Cauldron Energy Ltd (ASX:CXU) has identified the steps for a low carbon footprint during exploration and any production at scarce river sand commodity projects in line with its commitment to achieve the target of net-zero carbon emissions.
The company has specifically targeted a bulk commodity with projects close to transport infrastructure and in a market that is moving towards a deficit.
It intends to develop a system that reduces the carbon footprint of its operations during the exploration and production stages and complement the energy-efficient nature of the project.
The geological and physical characteristics of Cauldron’s sand projects is such that there is the potential to reduce the transport requirements of shipping and thus improve the economic fundamentals of any mining process.
“Economic and environmental outcome”
Cauldron CEO Jess Oram said: “The synergies of the low cost of extraction and transport with a low carbon footprint deliver both an economic and environmental outcome and this positions the company perfectly for the coming trading environment.”
READ: Cauldron commits to reducing carbon footprint across projects with net-zero carbon emissions target
Proximity to infrastructure
The close proximity to shipping infrastructure gives Cauldron a head-start in minimising its carbon footprint.
Besides this, the company has shown commitment to limiting the use of fuel-powered equipment during exploration to also reduce its carbon footprint.
At this stage of development, the company’s operations are exploratory in nature but may involve production at some future stage if the results of exploration prove favourable.
Global impact
According to an estimate by the United Nations, annual global consumption of sands is around 40-50 billion tonnes and there is a shortage, which poses a sustainability challenge in the 21st century.
The UN report also states that the current global rate of sand usage, which has tripled over the last two decades partially as a result of surging urbanisation, far exceeds the natural rate at which sand is being replenished by the weathering of rocks by wind and water.
This issue is further aggravated by the fact that the industry is not using desert sands, which are plentiful but too smooth and rounded for the construction purpose.
Sand that is more angular and can lock together is the type needed for construction and it is typically sourced from seabeds, coastlines, quarries and rivers, which can create environmental problems.
As a result, governments are increasingly banning the extraction and export of sea and river sand, which in turn will result in a growing global deficit.
The problem is particularly severe in South Asia, where a surge in construction activities is driving the prices higher sufficient to sustain bulk sea-borne transport.
The company’s advantage
Cauldron’s move to target the estuarine sand in three of Western Australia’s largest river systems affords the potential of a low-cost sand supply to target the premium seaborne export markets.
Reduced mining, handling and truck haulage invests less carbon into the product and reduces the carbon footprint of sand supply.