BDO says diesel banned underground by 2023

A new report from advisory firm BDO has predicted diesel machinery will be banned in all new Australian underground mines by 2023, which could pave the way for a rapid uptake of electric battery-based machinery in the industry.

The BDO report, '2023: The Near Future of Mining', says existing underground mines are in the process of phasing out diesel machinery, and predicts Australian miners will have made significant headway towards electric underground mines by the year 2023.

BDO global head of natural resources Sherif Andrawes said most Australian mines still relied on diesel, so the construction of electric mines would be a big change for the sector.

“We now understand a lot more about the health and safety dangers for people exposed to nano diesel particles, and electric mines will go a long way in reducing those risks for staff working underground,” Mr Andrawes said.

In July, the Department of Mines Industry Regulation and Safety (DMIRS) released research undertaken by the Mining Industry Advisory Committee (MIAC) into the health effects of nano diesel particles, which recommended miners reduce underground worker exposure to these particles.

The research found that diesel causes negative health impacts on the lungs, heart and brain including increased risk of cancer, increased blood pressure, increased risk of thrombosis, neuroinflammation and increased DNA damage. 

The negative effects of diesel are more severe in a underground mining environment due to the lack of ventilation. 

The MIAC will make recommendations to Mines and Petroleum Minister Bill Johnston.

Mr Andrawes said BDO predicted companies that transitioned to electric mines would raise more capital as sustainability became a major consideration for investors.

“This is a shift we’re already seeing in the Australian market; if projects aren’t green, the investment won’t come,” he said.

“This will only compound as companies are required to disclose their emissions and climate risk; companies will face a cost not to transition.”