Ernest Scheyder

(Reuters) – Copper mining giant Freeport McMoRan (NYSE 🙂 Inc plans to convert its diesel-powered trucks and other machinery to electricity or hydrogen power. This is a necessary transition to combat climate change, Richard Adkerson, chief executive, stated in an interview during the Reuters Next conference.

The paradoxical position of the mining industry as a supplier of lithium, phosphate and other components for renewable technology is causing concern.

Freeport has 600 haul trucks, some capable of moving more than 400 tons (881,850 lbs) of dirt each load. There is also a variety of other equipment.

Freeport, which purchased 180 million gallons (directly) of diesel to power the machines last year according to regulatory filings.

Adkerson, in an interview published Wednesday said that it was necessary to invest to lower carbon emissions. Adkerson said, “We are going to do this. This will cost money.

Phoenix-based Company is currently testing hydrogen and electric powered trucks. They are also studying alternative fuels for their coal-fired powered power station in Indonesia. This plant is the largest copper mine worldwide.

Freeport will also be participating in the Charge on Innovation Challenge (NYSE:) Ltd with Rio Tinto, BHP Group (NYSE;) Ltd and other partners to better electrify mines.

It has joined South America’s hydrogen fuel consortiums, and will next year test run diesel-electric trucks manufactured by Komatsu (OTC:) Ltd. Caterpillar Inc (NYSE:).

Freeport estimates that energy accounts for around 20% of its annual operating costs. However, it’s not yet clear how this could change after the fleet has been converted.

Adkerson said that there will be an impact upon supply as a consequence of all the conversions. There are more questions right now than answers.

Adkerson has been Freeport CEO since 2003. However, Adkerson said that this was necessary for Freeport in order to reduce its emissions. He mentioned extreme weather due to global warming, and incongruity with copper mining creating emission while the metal was needed for green power solutions.

He stated, “The world will need copper. But copper mining produces emissions.”

The International Council on Mining and Metals (ICMM), an industry trade group chaired by Adkerson, set a goal https://www.reuters.com/business/sustainable-business/worlds-largest-miners-pledge-net-zero-carbon-emissions-by-2050-2021-10-05 in October for all members – including Freeport – of net zero direct and indirect carbon emissions by 2050 or sooner, in part by retiring diesel-powered equipment.

Freeport continues to explore ways to recover copper from the waste rocks at its mines. This could lead to an additional 10 billion dollars or more in copper. Adkerson acknowledged that the final copper production could be limited by this technique, adding: “Our technical staff is excited about it.”

Freeport Spain recycles electronic scrap in one of its smelters. Adkerson stated that the operation will not be a main focus of the company as it prefers to concentrate on large-scale mine operations.

He stated that “that (copper scrap) will be required because what I believe to be the coming real shortage of copper.” We don’t think (recycling is) a viable business option for Freeport.

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