Tag Archives: mine power

Downer to power up FMG and Alinta’s Chichester Solar Gas Hybrid project

Environmental, Mine operation news, Mining services, Steel and iron ore, Sustainable mining, , , , , , , , ,

Downer is to help turn Fortescue Metals Group’s Chichester Hub iron ore operations into a solar power leader following the award of circa-A$165 million ($113 million) in contracts by Alinta Energy.

These agreements will see the company build Alinta’s 60 MW Chichester solar farm and supporting power infrastructure in the Pilbara region in the north of Western Australia as part of the Chichester Solar Gas Hybrid project, which FMG announced details of last week. It is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

The project will see the construction of a new solar photovoltaic generation facility at Chichester Hub iron, as well as a circa-60-km transmission line linking Fortescue’s Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and 35 MW battery facility.

Work awarded includes the engineering, procurement and construction of the Chichester solar farm, around 60 km of transmission line, two new substations and the upgrade of another, Downer said.

Grant Fenn, CEO of Downer, said the award is another endorsement of Downer’s experience and leadership in delivering renewable energy projects.

“We are looking forward to delivering the project in partnership with Alinta Energy and we are expecting an efficient integration of the solar farm and supporting power infrastructure into Alinta Energy’s existing network in the Pilbara,” Fenn said.

Downer is one of Australia’s largest and most experienced providers in the renewable energy market and power systems sectors, according to the company, delivering services to customers requiring both utility and commercial scale sustainable energy solutions.

The project is expected to be completed in the first half of 2021, Downer said.

EDL to power Centennial’s Mandalong mine with waste coal mine gas

Coal technology, Environmental, Mine operation news, Mining services, Power supply for mines, Sustainable mining, , , , , , ,

Global sustainable energy producer EDL has announced a 20-year contract to build, own and operate a waste coal mine gas power station for Centennial Coal’s Mandalong mine, in the Lake Macquarie area of New South Wales, Australia.

When completed in late 2020, the power station will have installed capacity of 8 MW and convert waste gas extracted during mining operations into electricity to power the mine.

The Mandalong thermal coal mine is an underground longwall that commenced operations in 2005. It has approval to produce 5.5 Mt/y of coal.

EDL Chief Executive Officer, James Harman, said: “For decades, EDL has supported our customers in the mining industry to achieve greenhouse gas abatement and cost savings with our waste coal mine gas power stations,” he said. “We are delighted to provide Centennial Coal with this reliable, sustainable energy solution and look forward to a long, collaborative partnership.”

Centennial Deputy Chief Executive Officer, Peter Parry, said: “As well as fuelling nearly 40% of NSW’s coal fired electricity, Centennial is also a significant energy consumer to power our mines. EDL, by converting the methane gas we extract during the process of mining to generate electricity to meet our energy needs, provides a practical and cost-effective arrangement that also reduces our emissions.”

Kalium Lakes fired up at Beyondie potash project

Energy minerals, Mine operation news, Mineral project development, Mining services, Power supply for mines, , , , , , ,

Kalium Lakes says it has awarded a contract to design, supply, install and commission a 7.5 MW gas fired power station for its Beyondie sulphate of potash project (BSOPP), in Western Australia, to Clarke Energy.

The scope of the contract includes three Jenbacher 616, 2.5 MW gas reciprocating engines, a Kohler KV440C2 black start generator, high and low voltage switch rooms, auxiliary equipment and the power station controls system, according to Kalium Lakes.

Gas for power generation will be supplied from Kalium Lakes’ owned and operated gas lateral that will also be built as part of the project for the stage one 90,000 t/y SOP production capacity.

The project aims to commence production at 90,000 t/y of SOP, before ramping up to 180,000 t/y of SOP for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life and high margin producer, Kalium Lakes says.

According to the potash developer, the scope under this contract has already commenced with early works to de-risk the project schedule and enable early contractor involvement for optimal integration with the power generation requirements of the project.

Clarke Energy has also provided several smaller, diesel generators for the project from its signature Kohler brand, which will provide power to the village and the remote brine transfer pump stations, Kalium Lakes said.

Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, said: “Not only has Clarke Energy worked with us to find a technically viable solution for our project, it has gone the extra mile to also achieve the WHS Accreditation which is a requirement for this contract under Kalium Lakes’ funding from the Northern Australia Infrastructure Facility.”

Earlier this month, Kalium Lakes’ board made the final investment decision on the project, allowing development to move forward.

Clean and future energy strategies on the IMARC agenda

Mining events, Mining services, Power supply for mines, Sustainable mining, , , , , ,

Industry experts will discuss how they are managing energy changes and gaining insights on Australia’s critical mineral supply as a part of this year’s International Mining and Resources Conference (IMARC), in Melbourne, Australia, later this month.

Clean and future energy strategies and Australia’s critical minerals supply are key topics for IMARC’s 2019 conference, providing attendees with the opportunity to learn from industry leaders.

As rising energy costs and changing perspectives on sustainability and the environment impact on global mining operations continue to have an effect, particularly those within Australia, discussions on the future of clean energy are essential for all industry professionals, IMARC organisers say.

There has been support from mining, METS, government and industry associations collaborating on ways to manage and overcome issues surrounding Australia’s energy mix.

New partnerships are being developed that focus on clean and alternative energy solutions, coupled with strong government backing for exploration, growth and investment in areas such as renewables and the energy mix.

At this year’s conference, attendees can learn how large-scale hybrid systems are affecting mining operations and overall energy efficient goals in a presentation by juwi Renewable Energy’s Global Head of Hybrid, David Manning, as a part of the energy session. SIMEC Energy Australia Chief Executive, Marc Barrington (pictured), will discuss the company’s renewable focuses for 2020 and beyond.

“The price of energy is a critical input cost in the development of the mining and resources sector in Australia,” Barrington said.

“The National Electricity Market (NEM) is transitioning from fossil-fuel dominated supply to one of renewables backed with storage technologies and is daily dealing with the ‘energy trilemma’ – delivering emissions and price reductions as well as improving reliability.

“This transition is creating input cost uncertainty.

“Mining and resource sector companies can play a critical role in the NEM transition through partnering with businesses such as SIMEC and applying a strategic focus on electricity procurement to access better input cost solutions.

“SIMEC is seeking to create ‘win-win’ customer outcomes and is keen to work closely with all of our customers to achieve this and to enable crucial demand-side response capabilities.

“Securing demand response can reduce the price of electricity as well as improve NEM reliability.”

Barrington remains confident strategic procurement “can secure energy price outcomes at globally competitive prices for Australian businesses trying to compete on the world stage”.

The Energy session will enable professionals to gain insights on what funding and investments are going into the development and deployment of clean energy solutions as well as benefit from government and industry insights into the supply of critical minerals in Australia.

IMARC, developed in collaboration with its founding partners the Victorian State Government of Australia, Austmine, AusIMM and Mines and Money, is where global mining leaders connect with technology, finance and the future. For more information, please visit https://imarcmelbourne.com/

International Mining is a media sponsor of the IMARC event

Wärtsilä to continue supplying power for Masbate gold mine in Philippines

Power supply for mines, Precious metals, Sustainable mining, , , , , ,

Wärtsilä has signed a four-year extension to its operation and maintenance (O&M) agreement with PhilGold Processing and Refining Corp (PGPRC), a gold mining operation in the Philippines.

The company’s Masbate mine is dependent upon its own power plant to provide the electricity needed to run its operations, and reliability of supply is mission critical, according to Wärtsilä.
Wärtsilä has run and maintained the plant since 2009, delivering reliability through high plant availability, and enabling PGPRC to consistently meet its production targets. The extension to the agreement was placed with Wärtsilä in June 2019.

The remotely located plant operates on three 18-cylinder and two 16-cylinder Wärtsilä Vasa 32 engines and one 12-cylinder Wärtsilä 32 engine, and has a total power output of 36.93 MW. The plant is located around 360 km southeast of the country’s capital, Manila. There is no connection to the grid, and the island-mode plant is the sole provider of energy to the mine.

Eugene Occena, Process Plant Manager, PGPRC, said: “For the past 10 years Wärtsilä has operated and maintained our power plant, which has freed us up to concentrate on our main business of mining. They have carried out this work with the utmost efficiency and have tailored the agreement to meet our specific needs and wishes.”

Erwin Vanderkerff, Director, Service unit Australasia, Wärtsilä Energy Business, said: “For PGPRC the adjusted agreement means O&M at set cost with no surprises, and technical support always at hand. In this we utilise Wärtsilä Expertise Centre for providing remote operational support and extensive technical support.

“The customer’s evolving requirements have been answered to by the further customised scope of the agreement. Performance guarantees covering heat rate and annual availability of the power plant have been defined. The extended agreement creates peace of mind for PGPRC, and it can concentrate in its core business.”

In the Philippines, Wärtsilä has altogether 2,000 MW of installed power capacity, of which 110 MW is operated and maintained by Wärtsilä under O&M agreements.

Suncor to cut GHG emissions by 25% with natural gas project

Environmental, Mine operation news, Power supply for mines, , , , , ,

Suncor has made the decision to replace its coke-fired boilers with two cogeneration units at its Oil Sands Base Plant, in Alberta, Canada, as it looks to lower its carbon footprint within the province.

The cogeneration units will provide reliable steam generation required for Suncor’s extraction and upgrading operations and generate 800 MW of power, the company said.

The power will be transmitted to Alberta’s grid, providing reliable, baseload, low-carbon power, equivalent to around 8% of Alberta’s current electricity demand. This project will increase demand for clean natural gas from Western Canada, Suncor said.

Mark Little, President and CEO, said: “This is a great example of how Suncor deploys capital in projects that are economically robust, sustainability minded and technologically progressive.

“This project generates economic value for Suncor shareholders and provides baseload, low-carbon power equivalent to displacing 550,000 cars from the road, approximately 15% of vehicles currently in the province of Alberta.”

The project cost is estimated to be C$1.4 billion ($1.06 billion), delivering a high teens return and projected to be in-service in the second half of 2023.

“This project will substantially contribute to the company’s goal of an increased C$2 billion in free funds flow by 2023,” the company said. “This will be achieved through oil sands operating cost and sustaining capital reductions along with margin improvements. It will also contribute materially to Suncor’s publicly announced greenhouse gas (GHG) goal.”

Replacing the coke-fired boilers with cogeneration will reduce GHG emissions associated with steam production at Base Plant by some 25%. It is also expected to reduce sulphur dioxide and nitrogen oxide emissions by approximately 45% and 15%, respectively, the company says.

The cogeneration units will eliminate the need for a flue gas desulphurisation (FGD) unit, which is currently used to reduce sulphur emissions associated with coke fuel. Decommissioning the FGD unit will reduce the volume of water the company withdraws from the Athabasca River by around 20%.

“By producing both industrial steam and electricity through a single natural gas-fuelled process, cogeneration is the most energy-efficient form of hydrocarbon-based power generation. Suncor believes this project will contribute to both Alberta and Canada’s climate ambitions.”

Primary Power acquisition to expand BESTECH mining and engineering reach

Mining mergers and acquisitions, Power supply for mines, , , , , , ,

BESTECH says it is building its power services business and mining engineering capacity through the acquisition of Primary Power Group.

The deal, which will also allow the engineering firm to expand into the Greater Toronto Area (GTA), will see the company achieve:

  • Strategic growth objectives in key markets – BESTECH’s multi-disciplinary engineering team serves clients in the GTA and has global clients who will be well-served by this expansion;
  • Continued business from Primary Power Group’s extensive client portfolio, which includes many of BESTECH’s clients, and;
  • Greater opportunities to provide power and mining engineering services, and to recruit talent in southern Ontario.

Primary Power was founded in 1993 and has been a leader in medium and high-voltage power distribution services and panel manufacturing for more than 25 years, according to BESTECH. It has previously worked on projects with Xstrata Nickel (now Glencore) and Vale Inco (now Vale) in Ontario.

BESTECH, meanwhile, recently spun off its technology solutions division and launched a new company, SHYFTinc.

Primary Power Group will integrate into BESTECH’s Power Systems division, led by Dino Titon, Power Systems Engineering Manager.

Alex Kesik, retiring President and GM of Primary Power, said: “It is with great confidence that we take this opportunity for our team members to work with a larger group and to provide even greater service to our valued clients. We anticipate many unique opportunities for continued innovation and advancement. We are very impressed with BESTECH’s vision and commitment to partnership at every level.”

Patrick Fantin, BESTECH’s Engineering Services General Manager, said: “Primary Power Group has developed an outstanding business and has a reputation for service and quality. They are well-regarded by our major clients for local substation designs. As a team, we see this expansion as a partnership among professionals who care about the work we do, and the clients and communities we serve.

“We are excited about what our combined talents and capabilities will mean for our global clients. It enhances our capacity, our presence, and provides a direct and seamless expansion into the GTA.”

Cummins powers up solutions drive in face of mining energy evolution

Environmental, Mining equipment, Power supply for mines, , , , , , , ,

Craig Wilkins, Director of Prime Power & Global Sales Support at Cummins, sees the company’s new HSK78G natural gas generator as a mainstay in the mine power sector, able to offer companies fuel flexibility, reliable power generation and comparatively low emissions.

With the industry currently undergoing an evolution in power inputs – the focus having shifted towards renewable and clean options that can offer both a reduced carbon footprint and energy diversity – the HSK78G can be used alongside the likes of diesel, solar and wind energy to ensure mining companies have a reliable power solution in place.

Cummins debuted the 1.6-2 MW generator series at the 2019 Middle East Electricity show back in March and Wilkins told IM at the AIMEX 2019 show in Sydney, Australia, last week (Cummins stand pictured above) that the reception from the mining sector has been positive.

The HSK78G (pictured, left) has been running at Blackham Resources’ Matilda-Wiluna gold mine, in Western Australia, for a few years, in addition to units being deployed at mine sites in China. The company also has plans to test the generator’s efficiency at altitude with a mining customer trial lined up next year in Latin America.

Cummins says the HSK78G is a prime power solution for heavy industry installations in the most extreme environments. Its engineering is designed to push the boundaries of performance and challenge the perceived limitations of natural gas generators for mining operations, according to the company, with the generator designed to operate at the highest altitudes in the most remote locations, all far from the closest grid. This sees the unit offer full power capability without derating at 50°C (122°F) and 500 m (1,640 ft) above sea level (asl), and up to 4,000 m asl with some derating.

It also offers “barrier-breaking fuel flexibility” and the ability to burn pipeline natural gas, flare gas down to 40 methane number (MN), biogas and ultra-low fuels down to 273 BTU/scf without derating. At the same time, it can handle contaminant levels on very aggressive fuels, Cummins says.

This sees the generator deliver high electrical efficiency of up to 44.2% (50 Hz) and 43.5% (60 Hz) on a range of pipeline natural gas down to 70 MN, with as low as 250 mg/NM³ nitrous oxide emitted without aftertreatment – bringing it in compliance with the relevant EU and US standards.

The most obvious markets for the generator are those regions with plentiful natural gas supplies – Australia being one – according to Wilkins. Yet, as all operators are looking to cut their fuel and electricity consumption and diversify their energy mix, the 78 L generator set could end up reaching a far wider audience.

Battery backup is being discussed across the mine power sector currently, with installations such as the wind power solution at Glencore’s Raglan nickel mine in Nunavik, Canada, held up as an example of how effective renewable energy can be even when the wind is not blowing.

Despite this, not all renewable power solutions using batteries offer an economic business case for mines. In some applications, a battery’s weight and size can also inhibit operations.

This leaves a void for other energy inputs to fill. Wilkins is confident natural gas and the generators Cummins is now producing can fill that void in many markets looking for a cleaner power supply than the alternative diesel equivalent, and one that can be relied on regardless of weather.

Cummins has invested heavily in the HSK78G, which it is hoping will become a platform it can build a natural gas generator portfolio on.

“It can deal with all different gas types,” Wilkins told IM, explaining that the generator has been fitted with a variety of sensors that assess the energy input and react accordingly. This allows customers to use a variety of natural gas in the generator from different industrial sectors, while benefitting from the same performance.

Different sensors on the machine can constantly monitor the generator’s performance, providing the baseline predictive maintenance solution every mining customer operating in a remote region is currently after.

Realising this 12 cylinder generator is likely to be used as part of a wider power solution – not necessarily being in constant operation – the HSK78G is also fitted with a load variation system that is able to manage fluctuations in power supply.

As the ‘platform’ comment would indicate, the HSK78G is not the start and end of Cummins’ venture into the gas generator field.

Wilkins said the company is already working on the launch of a 500 kW gas generator that could be used in remote communities (such as those around mine sites). This is expected to be launched later this year.

He also said Cummins’ engineers envisaged both 16-cylinder and 20-cylinder generators being added to the range.

The company is not setting its sights solely on natural gas as far as mining energy diversity goes.

Wilkins said. “We have got to be across a number of different solutions.”

To this end, Cummins has made investments in natural gas, diesel and batteries. It is also awaiting approval for its acquisition of fuel cell manufacturer Hydrogenics.

This corporate activity is a clear indicator of the changing power characteristics of not only the mine power segment, but the wider industrial energy sector.

“Customers are demanding more of a ‘solution’ than a product now,” Wilkins said. “There are a lot of companies out there that can provide the individual components, but we want to provide these solutions.”

Cummins HSK78G gas generator gets a runout at Blackham’s Matilda-Wiluna gold mine

Mine operation news, Mining services, Power supply for mines, Precious metals, , , , , , , ,

Blackham Resources has enlisted the help of Cummins and its new HSK78G gas generator to power up production at the Matilda-Wiluna gold operations in Western Australia, according to the engine manufacturer.

Blackham’s power supplier, Perth-based Contract Power Group, selected the newly launched Cummins HSK78G generator to supply prime power for the next stage of expansion at the mine. The new gas-powered generator will provide up to 20% of the mine’s power as the company strives to increase its production.

Located 500 m above sea level, Matilda-Wiluna is subject to extreme temperatures, ranging from -2° C to 50° C throughout the year. Considering these conditions, the HSK78G’s capability to deliver power in remote areas and extreme climates – generating up to 1,800 kWe in ambient temperatures of 55°C – was a crucial requirement behind the choice to select the generator, Cummins said.

With a power density of 2 MW from the new Cummins 78-litre, V12 gas engine, the HSK78G provides high electrical efficiency up to 44.2% on a wide range of pipeline natural gas down to 70 methane number (MN) without impacting power and efficiency output, according to the company.

Craig Wilkins, Director of Cummins Prime Power Segment and Global Sales Support, said: “It’s an exciting time in the power solutions sector and we’re delighted to deliver the latest innovations in gas generator technology to Blackham Resources. The company operates on a massive scale and required a sizeable dependable power generation solution to operate in difficult conditions. Cummins’ HSK78G offered the required performance levels as well as one of the industry’s longest major overhaul service cycles of 80,000 hours.”

Marc Grosser, General Manager of Contract Power Group, said: “We are happy with the performance of the unit so far and the associability of maintenance items. It’s a compact unit and very well designed. Cummins have ensured there is fast service and support when called upon, despite our extremely remote location.”

Blackham expects to produce 70,000-80,000 oz of gold in its 2020 financial year and aims to progress its Sulphide Expansion project to unlock the large sulphide reserves and resources it has delineated at Wiluna.

Pacific Energy to power up Jaguar copper-zinc mine

Base metals, Environmental, Mine operation news, Mining services, Power supply for mines, , , , , , ,

Pacific Energy’s wholly-owned KPS subsidiary has secured a new contract to supply electricity to Round Oak Minerals’ Jaguar copper-zinc mine, in Western Australia.

The Jaguar mine, around 250 km north of Kalgoorlie, was first brought into production in 2007, with, Round Oak, through CopperChem, purchasing the mine, including the existing power station, in 2018. The operations consist of underground mines and processing facilities producing copper and zinc concentrates for export.

Under the new contract, KPS will acquire the existing 12.9 MW power station (10.5 MW gas and 2.4 MW diesel) from Round Oak for a price of A$2.5 million ($1.7 million) and immediately assume responsibility for operation of the power station. Within five months of acquiring the power station, KPS intends to complete a range of optimisation and enhancement work to improve fuel efficiency to an agreed target range, optimise control systems and reach agreed KPI’s for station reliability, it said.

The contract is expected to commence following settlement in August and will run for an initial term of four years, with Round Oak having an option to extend for a further term.

James Cullen, Managing Director of the power generation specialist, said: “We are grateful for the confidence that Round Oak has placed in KPS to take over full responsibility for power supply to the Jaguar site. The key driver for Round Oak awarding the contract to KPS was to realise operating efficiencies and the KPS team looks forward to showcasing its knowhow in gas and diesel fuelled technology to deliver on this.”