South Africa’s mining companies are currently fac- ing severe financial losses, owing to strike action amid ongoing wage negotiations. These challenges, coupled with rising administered costs and fluctuating commodity prices, highlight the need for the industry to look at how best it can increase profits to ensure a sustainable future, says operative projects and investment company Talesun Energy.
“In order to cut back on costs the industry should look to renewable-energy options, such as photovoltaic (PV) solar energy, as an alternative for powering mining sites. In the long run, significant costs can be cut by not relying on fossil fuel power solutions, such as diesel-fired generators,” says Talesun Energy CEO Arthur Chien.
He notes that during the Renewable Energy and Mining Conference that took place in Toronto last month, it was discussed that mining houses typically spend about 30% of the operating cost of a mine on energy, explaining that operating a typical diesel-powered generation set would cost about $0.28/kWh to $0.32/kWh, compared with the current average operating cost of solar power at about $0.17/kWh.
The mining process, which consumes copious amounts of electricity, involves the hauling, grinding and processing of minerals to supply both the energy and raw material needs of the modern world. Using less electricity by the use of modern energy efficient concepts, such as PV solar energy, means that every kW/h saved goes straight to the bottom line, highlights the company.
“With the rising costs of traditional energies and the waning costs of renewable energies, renewables are increasingly more resourceful. It is evident, however, that South Africa’s mining sector, a major user of electricity, can be more efficient in terms of energy consumption by including emerging renewable-energy strategies and automated renewable-energy technologies, such as PV solar modules, into their business models.
“In doing so, the mining houses will promote continuous improve- ment in energy usage, security of energy supply and long-lasting contributions to the environ- ment; therefore, covering the increasing energy demand in a proficient and profitable way without increasing carbon emissions,” Chien points out.
According to a Pike Research report released last year, it was predicted that the global mining industry would invest $20-billion in renewable energy by 2020. Large megawatt-scale PV power plants are already providing mining companies with reliable, steady and emissions-free electricity during the day, that is decoupled from inflation, to reduce electricity consumption used for underground mine refrigeration, ventilation, grinding and more.
Talesun Energy mentions that gold miner Barrick Gold cur- rently has two demonstration sites for solar power. These include 1 MW of installed power in Reno, Nevada, where the company has been in discussions with solar developers interested in using the legacy mine site to develop a solar farm. Barrick Gold also has a small test solar farm in Chile.
“In Limpopo, South Africa, chrome mine Cronimet has inte- grated a 1 MW off-grid solar PV facility into the electricity supply system in an effort to reduce its reliance on diesel generators. The plant will produce 1.8 GWh and is expected to displace 450 000 ℓ/y of diesel.
With many mines situated in remote locations in South Africa having to source their electricity from diesel generation, Chien highlights that it makes good business sense for these companies to make use of PV solar energy supply – especially as the country has abundant solar energy supplies – to reduce risk and the cost of diesel fuel transport to remote operations.