Tag Archives: Aggreko

Aggreko solar power, BESS solution to help Rio Tinto cut Weipa Scope 2 emissions by 10%

Aggreko has successfully won the bid to build, own and operate a 12.4 MW solar farm and 8.8 MW/2.1 MWh Battery Energy Storage System (BESS) under a long-term power purchase agreement for Rio Tinto’s Amrun project in Weipa, 800 km from Cairns in far north Queensland.

Rio Tinto said the project, which will supplement power currently supplied by Aggreko’s diesel generators, will help it reduce Scope 2 emissions at its Weipa operations by up to 10%.

Once operational, Aggreko’s 12.4 MW solar farm and BESS are expected to reduce Amrun’s diesel electricity consumption by 37% or approximately 5.5 million litres of diesel fuel per year. This will reduce annual CO2 emissions by approximately 14,000 t, which is the equivalent of taking 3,100 internal combustion engine cars off the road.

Rio Tinto General Manager Weipa Operations, Shona Markham, said the miner is committed to delivering sustainable, low-carbon bauxite to its customers.

“The construction of the Amrun solar farm and BESS, which is located on Wik and Wik-Waya Traditional lands, is an important milestone for Weipa operations and will contribute to Rio Tinto’s commitment to reduce operational greenhouse gas emissions,” she said.

The remote location and power effectiveness made Aggreko the ideal company to build, own, operate and maintain the Amrun solar farm, it said. Aggreko’s capabilities will ensure Rio Tinto has constant and efficient energy for critical applications and day-to-day use at Amrun.

George Whyte, Managing Director of Aggreko Asia Pacific, said his team has delivered many similar applications and the focus now is completing the job on time and safely.

“At Aggreko, we pride ourselves on our exceptional safety record,” Whyte said. “The existing power stations’ performance is essential for all Weipa operations, and as we look into the future, we are confident that the introduction of solar will help both companies achieve our decarbonisation targets.”

Early works have commenced on the Amrun solar farm, which is expected to be operational by early 2025, with no interruption to local power services. Once completed, the Amrun solar farm will provide around 21 GWh/y of renewable power.

Rio Tinto completed the commissioning of the Amrun bauxite mine in 2019. The mine and associated processing and port facilities replaced production from Rio Tinto’s depleting East Weipa mine, increasing annual bauxite export capacity by around 10 Mt at that time.

Aggreko brings in virtual pipeline power for Labyrinth’s exploration project

Aggreko, a leading provider of mobile and modular power solutions, has successfully deployed a remote power project at an exploration project in Canada using its virtual pipeline power approach.

The solution enabled Labyrinth Resources Limited to complete a challenging mining exploration project while reducing CO2 emissions and fuel costs, according to the company.

Labyrinth needed remote power for a five-month gold mining exploration project. The site is in a remote location on the Quebec–Ontario border, where no grid power is currently available. Temperatures in the region fall as low as -30°C. In addition to extremely low temperatures, the high cost of diesel fuel was also a concern. Labyrinth needed a portable power solution that would operate in the site’s harsh environment using a better fuel source.

Aggreko assessed the need and conditions and recommended a virtual pipeline power system to deliver compressed natural gas (CNG). The company set up a CNG power plant by installing two 300 kW natural gas generators and a 60 kW diesel generator to deal with peak loads. The virtual pipeline approach facilitated smoother delivery of CNG by way of 48 ft (14.6 m) containers trucked to the mine site.

During its five-month operation, the Aggreko virtual pipeline power solution reduced CO2 emissions by approximately 75 tons (68 tonnes) versus diesel generators, reduced NOx emissions by 10 tons, and saved over $300,000 in fuel costs. This allowed the customer to put more resources into the mining exploration itself, with a significant reduction in emissions to meet local regulations and avoid fines, Aggreko says.

“We appreciate the support of the Aggreko team,” Matt Nixon, CEO of Labyrinth Resources, said. “The selection of a lower-emission fuel source for our power requirements aligns with Labyrinth Resources ESG policies and reinforces that sustainable solutions for our operations are decision drivers, as opposed to afterthoughts.”

Geoff Bland, Product Manager for Power Generation and Energy Storage at Aggreko, said: “At Aggreko, we have deep experience in powering remote locations and providing clean CNG power. Our equipment and engineers were fully capable of dealing with harsh conditions and reducing emissions.”

Steve Stafford, Sales Leader for Manufacturing and Mining at Aggreko North America, added: “The mining industry is undergoing an energy transition as it moves towards integrating renewable and alternative fuel solutions. The Aggreko virtual pipeline power solution allowed the customer to get the job done faster, more cost-effectively, and with a significant reduction in emissions.”

Labyrinth is an Australia-based resource company with projects in Western Australia and Canada. The company is focused on Labyrinth and Denain gold projects that are some 230 km apart along highway 117 and situated in a mining jurisdiction hosted by the Abitibi Greenstone Belt. The Denain project is 60 km east of the town of Val d’Or and comprises 13 claims across a tenure area of 360 ha at the eastern abutment of the Cadillac-Larder Lake Fault, which also hosts the Canadian Malarctic gold mine. The mineralisation at Labyrinth gold project is hosted within east-west trending quartz veins that can be traced for at least 1.4 km along strike and run parallel with the trend lithology.

Aggreko heralds three decades of mine power innovations

After operating for more than 60 years, Aggreko, a leading provider of mobile modular power, temperature control and energy solutions, is reflecting on its entrance to mining more than 30 years ago.

The company, founded in 1962, entered the mining industry in 1991 and, about a decade later, pioneered modular cooling in underground mining.

Aggreko Australia Pacific Managing Director, George Whyte, said the Netherlands-born company – now active in about 80 countries globally – has played an evolutionary role in mine power and temperature control.

“In 1991, Aggreko secured its first ever mining project, which was at the Benambra zinc and copper mine in Victoria, Australia,” Whyte said. “At the time we were the only company to put 1 MW of power technology into a modular container. Later, in 2001, we pioneered modular underground mine cooling in the rental market, also in Australia. Prior to that, mines would purchase fixed cooling and ventilation systems for their operations.

“Some other mines we supported early on included Mt Dimer, Youanmi, Century Zinc, Granites Gold Mine and the Olympic Dam expansion – which is Australia’s largest open-pit mine. Some of these mines are still around today.”

Whyte said energy services at mines had expanded since then.

“Where we once supported mines operationally with their short-term power and cooling needs, we organically developed into an engineering solutions provider, now active at more than 300 mines globally,” he said. “Over time, our solutions have also become more complex from providing airflow modelling for underground cooling and ventilation to providing fully hybridised micro-grids.

“Of the limited number of off-grid renewable power plants in the world, Aggreko owns and operates three of them, and this is something we are very proud of. Where it was once common for miners to own and operate their own power plants on-site and for us to supply bridging power, it is becoming more common for us to build, own and operate the power plant for a mine’s life.”

Whyte said digitalisation has been one of the biggest transformers of the mining industry, helping assist with emissions reduction and safety improvements.

“Digital technology provides the data needed to reduce unpaid down-time on mine sites for instance or discover how solar and batteries behave under cloud cover,” he said.

Aggreko Global Head of Mining, Rod Saffy, said Aggreko was a truly global power provider and its experience in a wide variety of industries, applications and locations were part of the company’s success.

“Aggreko is truly a global company, and consistency across our businesses practices has earned us a reputation for having the highest ethical, environmental, equipment and safety standards wherever we go in the world,” he said.

Aggreko has a team of more than 6,000 people who operate across 80 countries. It has a diverse team including engineers, data scientists, technicians, and power station operators – who demonstrate there aren’t any conditions too cold, hot, or tough to operate in, the company says.

A recent project included staff enduring extreme environments of the Andes-mountain ranges in Salares Norte, Chile, to establish a hybrid and solar power plant 4,500 m above sea level. Another project saw teams transport equipment via icy roads to provide 6.5 MW of power and heating to a silver mine (Silvertip) in British Columbia, Canada. It was there that within three months Aggreko installed and commissioned a virtual LNG fuel supplied power plant with a heat recovery system. The team also operates in hot climates like Africa and Australia where they establish power plants in the soaring heat or desert.

Saffy and Whyte believe mining is at the forefront of technology and innovation, and the progress being made in the industry paves the way for other global industries such as manufacturing, construction and major events.

“The mining industry has some of the most robust environmental and safety standards in the world and the innovations in the industry are truly exciting,” Saffy said.

Aggreko’s latest technologies include its 1,300 kW Ultra-Low Emissions Package – a world-first power generation system which effectively eliminates up to 99% of all controlled emissions from diesel generator exhaust streams. Emission levels are 90% lower than the next best available technology on the market.

Other technologies the company has either deployed or developing, include modular solar power; Organic Rankine Cycle technology (heat from generator exhausts converts into useable energy); renewable energy solutions (such as wind farms, solar and hydro power); mobile wind solutions and pumped, mechanical and flywheel energy storage; and fuels such as hydrogen and biofuels (which will become more prevalent in the next decade and can be switched into Aggreko’s modular power generators).

Aggreko has a net-zero emissions goal by 2050 and has a 2030 target to reduce diesel use in its customer solutions by 50%.

Aggreko urges miners to embrace renewable power generation now

With decarbonisation at the forefront of miners’ agendas, one of the world’s leading provider of mobile and modular power solutions, Aggreko, has released its top tips to help miners decarbonise now and into the future.

Aggreko’s Global Head of Mining, Rod Saffy, said while miners were embracing the global energy transition, some were unsure where to begin.

“For some miners it’s about knowing where to start and they may be weighing up the cost, risk and threat of new technology in the future,” he said.

“Fortunately, technology isn’t in the same place as it was five years ago or even two years ago. Some of the renewable power technologies available today, combined with thermal generation in a hybrid solution, offer the same – if not better – levels of reliability and competitiveness than traditional thermal technology.”

Saffy said power generation companies were taking significant steps to support miners on their respective paths to net-zero emissions.

“Increasingly, power companies are offering renewables such as solar and wind energy to off-grid mines, and we often integrate those with battery storage solutions and thermal microgrids,” he said.

“If you consider a hybrid power solution – where you switch in renewables to your power mix alongside fossil fuels – your operation will be more flexible and can scale up and down as needed.

“Our approach means miners can also partner with us, long term, without being tied down to one fuel type for their power source, and new technology is introduced as it becomes viable.

“Integrating renewables in this manner will result in greater cost savings and efficiencies for your project.”

One solar and thermal hybrid solution Aggreko delivered for a remote gold mine in Africa resulted in more than 12% savings in fuel (about 10,000 litres a day) and the contract offered meant the miner did not have to come up with capital to invest in the solar plant.

Another example Aggreko is working on, Saffy said, is a 25.9 MW hybrid solar and thermal power solution for the Salares Norte open-pit mine in Chile.

“It is a ground-breaking solution designed to provide power for the entire mine, which sits at an altitude of 4,500 m in the Andes mountain range and is 190 km from the nearest town,” he explained.

“Once complete, the hybrid power plant is expected to achieve $7.4 million in cost of energy savings over the next decade, a further $1.1 million in carbon tax offset over the life of the mine, in addition to 104,000 t of carbon emissions savings.

“The system will surpass the Chilean government’s environmental standards as well as Gold Fields’ requirement for a minimum of 20% renewable power generation for mining operations.”

Saffy said the pathways to decarbonisation that held the most appeal for miners currently included:

  • Hybrid power plants (as mentioned): These combine renewables (eg solar, wind) with thermal generation and battery storage, benefitting areas with limited or no access to permanent power. These are generally cost-competitive. Once solar or wind plants are installed, their generation running costs are relatively low and at zero emissions;
  • Virtual gas pipelines: Gas power generation can offer a greener and more cost-effective alternative to diesel and heavy fuel oil. A virtual pipeline is a substitute – and an alternative – for a physical pipeline. Gas is instead transported as LNG or CNG to the point of use by sea, road, or rail. For mines not connected to a physical pipeline and looking to switch to gas from diesel, a virtual pipeline model simply imitates their current supply solution. For users who are connected to a gas pipeline but are looking to supplement insufficient or unreliable pipeline capacity, the virtual power plant solution has several advantages over diesel; and
  • Renewable energy: Renewable energy power systems are an effective way of tapping into natural resources to provide power, such as wind farms, hydro power and solar. The challenge is their reliability related to weather, hence why, if power is interrupted for any reason, it is important to ensure they’re backed by with batteries or a temporary thermal power solution.

A significant future fuel in this space will be hydrogen. Investment in hydrogen is on the rise because of the role it can play in supporting a global transition to net-zero. Its versatility and compatibility with existing furnaces, engines and generators make it particularly appealing for the mining industry, according to Aggreko.

Saffy said energy sources likely to become more prevalent in mining during the next 10 years included biofuels (would become less expensive), hydropower, energy storage (such as pumped, mechanical flywheel), and gas generation which runs with a hybrid renewable system. While it is increasingly used now as power source, wind and solar power are also expected to gain more momentum.

Aggreko is also experimenting with mobile wind solutions, re-deployable solar panels and tidal wave power (though tidal wave power might not be for the mining industry yet). The company is also accelerating its investments in hydrogen technology, with trials underway in Europe on two different technologies, where Aggreko is collaborating with lead customers and partners trialling hydrogen generators and fuel cell battery hybrids.

“It’s a very exciting time in the mining sector, and it will be amazing to see the innovations presented during the next few years as miners and energy companies collaborate and come up with new ideas for a greener future,” Saffy said.

“The key though is to start now – you can embrace renewables now into your energy mix because, done correctly, cost and emission savings can be greatly reduced without compromising reliability.”

Aggreko has its own net-zero goals by 2050 and has a 2030 target to reduce diesel use in its customer solutions by 50%.

Ora Banda benefits from Aggreko virtual LNG pipeline at Davyhurst gold mine

In what is a world-first for global energy provider Aggreko, the company has introduced its latest high efficiency gas engines at Ora Banda Mining’s Davyhurst gold mine in Western Australia.

The power station, which uses a virtual pipeline of gas trucked over 650 km, is expected to slash the mine’s carbon emissions by 25,000 t during the next five years, Aggreko says.

A virtual gas pipeline is a substitute for a physical pipeline whereby gas that would typically be conveyed through a conventional gas pipeline is instead transported as liquified natural gas (LNG) or compressed natural gas to the point of use by sea, road, rail or through a combination of one or more of these transport modes.

Aggreko Australia Pacific Managing Director, George Whyte, said the LNG station project at Davyhurst was another step in the company’s mission to help miners’ get closer to their net zero emission targets.

“The Davyhurst gas power station is a great example of how a mine which previously operated on diesel wanted to operate on cleaner fuel and we were able to switch from diesel to gas,” Whyte said.

“Creating a virtual pipeline application is a way to switch from diesel to a cleaner fuel source and reduce carbon immediately without requiring any capital outlay or a physical gas pipeline.

“The result at Davyhurst is a gas power station comprising five LNG-generating sets and two diesel generating sets for a combined modular power output of 8.2 MW. Aggreko’s gas-fired power station will enable Ora Banda Mining to reduce CO2 emissions by approximately 25,000 t during the initial five years of operation.”

He added: “This project demonstrates great innovation, uses a virtual gas pipeline and is a world-first for us using the high-speed reciprocating gas engines in our power generators. The power station is highly efficient, scalable and very suitable for transient loads and for the introduction of solar at a later stage.”

Whyte said Aggreko’s contract to supply the mine with power saved the junior miner on large capital expenditure and allowed miners to focus on their core skill of mining.

“Of appeal to miners is being able to take on flexible contracts with no capital outlay,” he said. “In addition, Aggreko upscales the technology, and the level of power is scalable so it can evolve with the mine.

“At Aggreko, we will reduce the amount of fossil diesel fuel used in customer solutions by at least 50% by 2030 and become a net-zero business across all services we provide by 2050. We are continuing to innovate and work with miners to reduce carbon by providing them with cleaner, scalable and modular energy as they work toward their net-zero targets.”

Ora Branda Mining Managing Director, David Quinlivan, said mining operations started on its large land holding in Western Australia in 2019 and reprocessing started again in January 2021.

“As part of the capital works program, we needed to re-establish a power station at Davyhurst and we worked with Aggreko and EVOL LNG to build a natural gas-powered station to power all of the site,” Quinlivan said.

“Initially, power was supplied to the site via an overhead line from Kalgoorlie. It is now trucked 650 km to site where it is used to power the gas generators. The power station developed for the site now supplies power to the processing plant, to the administration complex, our exploration and core processing facilities, the main mine accommodation plant, and out to the underground mining offices. It also powers our primary communications facilities.

“Working with Aggreko has resulted in a significant reduction of greenhouse gas emissions for our company.”

Aggreko ups the mine cooling ante with modular BAC10000s

Twenty years after establishing modular mine cooling solutions in Australia, Aggreko has released an offering for mines going deeper with its latest modular bulk air coolers (BACs).

These 40 ft (12.19 m) mobile BAC10000s coolers are “unique” and relatively new to the mine cooling market, according to Aggreko Australia-Pacific Managing Director, George Whyte.

“They are scalable, portable and boast three times the cooling capacity of our previous largest offering – the 20 ft long (about 6.09 m) containers,” he said.

Aggreko has delivered more than 50 mine cooling projects globally, and always draws on the experience of its engineering, procurement, construction and maintenance teams to stay at the forefront of technology, according to Whyte.

“Aggreko’s mining services pioneered mine cooling as a rental service 20 years ago as a result of mines looking for alternatives to capital refrigeration plants,” he said. “Previously mining companies would need to use capital to install built-in cooling systems which were not scalable, modular or as effective.

“In the past two decades we have witnessed mines becoming deeper and this has resulted in the need for larger cooling capacities and innovation. The need for deeper mines in increasingly remote locations, coupled with rising global temperatures, is forcing operation managers to seek affordable alternatives to cooling and ventilation systems.”

Aggreko Underground Cooling Sector Manager, Mitch Bevan, said the BAC10000s were used at a Western Australia mine last year and will soon arrive at a mine in New South Wales, Australia.

Bevan said part of the new modular BACs appeal were their simplicity and convenience when compared with purpose-built on-site cooling plants. The new BACs used a simple design involving pipes, chilled water and three axial fans – all comprised in a modular shipping container. He expected more mines globally would become interested in the company’s new product offering, particularly in regions such as Africa, Latin America and North America.

“The unit is more suited for larger installations and offers improved efficiency rather than using a large number of smaller BACs,” Bevan said.

“Capital refrigeration plants take a long time for mines to prepare for financially, as well as to install, whereas we can mobilise on relatively short notice. A rental option also provides a great deal of flexibility, which is often crucial for underground vent systems where it is difficult to predict the requirement year on year.”

Bevan said Aggreko re-engineered their cooling towers to come up with the 40 ft modular BAC10000s after anticipating there would be global demand for such an offering.

“Long running mines have continued to grow and their refrigeration requirement grows with the mine, so BACs are appealing as they can be scaled up or easily moved on-site,” he said.

“While mines are expanding, our clients are also focused on energy efficiency, and safer operation – such as more environmentally friendly refrigerants – and we are constantly working on new developments in these areas.

“The water-cooled BACs have less of an environmental impact seeing as the modular container sits on the ground’s surface and requires no serious ground modifications, such as concrete.

“The units only require water and power and, while some mines use diesel-generated power, as time goes on, that will shift to renewable energy. Our company has made major commitments to greener energy to help miners achieve net-zero emissions by 2050. That is why we are constantly exploring and investing in new technologies. Currently, our water-cooled chillers use half as much power as air-cooled options, which is part of their appeal, and we are the only rental company to provide such modular and scalable products.”

The BAC10000s have been successfully used at 29Metals’ Golden Grove mine – a high grade copper, zinc and precious metals mine, about 450 km northeast of Perth, which mills about 1.44 Mt/y.

When the mine underwent an expansion, which required almost two years to up-scale its permanent cooling plant, a quick and effective solution was needed in time for the 2020-21 summer, according to Aggreko. The power specialist was able to quickly supply the BAC10000s to install a 4.5 MWr water-cooled plant.

As well as water cooled refrigeration plants such as Aggreko’s 20 ft and 40 ft BACs, Aggreko also offers air cooled refrigeration plants (with power provided, if required) and underground spot cooling solutions.

“Newer mines are also continuing to come online in Australia and around the world,” Bevan said. “We are supplying modular cooling solutions throughout the entire mining lifecycle.

“We are constantly looking for opportunities to improve on our strengths to assist our clients further into the future. We provide flexible energy solutions and services to the mining sector and provide high standards regardless of a mine’s location in the world.”

UMS to start pre-sinking work at Lucara’s Karowe Underground Expansion project

Lucara Diamond Corp’s Karowe Underground Expansion project (UGP) in Botswana is moving ahead with mobilisation of shaft sinking teams commencing late in June, and pre-sinking activities scheduled in the September quarter.

The Karowe UGP, which is expected to extend the operation’s mine life to 2040, is in a fully-financed position, with the latest schedule expected to see underground production hit full production by the end of 2026.

The 2019 feasibility study for the project envisaged life of mine production of 7.8 Mct, a payback period of 2.8 years and an after-tax NPV (5% discount) of $718 million; all from $514 million in pre-production capital.

COVID-19 delays have pushed the project off the original schedule – both in terms of timeline and cost – but the company says it is now making headway towards a 2026 start to underground production.

Lucara said no “material variances” between the 2019 feasibility study and the current execution plan have resulted, despite the delays.

“Rather, during this period in 2020 and 2021, all critical path items were addressed and a concerted effort was placed on detailed design, engineering and procurement which have helped to significantly de-risk the project,” it said.

Out of the total capital budget, the company has spent $51.4 million on project execution activities through 2020 until the end of June 2021, including shaft and geotechnical engineering, procurement of long lead time and essential shaft sinking items, surface infrastructure and construction activities, bulk power supply power line engineering and procurement.

Mobilisation of the shaft pre-sink team has commenced with shaft pre-sinking on track to commence in the middle of the current quarter.

Detailed engineering and design of the underground infrastructure and layouts will commence this quarter and are expected to be competed in the September quarter of 2022, with no major changes from the 2019 study plan anticipated.

Underground mine development is scheduled to commence in the second half of 2024 with underground production ramp up starting in 2026. Full production is scheduled for the end of 2026.

At the same time, open-pit mining operations have been adjusted to limit the risk of production shortfalls during the ramp up of the underground mine operations commencing in the first half of 2026. The open-pit mine is expected to terminate in mid-2026, Lucara said.

Access to the underground mine will be via two vertical shafts, the production and ventilation shafts. The shafts will be concrete lined with the production shaft acting as the main air intake and the ventilation shaft as the exhaust.

The number of shaft stations and nominal elevations remain the same as the feasibility study, with the planned depth of the production shaft still at around 767 m. The final planned depth of the ventilation shaft has, however, increased marginally to 733 m, from 716 m.

A 7,200 t/d shaft operation using long hole shrinkage (LHS) mining will provide an additional 13 years of mine life to the Karowe operation after a five-year construction period. The 767-m-deep production shaft will be equipped with two 21 t skips for production hoisting and a service cage for man and material movement through the mine. This shaft will also serve as the main fresh air intake to the mine.

The pre-sink construction contract and shaft sinking equipment procurement were awarded to UMS Botswana and UMS South Africa, respectively. METS International Ltd, a subsidiary of UMS, was awarded the shaft engineering contract.

The company explained: “Detailed design and engineering work on the production and ventilation shafts is now 90% complete, and has resulted in the following changes to the 2019 feasibility study: i) production shaft diameter has increased from 8 m to 8.5 m, ii) ventilation shaft permanent headframe, hoists and internal conveyances have been removed, iii) parallel pre-sinking of both shafts, iv) ventilation fans and coolers to be located on surface, v) in-shaft grouting of water strikes changed from grout curtain installation from surface, vi) planned development of an additional sublevel to assist in drilling of drawbells, and vii) removal of 670L de-watering galleries.”

Increased schedule time related to shaft sinking has been a result of the increased production shaft diameter, time allowances for in-shaft grouting during sinking operations planned at known water strike horizons, holing through all shaft stations between shafts and additional ground support for underground stations/level breakouts, the company said.

UMS is in the process of mobilising crews to Karowe to initiate pre-sink works. Pre-sinking of the two shafts will run in parallel and start with mobile cranes and then transition to Scott Derrick cranes with the final depth of pre-sink at around 40 m below surface.

With the exception of an additional sublevel (340L) to assist with drill and blast of drawbells, the design, layout and infrastructure of the underground mine all remain aligned with the 2019 feasibility study, the company noted.

Temporary power for shaft sinking is required until such time as the upgrade bulk power supply infrastructure is commissioned in the December quarter of 2022. A three-phased ramp up of the generator capacity is planned to support the increasing power requirements related to the shaft sinking activities.

A power supply and services contract for the temporary generators has been signed with Aggreko International Projects Ltd. Mobilisation has been initiated with the generator pad established. Commissioning of Phase 1 is scheduled during the September quarter to support the start of pre-sink activities.

The Karowe UGP is targeting the substantial resources remaining below the economic extents of the open pit in the South Lobe.

The LHS method is planned to systematically drill and blast the entire lobe on a vertical retreat basis. In LHS, a significant proportion of the blasted muck is left in the stope during blasting and stoping to stabilise the host rock with only the swell extracted during the drill and blast phase. Mucking will take place from draw points from the 310L extraction level. Once the column is fully blasted, the stope will be drawn empty by mucking the draw points.

The bottom-up approach of the LHS mining method takes advantage of the higher value EM/PK(S) kimberlite unit at depth in the South Lobe at Karowe, and balances high initial capital costs with low operating costs while de-risking the project with respect to the geotechnical and hydrogeological aspects of the host rocks, according to Lucara.

A revised project cost and schedule has been developed that captures the detailed engineering and design work through 2020 until May 2021, incorporating all changes, improvements, and COVID-19 related delays. Overall capital expenditures, including contingency, have increased marginally by some 4%, to $534 million, driven by the increase to the production shaft diameter and additional mine development.

The schedule to 75% of full production has increased by 1.3 years, driven mainly by COVID-19-related delays to commence the shaft pre-sinking and additional planned time for shaft station break-outs and ground support, Lucara added.

During 2020, Lucara negotiated and signed a self-build agreement with the Botswana Power Corp (BPC) for the construction of two substations and a 29-km-long 132 kV transmission line from BPC’s newly established Letlhakane substation to the Karowe mine. The planned route follows an existing regional 400 kV line and then runs parallel to the existing 11 kV transmission line currently supplying bulk power to the Karowe mine.

The new power infrastructure will provide the required power for the current open pit, processing plant and the underground mine expansion. Commissioning of and handover to BPC is scheduled for the December quarter of 2022. Construction of substations is scheduled to commence this quarter and power line construction in the March quarter of 2022, the company said.

JDS Energy & Mining Inc is the engineering procurement and construction manager for the execution of the Karowe UGP and is currently building up the on-site project team in conjunction with Lucara’s owners team and working in close cooperation with the Karowe Diamond Mine operations team.

Aggreko trialling mobile, containerised solar PV solutions in mining

Aggreko says it is ready to apply big, bold ideas to supply renewable energy to miners, with one such idea being the use of state-of-the-art mobile and containerised photovoltaic (PV) solutions.

Rod Saffy, the Global Head of Mining at Aggreko, said miners were constantly looking for innovative power solutions to help companies achieve their emission targets.

“Where there once may have been a reluctance to embrace new technology, miners are now needing it – asking us for bold ideas,” he said. “As a result, most of our new technology is finding its way into the mining space before it is finding its way into other sectors.”

Lars Stephan, who heads strategy and markets at Aggreko’s renewable division, echoed Saffy’s comments, suggesting the next few years alone would result in a massive transformation of the mining sector as miners incorporated renewables to their energy mix.

“Our hybrid projects, such as the Granny Smith project, are quite ahead of the curve and undoubtedly will be transported to the rest of the mining industry and to the rest of the world as well,” Stephan said.

Aggreko says it has multiple teams dedicated specifically to bringing new and innovative technology to customers, with the terms innovation and technology being at the heart of its values and strategic direction, he added.

“New technology our teams are currently looking at across different sectors include green hydrogen, modular wind solution and re-deployable solar solutions,” he said. “We are certainly scanning to see what will become relevant to our customers.”

In mining specifically, Nicolas Boruchowicz, Head of Renewables and Energy Storage solutions, said Aggreko was now trialling state-of-the-art mobile and containerised PV solutions, after securing four major solar contracts to power mines throughout their lifecycle.

“While bringing the benefits of solar integration, those units will be highly mobile, and provide flexible solar power to mines and rural communities for a shorter contract duration of below five years or even months,” he said. “This innovation has the potential to open the door to more renewable power for the mining industry and in locations that previously seemed out of scope.”

Aggreko is one of the only power companies of its kind to align itself with the big miners, committed to reduce its carbon emissions and its use of diesel with customers by 50% by 2030 and achieving net-zero across its fleet by 2050.

When asked if he had one piece of advice for the mining sector today, Saffy said: “Whatever you do, don’t make a long-term investment in an energy source. In today’s fast evolving energy landscape, long-term commitments may lead to stranded assets and tied up capital, especially with the constant innovation in energy technology.

“We offer a risk free, 100% reliable solution, addressing your immediate requirements and staying flexible with the energy source as it evolves into the future. We don’t know right now what technologies will help get us to net zero by 2050 but we will continue to search the market for innovation and work with our mining customers to get there.”

Private equity firms look to take over Aggreko

The boards of directors of Aggreko plc and Albion Acquisitions Ltd have reached agreement on the terms and conditions of a recommended all-cash acquisition from I Squared Capital and TDR Capital for the mobile power provider.

The £8.80/share offer values Aggreko at £2.32 billion ($3.2 billion).

Earlier this week, Aggreko announced an underlying profit before tax of £102 million for 2020, slightly ahead of its initial guidance of £80-100 million, and group revenue of £693 million for 2020, down from £823 million in 2019. The company stated that 7% of this revenue came from the mining sector.

Aggreko said its directors intended to recommend unanimously that Aggreko shareholders vote in favour of the proposed scheme at a court meeting and general meeting. The acquisition is expected to become effective in summer of 2021 (in the Northern Hemisphere).

Ken Hanna, the Chairman of Aggreko, said: “The Aggreko Board believes that the offer from I Squared Capital and TDR Capital represents an attractive price in cash that fairly recognises Aggreko’s future prospects. We believe that the business, its people and customers will continue to be well supported with I Squared Capital and TDR Capital as shareholders bringing their expertise in energy and rental markets to support our existing strategy.”

Adil Rahmathulla of I Squared Capital added: “Aggreko is a global market leader in delivering bespoke temporary power solutions to its customers and has clearly shown it has a strategy to complete its journey towards a net-zero emission business. The urgency to deliver on that transition has only increased in the post-COVID environment.

“Repositioning Aggreko fast enough to truly capitalise on these trends and rapidly shifting customer demand requires significant investment in clean technology and a step change in the pace of transformation. We are well positioned to accelerate Aggreko’s development at this critical juncture and secure a successful future for the company, underpinned by a long-term investment focus and the combined expertise of TDR Capital and I Squared Capital in the power infrastructure and equipment rental sectors.”

Aggreko to energise mine power space with investment proposition

Mobile power provider Aggreko says it is making the transition from being a pure power provider to a long-term mining project investor that is helping miners navigate the energy transition.

Aggreko has built an almost 60-year-long reputation for powering many sectors around the globe. It has also supplied power and underground cooling to the mining sector for more than 35 years and has evolved into life-of-mine contracts and renewables.

In its latest report – which details its future energy transition – Aggreko cites mining as a major growth sector. Aggreko Australia Pacific Managing Director, George Whyte, stated that Aggreko’s global team’s unique offering is with build-own-operate investments across all continents.

As well as continuing to invest upward of £250 million ($347 million) annually in technology and innovation, the company says it is ready to further boost its investments in the natural resources industry.

Whyte said: “Investor partnerships can support the rapid changes in technology and emissions compliance that our mining customers are facing. Investing millions of dollars in capital for a mine’s power plant is a risk for any company, and, as a partner, Aggreko takes on this risk instead of the mining company. It is a smart way for miners to do business in the post-COVID and renewables era.”

Aggreko’s Global Head of Mining, Rod Saffy, said miners struggling to get funding for capital expenditure projects were looking to outsource, and there was a trend toward creating partnerships with providers.

“Partnerships provide more value beyond de-risking project finances,” Saffy said. “There are technology and emissions risks, so by partnering with us, for example, we aren’t just supplying equipment and labour, we share in decision making and project milestones, we invest and update technology on-site and navigate social and environmental impacts together.”
Saffy said companies looking to build power stations for the first time particularly benefited from supportive partnerships with Aggreko.

“Power stations are our core business, and they have become much more complex on mine sites than they have been in the past,” he said. “It is challenging to get funding to build power stations, and miners are needing support to integrate renewables into their plans immediately or in the future, or needing solutions designed from scratch.

“Partnering with us is a sustainable and beneficial business solution. Miners are wanting hybrid power stations that might utilise a mix of energy sources such as diesel, gas, solar or battery, for example. They also want that power to be scaled up or down and upgraded as their needs change and new technology comes online.”

Saffy said mines throughout the world were becoming less dependent on mass-scale thermal plants to deliver baseload power through national grids.

“With the cost of renewable power generation falling, there is also growth in localised microgrids, which means less dependence or complete independence from the grid,” he said. “Miners in Australia, Africa and South America, where there is less infrastructure in remote locations, are finding it particularly helpful to partner with us from the start of a major project.”

One such example is the Gold Fields Salares Norte Mine in northern Chile where Aggreko has become a major investor, and partner for the mining project for at least 10 years. The mine is located 190 km from the nearest town and is 4,500 m above sea level, and Aggreko is creating an off-grid hybrid power solution, comprising of diesel and solar for the harsh environmental conditions. Aggreko estimates the mine will experience $7.4 million in cost energy savings across the 10 years.

Saffy said the benefits for Aggreko in partnering and investing with miners from the beginning of their project to the end of the life of mine was beneficial for both parties.

“As a partner, Aggreko de-risks the threat of future innovation and technology for miners,” he said. “Our build, own, operate and maintain model frees up working capital without increasing the debt ratio for mining projects. Modular equipment also gives miners the ability to leverage innovation at low risk and not be concerned about having the latest equipment.

“We benefit too, by showcasing our expertise and innovations throughout a project’s lifecycle and support mining companies to reduce emissions and increase their operational efficiencies.”

Late last year, Aggreko committed to achieving net zero emissions by 2050.