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(Kitco News) – According to Metals Focus, one of the world’s leading precious metals consultancies, combined scope 1 and 2 GHG emissions from 16 biggest gold miners fell by 1% y/y in 2021 to 27,617 kt carbon dioxide equivalent (CO2e).
Scope 1 emissions are those coming directly from on-site activities, such as vehicle fuel combustion and self-generated power. Scope 2 emissions are those generated indirectly from onsite activities, usually emissions resulting from the generation of purchased electricity from national grids.
Combined scope 1 and 2 emissions are the most widespread measure of GHG emissions in the gold mining industry.
Importantly, according to the report, the average emissions intensity of gold production also fell, dropping by 3% y/y in 2021 to 0.81 t CO2e/oz.
“This was driven by companies’ actions to cut emissions alongside increased operational efficiencies following disruption from the COVID-19 pandemic in 2020,” the authors of the report found.
Metals Focus added that this emission intensity figure, combined with global gold output of 3,577t in 2021, implies that direct emissions from the entire gold mining industry were approximately 93 MtCO2e during the year.
This represents 0.3% of global emissions, which the International Energy Agency (IEA) estimated at 36,000 MtCO2e in 2021.
The consultancy also paid attention to water use, which is another key environmental measure as there is potential to disrupt other waters users, resulting in social and environmental impacts.
Metals Focus estimated that 16 biggest gold miners cut their water withdrawals by 5% y/y in 2021 to 1,021 gigalitres while water consumption fell by a much greater degree than withdrawals, dropping by 34% y/y.
The average water consumption intensity of gold production from the companies covered in Metals Focus’ report was 15 KL/oz in 2021, down from 23 KL/oz in the previous year.
More importantly, according to the report, tax and royalty payments to governments from 16 biggest global gold miners increased by 39% y/y in 2021 to $9.4bn.
“This was mainly due to significantly less disruption from the COVID-19 pandemic alongside sustained high gold prices, both of which boosted profits and led to increased tax and royalty payments,” the consultancy explained.
Metals Focus said that local procurement spend also increased, rising by 32% to $16.1bn, as several gold miners increased spending on development or expansion projects.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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