“Our longer-term strategic investments include exploring and participating in collaborative efforts to develop fuel-cell technology

Climate change and energy management

Our management approach to climate change and energy

Our operations are exposed both to the physical and policy implications of a changing climate, as well as to the more immediate impacts associated with regional electricity capacity constraints. As an organisation we are acutely aware of the risk associated with climate change, its impact on the environment and socio-economic implications. The possible impact on water supply, and possible drying up of water sources has meant that we need to continuously review this risk and look at mitigating measures for both the organisation and communities. A financial impact assessment has also been undertaken in this regard, taking into account the possible tax imposition by government for carbon emissions. Security of energy supply and rising energy prices remain significant material risks for our operations in South Africa and Zimbabwe.

Given these challenges, the primary focus of our carbon management strategy is on energy-efficiency projects. This year electricity consumption accounted for around 70% of our total energy consumption, and almost 10% of our overall cash cost base. Our projected expansion into deeper operations that are more energy intensive, coupled with the anticipated introduction of a carbon tax in South Africa, highlights the business imperative of focusing on reducing and optimising our energy use.

In Rustenburg energy efficiency initiatives are targeted mainly at our mining operations, as there is seen to be limited scope for further energy efficiency at our concentrators and smelter. At Impala Springs, a steam system assessment was completed by the National Cleaner Production Centre (NCPC) and a good operational control score was achieved that indicates efficient use of steam. An energy management plan is planned for the 2016 financial year. A 1.8MW fuel cell installed in two tranches of 900kW is expected in February/March 2016. In South Africa we are working closely with Eskom, and continue to participate in various demand-side management (DSM) programmes. Our longer-term strategy includes exploring and participating in collaborative efforts to develop fuel-cell technology (see box here).

An important policy development this year has been the South African government’s work on setting desired emissions reduction objectives (DERO) and sectoral carbon budgets. We have kept a close watching brief on these policy developments and have submitted comments on DEROS, carbon budgets and the carbon tax through the Chamber of Mines (COM). At a Group level we have an absolute GHG-emissions reduction target of 5% by 2020 from the 2008 base year, when our first carbon footprint assessment was undertaken.

A more detailed review and assessment of the climate change risks and opportunities for Implats can be found in our submission to the CDP’s Climate Change Programme, available at www.cdproject.net.

Our 2015 carbon and energy management performance

During 2015, our total CO₂ emissions amounted to 3.4 million tonnes, up from 3 million tonnes in 2014. This increase is largely as a result of increased production levels following the end of last year’s strike action at Impala Rustenburg, which typically accounts for about 75% of the Group total CO₂ emissions. Most of the GHG emissions (3.0 million tonnes) are associated with Eskom electricity usage, with the balance (0.3 million tonnes) associated with direct use of coal, diesel, petrol and industrial burning oil. In 2015 our emissions intensity (tonnes of CO₂ per tonne of ore milled) was 0.209, down from 0.218 in 2014. This improvement reflects positively on energy efficiency initiatives.

Additional data on our direct and indirect greenhouse gas emissions and our energy usage, by operation for each of the past five years, are provided in the performance table.