Karora, which operates the Higginsville and Beta Hunt gold mines in Western Australia, will work with The Net Zero Company to seek to ensure its approach to setting and achieving GHG reduction targets is in line with best practices based on available science to achieve the aspirations of the Paris Agreement.

The company's initial focus will be on scope 1 and 2 emissions, but it will work towards a pathway to reducing scope 3 emissions.

"Mining is a critical part of the global response to climate change not only with respect to the supply of key materials required for the low carbon transition, but also with respect to reducing greenhouse gas emissions at mine sites," Karora chairman and CEO Paul Huet said.

"At Karora, not only are we already preparing to do our part, but we are setting the stage to be a sector leader in the junior gold mining space with the goal to ultimately become a net zero business.

"Our near-term efforts will be focused on analysing GHG emissions reduction opportunities across our operations, including the potential implementation of alternative and renewable power sources.

"We will also be evaluating the potential for further operational efficiencies, an initiative with which we have already had tremendous success over the past two years as we aggressively reduced our cost structure.

"While we are evaluating these potential opportunities, we intend to complement this GHG emissions reduction work with strategies to offset our current emissions."

Karora said the phased replacement of the aged haul fleet at Beta Hunt with new AD60 haul trucks has led to a reduction in total GHG emissions, while improving productivity and output as reflected by the operational deliveries over the last year.

The company has also engaged third party renewable power experts to evaluate the use of solar and other renewable strategies to reduce GHG emissions at its operations.

"After a tremendous two years of operational success since acquiring the Higginsville gold operations, we are now squarely focused on improving our carbon footprint, helping to drive a greener future in the mining business," Huet said.

Karora is aiming to release its first ESG report in early 2022.

Shares in Karora, which are up by about 6.7% so far this year, closed at C$4.28 overnight, valuing the company at $627.9 million.