The global energy transition is no longer considered a distant ambition. It is reshaping supply chains, investment flows, and the very definition of what it means to be a mining company.
From lithium and copper to nickel and uranium, demand for minerals underpinning clean energy is expediting at a pace few anticipated even a decade ago.
According to the International Energy Agency (IEA), global demand for critical minerals is expected to double by 2030 under current climate conditions, driven by the acceleration of clean energy technologies.
Nowhere is that pressure more visible than in copper. S&P Global revealed in a new study, Copper in the Age of AI: The Challenges of Electrification, that the pace of electrification is set to swell copper demand to 42 million tonnes by 2040, which is a 50% increase from current levels.
Yet global production is expected to peak at just 33 million tonnes by 2030, leaving the market facing a potential shortfall of 10 million tonnes by 2040 – 25% below the projected demand.
As the industry marks Clean Energy Day (26 January), the question is no longer whether mining has a role to play in decarbonisation, but rather how quickly and responsibly it can scale to meet a rapidly changing world.
A world still running on carbon
Clean Energy Day is an annual United Nations-recognised event which marks the founding of the International Renewable Energy Agency to promote a global shift from fossil fuels to sustainable energy, addressing climate change and energy poverty.
The urgency of that mission is becoming more clear, as the Global Carbon Budget projects global carbon emissions from fossil fuels will reach a record high of 38.1 billion tonnes in 2025.
The US saw a considerable rise of 2.4% in the nation’s emissions during 2025 due to cold snaps and needing gas heating and increased electricity for data centres, resulting in a reverse of recent declines.
As Mining.com.au reported in December 2025, the Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) global snapshot of carbon dioxide emissions and carbon sinks shows at least 35 countries have a plan to decarbonise.
Australia, Germany, and New Zealand, among others, have shown declines in fossil carbon emissions during the past decade, while other economies have continued growing. China’s emissions have been growing at a much slower pace than recent trends and might even be flat by year’s end.
According to CSIRO, global CO2 emissions from the use of fossil fuels continue to increase and are set to rise by 1.1% in 2025. Emissions from natural gas rose 1.3%, followed by oil (1%), and coal (0.8%).
China is the top emitter, contributing 32% of global CO2 emissions, and will modestly increase by 4%. Emissions from India, contributing 8% globally, are also forecast to increase by 1.4%.The US contributes 13% of global emissions, while the European Union contributes 6%.
The economic stakes are equally stark, as the University of Oxford reports transitioning to a decarbonised energy system by 2050 is expected to save the world at least US$12 trillion, compared to continuing the current levels of fossil fuel use.
To get there, the IEA says annual clean energy investment worldwide will need to more than triple by 2030 to around US$4 trillion – a figure that highlights how pivotal mining will be in supplying the necessary resources for that transformation.
A carbon challenge
The sector faces its own paradox with Sustainalytics estimating mining contributes between 4-7% of global greenhouse gas emissions – a figure that climbs to 28% when scope three emissions are included.
Speaking to Mining.com.au, the Association of Mining and Exploration Companies (AMEC) acting CEO Neil van Drunen says there is no easy fix to solve the decarbonisation battle.
“And it’s not an easy equation for complicated mining operations,” van Drunen says.
Remote locations, energy-hungry processes, and the need for reliable power make rapid decarbonisation a formidable challenge. For uranium miners in particular, the stakes are high – not only to cut their own emissions, but to help supply one of the world’s most powerful low-carbon energy sources.
Bruce Lane, CEO of American Uranium (ASX:AMU), says the company’s focus on in-situ recovery (ISR) already gives it a lower footprint than conventional mining methods, but acknowledges there is more work to do.
“For uranium miners like us, ISR already offers a much lower footprint than most conventional mining methods, but further reductions in diesel use, electricity sourcing, and emissions from drilling and exploration still present opportunities,” Lane tells Mining.com.au.
Yet, Lane believes the real acceleration will come not just from technology, but from policy.
“The most impactful breakthroughs would include accelerated permitting and licensing for ISR projects, expanded government funding for domestic uranium production (building on recent US initiatives), and potentially long-term contracts or offtake agreements from utilities and tech giants driving nuclear demand,” the CEO tells this news service.
“Policy shifts such as tripling nuclear capacity targets, incentives for low-carbon mining technologies, and international recognition of nuclear as clean energy would dramatically speed up supply growth.”
Lane says for the uranium mining sector, streamlined regulations in proven jurisdictions such as Wyoming, combined with geopolitical support for secure Western uranium supply, would enable faster project advancement and position mining as a faster contributor to net zero goals.
“We are optimistic about these trends in 2026 and beyond as we advance Lo Herma toward development,” he says.
From ambition to action
Despite the scale of the challenges mining companies face, van Drunen says the world is seeing companies make “huge efforts in this space”.
“Take for example, AMEC member Bellevue Gold (ASX:BGL), who achieved net zero emissions in 2025 and are currently Australia’s most renewably powered mining operation,” he says.
During H1 2025, Bellevue Gold commissioned four 6 megawatt Goldwind GW165 wind turbines at its namesake project, achieving net zero (scope one and two) emissions.
This achievement is underpinned by a long-term power purchase agreement with Zenith Energy Operations for the power station. The agreement comprises a combination of wind, solar, gas, and diesel, along with a battery energy storage solutions synchronous condenser and microgrid controller. The facility is designed to supply 90 megawatts of renewable energy.
van Drunen says governments are starting to take the lead in building transmission lines, so that mining operations can connect their renewable infrastructure to the grid.
“This investment needs to continue,” he says.
Across the sector, renewable power is steadily replacing diesel and coal at operating mine sites. In New South Wales, the state government recently released its Renewable Fuel Strategy to accelerate the production and use of renewable fuels in the state, to drive down emissions and underpin industrial activity.
The strategy highlights 20 actions to scale up the state’s renewable fuel industry, including expanding the renewable fuel scheme to include biomethane and up to $170 million in funding for production.
Mining giant Rio Tinto (ASX:RIO) operates one of the world’s largest microgrids at its Pilbara operations, underpinned by 480 megawatts of gas-based power capacity.
The company estimates that it required between 600 to 700 megawatts of renewable energy to displace the majority of gas use across its Pilbara network – a capacity that is enough to power 160,000 homes.
BHP (ASX:BHP) is another example of progressing renewable mine sites, with its large-scale solar installation at its Olympic Dam and Escondida mines.
In 2022, the mining giant signed a renewable power purchase agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from FY2026 and allows Olympic Dam to record a net zero emission position for the contracted volume of supply.
The PPA will supply 70 megawatts of electricity to Olympic Dam and will support Neoen to construct the 203 megawatt Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained.
Nuclear’s moment
For American Uranium, the path to decarbonisation runs through nuclear energy – a low carbon baseload power source seen as essential for stabilising grids as renewables scale.
Lane says the company’s focus on low impact ISR uranium projects in the United States, particularly the Lo Herma Project in Wyoming’s Powder River Basin, positions the company to contribute to the US’ uranium supply independence and support the resurgence of nuclear energy.
“Mining has the greatest impact in supplying critical fuels like uranium for nuclear generation, which provides massive emissions reductions compared to fossil fuels while meeting growing demand for firm power from data centres, industry, and electrification,” Lane says.
UBS Asset Management reports that contrary to traditional fossil fuel-based electricity generation, nuclear power generation is carbon emissions free and contributes to net zero outcomes. Nuclear power plants operate at high round-the-clock capacity factors, making nuclear power a source of baseload power generation.
At Lo Herma, American Uranium operates in a proven district near existing facilities like Cameco’s Smith Ranch-Highland, leveraging established infrastructure and regulatory frameworks in Wyoming.
“We balance rapid supply growth by prioritising low-impact ISR mining, which is the most environmentally friendly uranium extraction method – it uses subterranean leaching through the drilling of injection and extraction wells with minimal surface disturbance, and includes groundwater restoration post-production,” Lane says.
Innovation beyond energy
Sustainability gains are not limited to power generation. Across the industry, companies are rethinking waste, rehabilitation, and transparency.
In Australia, ABx Group (ASX:ABX) is taking part in its own sustainable developments across its assets by ensuring exploration activities are fully rehabilitated.
In 2023, the company made a commitment to begin reporting on environmental, social, and governance (ESG) disclosures using the internationally accepted stakeholder capitalism metrics developed by the World Economic Forum.
ABx’s 83%-owned refining technology subsidiary ALCORE has developed a world-first process to produce industrial chemicals from aluminium smelter bath waste. The major products are hydrogen fluoride and metal sulphates.
The company plans to construct commercial hydrogen fluoride and aluminium fluoride plants in Bell Bay, Tasmania. The process to produce hydrogen fluoride operate at pilot scale in a batch reactor.
ALCORE achieved 97% fluorine recovery using the bath pilot batch reactor, improving on previous best of 93%, a result which was deemed very likely to be sufficient in a commercial plant.
As Clean Energy Day shines a spotlight on the future of power, the mining industry finds itself at the centre of the transition. From wind-powered mines to next-generation projects, decarbonisation is no longer a side initiative.
“At this stage, there is no silver bullet and it’s the collective responsibility of industry, governments and investors to understand the desire to get this right, for generations to come,” van Drunen says.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash, CSIRO, American Uranium & ABx Group
