Nova sets its sights on sustainability

As the demand for battery minerals remains high, IGO (ASX: IGO) continues to make strides in its quest to discover, develop and deliver products critical to a clean energy future. Whether it’s the electrification of transport, energy storage, or renewable energy generation, IGO is investing in its mining assets to meet the world’s appetite for critical minerals.

The Nova Operation is the cornerstone of IGO’s clean energy transition. Situated in WA’s Fraser Range, about 360km southeast of Kalgoorlie, the deposit reflects the company’s steadfast commitment to sustainability and low-impact mining practices.

Since reaching nameplate production in December 2017, Nova has continued to punch above its weight. Although it achieved a strong total production of 20,806t of nickel, 9,922t of copper and 735t of cobalt in FY24, it’s the investment in sustainability that has put the deposit on the world map.

The FY24 period saw IGO further progress its transition into a significant explorer and producer of the metals and minerals required for the expanding clean energy industry, such as the electric vehicle and energy storage markets.

Sustainability in the spotlight

From solar farms and battery energy storage systems (BESS) to electric vehicle technology, Nova continues to explore new ways to minimise the impact of its operations on the environment and local communities. These initiatives are critical in IGO’s pursuit to achieve its Scope 1 and 2 net zero emissions targets by FY25 at Nova despite the limited remaining mine life.

Following the completion of the solar farm expansion project at Nova in FY24, it’s now one of the first mining operations to achieve ‘engines off’. It operates on solar power without generators for up to nine hours in the spring and summer months, reducing its diesel use and GHG emissions. This 10MW solar farm consists of a 10MW /12MWh BESS and synchronous condensers, which complement the existing 5.5MW solar farm.

Underground battery electric vehicle trials have also been conducted at the Nova Operation, including the Zero light vehicle and Volvo battery electric integrated tool carrier. The mine also commissioned a Sandvik all-electric blast hole drill.

Two active BESS trials are also currently underway at Nova — BASF sodium sulphur battery and VSUN vanadium redox flow battery. These trials aim to build market confidence around the application of these battery technologies and how mining operations can potentially reduce their reliance on diesel and therefore lower GHG emissions.

The BASF sodium sulphur battery is Australia’s first NaS long-duration battery used to field test the suitability of this technology in a mining environment. This 250kW/1.45 MWh BESS unit is designed to provide long-duration storage and also offer vital insights into battery degradation and efficiency.

Separately, the VSUN vanadium redox flow battery, a standalone power system, integrates a solar array installation and a 300kWh battery. As part of the trial, it’s being utilised to power a bore pump with a target of 100% renewable energy use. Learnings from the trial will allow IGO to review the power source options for any future remote diesel replacements, such as bore field extensions.

In FY24, IGO reported its decarbonisation projects delivered emissions savings of 20.5% at the Nova Operation compared to their 2019 baseline. The company’s continued investment in emerging technologies and R&D, including piloting battery storage solutions and electric vehicles, are proving vital components of IGO’s roadmap to net zero mines of the future.

Keeping it local

IGO is committed to engaging and building long-term relationships with businesses in the local communities where we operate. This vision is brought to life at the Nova Operation through a strategic focus on increasing local procurement and engagement.

The commercial and purchasing teams at Nova have developed specific spend and engagement targets to achieve increased local spend. Achieving these targets has seen the implementation of a policy that prioritises suppliers from targeted local areas and links these directly to the purchasing team’s performance measures.

This has involved engaging directly with local suppliers to better understand the capabilities and challenges they face across multiple categories. To bridge this gap, smaller, tailored procurement packages were introduced that aligned with the capabilities of the local vendors.

Additionally, the team addressed logistical barriers by establishing a local transportation agreement, an initiative that has created a level playing field for local suppliers. This enables them to compete with larger vendors from Perth who benefit from well-established freight routes to the Nova site.

These efforts have already yielded significant results. Several local businesses have successfully joined IGO’s roster of preferred suppliers, strengthening the economic fabric of the region, while ensuring Nova’s supply chain remains robust and efficient.

The Nova Operation also relies on a combination of local and FIFO workforce arrangements, which enables IGO to access a diverse talent pool while contributing to regional employment. Whether it’s qualified maintenance technicians or mine control operators, IGO is committed to workforce development and operational excellence.

By fostering a balanced workforce strategy, the company supports local communities and ensures that its operations benefit from a skilled and adaptable team, capable of meeting the evolving demands of its own mining assets and the broader industry.

Future outlook

In support of IGO’s sustainability roadmap, there are several key initiatives planned for the FY25 period. This includes the delivery of the Nova Operation’s FY25 net zero targets through continued emission reduction projects and the surrender of Australian Carbon Credit Units (ACCUs).

IGO will be further embedding internal carbon pricing (ICP) into all project assessments and continuing to use the ICP and associated decarbonisation fund to drive investment in emission reduction projects. Carbon pricing will continue to be used as a tool to understand future carbon liability and be considered among key decision-making criteria.

Collaboration with lithium JV partners will also be a focus, ensuring knowledge sharing, understanding of climate risks and opportunities and building relationships to accelerate IGO’s response to climate change.

Nova exemplifies IGO’s dedication to sustainable, low-impact mining practices. Through strategic growth initiatives, focused exploration and a commitment to workforce development, IGO is well-positioned to continue contributing to the global clean energy transition while maintaining its responsibilities to the environment and local communities.