MGX Resources has formally adopted a Climate Change and Energy Management Policy to guide its response to climate change and its focus on reducing carbon emissions and increasing energy efficiency. The policy, published on the company’s website, aims to help MGX identify, monitor and manage future energy and emissions business risks connected to regulatory changes, product demand, reputational damage, directors’ duties, and increased operating costs.
Material actions and disclosures
MGX has undertaken a review of the transitional and physical risks arising from climate change potentially impacting its business, with a focus on risks connected to regulatory changes, product demand, reputational damage, directors’ duties, and increased operating costs. The company has also committed to contributing responsibly to Australia’s and the international community’s response to climate change in a way that is realistic in the context of its mining assets.
MGX’s experience operating a similarly remote and seasonal mine site at Koolan Island in the Kimberley provides it with sound management practices. The company acknowledges the scientific consensus expressed by the Intergovernmental Panel on Climate Change that continued emissions resulting in global warming above 2 degrees Celsius could lead to catastrophic economic and social consequences.
MGX supports the Paris Agreement to limit global warming and the more recent 2021 Glasgow Climate Pact to limit global warming to less than 1.5 degrees Celsius above pre-industrial levels. The company has undertaken a comprehensive expert review of operations at Koolan Island to provide guidance on realistic changes that the business may make.
Subsequent small-scale trials of hybrid hydrogen-injection equipment on select diesel generators and mobile equipment have demonstrated significant potential to reduce diesel consumption and site greenhouse gas emissions over time. These learnings from Koolan Island are being considered in progressing development planning for the Central Tanami Project.
Forward commitments
MGX will continue to assess and respond to relevant physical and transitional climate change risks taking into account the impact of severe weather events, regulatory changes, shifts in demand for