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Despite power supply stability, mines still prioritise efficient energy use

GREENING OPERATIONS Management teams across the sector are still determined to save costs and reduce mining operations’ carbon footprints

DAVID MERCER Energy and carbon management are becoming a pivotal business strategy at many ‘progressive organisations’

2nd September 2016

By: Ilan Solomons

Creamer Media Staff Writer

  

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Power supply instability may have been the catalyst for mining industry initiatives to pursue energy efficiency; however, the current stability of electricity supply has not curbed the industry’s appetite for green solutions.
Nonetheless, sustainability consultancy Environmental Resources Management (ERM) Southern Africa points out that management teams across the sector are still determined to save on costs and reduce mining operations’ carbon footprints.
ERM technical sustainability and climate change director David Mercer says mine management teams reacted “energetically” when supply instability first threatened jobs, profits and operations. “The shock was so profound there is little danger of complacency setting in as State-owned power utility Eskom’s capacity moves from deficit to surplus.”
Mercer states that the reaction to the shutdown threat was uniform across all heavy energy users, which accelerated efforts to reduce energy consumption. He points out that mining accounts for about 15% of Eskom’s output and the sector was a focus area for the utility when it launched its energy efficiency drive.
“We then saw focused mining sector engagement in demand-side management and interventions such as the National Business Initiative’s (NBI’s) Private Sector Energy Efficiency (PSEE) programme.

“This was no knee-jerk reaction. It represented a culture shift – a shift that continues to drive industry programmes to monitor, measure and reduce electricity costs and carbon emissions,” Mercer emphasises.
He says ERM is of the view that energy and carbon management are becoming a pivotal business strategy at many “progressive organisations”. Mercer contends that the days when energy efficiency was viewed as a niche activity exclusive to engineers are over.
He attributes this attitude change to the increased focus within the policy community on energy efficiency. Mercer points out that government plans to cut national carbon emissions by 34% below current levels by 2020, while, five years after that, a further 8% cut has been proposed.

He says that carbon tax legislation is likely to come into effect in 2016. Between 2017 and 2020, affected companies face a proposed marginal tax rate of R120 for every ton of carbon they emit. However, Mercer notes that offsets and tax-free allowances will “cushion the blow”.
“In response to these challenges, mine managers are looking for pragmatic partners known for delivering long- and short-term wins,” says Mercer. He adds that deliverable efficiency gains and potential cost savings offered by ERM’s solutions were showcased by award-winning work on the NBI’s PSEE programme.

Mercer states that, through this and other programmes run with their clients, ERM has identified energy savings ranging from between 15% and 20% for companies from various sectors. “Savings can still be achieved at organisations including mining operations that are already some way up the energy management curve.

He elaborates that progress and needs differ from operation to operation, as some businesses seek long-term, strategic assistance to achieve ISO 50001 energy management certification, while others want “a quick fix”.

Mercer notes that significant ongoing efficiencies are being achieved through a holistic approach, but big individual gains can also be delivered by taking an in-depth look at every component of a mine, such as the pumps, motors, lighting, fans, compressed air, training, equipment purchasing, specifications and other contributing aspects to energy consumption.
“Technical audits often reveal basic blind spots, such as low staff awareness and inefficient procurement practices resulting in the installation of outdated equipment. In one case, simple improvements in compressed air maintenance delivered a 60% efficiency improvement,” he states.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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