By Gemma Childe on 18th May 2012
Global investment in renewable energy by the mining industry will reach $8.4billion by 2016 and nearly $20billion by 2020, according to a new report.
Pike Research, a US-based clean technology consultancy, said that with more rapid expansion of the global economy and more robust incentives from governments, the 2020 figure could reach $30billion.
Mining companies are coming under increasing pressure from customers, governments and stakeholders to operate in a sustainable manner as demand for scarce natural resource intensifies.
Kerry-Ann Adamson, the research director at Pike, said that increases in mining commodity prices and rapidly rising market capitalisation in the sector put it in a strong position to address the impact of mining on climate change.
"Mining company executives are becoming increasingly more sensitive about rethinking traditional mining industry approaches to obtaining and consuming energy," she added.
The Asia Pacific region, which has seen its market share of the worldwide mining sector increase to 44 per cent in the last decade, is expected to make the biggest investment in renewable energy, at $9.4billion by 2020. The United States is forecast to be second, with $4.6billion of investment.
Pike Research's report, Renewable Energy in the Mining Industry, examines energy consumption dynamics in the global mining industry and analyses market opportunities for greater use of renewable energy. It also profiles the energy strategies of key players in the industry.
An Executive Summary of the report is available to download for free on Pike Research's website.