A novel framework for integrating environmental costs and carbon pricing in open-pit mine plans: Towards sustainable and green mining

Abstract

As the worldwide need for mineral resources continues to grow, there is an increasing emphasis on mitigation of the environmental consequences of the mining sector, necessitating a shift towards sustainable and green mining practices. This paradigm requires the meticulous integration of environmental considerations throughout all stages of planning and operation in open-pit mining. Therefore, this research introduces an innovative integrated framework for long-term mine planning, strategically combining economic and environmental considerations in open-pit mining operations. The methodology integrates carbon pricing into the decision-making process, addressing potential financial risks and introducing two distinct scenarios: one focused on minimizing environmental costs and the other on maximizing adjusted Net Present Value (NPV). The application of this integrated framework to an open-pit iron mine in the Middle East region yielded insightful results. The integrated framework's impact on block sequencing, greenhouse gas emissions, and financial outcomes was assessed, highlighting the divergent strategies employed in the two scenarios. The minimization scenario demonstrated it was feasible to attain 90.54% of the global warming impact and 90.48% of environmental costs while achieving 96.25% of the adjusted NPV compared to the maximization scenario. Sensitivity analyses further underscored the adaptability of the framework to varying carbon pricing scenarios. This research validates a sustainable approach to mine planning, emphasizing a balance between economic returns and ecological responsibility, and provides valuable insights for decision-makers in the mining industry.