant progress in transitioning to renewable energy sources over the past five years, with various companies setting near-term renewable energy targets, such as Vale’s goal to reach 100% renewable energy use worldwide by 2030. This change has partly been driven by the decreasing cost of renewable energy installations and energy storage solutions. This trend has also been further fueled by corporate commitments to reduce emissions, often focusing on cuts in Scope 1 and 2 emissions, influenced by increased public scrutiny towards heavy-emitting sectors. For example, industry players, such as Fortescue and Rio Tinto, have established bold near-term climate targets. Fortescue aims for ‘real zero’ by 2030 across its iron ore operations, while Rio Tinto targets a 50% reduction in Scope 1 and 2 emissions by 2030.
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What key methods are being utilised by miners to increase renewable electricity adoption?
Miners are increasing their use of electricity generated from renewable energy through two main methods. First, for mines located near existing grids, this shift is supported by power purchase agreements (PPAs). Second, for remote mines with limited or no grid access, the transition to renewable energy is driven by the development of on-site renewable power plants. According to GlobalData, there are currently 886 active and upcoming off-grid mines that will require on-site renewable capacity to decarbonise their electricity supply.
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Top ten mining companies by share of renewable electricity used within operations in 2024
In 2024, Antofagasta reported the highest percentage of renewable electricity used in its operations, at 100%. Since 2022, the company has reported that all of its power supply contracts for its mining operations are for electricity from renewable sources. Notably, in 2020, the company announced that its Centinela mine had signed a PPA with Engie Energia Chile for 100% of the power supplied to be from renewable sources, effective from 2022 until 2033. Due to its PPA activity, Antofagasta has achieved its initial interim emissions reduction target of cutting Scope 1 and 2 emissions by 30% by 2025.
Meanwhile, Lundin Mining saw the most significant increase in the share of renewable electricity used within its operations between 2023 and 2024 (from 74% to 81%). In 2024, one of the company’s open-pit mines, Chapada, finalised a strategic agreement with Serena, a clean energy investor, to supply 100% renewable energy to its operations. Separately, its Candelaria mine announced the extension of its contractual agreement to source 100% of its electricity from renewable sources in 2024. The agreement will see four of Lundin’s six operational mines operate entirely on 100% renewable purchased electricity. The examples highlight the role of PPAs in facilitating the decarbonization of mining operations, with long-term contracts fixing electricity prices, ensuring cost savings in both the near and long term.
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However, some miners continue to lag. In 2024, of the companies that recorded renewable electricity consumption, Solidcore Resources (formerly Polymetal International) and Barrick Mining Corp. registered the lowest percentages, at 1% and 7%, respectively. Barrick Mining experienced the most significant decline in its renewable electricity share from 2023 to 2024, dropping from 25% to 7%. Despite the company investing over $775m in low-carbon infrastructure, the restart of operations at Porgera and the ramp-up of activities at Pueblo Viejo have led to an increased reliance on fossil fuels in 2024. Comparatively, Solidcore noted that the challenges of procuring clean electricity from grid suppliers led to a decline in renewable electricity consumption in 2023. The company has set a target to reach 30% renewable electricity in its energy mix by 2030. To meet its target, the company has placed greater importance on developing its own renewable energy capacity. To that end, Solidcore announced construction would begin in 2025 for a 23MW solar power plant at its Varvara mine in Kazakhstan.
Capital constraints are impacting industry progress in on-site generation
Off-grid mines face the capital-intensive challenge of establishing renewable energy systems and transitioning existing operations. Despite this, an increasing number of miners are developing renewable power plants. Vale, for example, has invested heavily in the development of its renewable portfolio, which accounts for 97.8% of total generation. In 2024, the company held 3.3GW of installed renewable capacity worldwide, with its most notable project being the Sol do Cerrado solar project in Brazil, which reached its full installed capacity of 766MW in 2023. Due to its investments in on-site renewable power plants, Vale achieved 100% renewable electricity consumption in its Brazilian operations in 2023, two years ahead of its target.
However, renewable intermittency still presents a significant challenge, with generation varying with local conditions. In regions with low solar irradiance and wind speeds, remote mines may struggle to transition to on-site renewable power plants. Regardless of the mine location, utility-scale energy storage will be key to ensuring a stable electricity supply for operations. However, developing co-located energy storage capacity presents an additional cost barrier to transitioning to renewable electricity.
Due to the price volatility of many critical minerals, many miners are opting to reduce capital-intensive investments, instead prioritising short-term survivability over long-term sustainability. This is one of several challenges miners face in adapting to the evolving industry landscape. Simultaneously, as decarbonisation becomes a critical issue across various sectors, the demand for critical minerals will increase substantially, placing pressure on miners to expand their production. Without sufficient renewable capacity and energy storage systems in place, miners may struggle to meet this demand while maintaining the share of renewable energy in their electricity mixes.
The rise of electrification in mining, underlined by the growing number of electric vehicles at mine sites, will further intensify the industry’s electricity demands. According to GlobalData, there are currently 958 pieces of electric equipment in use at mines worldwide, as of April 2025. Battery mining trucks account for the largest proportion, with 386 currently in operation. While the adoption of electric vehicles creates opportunities for clean electricity, sufficient capacity through PPAs or on-site installations will need to be put in place for miners to continue increasing their renewable electricity share.
The future of renewable electricity within mining
Ultimately, the mining industry is a vital part of the energy transition, and miners are fully aware of this. Using electricity from renewable sources can be more challenging due to the location of some mines, the variability of renewable power, and the costs of expanding renewable capacity to support electrification. However, although transitioning mines require significant investment, the decreasing project costs of renewable energy have made it easier for miners to increase their use of renewable electricity, especially in off-grid mines. In addition, adopting modular BESS systems can help minimise the impact of renewable intermittency on power supply. Meanwhile, PPAs will continue to be a key vehicle for scaling the renewable electricity share of on-grid mines, providing vital stability through long-term, fixed-price contracts.
