Xstrata reports emissions increase in 2008
London, 11 June: Greenhouse gas emissions by Xstrata, the coal and metals mining giant, rose 7% in 2008 while the carbon intensity of its operations rose by 8%, but the company remains on track to meet its 2010 target for emissions intensity.

The company’s total direct and indirect emissions in 2008 were equivalent to 24.9 million tonnes of carbon dioxide (Mt CO2e), up from 23.3Mt in 2007. The increase was attributable largely to methane emissions amounting to 1.5Mt of CO2e, from recently acquired underground coal operations in Australia, Xstrata said in its 2008 Sustainability Report. These acquisitions were also responsible for the increase in the company’s carbon intensity (CO2e per tonne of product), it said.

Xstrata’s goal is for a 5% reduction in carbon intensity by 2010 compared with 2005 levels and it looks set to meet this target easily as its 2008 carbon intensity is 28% below the 2005 level, thanks largely to its acquisition of Canada’s Falconbridge in 2006. As Falconbridge’s output is dominated by copper and nickel, this acquisition reduced the relative impact of coal mines in Xstrata’s overall emission intensity.

When Xstrata listed on the London stock exchange in March 2002, it was heavily criticised by environmentalists for not mentioning climate change risks in its listing documents. In its latest report, however, it acknowledges that “climate change is one of the principal risks facing our business.”

Among the measures it is taking to curb its emissions, the company lists:

• abatement of methane emissions from its coal mines;
• investigating the use of renewable sources of electricity;
• improving energy efficiency;
• supporting projects to commercialise low-emission technologies; and
• investigating opportunities to switch to low-carbon energy sources.