Tag Archives: Agnew

Santos and Gold Fields agree on new gas deal to supply WA mines

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Santos says it has entered into a new gas supply agreement with Gold Fields for its three gold mines in the state.

The company, Western Australia’s biggest domestic gas supplier, will supply nearly 5.5 PJ of natural gas from its Varanus Island gas plant (pictured) over three years, starting on July 1, 2020, as part of the agreement.

In Western Australia, Gold Fields owns and operates the St Ives open-pit/underground mine, the Agnew underground mine and the Granny Smith underground mine. These have throughput capacities of 4.7 Mt/y, 1.3 Mt/y and 3.5 Mt/y, respectively.

The 56 MW Agnew Hybrid Renewable project recently got up and running at Gold Fields’ Agnew mine. This includes five 110 m wind turbines, each with a rotor diameter of 140 m, delivering 18 MW; a 10,710-panel solar farm generating 4 MW; a 13 MW/4 MWh battery system; and an off-grid 21 MW gas/diesel engine power plant.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said: “We are delighted Gold Fields has come back to Santos after a short hiatus, reinforcing our position as Western Australia’s biggest supplier of gas to the local market.

“Santos supplies around 40% of the state’s total domestic demand, and we are committed to ongoing investment in developing new gas supplies in Western Australia.

“In these challenging economic times, we are focused on ensuring local gas prices remain competitive for Western Australian businesses over the long term.”

EDL brings 56 MW hybrid renewable energy project online at Gold Fields’ Agnew mine

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Global energy producer EDL says it has successfully completed the 56 MW Agnew Hybrid Renewable project for Gold Fields’ Agnew gold mine in Western Australia.

All five wind turbines are now up and running and successfully integrated into Australia’s largest hybrid renewable microgrid, and the first in the country to power a mine with wind-generated electricity, it said.

In favourable weather conditions, the project has delivered up to 70% of Agnew’s power requirements with renewable energy, according to the company. This is significant as the Agnew mine consists of two underground complexes and one 1.3 Mt/y processing plant consisting of a three-stage crushing circuit, two-stage milling circuit, gravity circuit and carbon-in-pulp circuit.

Upon announcing the project in June 2019, Gold Fields and EDL said the A$112 million ($78 million) investment would help create a “world-leading energy microgrid combining wind, solar, gas and battery storage”.

The project comprises four key components controlled by an advanced microgrid system. This includes five 110 m wind turbines, each with a rotor diameter of 140 m, delivering 18 MW; a 10,710-panel solar farm generating 4 MW; a 13 MW/4 MWh battery system; and an off-grid 21 MW gas/diesel engine power plant.

The Australian Renewable Energy Agency (ARENA) provided A$13.5 million ($8.7 million) in funding to the project as part of its Advancing Renewables Program.

EDL Chief Executive Officer, James Harman, said: “We applaud Gold Fields for their vision in embarking on this journey with us, and their role in leading the Australian mining industry’s transition to clean, reliable renewable energy.

“We also acknowledge the incredible achievement of the EDL project delivery team and our contractors. We faced transport challenges during the bushfires and impacts on personnel from COVID-19 restrictions, as well as geographical, logistics and technical challenges to safely construct this innovative energy facility in the remote WA Goldfields region.”

Gold Fields Executive Vice President Australasia, Stuart Mathews, said the completion of the project was an important milestone for Gold Fields, EDL and the broader mining industry.

“We are proud to be able to showcase this project with EDL as an outstanding example of the capacity of the hybrid renewable energy model to meet the dynamic power requirements of remote mining operations.

“For our people and our stakeholders, this is a very clear demonstration of our commitment to reducing our carbon footprint whilst strengthening our security of supply.

“Having built our internal technical capability and developed strong relationships with our business partners, we are well placed to continue to implement renewables solutions elsewhere in our business.”

Siemens and juwi push forward with microgrids for mining systems

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Siemens and renewable energy developer juwi have joined forces to enter into a strategic technology partnership to focus on microgrids for the mining industry.

An agreement, signed this week, will see the two companies aim to roll-out and continually develop the advanced microgrid control system that enables the seamless integration of power from renewable energy to a mine’s off-grid power supply, they said.

The Siemens Sicam based microgrid control platform, a proven and tested technology Siemens says, is the basis for juwi´s Hybrid IQ microgrid controller. juwi, meanwhile, brings industry-specific domain knowhow and a track record of planning and executing renewable energy projects at mine sites.

Juwi says: “The solution adapts to changing orebodies, processing and power requirements whilst providing detailed reporting and analysis to operations teams and management. Together, the strategic partners create a unique, standardised solution for the mining market.”

This will simplify the use of renewable energy for mines and help provide a cost-effective and reliable power supply, especially for mine sites that operate off the grid, according to the companies.

Robert Klaffus (left), CEO Digital Grid at Siemens Smart Infrastructure, said: “Microgrids can bring high levels of reliability and improved energy quality to energy-intensive industries such as mining; and are an attractive alternative when autonomous power supply is needed.

“We are looking forward to the technology cooperation with juwi on microgrids and believe it will boost the commercial appeal of renewable energy to the mining industry.”

Stephan Hansen (right), a Board Member and COO of the juwi Group, added: “Renewable energy will not only future-proof mining operations, but reduce cash operating costs today. The centrepiece to this is the juwi Hybrid IQ system. It enables us to provide hybrid power that goes far beyond what has been industry practice until now.”

The co-operation between juwi and Siemens has already resulted in the successful delivery of the solar power plant at Gold Fields’ Agnew gold mine in Australia, the companies said. A renewable and low-carbon energy project at the mine is being developed by global energy group EDL. juwi is working with EDL to deliver 4 MW Single Axis Tracking PV installation together with cloud forecasting and an advanced microgrid control system to enable integration with the mine off-grid network at Agnew.

The partnership has also provided hybrid power to Australia’s largest and oldest marine research station on the Great Barrier Reef of Queensland. Heron Island now uses juwi Hybrid IQ to combine solar with a redox flow battery to replace diesel fuel.

“Both projects showcase the next generation of hybrid systems and enable mine sites to significantly lower their carbon footprint and their cash operating costs,” they said.

Gold Fields goes for low-carbon energy solution at Agnew gold mine in Australia

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Gold Fields says its Agnew gold mine, in Western Australia, will become one of Australia’s first mining operations to be predominantly powered by renewable and low-carbon energy following a deal with global energy group EDL.

Gold Fields and EDL have agreed on a A$112 million ($78 million) investment in what the gold miner says is a “world-leading energy microgrid combining wind, solar, gas and battery storage”.

The Agnew mine consists of two underground complexes and one processing plant, with a capacity of 1.3 Mt/y consisting of a three-stage crushing circuit, two-stage milling circuit, gravity circuit and carbon-in-pulp circuit.

The microgrid will be owned and operated by EDL, which will recoup its investment via a 10-year electricity supply agreement with Agnew.

The project, which is already under construction, has the backing of the Australian Government with the Australian Renewable Energy Agency (ARENA) contributing a recoupable A$13.5 million to its construction, according to Gold Fields.

The Agnew microgrid is initially forecast to provide 55-60% of the mine’s energy needs, with potential to meet almost all energy requirements at certain times, Gold Fields said. The Agnew microgrid will consist of five wind turbines delivering 18 MW of power, a 10,000-panel solar farm contributing 4 MW, a 13 MW/4 MWh battery energy storage system, and a 16 MW gas engine power station to underpin supply when required.

EDL said stage one consists of a new off-grid 23 MW power station incorporating 16 MW gas and 3 MW diesel generation and 4 MW photovoltaic solar, which is on track for completion in mid-2019. Stage two includes 18 MW wind generation, a 13 MW battery and an advanced micro-grid control system, with construction recently started and due for completion in 2020.

The hybrid microgrid at Agnew follows the announcement of a microgrid at Gold Fields’ Granny Smith mine, featuring 20,000 solar panels and a 2 MW/1 MWh battery system planned for completion in the December quarter.

Gold Fields Australia Executive Vice President, Stuart Mathews, said the Agnew hybrid microgrid project reflects the company’s strategic objective to strengthen energy security, optimise energy costs and reduce its carbon footprint through innovation and the adoption of new technologies.

“The ARENA contribution supports and encourages our efforts. We are making staged investments across our mines in Western Australia to significantly ramp up the innovative use of renewables to meet our dynamic and growing load requirements,” Mathews said.

The funding is part of ARENA’s Advancing Renewables Programme. ARENA CEO, Darren Miller, said the project marks a growing shift in the mining sector’s thinking around powering mine sites.

“The project Gold Fields is undertaking will provide a blueprint for other companies to deploy similar off-grid energy solutions and demonstrate a pathway for commercialisation, helping to decarbonise the mining and resources sector,” Miller said.

Gold Fields says it is embracing innovation and technology across all levels of its mining operations and Mathews said this also extended to its approach to power supply and demand management.

“At Agnew, we will be using instrumentation to detect approaching cloud cover for solar and, potentially in the future, detect changes in wind velocity. Based on this data, the gas power station will have forward-looking systems in place to schedule gas generators in response to forecast changes in the renewable energy supply,” he said.

EDL CEO, James Harman, said the company has seen increasing momentum towards hybrid energy solutions, particularly in remote, off-grid locations. “EDL is pleased to be an active contributor to Australia’s transition to sustainable energy,” Harman said. “Our knowledge and experience from our successful hybrid renewable projects will enable us to provide Agnew with greater than 50% renewable energy over the long term, without compromising power quality or reliability.”

Mathews said: “The configuration of Agnew’s hybrid solution is a first for Gold Fields and is an excellent example of using innovation and technology to improve efficiencies and lower costs. We are fast sharing lessons from this project with our other regions, as part of our global strategic initiatives to improve our security of supply and reduce carbon emissions.”

Gold Fields is the third largest gold producer in Australia. It currently owns and operates three mines in Western Australia and is completing the construction of a fourth, Gruyere, in joint venture with Gold Road Resources.

Barminco gets another four years at Gold Fields’ Agnew mine

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Barminco Holdings has been awarded two four-year contracts at Gold Fields’ Agnew gold mine in Western Australia, extending its existing underground mining services and diamond drilling agreements through to 2022.

The contracts are worth some A$335 million ($238 million) and include options for a further 12-month extension. They cover underground mining services at Agnew, including development and production activities and associated services at the Waroonga mine, and diamond drilling at both Waroonga and New Holland.

Barminco CEO Paul Muller said the contracts extended Barminco’s long-standing relationship with Gold Fields to 12 years, having commenced operations at Agnew in 2010.

“Over that time, we have completed approximately 50 km of development and 2.5 Mt of production,” he added.

Gold Fields Executive Vice President Australasia, Stuart Matthews said: “The Agnew mine continues to be a strong performer in the Gold Fields group, exceeding both production and cost guidance last year, whilst also increasing revenues.

“We are committed to ongoing investment to maintain its life and production profile, with a further $25 million exploration programme underway at Agnew this year, and investment in key infrastructure projects, including the new accommodation camp for our employees and contractors.”

Agnew regularly produces over 250,000 oz of gold a year.

Barminco is currently in the middle of being taken over by Ausdrill in a deal that values Barminco’s equity at A$271.5 million.