Climate change is a defining challenge of our era. We recognise the need to take meaningful action towards addressing its causes, and to help protect our employees, assets, as well as the communities and environments linked to our operations, against its potential impacts.
Graph showing Anglo American's energy consumption
Energy consumption
During 2010, Anglo American consumed 100.8 million gigajoules (GJ) of energy (2009: 102.1 million GJ; 99.9 million GJ excluding businesses since divested). This 0.8 million GJ like-for-like increase stemmed from small increases at most business units, excluding Thermal Coal and Metallurgical Coal.
Driving efficiency
Improving energy efficiency is a core element of Anglo American’s response to climate change, as well as an economic value driver for the business because of the increasing cost of energy and concerns related to the security of electrical energy supplies. The bulk of the Group’s greenhouse gas (GHG) emissions (51%) (54% in 2009) are generated through the electricity we purchase. The majority of this is coal-fired, which is why we will continue to drive efficiency gains in electrical power usage through asset optimisation and continuous-improvement programmes.
In 2004, we set a target to reduce our energy intensity by 15% by 2014 based on a 2004 baseline. All of our operations are involved in a considerable number of energy efficiency projects focused on optimising processes, technology and behaviour.
Examples include projects related to installing energy-efficient lighting throughout most Group operations as well as optimising air compressors, ventilation fans, pumps, draglines, conveyors, electric motors, and other machinery used in the mining industry.
During 2009, Anglo American improved the monitoring of electrical power consumption by introducing central electricity-management systems. These systems enable pro-active management of power usage, in particular to reduce consumption during the high cost-peak demand periods. Energy-efficiency management tools are also being trialled to monitor liquid fuel consumption in opencast haulage trucks.
Graph showing carbon dioxide emissions
Carbon dioxide emissions
Over the decade to 2014, the Group is aiming for a 10% reduction in emissions per unit of production. During 2010, Anglo American emitted 20 million tonnes (Mt) of carbon dioxide equivalents (CO2e), compared with 19 Mt in 2009 (18.5 Mt excluding businesses since divested). This rise was due to an increase in process emissions in our copper, nickel and thermal coal businesses, as well as higher methane emissions at our metallurgical coal mines.
Following steps to meet the reporting requirements of the Carbon Disclosure Project, Anglo American has undertaken research to calculate GHGs in specific areas of our business. The research is in line with the Greenhouse Gas Protocol, an international carbon footprint standard developed by the World Resources Institute and the World Business Council for Sustainable Development, and has resulted in our Scope 3 Emissions Assessement, (available for download on the right).
Tackling coal-mine methane
Methane accounts for 19% of our GHG emissions. Each tonne has a global warming potential 21 times greater than that of CO2 over a 100-year time horizon. Emissions occur naturally from sources such as wetlands, while human-influenced causes include landfills, natural gas production and distribution, agriculture and some forms of coal mining.
The development of technologies to reduce methane-related emissions has been under way for many years and has emerged as a key aspect of the international response to climate-change mitigation. Our coal-seam methane-fired power stations at Moranbah North and Capcoal in Queensland, Australia are two of our most high-profile carbon abatement ‘synergy’ projects, currently generating a combined 77 MW of power - representing a reduction of approximately 2.3 million tonnes of CO2e annually, which is the equivalent of planting 3.6 million trees or taking 580,000 cars off the road.
Such major methane-capture and - use initiatives at Australian coal operations are viable owing to the inherently high coal-seam methane content. Similar opportunities for the Group's South African coal operations are more limited because of the significantly lower inherent methane content of the Highveld's coal seams – though a smaller scale methane-flaring project has been started at New Denmark Colliery.