MAJID ZAHID Power generation and supply is a part of mines operations that could make significant adjustments to their capital expenditure
The global mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand for products and suppressed levels of economic growth in established markets, many mining companies worldwide are striving to remain buoyant, stated temporary power solutions provider Altaaqa Global chief commercial officer Majid Zahid.
He was speaking on the sidelines of the Investing in African Mining Indaba last week in Cape Town. He noted that in miners’ quest to emerge victorious from the recession, many of them had implemented cost-cutting initiatives aimed at ensuring maximum customer value with fewer resources.
“Others have chosen to be cautiously proactive and embarked on exploration programmes in a bid to boost long-term profitability. Some have turned to technology to optimise processes and facilitate existing methods,” Zahid added.
Zahid commented that “going lean” had become one of the central trends in the industry, as mining companies sought to concurrently reduce workforce numbers, capital and energy intensity; exploit growth opportunities and ensure maximum value for their products and services.
He believes that power generation and supply is a part of mine operations that could make significant adjustments to their capital expenditure.
“Electricity remains the lifeblood of mine sites worldwide. However, with the current economic situation, mine operators cannot afford to devote a large portion of their scarce capital to a major expenditure, like a permanent power plant. Considering this, mine operators can instead choose to hire multimegawatt temporary power solutions,” Zahid said.
He noted that a consistent, dependable and sufficient supply of electricity was of vital importance throughout the life cycle of a mine operation. “Temporary power plants can adequately provide for the electricity needs of a mine site. They can power camp sites during the prefeasibility, feasibility and exploratory stages and support the establishment of the mine operation after a successful exploration,” Zahid said.