Shell International has started development on decarbonisation and digitalisation pathways for ITOCHU’s global metals and minerals portfolio which includes Australian operations.
The collaboration will see Shell offer its expertise in digitalisation and decarbonisation to find how ITOCHU can avoid, reduce or offset its mining emissions.
ITOCHU’s Australian portfolio is managed by ITOCHU Minerals & Energy of Australia and includes the Mt. Newman joint venture with BHP in Western Australia.
ITOCHU has an 8 per cent stake in the Mt Goldsworthy joint venture with BHP (85 per cent) and Mitsui (7 per cent), and an 8 per cent stake in BHP Iron Ore (Jimblebar) with both projects in Western Australia
The company also owns a share of BHP’s South Flank project in Western Australia.
ITOCHU has also been involved in Australia’s coal industry for around 50 years, which includes the Oaky Creek joint venture in Queensland which is managed by Glencore.
According to ITOCHU chief operation officer of metal and mineral resources division, Jun Inomata, the company has committed itself to pushing sustainability.
“ITOCHU has recently been recognised for the sixth consecutive year with the SAM Gold Class award from the S&P Global Sustainability Awards, and we will continue to push to further improve the sustainability of our metals and mining portfolio around the world,” Inomata said.
Shell stated it will provide its digital business-to-business (B2B) marketplace, OREN, to allow ITOCHU to access digital transformation consultancy along with digital and technology solutions for mining.
“We see digital as being a key opportunity to help us drive a lower carbon footprint for our mining operations and Shell’s Oren marketplace and consultancy approach will help us accelerate that digital journey,” Inomata said.
OREN was developed by Shell and IBM.
ITOCHU will work with OREN’S marketplace to find digitalisation opportunities and solutions developed by OREN’s mining experts.
According to OREN chief executive officer Mark Hannan, digitalisation is vital to the mining industry’s clean energy transformation.
“Digitalisation of operational efforts is a vital enabler for the energy transition for mining companies and a critical first step to turn decarbonisation ambitions into action is to build a digital roadmap,” he said.
“We look forward to joining forces with ITOCHU to not only deliver change, but also foster collaboration with Oren’s digital suppliers to create innovation solutions to meet their sustainability goals.”
Shell executive vice president for sectors and decarbonisation said the company is motivated to work with others who are aiming to reduce their carbon emissions.
“Shell is committed to working with companies, like ITOCHU, that are pioneers who embrace the need to collaborate and to act now to lower the carbon intensity of their businesses,” he said.
“Digital technologies – that help optimise energy efficiency and the effective monitoring of greenhouse gases – are also important levers that can be used now to drive the transition to a lower carbon future.”