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Miners continue cost control focus amid demand uptick, BME’s Hennecke says

As BME gears up to showcase its explosives and blasting offering to a Mining Indaba crowd in Cape Town, South Africa, that is encouraged by the global energy sector’s appetite for minerals, the company’s Managing Director warns that the mining industry is still focused on reducing its cost base.

The demand for minerals – many of which can be sourced in Africa – is good news for the future of mining, and will no doubt be an important focus at this year’s Investing in Mining Indaba, which runs from February 6-9.

However, the pressure on mines is still all about low-cost production, Ralf Hennecke, Managing Director of Omnia Group company BME, warns. This year, BME will be exhibiting at the event to showcase its mining and explosive solutions, including its flagship AXXIS Titanium™ electronic initiation system.

Hennecke is bullish about the positive impact of the energy revolution on mining, as there is widespread expectation that volumes of battery-related commodities will need to ramp up considerably. Efforts to decarbonise the world economy are relying on energy technologies that are mineral-intensive, he explained.

“The average amount of minerals needed for a new unit of power generation capacity will grow by 50%, according to predictions by the International Energy Agency,” he said. “This is because solar photovoltaic plants, wind farms and electric vehicles generally require more minerals to build than their fossil fuel-based counterparts.”

The typical electric car, for instance, requires six times the mineral inputs of a conventional car, and a wind plant requires nine times more mineral resources than a gas-fired plant. This quickly translates into considerable demand growth in certain minerals.

“In terms of lithium, the largest consumers are now electric vehicles and battery storage applications,” he said. “It is expected that these applications will also be the largest consumer of nickel within less than 20 years.”

While this is good news for Africa, where many battery minerals will be sourced, the continent’s mining sector will always need to be globally competitive, BME says. This means efficiency across the mining value chain, rooted in on-mine productivity and safety.

“As an early-stage activity in the mining cycle, BME recognises the importance of blast design and execution in laying the groundwork for optimal operations,” Hennecke said. “Our technology developments including AXXIS™ and other digital innovations allow quality blasting that raises productivity in energy-intensive phases such as loading, hauling, crushing and milling.”

Only by optimising efficiencies can mines achieve a place in the lowest cost quartile of producers, which in turn enhances their commercial viability and makes them less reliant on commodity price cycles, BME says.

“Given the cyclical nature of the mining industry, Africa’s mineral producers can build a long-term future for the sector by remaining sustainable even through the dips in the cycle,” Hennecke said. “There is a depth of experience and technologies, developed right here on the continent, that can help put them in that advantageous position.”

The AXXIS Titanium system being showcased at Mining Indaba has been trialled and tested in various global mining destinations and conditions.