Limpopo-based copper miner Palabora Mining launched its R40-million energy leadership programme in March 2012 with the assistance of energy efficiency firm specialising in energy- intensive industries Ensight to cut on-site operational energy costs.

The current programme consists of 48 energy- saving initiatives, which will be implemented throughout 2013 and sustained for a perform- ance period of three years. Five projects have been implemented, enabling the company to save R5.7-million in energy costs to date.

“We realised that, with an electricity bill of R400-million a year, we had to reduce our energy usage,” says PMC general asset manager Kobie Naude.

He notes that the company is exploring and implementing all possible energy-saving opportunities.

“The numbers that we are looking at are huge and, considering our current results and projections, our projects and initiatives are working,” Naude says.

He adds that the project is saving not only electricity but also energy, which includes the use of coal, diesel and liquefied petroleum gas.

“Ensight was contracted by Palabora last year to conduct a sitewide investigation, during which the company identified on-site opportunities to deliver energy cost savings. Following that, Palabora decided to proceed with the energy leadership programme, which is a unique partnership between the company and Ensight,” says Ensight programme manager Kristine Dewar.

She notes that the five implemented projects include the management of electrolysis, second- ary crusher peak clipping, converter blower fans optimisation, chiller plant off-peak operation and the removal of primary cyclone pumps.

Dewar states that the initial work done by Ensight showed that there was huge financial value for Palabora, should it be able to reduce its energy wastage on site.

“Like any other industrial user, the company’s energy bill is substantial and it is exposed to tariff increases over time, which prompted the miner to take action. This programme is regarded as part of a broader business improvement programme, whereby Palabora realised it could be more efficient by doing things differently, resulting in a healthier bottom line,” she points out.

Dewar explains that Ensight identified energy leaders across the site and formed energy leadership teams. The teams, working with Ensight, were tasked with exploring and working through the energy-saving ideas that had been identified and determining which ones could be implemented in a sustainable manner.

“The first phase required us to focus on governance, the roll-out of the energy leadership programme, measurement and verification programmes, as well as the education and awareness campaigns, as these did not need capital to be implemented.

“We held a series of events and invited all the energy leadership teams to participate and learn about energy efficiency. We engaged with many stakeholders and created excitement and awareness around the programme,” she states.

Ensight senior engineer Willem den Heijer states that the partnership between Palabora and Ensight is unique, owing to the sitewide approach of the programme and the fact that Ensight is on site.

“We recognise the importance of taking a holistic approach and our goal is to deliver sustainable cost savings through structures that will stay active on site,” he notes, adding that the programme design was aligned with Palabora’s internal structures and processes wherever possible.

He points out that the approach taken by Ensight on the programme has assisted the company to understand its own processes better in terms of its impact on site energy use. Participation and knowledge sharing have increased as a result.

Den Heijer explains that the projects have been progressively evaluated this year to enable execution.

“This year, we are focusing on spending capital to implement the 48 projects to save costs for Palabora,” he states.

Dewar points out that the company started with a much larger basket of projects.

“It starts with an idea that is being subjected to the process of developing a business case, during which the technological and financial aspects are being considered, resulting in a business decision being made on whether to proceed with that project, based on the oppor- tunity presented to Palabora,” she says.

She adds that there were projects that looked good on paper, but as the project progressed, they were either not financially viable or put the business at risk in terms of safety or production, resulting in the cessation of the development of that particular project.

“We filter the projects and it is quite a long process, with substantial engineering hours being spent on each project,” she notes.

Dewar points out that the company is constantly engaged in identifying more energy-saving opportunities.

“As we spent more time on site, we have gained a better understanding of where to look, which has helped us understand the processes of the mine more than we did pre- viously,” she states.

Den Heijer adds that, over time and through curiosity, the list of energy-saving ideas that Ensight started with will continue to grow.

“We capture those ideas to make sure Ensight systematically investigates and docu- ments all available opportunities, as well as the projects that cannot proceed. A constraint can disappear at any moment, which could enable the stalled project to proceed,” he says.

Den Heijer further adds that the programme is based on shared savings achieved between the company and Ensight. State-owned power utility Eskom has also played a significant role in the programme through its various funding mechanisms to make qualifying projects finan- cially viable.

“Eskom appoints a measurement and verification team to quantify and report the savings independently. In terms of sustaining the broader programme and proving to the stakeholders that savings are achieved, we set up similar measurement and verification structures within the programme. Each project will go through the planned phases, is implemented and then the achieved savings are reported to Palabora on a monthly basis.

“The project is set up in such a manner that the company can appoint an independent auditing company to audit the programme results to verify that the savings are real,” he concludes.