Complete decarbonisation of mining operations is expected to be a lengthy process, hindered by as-yet immature technologies and costs associated with integrating new infrastructure. Tried and tested, renewables are increasingly steering short-term decarbonisation strategies in mining, with solar already seeing significant adoption.
Mining’s energy transition is likely to involve a combination of renewables, alternative fuels and electrification. In time, strategies will also include carbon capture and hydrogen (in fuel cells for fleet decarbonisation, or in the production of green ammonia for explosives); however, these nascent technologies remain over a decade away.
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Renewables offer two immediate advantages. First, solutions are already on the market, and the levelised cost of electricity produced by renewable generation (primarily solar and wind) is consistently decreasing. Second, renewables will also act as a springboard for the sector’s ultimate goal: electrification.
Electrification can only offer true decarbonisation if electricity is generated renewably. The early phases of electrification have already arrived and some operations, including Boliden’s Aitik copper mine in northern Sweden, have adopted trolley-assist systems, while others, such as Canada’s Agnico Eagle, have begun populating fleets with battery electric vehicles (BEVs).
As adoption picks up, and decarbonisation strategies are implemented, some technologies are already proving more profitable, practical and, therefore, popular than others. According to analysis by Mining Technology parent company GlobalData, it is solar power generation that is currently defining decarbonisation across mining.
In its Decarbonisation in Mining report, it notes that “the increasing share of solar energy within mines, supported by natural gas, indicates miners are phasing out high-emission fuels like coal, diesel, and heavy fuel oil in new mine developments.”
Mining’s renewables mix is solar-heavy
There are two primary ways in which renewable power is being accessed by mining operations: power purchase agreements (PPAs) and on-site renewable power plants.
For sites near existing grids, PPAs are a logical decarbonisation strategy. PPAs are contracts between electricity generators and buyers to purchase renewable energy at a fixed, pre-negotiated price. It effectively ticks the decarbonisation box, while offering the security and predictability of set pricing.
GlobalData tracks “a notable increase in the number of PPAs signed by mining companies” in its report. It identifies BHP as a leader in the space, with 10 PPAs signed between 2018 and 2025. Also leading are Rio Tinto with nine PPAs over the same period, and Anglo American with six.
Depending on location and existing infrastructure, the renewable energy sources included in PPAs are most likely to be wind and solar. However, leading in PPAs doesn’t immediately translate into leading in the share of electricity consumption derived from renewable sources.
Particularly for remote operations, grid connections are sometimes impossible, and on-site generation is the only feasible option.
According to GlobalData analysis, natural gas is still the dominant power type for on-site generation at currently operating mines, but solar is gaining an increasingly significant share, and is by far the dominant renewable source. It accounts for 11% of operating mines using on-site power generation, and for 41% of those in development.
In terms of operators, Brazil-based Vale has the most active renewable energy capacity, while Coal India is leading the development of renewable energy. Of Coal India’s 8GW of active and upcoming capacity, 7.98GW is solar PV, while 25MW is from onshore wind.
Broken down geographically, renewable energy capacity differs significantly depending on region. Across mining sites in Europe, solar dwarfs natural gas, accounting for 87% of fuel at active and upcoming mines as of July 2025, compared to natural gas’ 10%. Yet, across the Atlantic, North America has the smallest share of solar for on-site generation, at 4%, while natural gas accounts for 51%.
Natural gas also leads in South and Central America, Oceania and the Asia-Pacific region (alongside coal). Meanwhile, solar leads as the on-site fuel source in the Middle East and Africa and is significant in the former Soviet Union, with a 32% share (behind diesel, which accounts for 63%).
Natural gas has been touted as a transitional fuel because of its comparatively clean profile, for a fossil fuel. It enables decarbonisation through coal-switching, or by providing a better alternative to diesel and heavy fuel oil (HFO), but GlobalData analysis is clear that natural gas is set only for a supportive role. “The increasing share of solar energy within mines, supported by natural gas, indicates miners are phasing out high-emission fuels like coal, diesel, and heavy fuel oil in new mine developments”, says the report.
Renewables enable electrification
Once a site has renewably generated electricity, it needs a fleet which can use it.
In Australia, the Climate Change Authority estimates that fuel (mainly diesel) combustion in mining contributed 20% of the sector’s total emissions in 2024. In open-pit environments, a Harvard study suggested that fleet electrification could reduce greenhouse gas emissions by up to 92.6%, while operating costs could be reduced by between 40% and 62%.
Early forays have been made in this space via intermediate electrification strategies, such as trolley-assist systems. However, improvements in battery technologies mean that GlobalData expects to see full fleet electrification become widely available between 2035 and 2040.
There have been moves by significant industry players already. China Huaneng Group’s Yimin coal mine is home to a 100-strong fleet of electric, AI-driven autonomous trucks. Elsewhere, First Quantum has 51 electric mining trucks, while Shandong Gold operates 69 electric loaders and load haul dumps.
Yet, in a survey of mining professionals, GlobalData found that the upfront capital costs associated with developing or purchasing electric mining vehicles was considered a barrier to implementation by 44% of responders.
“The upfront cost of new battery-electric haul equipment can be double that of diesel,” notes the report. “This can deter companies from transitioning to electric equipment, particularly due to uncertainties surrounding battery performance and the additional costs associated with developing supporting infrastructure, such as charging stations.”
Innovation by original equipment manufacturers (OEMs) will prove to be pivotal in easing cost concerns, and GlobalData notes a growing number of collaborations between OEMs and operators, aimed at supporting improved capabilities through on-site trials. In 2025, BHP, Rio Tinto and Caterpillar deployed the Cat 793 XE Early Learner battery-electric haul trucks to Jimblebar iron ore mine in the Pilbara. Elsewhere, Liebherr and Fortescue announced in 2024 that they would collaborate to decarbonise mining through deploying zero-emissions, autonomous equipment.
Despite the costs then, the report states: “With electrification as the end goal for mining, investment in transitioning will likely not be deterred by barriers. Environmental goals and operational efficiency will continue to spur the innovation and adoption of BEVs.
“However, the timeline for full-fleet electrification may be significantly affected by implementation barriers, with commercial viability likely not occurring within the next decade as a result.”
Making the switch: infrastructure as an investment
Reaching renewables-powered electrification isn’t only about deploying BEVs, however. Mining operators are building an entirely new ecosystem, beginning with renewable energy generation (either on-site or purchased), and moving through co-located battery energy storage systems (BESS) and transmission lines to reach charging stations.
With the exception of geothermal (a developing but nascent solution for powering remote mine sites), all renewable solutions are intermittent, making BESS critical. Mining operations require continuous, reliable power, and have traditionally relied on diesel generators as a backup; new solutions must offer the same reliability without putting pressure on balance books.
New infrastructure translates into capital cost, and the GlobalData report identifies BESS as a particular “cost barrier” in the transition to renewables. However, as technologies mature, the business case is becoming ever stronger.
While BESS do pose a higher upfront investment than diesel-generators, they also offer the advantage of lower operating costs over time. Some estimates suggest that over a 10–15-year lifecycle, battery storage offers between 30% and 60% lower operating costs compared to diesel generators. BESS also offers faster startup (milliseconds, compared to diesel generators’ seconds or minutes), less noise pollution and modular and scalable capacity, compared to the diesel alternative.
BESS costs are expected to continue their strong downward trajectory too. In a December 2025 report by think tank Ember, global electricity analyst Kostantsa Rangelova commented that “after a 40% fall in 2024 in battery equipment costs, it’s clear we’re on track for another major fall in 2025”. The report also noted that, for markets excluding the US and China, the total capital expenditure to build a long-duration, utility-scale BESS project was around $125/kWh. It added that over half of this cost for equipment shipped from China, and that the levelized cost of storage was around $65/MWh.
Storage is not the only substantial cost faced by mine operators looking to decarbonise however. Electric mining trucks can cost anywhere between $50,000 to over $6 million, depending on size, payload and embedded technology. However, as with BESS, once the initial capital investment is made, the potential savings are significant. Analysis by IDTechEx suggests that a 150-tonne electric haul truck would save over $5.5 million in fuel cost over the vehicle’s lifetime.
Charging infrastructure and transmission lines are similarly costly at the outset, but their cost-saving potential also promises significant return on investment. While costs differ vastly from project to project, EV charging software provider Monta estimates that the cost of installing MW charging systems for massive projects can range between $320,000 and $950,000.
GlobalData’s report acknowledges that new infrastructure “requires significant capital investment and technological advancements, particularly in remote mines, where grid access is not feasible”. However, as mining operators across the world look to solutions (such as solar) to aid their move towards decarbonisation, the report also caveats that the question is not whether decarbonisation happens, but how. The future will be defined by how companies “prioritise investments and develop phased implementation strategies” to make decarbonisation commercially viable.
