Renewables use more resources than other energy production: BHP chief

Increased renewable power will ­require more steel, copper and other mined resources than fossil fuel or uranium plants.

BHP Billiton chief executive Andrew Mackenzie. Picture: Stuart McEvoy.

Increased renewable power will ­require more steel, copper and other mined resources than fossil fuel or uranium plants, warns BHP Billiton chief executive ­Andrew Mackenzie.

The drive for more renewable power, combined with global ­government and carmaker targets for electric vehicles, has driven huge interest in metals like lithium and cobalt. It has also led to increased demand forecasts for more established London Metals Exchange base metals like copper and nickel.

But Mr Mackenzie told a Melbourne Mining Club lunch yesterday that the benefits of increased wind and solar power may not be as clear-cut as they seem.

“One of the fascinating things about renewables is that, while many people will champion (their) ability to actually create energy with less carbon, in all other senses it’s a much more intense use of ­resources,” he said.

“The sun is not as concentrated as a lump of coal and, as society chooses more ­renewables, it’s ­actually going to need more, not less, resources ... more steel, more copper, more lithium and cobalt, assuming it’s not substituted, and more nickel.”

The mining boss said this could be an argument for not entirely moving away from fossil fuels.

“That will be an interesting ­debate, as to whether we go for a more resource-hungry renewable platform that helps decarbonisation or whether we go for a perhaps less resource-hungry option energy like nuclear or fossil fuels.”

Mr Mackenzie said BHP Billiton was not looking for oppor­tunities in lithium or other new metals to tap expected growing battery demand, unlike its major rival Rio Tinto

“The best opportunity for us right now on renewables is our continuing attempts and determination to grow our copper business,” he said. “Renewable energy is extremely positive for demand of copper.”

Rio Tinto, under chief executive Jean-Sebastien Jacques, has established a new Ventures business to explore opportunities in commodities that may experience increased demand from technological disruption.

Rio is also studying development of a new lithium mine in Serbia at its Jadar discovery, which could become a top-three global lithium producer.