(Kitco News) - The mining industry is at a tipping point with renewables achieving general cost parity with hydrocarbons when miners run cost estimates for building a mine, said Mark Fellows, co-founder and CEO of Skarn Associates.
Kitco Mining correspondent Paul Harris spoke to Fellows at Mines and Money London held from November 29 to December 1.
Skarn Associates is a mining consultancy that quantifies energy intensity, greenhouse gas emissions and water use.
Fellow said the steep rise in energy prices, partly brought on by the Russia-Ukraine war, has wreaked havoc in the markets.
"The whole global energy system supply chain is overstretched and consequently behaving in a way that is not normal," said Fellows. "That's why we're seeing coal become a bit of a back stop."
Fellows said despite current market turmoil, the trend is set for miners to favor renewables.
"We're on a very long, gradual pathway towards decarbonization in the sector. In the rear-view mirror this [energy crisis] will probably look like a blip," said Fellows. "We are at parity in terms of costs when it becomes a decision between installing renewables and conventional hydrocarbons."
Coverage of Mines and Money London sponsored by Discovery Group.
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