ATTRACTIVE OPTION Aggreko supplies power to mining operations across and Africa and throughout the world
The outsourcing of power supply is growing in Mozam-bique, as mining companies increasingly recognise the benefits of rental power, says temporary power generation company Aggreko Southern Africa local business head Martin Foster.
He adds that confidence in rental power is gaining momentum across an industry that has traditionally opted to install power infrastructure.
“The growing acceptance of rental power in Mozambique is consistent with other major African mining centres.”
Foster tells Mining Weekly that the company expects development in the sector to continue, considering the strong growth Aggreko has witnessed over the last three years. He stresses, however, that this growth has been seen throughout Africa.
To date, Aggreko has serviced two international mining companies in Mozambique through three projects. These projects, together with its 232 MW gas-to-power facility at Ressano Garcia, make Aggreko the largest supplier of flexible power in the country, says Foster. These projects included the supply of 10 MW of short-term construction power in 2011 for a large coal mine in Tete province, and 7 MW of supplementary power supply for increased power demands at the company’s portside loading terminal. Aggreko also provided 10 MW of primary power supply for a processing facility at a mineral sands mine in the north-east of the country.
Foster notes that all mining operations require their own power supply, either as a primary power source when operations are off the grid, or to supplement supply from the local grid. He acknowledges, however, that access to reliable and sufficient power remains a key challenge for the industry, owing to the unprecedented growth of the Mozambique economy.
He adds that power infrastructure is also under increasing pressure from the growing demands of domestic consumers and industrial users.
Supply and Demand
Mining Weekly reported in February that Mozambique Energy Minister Salvador Namburete estimated the country’s current power generation capacity to be about 2 000 MW, which was mostly sourced from the Cahora Bassa hydroelectric power station.
Meanwhile, international professional services firm KPMG estimated Mozambique’s power demand to be 1 600 MW, according to its 2013 Mozambique country mining guide. KPMG noted that this demand “has been rising by 15% a year, while, in the northern regions of the country, the base of most new mining projects, this growth has been even higher, estimated at over 20%”, says Mozambique State-owned energy company Electricidade de Moçambique director for business development Carlos Yum.
Foster points out that, as a result of increased demand, energy- intensive sectors, such as the mining industry, need to ensure that they have sufficient power. “Simultaneously, however, it is also vital that surrounding communities have access to power, especially as power demands increase owing to rising standards of living.”
He highlights the flexibility of renting and the large capital outlay required to build power plants as two of the key drivers for choosing rental power.
Further, when power demands increase, additional capacity can be added quickly and easily and, once rental capacity is no longer required, it can simply be off-hired, he explains.
“By renting the precise amount of power needed, when it is needed, mines can avoid investing in equipment that may remain underused until the mine reaches full production. As access to capital is scarce and because the cost of starting mining projects is high, the opportunity to reduce initial capital spend is becoming more appealing,” says Foster.
Growth and Development
Foster tells Mining Weekly that Aggreko aims to continue expanding its mining business in Mozambique along with its services to other industries, such as the oil and gas industry, and the construction, manufacturing and shipping industries.
“Developments in the Mozam-bique mining sector are very exciting and, combined with the country’s potential as an emerging regional energy hub, it is becoming a marketplace with tremendous growth potential,” he says.
Aggreko supplies rental power and temperature control systems to customers in the mining and a range of other industries. It owns and maintains the world’s largest power rental fleet of close to 10 000 MW, which comprises diesel, heavy fuel oil and natural-gas-fired generating sets.
The company supplies mining customers with a range of services, from small generator units for camp power and early project development, to multimegawatt power plants for fully operational mines.
Foster points out that these power supplies can be used for short-term supplementary power, when power demands unexpectedly increase, to full life-cycle primary power, or for fast-tracking emer- gency responses when existing supplies are interrupted.
Aggreko also supplies temperature control systems as supplementary cooling capacity to deep-level mining operations when cooling towers or other equipment break down, or when additional capacity is required owing to unseasonably high ambient temperatures.