Wisconsin approves bill to end ban on sulphide mining
The legislation was approved by a 53-38 vote and is now...
The Wisconsin Assembly has approved the repeal of the effective moratorium on sulphide mining.
The legislation was approved by a 53-38 vote and is now subject to Senate action.
Currently a mining company must prove that a sulphide mine is capable of operating for 10 years, and then closing for 10 years, without polluting groundwater or surface waters with acid rock drainage.
The almost unanimous legislation was passed in 1998 with bipartisan support, and was signed by the 42nd Governor Republican Tommy Thompson.
“This isn’t a moratorium. It just says certain conditions need to be met,” commented Gordon Hintz, D-Oshkosh, Assembly Minority Leader.
“Removing those conditions suggests there’s going to be some compromise of standards.”
The concern about this legislation is the environmental impact and integrity that could be put at risk all for the sake of short-term profits.
“The bill simple ends the moratorium and allows for the discussion to take place,” regarded Republican Rob Hutton, R-Brookfield.
“Mining is a part of our future, and it should continue to be a part of the discussion for our growth in the economy.”
Hutton continued to argue that legislation has no effect on the standards set by the state Department of Natural Resources.
BHP deliberates ditching fossil fuels for greener mining
The world’s biggest miner, Australian-based BHP, is supposedly considering withdrawing from a multi-billion dollar contract, which would see the company generate more than US$2bn due to mounting pressure over aligning its business with ongoing climate concerns and ESG-compliance measures.
Exiting the agreement would mean BHP escalate its distancing from oil and gas and subsequently cut down on the amount of fossil fuels used by the company when mining.
It’s estimated that the petroleum business being debated upon could actually be worth around US$15bn but is still under talks to be put up for sale.
Global Mining Giant Considers Greener Future
BHP has made itself clear that it wants to avoid becoming unable to sell its assets. As competition within the market increases following higher numbers of oil giants wrestling with investors to deal with climate pressure, so too are the number of mining rivals looking to make environmental changes for the future.
However, BHP currently has the upper hand as a stalwart mining company that established itself back in the 1960s, allowing it the time to grow and dominate over other fast-appearing mining competition.
Mike Henry, BHP Chief Executive, has an optimistic outlook for the future of oil and gas despite worries over rising demand to align his business with the Paris Climate Agreement. Henry argues that prices remain promising due to a lack of industry-wide investment.
BHP’s petroleum business won’t be easy to say goodbye to. Forecasted to generate around 6% of profits during the ongoing financial year (US$2bn), and around US$1.6bn revenue produced by BHP petroleum in the six months leading to December 2020, BHP is due to take a hit no matter what agreement they choose.
On the other hand, distancing itself from thermal coal and petroleum would arguably aid the company’s case to possible - and valuable - investors who may be required to fund BHP’s increased output to places such as Australia and Mexico in the near future.
BHP considers cutting billion-dollar contract to aid climate
An exit away from petroleum has the potential to be “a powerful corporate catalyst,” says Dominic Kane, Analyst at JP Morgan.
“We believe an exit would likely ring-fence BHP’s exceptional cash flows for non-fossil fuel organic growth, mergers and acquisitions and generous shareholder distributions since BHP could avoid a major new capital investment phase this decade in petroleum.”
BHP is also set to sanction a giant US$5.7bn Canadian potash mine in August of this year, already seeing potash as a long-term substitute for gas and oil going into the future. The company has also previously announced plans to abandon its 80% share in its joint endeavour with Mitsui, owner of two lower-quality mines in Queensland, Australia.
BHP is scheduled to report its annual results on August 17, after which it may become clearer on whether the company will choose to focus its shift to a low-carbon economy or whether it will stay with its current contract into the coming year.