The Japan Bank for International Cooperation (JBIC) will provide a loan for a project to install a wind-assisted auxiliary propulsion system for a copper concentrate/sulfuric acid carrier. This loan is meant to provide financial support to Japanese companies pursuing measures toward lowering carbon emitted along the copper supply chain by reducing CO2 emitted while transporting copper concentrates from Chile to Japan. Major resource companies, which are partners of the aforementioned Japanese companies, have been working on reducing ‘Scope 3’ emissions, namely CO2 emitted from the procurement of sulfuric acid and from the transportation of copper concentrates, and one of the benefits of the above-mentioned measures is that it contributes to reducing those CO2 emissions as well. Furthermore, in the long-term this will also contribute to Japan’s efforts to secure copper resources.
The copper concentrate/sulfuric acid carrier is a special type of carrier that transports copper concentrates produced in Chile to Japan. The copper concentrates are produced in a copper mine in Chile, in which JX Nippon Mining & Metals holds an interest. The carrier also transports sulfuric acid, which is a by-product of copper smelting, from Japan to the copper mine in Chile. The carrier has realized the highest transportation efficiency levels within the industry. Furthermore, JX Nippon Mining & Metals has been pursuing a project to install a wind-assisted auxiliary propulsion system called a ‘Rotor Sail’ to the copper concentrate/sulfuric acid carrier ‘KORYU’ to reduce fuel consumption and CO2 emissions. From 2023 the International Maritime Organization will implement regulations based on the Energy Efficiency Existing Ship Index (EEXI), and there are growing calls toward major resource companies to reduce the CO2 emitted when transporting resources from material procurement sources and also when transporting copper concentrates to purchasers. Installing the ‘Rotor Sail’ system is intended to lead to decreasing the periods where the carrier will need to operate at reduced speeds, and also intended to lead to decreasing the chances that the carrier will need to operate for an additional number of days. Thus the carrier will be able to reduce CO2 emissions by lowering its engine power output.
In terms of copper mine development, while various measures are already being pursued toward reducing Scope 1 and 2 CO2 emissions through the use of renewable energy-based power for operations and through the use of electric mining machinery, measures toward reducing Scope 3 emissions, including the CO2 emitted during transportation and those emitted by clients and purchasers, have gradually begun to be pursued as well. JBIC is hoping that the above-mentioned financial support will become a flagship project that will help Japanese companies working on reducing carbon emissions along the entire copper supply chain.
Reducing Scope 3 emissions is a goal not only being pursued by Japanese companies but also major resource companies as well. JBIC’s aforementioned measure will contribute to maintaining and further developing the relationships between Japanese companies and major resource companies, and this is also beneficial from the standpoint of steadily securing copper over the long-term, since it is expected that the supply and demand of copper will tighten due to the global trend toward decarbonization.
JBIC has been actively supporting various measures under its ‘Global Investment Enhancement Facility’, which was established in 2022. The measures they have supported include those that contribute to protecting earth’s environment, such as measures for pursuing decarbonization, and also those that contribute to strengthening supply chains. Most recently, for the first time in its history, JBIC provided financial support for a measure related to recycled resources, including e-waste. In the non-ferrous metals industry, a growing number of organizations have begun to pursue measures that prioritize ESG, for instance by pursuing the production of ‘green aluminum’ made with renewable energy, and by participating in the ‘Copper Mark’ framework, which certifies organizations in the copper industry conducting production in a responsible way. Going forward JBIC plans to continue to provide financial support to Japanese companies pursuing ‘green’ measures.
