The first two vessels to join our new LNG dual-fuelled chartered fleet have commenced their journey transporting product from our mines to customers around the world.
Over the past years, our Shipping team has led the way in driving improvements and pioneering new approaches to make a meaningful contribution to the decarbonisation of the maritime industry. The introduction of alternative fuel options is a cornerstone of this strategy.
In 2021, we set out an ambition to reach carbon neutrality across our controlled ocean freight activities by 2040, with an interim 30% reduction in emissions by 2030, a goal aligned with Anglo American’s target to be carbon neutral across all our operations by 2040 and defined in the context of our Group’s ambition to halve Scope 3 emissions – or emissions in our value chain – by the same date.
The introduction of LNG dual-fuelled vessels to our chartered fleet is an important component of our roadmap to drive more sustainable shipping operations, and our wider approach to decarbonisation. In addition to representing a key component of Anglo American’s approach to shaping a sustainable business, it is also crucial in complying with the increasingly stringent regulations directed by the International Maritime Organisation (IMO).
The work planning for the fleet started in 2019, bringing together a wide group of partners and cross-industry players who collaborated closely to reach this month’s milestone. Ubuntu Harmony and Ubuntu Equality, the first two vessels to join the fleet, were christened on 8 December as they completed their sea trials and were readied to sail to Singapore to be flagged.
These 190,000 dead weight tonne, LNG dual-fuelled capesize+ bulk carriers offer significant environmental benefits, including the potential to cut CO2 emissions by as much as 35% compared to vessels fuelled by heavy marine oil. In contrast to conventional options, LNG use also removes sulphur oxides, and considerably reduces nitrogen oxides and particulate matter from vessel exhausts. The use of new technology on the vessels also eliminates the release of unburnt methane, or so-called “methane slip”.
Designed to be larger than, but remain as flexible as, a conventional capesize vessel, the Ubuntu Fleet will also optimise cargo transport by increasing cargo lifting and improving overall cost effectiveness.
At the christening ceremony, Duncan Wanblad, Chief Executive of Anglo American, said: “Today marks a key milestone for our shipping team and for the entire Anglo American Group. We are hugely proud to see these vessels begin their voyage, transporting essential minerals from our mines to our customers around the world.
“The term ‘Ubuntu’, which means humanity to others in Zulu, is especially apt. It reminds us that I am what I am because of who we all are. Our efforts to extend our commitment to shape a sustainable business beyond the remit of our operations can only be successful when we have partners along the way. With that in mind, I would like to extend my thanks to all who have contributed to bringing these vessels to life.”
The vessels were built by Shanghai Waigaoqiao Shipbuilding in China and will be on charter by Anglo American for 10 years. They will predominantly transport iron ore and steelmaking coal. These are key ingredients for the steel industry, and an important aspect of our ambition to help decarbonise the wider steel value chain and deliver on our Scope 3 emissions reduction ambition.
Peter Whitcutt, CEO of Anglo American’s marketing business, said: “We are committed to playing an active role in accelerating the transition to a more sustainable shipping sector – a natural extension of Anglo American’s goal to be carbon neutral across our operations by 2040. LNG as a transition fuel will help us hit our interim goals and set us on a steady course to decarbonise our controlled ocean freight activities by 2040 as well.”
Cross-industry partnerships and collaboration forums also play an important role in embedding sustainability practices, and can help fast-track the transition to a greener shipping sector. We are actively engaged in many of the critical conversations accelerating change, including:
- The Global Maritime Forum (GMF): We were the first mining company to join the GMF as a partner member. This forum aims to increase sustainable long-term economic development and human wellbeing by addressing global challenges that are important to the maritime industry.
- Getting to Zero Coalition: In September 2019, Anglo American was one of more than 100 companies to join the Getting to Zero Coalition, an alliance committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.
- Sea Cargo Charter Initiative (SCCI): In September 2020, Anglo American became a founding signatory of the SCCI, which establishes a standard methodology to allow charterers to measure and align their emissions from ocean transportation activities. Signatories are required to calculate emissions on a yearly basis, declaring them to other members for benchmarking.
Our approach extends beyond a commitment to mitigate the impact of our activities on the environment, and also encompasses the social aspect of our operations. In response to the impact of the Covid-19 pandemic on the world’s seafarer population, we implemented a series of programmes onboard our chartered fleet – from supplying extra PPE where appropriate, to conducting a mental health and wellbeing campaign to identify and support those affected. We are also part of a taskforce of maritime stakeholders responsible for developing the Neptune Declaration on Seafarer Wellbeing and Crew Change.
More recently, Anglo American became a partner of the Maritime DEI Lab 2022, an innovation challenge designed to identify scalable, digital solutions to enhance diversity, inclusivity and equality in the maritime industry. With next generation talent prioritising meaningful and fulfilling career destinations, initiatives like this will help ensure the maritime industry’s continued relevance to potential new entrants – talent that will bring the fresh perspectives and innovative thinking needed to continue driving the sector’s sustainability agenda.