SUNSHINE FOR MINES Greater emphasis should be placed on employing renewable-energy solutions in the mining industry
The global mining industry risks wasting millions of dollars if greater emphasis is not placed on the industry employing renewable-energy solutions, such as solar photovoltaic (PV) technology and biogas, according to global nonprofit organisation Rocky Mountain Institute-Carbon War Room (RMI-CWR).
The mines in the higher solar irradiance geographies in Africa can, however, benefit more from solar PV, says the organisation, which aims to accelerate the adoption of business solutions, such as efficient renewable-energy solutions that reduce carbon dioxide emissions on a gigaton scale, thereby advancing a low-carbon economy.
An initiative by RMI-CWR meant to drive this goal is Sunshine for Mines, a programme that aims, by 2018, to have five major mining companies establish and implement ambitious renewable-energy integration plans for a combined total of 3 GW installed capacity.
A further aim is for renewable energy to supply 15% of the mining industry's generation needs, representing 8 GW of renewables capacity, by 2025.
Sunshine for Mines operations lead Alastaire Dick is urging the mining industry to place a higher value on renewables as energy spend is accounting for an increasing portion of operating costs for mining companies. At South African gold mining company Gold Fields, which operates eight mines globally, energy accounts for 22% of operating costs.
“In South Africa, we have worked with Gold Fields towards implementing solar PV solutions at its South Deep mine, south-west of Johannesburg, and are engaging several other mines in Africa.”
Dick says South Deep is set to deliver positive outcomes, with the market indicating that on-site solar PV could be cost comparable with grid-based power.
RMI-CWR is also engaging in projects in Argentina.
“If mine operators are serious about streamlining costs, they need to give close consideration to the potential benefits of incorporating renewable-energy solutions and integrating renewables into the planning and execution of mining operations,” Dick avers.
He further explains that the benefits of adopting a solution where renewables are more cost effective than grid power, and which could include the increasing likelihood that storage is more cost effective than diesel power generation, go well beyond operational cost savings for the mine, extending to enhanced shareholder value.
The solution also offers environmental benefits, such as less reliance on fossil fuels, a reduced carbon footprint and greenhouse-gas emissions, lower levels of air and water pollution, as well as less risk of fuel spills from diesel trucks.
Positive social outcomes can also be achieved, such as an improved social licence to operate a sustainable mining business, as renewables can contribute towards societal betterment through job creation, safer communities by providing streetlighting, which is known to reduce crime, and the provision of electricity for clinics and industrial development nodes, Dick adds.
Various renewable-energy options hold other economic benefits for the local community, he adds. “Biomass, for example, requires energy crop cultivation, logistics and processing, besides others, creating local business opportunities.”
Biomass with high calorific values is not commonly prevalent in mining areas as yet; however, Gold Fields has assessed various biomass/gas opportunities at some of its African operations, Dick points out.
He says industrial-scale biomass has been proven to provide local jobs, citing South African industrial-scale biogas waste-to-energy company Bio2Watt as operating projects that involve growing energy crops that can be replicated at mines.
“Solar PV is a static renewable option offering limited potential for creating local jobs. This would include direct employment for maintenance, security and other services. However, options like biomass and biogas energy, stemming from agriculture, forestry and waste, require the maintenance of crops and can have additional posi-tive impacts on generating growth in local communities,” Dick says.
“Operators need to form an energy security plan around their energy use and identify the associated risks that occur with each step of the process, whether these be in relation to transport, fuel, logistics or community engagement. By understanding where your energy and money are being spent, you can better highlight the opportunities to potentially incorporate renewable-energy solutions and realise cost savings.”
Dick further explains that mines are typically production-focused and that long-term opportunities, where projects have paybacks longer than two years, do not often materialise. However, the business case for renewables in mining is sound, he advises, calling on mining companies to open their minds and realise the benefits for longer-term profits.
“There are currently plenty of options to consider, but the industry is failing to think outside the box, which is proving to be detrimental to [its] own pockets and the communities surrounding [its] operations,” Dick concludes.