Tuesday 11 August 2026Vol. VI
Mining site infrastructure with generators and power lines at dusk
Energy

Power contracts are becoming the real decarbonisation lever for gold miners

Diesel displacement and long-dated renewable supply agreements are cutting emissions faster than any offset programme, and they cut costs too.

By Callum Reidy

Remote operations have historically run on diesel because it is portable and financeable. Both of those advantages have eroded as hybrid solar, storage and grid connection projects have become bankable on a fifteen-year horizon.

The economics stopped being a trade-off

When a power purchase agreement lands below the delivered diesel cost, the emissions reduction is a by-product of a procurement decision. That is the only version of decarbonisation that survives a downturn.

What to check in the disclosure

Contracted versus installed capacity, the share of load actually displaced, and whether the reported reduction is measured or modelled.

Callum Reidy
Energy & Commodities Reporter

Callum reports on energy inputs, power contracts and the decarbonisation cost base of hard-rock mining.