Potential impacts of climate change on the mining industry
Under some example 'future climate' scenarios, the impacts of climate change on the mining industry are different from the kinds of direct impacts that might be expected in the agricultural industry.
- The most significant impacts will likely be increasing public pressure on the industry for reducing greenhouse gas emissions during electricity generation.
- Restricted access to water may affect some mining projects, yet most mining processes do not require high quality rain or river water. Some mines are already installing desalination units where high quality water is required. Mining uses just over 1% of all water consumed in NSW.1
- Changes in the frequency and intensity of storm events has the potential to impact on mining operations, for example affecting some of the physical structures used in the mining process such as dams, and sediment and erosion controls (measures that keep the dirt removed from the mine from getting into waterways). However, these impacts are already addressed as part of a mine's water management plan where the mine operates under current climate variability conditions, which of course includes the possibility of severe weather events.
- Predicted increasing summer temperatures associated with climate change may cause increases in electricity demand as people and businesses turn on air conditioners for comfort.
Electricity generation and consumption
As people become more aware of their personal contributions to CO2 in the atmosphere, it is possible that demand for electricity from fossil fuel power stations may be slowed or even reduced. Some people are slowly making choices to reduce their electricity consumption and/or are switching to alternative renewable energy sources where possible.
As at March 2009, there are currently around 240 000 residential customers and 11 000 commerical customers in NSW paying extra in their power bills to support renewable energy.2 This equates to around 135 000 megawatt hours of energy supplied by renewable sources in NSW, and almost 511 000 megawatt hours of electricity across Australia.
Australia's electricity generation in 2006-07 was 225 600 gigawatt hours, comprising 56.7% from black coal, 24.5% from brown coal, 12.2% from natural gas, 6.1% from hydro, and 0.6% from oil and other fuels.3 This energy is consumed by the following sectors:
Australia's electricity consumption by sector.
Source: Energy Supply Association of Australia
The Australian Government is pursuing a policy to ensure that 20% of Australia's electricity supply comes from renewable energy sources by 2020.
Return to Climate change and minerals & petroleum
1NSW Minerals Council, State of the Industry Report, 2007. www.nswmin.com.au
2GreenPower, National GreenPower Accreditation Program Status Report, Quarter 1, 1 January to 31 March, 2009.
http://www.greenpower.gov.au/admin/file/content13/c6/greenpower_quarter_01_final.pdf, site visited 29 June 2009.
3Energy Supply Association of Australia, The Energy Industry: Facts in Brief.
http://www.esaa.com.au, site visited June 2009.