The global push for technologies to support the decarbonisation of the energy sector has seen a large rise in demand for various key minerals. The importance of these minerals and their supply chain to the energy transition cannot be overstated, but the market is dynamic with volatile prices, geopolitical uncertainties and supply chain constraints. This has demanded reliable and more transparent data on production and reserves of these minerals and, as such, the Energy Institute’s Statistical Review of World Energy continues to expand its coverage of the global minerals market. After adding data on copper, manganese and nickel last year, in 2025 the Review has expanded further to cover tin, vanadium, bauxite, aluminium and zinc. 

Australia has an extensive history as a mining nation, with European settlers first discovering coal in 1791, and metal mining beginning with lead in 1841 followed by copper in 1842. Despite over two centuries of exploitation, the country continues to have abundant natural resources to be explored. Australia has some of the largest reserves globally of key minerals and metals needed for the energy transition. The latest Statistical Review of World Energy highlights that as of 2024, Australia held the following share of proved global reserves: 16% of cobalt, 25% of lithium, 10% of copper, 27% of manganese, 17% of nickel, 27% of zinc and 12% of bauxite.  

These minerals have extensive uses in the transition to clean technologies. For example, aluminium, with its lightweight durability and conductivity, is widely used in wind turbine blades, solar panel frames and electricity grids. Copper is critical for wind turbine generators, solar panel wiring and electricity grid infrastructure, including electric vehicle (EV) charging. Cobalt and lithium are crucial for the cathodes and anodes of lithium-ion batteries, powering EVs and large-scale energy storage systems essential for grid stability. Manganese contributes to steel production for wind turbine components. Zinc is used for galvanisation, a process that coats steel components in wind turbines and other infrastructure to prevent rust and corrosion. With extensive resources of these critical minerals, Australia is well positioned to be a pivotal player in the global supply chain for the energy transition.  

Mining production in Australia 

The Review highlights Australia as the largest player in the lithium market, contributing to 36% of global production in 2024, followed by Chile (23%) and China (16%). These three countries are collectively responsible for nearly two-thirds of global lithium production and global known reserves. And, although the lithium market has experienced some fluctuations in recent years, Australia is banking on the growth in demand for this resource. It is positioning itself as a lead supplier, increasing lithium production by 22% per annum over the last decade.   

For the first time, this year’s Review covers the production and reserves of bauxite (primarily used for the global production of aluminium) and subsequently the production and capacity output of aluminium. Australia has established itself as a key player in the aluminium value chain. It is the second-largest producer of bauxite accounting for 22% of global production. It had been the largest producer until 2023, when it was overtaken by Guinea, which has increased production by an average of 22% per annum since 2014. While Australia plays a critical role in producing alumina, it doesn’t contribute largely to the production of aluminium, instead it exports 95% of its bauxite exports to China, the world’s largest producer of aluminium with 60% of global aluminium production.   

Copper is a vital material for the renewable energy sector, used extensively in the production of wind turbines, solar panels and electrical infrastructure. Australia is one of the world’s leading producers of copper, accounting for 4% of global production in 2024 according to the Review, which also shows Australia has 10% of global proved reserves of copper. The Olympic Dam mine in South Australia taps into one of the largest copper deposits in the world, with 2.95bn tonnes of iron oxide copper gold ore deposit (grading at about 1.2% copper). Despite operating since the late 1980s the mine still has around 70% of reserves untouched. This mine alone produces over 200,000 tonnes of copper each year (about one quarter of Australia’s total copper production at 800,000 tonnes) and expansion plans could see it producing around 450,000 tonnes in the next few years. Elsewhere, Australia produces 1% of global cobalt, 13% of manganese, 9% of zinc, 4% of rare earth elements and 3% of nickel.   

Australian net zero targets and specific mining targets  

According to S&P Global, Australia is the second largest exploration destination in the globe after Canada. The mining industry (including oil and coal mining) contributes to ~14% of Australia’s annual GDP, however it also contributes 23% of the country’s total emissions, according to the Climate Change Authority (CCA). While coal mining will dwarf the impact of metal and mineral mining, it is still greatly important that these mines are fit for a net zero future.   

Australia is one of the 196 signatories of the Paris Agreement and has committed to achieving net zero emissions by 2050, but also a 43% emissions reduction on 2005 levels by 2030. Furthermore, the Australian government’s Safeguard Mechanism sets legislated limits on the greenhouse gas emissions of industrial facilities emitting more than 100,000 tCO₂e/y, including mining facilities. For comparison, the Olympic Dam mine mentioned above produces around 4mn tCO₂e. These emissions limits will grow progressively more stringent in line with achieving net zero by 2050, with the first major milestone being a 43% reduction on 2005 emission by 2030. Operations that do not or cannot cut their emissions will be obliged to purchase Australian Carbon Credit Units.   

The Minerals Council of Australia has agreed an industry aim to meet net zero emissions by 2050. The Council identifies the types of individual activities that facilitate emissions reductions at scale (greater than 100,000 tCO₂/y) including energy efficiency initiatives, considering where renewable energy can replace current energy sources, carbon capture and storage (CCS), additional flaring and gas capture equipment, flaring of underground emissions, ventilated air methane (VAM) abatement (subject to safety considerations), electrification, and funding medium to longer term negative emission technologies.  

It estimates that 57% of emission reductions in the sector can be achieved by adopting low-carbon power, and a further 21% through the adoption of zero emission haul trucks.  

A clean power supply 

In the landscapes of Western Australia, a transformation in the nation’s traditional mining industry is already taking shape.   

With much of the technology traditionally powered by fossil fuels, mining companies are looking at renewable alternatives – and in the landscapes of Australia, solar energy provides a plentiful alternative. Rio Tinto, the world’s second largest metals and mining corporation, operate the world’s largest integrated portfolio of iron ore assets in the Pilbara region. It is currently committed to building a 1 GW renewable energy system in the Pilbara region. Recent investments have included $600mn to fund the construction of two 100 MW solar power facilities as well as 200 MWh of on-grid battery storage in the Pilbara region by 2026, additional to the 34 MW solar plant installed at the Gudai-Darri iron ore mine. According to Rio Tinto, these projects could abate around 300,000 tCO₂e, which would be a 10% reduction in total Scope 1 and 2 emissions on 2021 levels from its iron ore operation in Pilbara.   

Zero emission vehicles 

One company looking to decrease the emissions of its machinery is Australian-based Fortescue, who late last year signed a $2.8bn green equipment partnership with construction machine manufacturer Liebherr for autonomous, electric and battery-based mining solutions. This will see a total of 475 zero-emission Liebherr machines, including 360 autonomous T 264 battery-electric trucks, 55 electric excavators and 60 battery-powered dozers deployed across Fortescue’s iron ore hub in Pilbara in Western Australia. Fortescue has set itself a target of eliminating emissions from its Australian iron ore operations by 2030. It is estimated that the electric trucks will save Fortescue $300–400mn/y on avoided fuel costs alone.  

Perhaps the most exciting technological leap comes in the form of hydrogen-powered mining equipment. In 2023, Fortescue unveiled its first hydrogen-powered haul truck, the Taurus, at its Pilbara operations – a 290-tonne vehicle that marks a watershed moment for the global mining industry. These massive vehicles, which traditionally consume enormous quantities of diesel, can now operate with zero direct emissions. The company aims to have its entire mining fleet running on green hydrogen by 2030, a commitment that could potentially reduce the industry’s carbon emissions by millions of tonnes annually.  

Fortesque has already invested over $1bn in hydrogen and renewable energy infrastructure, establishing itself as a global leader in clean energy mining technologies.  

Reimaging refining practices  

The refinement process has seen equally dramatic innovations. Traditional energy-intensive methods are being replaced by sophisticated, environmentally conscious techniques.   

In 2024, Rio Tinto and Sumitomo Corporation began construction on a first-of-its-kind hydrogen plant as part of plans aimed at lowering the carbon footprint of the alumina refining process. The programme aims to demonstrate the viability of using hydrogen, instead of natural gas, in the calcination process, where hydrated alumina is heated to temperatures of 1,000°C. Once the hydrogen plant is constructed at the refinery, the refinery will then undergo retrofitting of the equipment to make it compatible. If successful, it could highlight a clean technology to be scaled globally.   

Elsewhere, BHP and Hatch have commissioned a project to design and build a pilot electric smelting furnace, this would demonstrate a pathway to lower-carbon intensity in steel production.  

Sustainability shift  

The mining industry in Australia is undergoing a revolutionary shift towards sustainability and environmental responsibility. Through the adoption of renewable energy systems, zero emission vehicles and innovative refining technologies, companies like BHP, Rio Tinto and Fortescue are setting new standards in green mining practices. These advancements not only mitigate the ecological impact of mining activities but also offer significant economic benefits.   

As the world moves towards a cleaner and more sustainable future, the efforts of these pioneering companies serve as a beacon of progress, demonstrating that environmental stewardship and industrial growth can indeed go hand in hand.  

• Further reading: ‘Circular supply chains for critical minerals in energy technologies’. Creating a circular economy would redirect critically rare materials (CRMs) from waste back into energy transition technologies. It would alleviate the pressure on CRM supply chains and scale down the environmental and social repercussions of mining them in the first place, writes Charlie Bush. 
• Rising demand for clean energy is driving growth in the critical minerals market. However, more work is needed to ensure diversified and sustainable mineral supplies, warns the International Energy Agency.