Practical Pathways to Decarbonisation – Moving Beyond Theory to Actionable Insights for the Mining Sector
- Simon Molyneux
- May 28
- 3 min read
Updated: Jul 29
Author: Simon Molyneux, Molyneux Advisors
Leaders in today's resource industry face unprecedented pressure to decarbonise their operations.
Globally, the mining sector contributes approximately 4–7% of greenhouse gas emissions, placing it firmly in the spotlight of regulators, activists, and shareholders demanding climate action. In Australia, scrutiny on emissions intensifies, with the Australian Government's 2022-23 Safeguard data highlighting 219 facilities, predominantly from the resource sector. To maintain their licence to operate, tangible decarbonisation progress is essential.
Yet, this challenge also presents significant opportunities. Industry leaders have set ambitious goals: BHP and Vale aim for approximately 30% reductions in operational emissions (Scopes 1 and 2) by 2030, while Rio Tinto targets a 50% cut by the same year, alongside achieving net-zero emissions by 2050. Decarbonisation is not solely driven by targets and regulatory pressures; it is equally about creating value. Fundamentally, energy not consumed—or consumed more efficiently—translates directly into cost savings.
However, practical decarbonisation is often overshadowed by high-profile opportunities such as renewable energy deployment and the electrification of haul trucks and rail operations. Yet, at the operational level, effective decarbonisation is rooted deeply in asset management. Here, asset managers must embody Lord Kelvin’s timeless advice from 1883:
"measure what you are speaking about, and express it in numbers, [so] you know something about it."
Asset managers intrinsically understand that increasing efficiency is the primary fuel for value creation and decarbonisation. Maximising output from every unit of energy begins with optimising equipment use and maintenance practices. Poor maintenance or under-utilisation of machinery results in unnecessary fuel consumption. For instance, poorly tuned engines consume significantly more diesel for identical work outputs, raising emissions and hampering decarbonisation efforts. Conversely, predictive maintenance and smart asset management strategies can significantly reduce energy waste and emissions.
Digital asset management platforms are crucial for practical decarbonisation implementation.
These systems generally fall into two categories:
Primary platforms, such as SCADA systems, interfacing directly with production management and Enterprise Resource Planning (ERP) systems.
Secondary platforms, which manage temporary or secondary assets (like mobile power generators) typically outside the core ERP framework.
Primary systems deliver real-time insights into productivity and carbon intensity, enabling optimisation of core operations, whereas secondary systems frequently rely on static, task-based reporting, if reported at all. Yet, digital secondary asset management platforms can significantly enhance efficiency and accelerate decarbonisation through adaptive, quantitative reporting.
Customised digital secondary platforms enable maintenance teams to input relevant data tailored to asset deployment, responding dynamically based on user feedback.
Built to close the asset management gap for secondary and non-core equipment, platforms like EXTAG provide real-time visibility and control across disparate assets.
Such platforms facilitate early anomaly detection and prompt maintenance scheduling, especially for secondary or temporary assets. Consequently, asset life and operational uptime are maximised, machinery operates at peak efficiency, operating costs are minimised, and incremental decarbonisation is consistently achieved.
The path to decarbonising mining operations is undoubtedly complex but achievable and value-creating. Asset managers must treat decarbonisation not as a distant objective but as an immediate, actionable tactical plan. This involves setting clear, quantifiable goals across both primary and secondary assets, supported by integrated tools offering real-time insights into operational performance and emissions. This data-centric approach empowers industry leaders and investors alike with transparent metrics for assessing both operational performance and decarbonisation progress.
In an industry historically seen as traditional, companies embracing innovation and strategically leveraging decarbonisation will define the mining sector's future.
About the Author
Simon Molyneux is the Managing Director of Molyneux Advisors and a seasoned executive with over 23 years in the energy sector, having held leadership roles at Shell, Talisman Energy, and Santos. Known for his strategic foresight and deep technical expertise, Simon leads with a client-first mindset—challenging conventional thinking and delivering high-impact outcomes across global subsurface and exploration projects.
About EXTAG
EXTAG is a powerful software platform designed for asset-intensive organisations to ensure all assets – no matter how minor – are compliant, safe, and ready for use.
Proven in Oil & Gas since 2018, EXTAG’s proprietary platform complements existing systems to deliver cost-effective, ERP-level control of excluded assets – making Asset Managers’ jobs simpler and their results visible.
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