China, which is showing leadership in several areas, is very important in the global transition to a clean energy future, and BHP is looking forward to continued growth as the country advances plans for high-quality development and the energy transition, the top executive of the global mining giant said at the China Development Forum on Sunday.
"China's willingness to open up wider to the world and the world's willingness to work with China are integral to achieving the future we all seek," said BHP CEO Mike Henry.
Chinese investment in emerging clean energy sectors, up 24 percent year-on-year to $676 billion in 2023 alone, is currently among the top drivers of economic growth in the country, according to Henry.
The country's economic pivot to the "new three" — of solar panels, electric vehicles and lithium-ion batteries — has also presented several economic opportunities, a mark of how important technology is to green development, he said.
Henry said while there are many pathways to domestic decarbonization, China is clear on its own specific path.
"Given the remarkable economic growth that China has unlocked in recent decades, the country's blast furnace steel facilities are much, much younger. Steel is still being added to the economy on a net basis, meaning the ratio of scrap available to demand is much lower than in Europe," he said.
Many Chinese blast furnace mills are state-of-the-art already — far less energy intensive and carbon intensive than other blast furnaces on the market with less scrap availability.
Even so, Chinese steelmakers are still showing deep commitment to reducing their carbon intensity, pursuing opportunities like hydrogen injection, as well as applying a technology like carbon capture, utilization and storage to abate higher amounts of greenhouse gas emissions, he said.
As the world will need more mining assets, such as copper and iron ore, than in the past, it is necessary to deliver them in a sustainable and efficient manner, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.
Mining companies have been stepping up investment and local cooperation in China for more green opportunities in recent years, which will in turn further boost the carbon reduction progress from the raw material side and through to the production process, Luo said.
According to Henry, demand for metals and minerals required to meet the needs of a growing and wealthier population has been accelerated by the energy transition, resulting in the need for more mining, even assuming a lot more recycling.
Companies that have the financial, technical, and operational capability to meet this increased demand in ever more sustainable ways will be the winners of the future, he said.
BHP said it is committed to further supporting Chinese steelmakers through multiple partnerships.
