While renewables such as solar, wind and hydrogen are increasingly being considered for off-grid and hybrid mining applications, the path to large-scale integration remains fraught with technical, economic and structural challenges.
Mining and mineral processing have long depended on fossil fuels, not just as an energy source but as feedstocks essential to production. Replacing these with renewable alternatives presents numerous hurdles.
For example, biomass (charcoal) can substitute for coke in certain operations, but large-scale adoption faces constraints in sustainable charcoal supply, transportation costs, and technical adaptation, particularly in steelmaking.
Similarly, hydrogen is considered an environmentally superior option for mineral reduction processes, derived from renewable-powered electrolysis rather than coal. However, its current high production cost makes it economically unviable for widespread industrial use.
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In the renewable camp
Energy is one of the largest expenses for any mine, typically accounting for 15 to 40% of total operational costs. By generating their own power from renewable sources, mines can dramatically lower this significant and recurring expense over the long term.
Fossil fuel prices are notoriously volatile, subject to global politics, supply chain disruptions, and market speculation. This creates huge economic uncertainty. Renewable energy, with its predictable and often zero fuel cost, insulates mines from these sharp price fluctuations, making financial planning more stable and reliable.
At times, mines with renewable energy installations can generate more electricity than they need, especially during peak generation times for solar or wind. This creates an opportunity to sell the surplus power back to the national grid, turning an operational cost centre into a new source of income.
Also, a unique synergy exists between mining and renewables. Mines supply critical materials (cobalt, lithium, nickel, and rare-earth metals) that are vital for building renewable technologies like batteries and solar panels. By then using that same technology to power their operations, mines participate in a circular economy, creating a powerful, mutually beneficial relationship between the two industries.
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The heat challenge
A critical challenge in transitioning mining to renewable energy lies in generating the high-temperature heat needed for mineral processing. The industry’s operations span a broad thermal spectrum, each requiring different energy solutions.
For instance:
- Aluminium processing typically needs 400–500°C.
- Iron ore processing demands heat between 800°C and 1200°C.
- Copper processing requires around 250–350°C.
While low and medium temperatures can be achieved through steam-based systems powered by renewables, high-temperature requirements still depend heavily on fossil fuels.
Renewable technologies have yet to provide a consistent, cost-effective method for producing such intense heat, restricting them mainly to auxiliary processes, while coal and gas remain dominant in core metallurgical functions.
Is there value in storage?
Among renewable options, only hydroelectric and geothermal energy can provide continuous baseload power that mining operations depend on. However, these are geographically limited and often impractical for remote mining locations.
Solar photovoltaic (PV) plants and wind farms, while more widely available, are inherently intermittent and can produce unneeded energy during peak hours and deficits during low production periods.
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Energy storage technologies, such as batteries or hydrogen electrolysis, offer partial solutions but introduce additional costs and technical constraints. Large-scale batteries remain expensive, and their capacity is insufficient for 24/7 operations.
Mines connected to national grids can offset variability by exporting surplus power or importing electricity when needed, but off-grid mines must rely on hybrid systems to stabilise supply. Among the system configurations are solar-wind-diesel and wind-battery-diesel.
However, total elimination of fossil fuels remains elusive, and current renewable systems typically supply only 30–40% of a mine’s total energy demand.
The needle is moving
Rio Tinto’s Koodaideri mine will host a 34MW solar resource coupled with a 12MWh lithium-ion battery system. This substantial integrated system is projected to supply an impressive 65% of the electricity required during the mine’s peak operating hours.
Another successful visual demonstration is the Fekola gold mine in Mali, which has implemented a significant solar energy installation of 52MW and 27.7MWh of storage, supplying about 30% of the site’s electricity demand.
While solar and wind are common choices, other renewable resources are also being successfully leveraged based on local geology. Mines in New Guinea have successfully utilised geothermal energy resources, and Canadian mines have integrated wind power into their electricity supply.
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Renovation of investment infrastructure
Mining investments are long-term, capital-intensive, and structured around the life expectancy of the mine, which can vary from two to over 50 years. These long planning horizons create inertia against retrofitting existing sites with renewable infrastructure.
Once operational, changes to mine design or energy systems require regulatory approval and can disrupt production, making companies hesitant to alter their original investment strategies.
Moreover, mining follows an all-or-nothing economic model whereby operations continue only while profits exceed operating costs. Renewable energy integration often demands high upfront capital, which can appear unattractive when mine revenues fluctuate with commodity prices.
In contrast, renewable projects, such as solar panels or wind turbines, have different lifespans and payback periods. This creates a mismatch between mining’s short- to medium-term operational focus and renewables’ long-term investment returns.
For example, steel production, which relies on blast furnaces with lifespans exceeding 20 years, cannot economically justify switching to renewables before the end of those assets’ lives. Instead, efforts to improve energy efficiency or reduce CO2 emissions within existing technologies may be more feasible interim solutions.
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Then there is also a skills gap. Mining engineers often lack training in renewable energy systems, reinforcing institutional resistance to transition. Addressing this will require education programmes, collaboration between miners and renewable energy suppliers, and broader policy support.
While awareness among mine owners of long-term cost and environmental benefits of renewable integration is slowly growing, success will require a mix of policy incentives, such as tax exemptions, low-interest financing, and guaranteed offtake for surplus power, alongside industry education and technological innovation. ESI
