Gold miner Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) has provided investors with an interim update on its decarbonisation roadmap to 2030, which is targeting a 30% reduction in operational Scope 1 and 2 greenhouse gas (GHG) emissions.
The company, in a statement, highlighted that its strategy revolves around renewable electricity, low carbon power sources and energy efficiency.
Centamin's sole operating asset, the Sukari Gold Mine, accounts for 99% of the company's total Scope 1 and 2 GHG emissions and is the main focal point for the climate transition strategy.
Chief executive Martin Horgan told investors that Centamin’s vision for a low carbon future sees it becoming "a mining business with sources of onsite and imported renewable energy, reductions in absolute energy consumption through operational efficiencies and creative new technological solutions, staged electrification of our mobile fleet and increased recycling in our supply chain".
Centamin has set an interim climate target to reduce Scope 1 and 2 GHG emissions by 30% by 2030.
To achieve the 2030 target, Centamin is focusing on two carbon abatement projects: a 20MWAC solar power expansion and a 50MWAC grid connection.
In 2022, the Sukari solar plant was commissioned, with plans to extend this project from 2024.
☀️The #Sukari #solar plant is in the final stage of commissioning and is already delivering significant savings & reducing emissions. The 36MW solar farm spans 80 hectares and has the potential to save US$20mil in diesel & 60kt CO2e in emissions pa. RNS: https://t.co/4KBbraVoIf pic.twitter.com/uEHrE98epV
— Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) (@CentaminPlc) October 13, 2022
The estimated capital cost for the solar power expansion is between US$25mln and US$35mln. It is also targeting a grid connection in 2024, at an estimated cost of US$20mln and US$30mln.
In late 2022, a solar plant was successfully commissioned at Sukari along with a 7 megawatt battery energy storage system, which is estimated to deliver a saving of up to 70,000 litres of diesel per day - reducing Scope 1 GHG emissions by 60,000 tCO2-e annually.
Additionally, Centamin has identified further opportunities for carbon abatement, including electrifying its mining fleet and improving energy efficiency in various processes.
The company noted that it is also committed to mitigating the impact of supply chain GHG emissions, focussing on collaboration with suppliers to understand the sources of Scope 3 GHG emissions and identify effective abatement strategies.
It intends to set targets for a reduction in Scope 3 GHG emissions by the end of 2024.
Centamin separately today gave notice for its AGM, which will take place in London on 23 May.