Channel 9 News recently published a piece on mining's role in reaching the nation's 2030 target of cutting greenhouse gases by 43%. The segment goes into the need for Australia to massively increase its mining to produce green technology.
Daniel Walton, Australian Workers Union Secretary, discussed why resources are needed for the renewable energy trend:
" ...If we think into the future, we'll have more electric cars. We'll have more batteries. We'll have more solar panels and all of these need critical minerals and rare earth to make them."
As consumers move toward renewable energy, increasing the demand for electric vehicles, wind turbines, solar panels and other renewable technologies; this increases the need for critical minerals and therefore mines.
Tania Constable, Minerals council, touched upon this aspect:
"I think the reality has just started to hit that we will need to see many more mines if we're going to make the transformation to net zero emissions by 2050."
The report details the increases in demand, clarifying that an EV will need six times the minerals in comparison to a petrol car and onshore wind plant needs nine times more minerals than a gas plant. Figure.1 represents the projection of demand for the minerals by 2040.
In light of this, companies who fit into the green technology mining thematic can leverage this trend in the interest of shareholders. The following Barclay Pearce Capital clients will all have a role to play in Australia's renewable energy revolution:
Mining Necessary Minerals
Constance Iron Limited
Constance Iron Limited is an Australian based iron ore company with a strong interest in the development and production of iron ore assets. The Company is an emerging player in Australia’s mining sector, operating across multiple jurisdictions with a primary interest in near-term and operating mines. This makes Constance Iron a strong contender in providing the materials towards the renewable energy technology evolution.
Renewable Technologies
H2X Global Limited
H2X is an automotive and power unit company focused on absolute sustainability. The company is focused on harnessing the most efficient and effective technologies, with the onus on capturing free and renewable energy sources. A specialisation in hydrogen is the basis of H2X’s growth, however with a strong platform as a maker of electrically powered vehicles, the company has a versatile approach to finding the right vehicle for the right task. Capitalising on the renewable technology and EV trend, H2X Global has operations in Australia, Malaysia, India, and throughout Europe.
Infinite Green Energy Pty Limited
Infinite Green Energy is an Australian-based renewable energy company with a vision to become Australia’s 1st commercial green hydrogen producer.
Green hydrogen is a future renewable energy source with the CSIRO estimating the size of the green hydrogen economy in Australia to be $10B by 2040. The Company is facilitating Australia’s first, and one of the world’s largest, commercial-scale green hydrogen projects - Arrowsmith Plant based in WA.
Verdant Earth Technologies
Verdant Earth Technologies Limited (NASDAQ: VDTN) is a development stage green energy company with the goal to develop a network of renewable energy and green hydrogen projects in Australia.
Verdant Earth Technologies’ goal is to become the largest hydrogen producer and exporter on Australia’s east coast. The company’s proposed Monarch green hydrogen plant, Australia’s first scalable hydrogen production plant, will initially deliver 6.5 tonnes per day before being scaled up to 60 tonnes per day by 2024.
Other key companies in this space include:
Locksley Resources Limited
Locksley Resources Limited (ASX:LKY) is an Australian exploration company incorporated in October 2018 for the purposes of identifying and assessing resource opportunities within Australia.
The Company is focused on the acquisition, exploration and development of mineral resources projects which have the potential to deliver significant growth for Shareholders. Their Tottenham project has a heavy emphasis on gold and copper, both necessary for the renewable energy revolution.
Coolabah Metals Limited
Coolabah Metals (ASX:CBH) is an Australian gold and base metal explorer. The Company has a prospective portfolio, in two major mining provinces, including two projects in the Lachlan Fold Belt (NSW) and one in Mount Isa (QLD).
The Lachlan Fold Belt is a major mining province with a long history of mineral production including gold, copper, lead, zinc, silver and tin. These minerals are necessity for building the renewable energy infrastructure and green technology products.
Hot Chili Limited
Hot Chili (ASX:HCH; TSXV:HCH) is developing the large-scale Costa Fuego Project – a copper hub comprising two major copper deposits: Productora and Cortadera.
Costa Fuego’s Mineral Resources position Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company; a stock to keep an eye on in the renewable energy evolution.
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