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BHP, TransAlta solar and battery storage facility set to cut Nickel West Scope 2 emissions

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A new solar farm in the Northern Goldfields of Western Australia has been switched online thanks to a collaboration between BHP and renewable energy provider TransAlta, which, BHP says, will reduce Scope 2 emissions at the Nickel West northern operations by 12%.

The Northern Goldfields Solar and Battery Storage Facility is one of the world’s largest off-grid mining solar and battery energy storage systems and features about 70,000 solar panels across 90 ha of land.

The initiative, which will replace power currently generated from diesel and gas, will be a significant step towards BHP’s aim to decarbonise its operations by 30% by the 2030 financial year.

It includes a 27.4 MW solar farm at Mt Keith, and a 10.7 MW solar farm and 10.1 MW battery at Leinster, which is integrated into TransAlta’s Northern Goldfields remote power grid.

Construction on the facility began in 2022, creating more than 100 direct and indirect jobs in the Goldfields and Perth regions, and will support ongoing employment during operations.

BHP Australia President, Geraldine Slattery, said: “Renewables are increasingly powering BHP operations around the globe and this facility – the first we have built on one of our sites – is another step forward in our plans to reduce our operational greenhouse gas emissions by at least 30% by FY30, from FY20 levels.

“Nickel is in high demand for batteries and electric vehicles, and this progress is part of our commitment to delivering more sustainable, lower carbon product to our customers.”

BHP Nickel West Asset President, Jessica Farrell, said the initiative was one of many ways Nickel West was reducing its operational emissions – it was also considering wind farms in the northern and southern Goldfields.

“It’s fantastic to see the Northern Goldfields Solar and Battery Storage Facility switched on,” she said. “It’s on the back of a team of dedicated engineers, technicians and many others bringing new ideas to the table to support the development and integration of reliable and affordable renewable power to our business.

“The initiative will help Nickel West reduce Scope 2 greenhouse gas emissions at our northern operations by 12%. This will result in an estimated reduction of 54,000 t of CO2-e per annum – the equivalent of removing 23,000 combustion engine cars2 from the road each year.”

TransAlta’s President and Chief Executive Officer, John Kousinioris, said the company was excited to flick the switch on what was a ground-breaking project for the organisation.

He said: “We are excited to work together with BHP to realise this innovative solution to meet BHP’s renewable electricity needs. This facility represents a first for both companies – it’s BHP’s first on-site, large-scale renewable project globally, and it’s TransAlta’s first renewable energy facility in Australia. It’s also the first time we have combined solar and battery storage to offer a hybrid solution.

“This unique project enabled us to apply the extensive capability and technical knowledge we have to the development of a large-scale facility in a remote part of Western Australia.

“Working under our longstanding relationship with BHP, we were able to collectively solve challenges and break new ground at the same time as playing a part in WA’s exciting and rapidly accelerating transition to a cleaner energy future.”

Sakatti-FutureSmart Mining

Anglo American highlights next FutureSmart Mining advances at Woodsmith, Sakatti

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Anglo American has provided its latest sustainability performance update, highlighting a number of technological advancements the company is looking to take at its in-development Woodsmith polyhalite mine in the UK and its exploration asset, Sakatti, in Finland.

Anglo American says it has an integrated approach to sustainability in project development, helping secure its ability to deliver responsible long-term growth in future-enabling metals and minerals.

The company is moving towards its goal of carbon neutral operations by 2040, evolving its pathways as it progresses, learns and as technologies develop.

At the end of 2022, its Scope 1 and 2 emissions were 21% below the peak levels of 2019 – a significant reduction that, Anglo American says, reflects its transition to 100% renewable electricity supply across its South America operations, with Australia to follow in 2025.

In southern Africa, it is working in partnership with EDF Renewables to build a 3-5 GW renewable energy ecosystem of wind and solar generation capacity, designed to tackle its largest remaining source of Scope 2 emissions and support energy reliability and grid resilience while catalysing broad socio-economic opportunities.

While Scope 3 emissions reduction is largely dependent on the decarbonisation of Anglo American’s value chains and the steel industry, in particular, it is progressing towards its ambition to halve these emissions by 2040.

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, provided several references to Quellaveco, Anglo American’s most technologically-advanced mine that uses automation, a remote operations centre and high levels of digitalisation, when looking at its FutureSmart Mining™ plans at Woodsmith, a 5 Mt/y operation that could ramp up to 13 Mt/y.

McCulley, who also led development of Quellaveco, said Woodsmith will be developed as a benchmark for sustainable mining. This includes plans for the mine to be a low carbon, low water and low waste operation, with no tailings generation and with a minimum impact design.

“We hope this can show a way of how mining can be done in the future,” McCulley said of this approach at Woodsmith.

When it comes to Sakatti, Alison Atkinson, Projects & Development Director, said the development could end up being “our next greenfield project”.

The project is a rich multi-metal deposit with not only copper, nickel and cobalt resources, but also platinum, palladium, gold and silver.

“High concentrations of metal combined with consistency of the mineralisation between the boreholes make Sakatti a unique deposit,” Anglo American says of the project. Its resources are estimated to be sufficient for mining operations to last more than 20 years.

Atkinson said Sakatti is being designed as the next generation of FutureSmart Mining, building on what it has learned from Quellaveco and Woodsmith, particularly when it comes to ensuring there is minimal surface footprint and “using technology and innovations to deliver even better sustainability outcomes”.

She added: “Sakatti is set to be a remotely operated, low carbon-underground mine with an electric mining fleet using technology and mining methods that will create zero waste and enable high degrees of water recycling, contributing to a sustainable supply of critical minerals.”

The company also sees the potential to use sorting technologies for coarse particle rejection and material recovery opportunities.

Rio Tinto, Yindjibarndi Energy Corp sign renewable MoU for Pilbara operations

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Rio Tinto and Yindjibarndi Energy Corporation (YEC) have signed a memorandum of understanding (MoU) to explore opportunities to collaborate on renewable energy projects on Yindjibarndi country in the Pilbara region of Western Australia.

The two companies will study and evaluate a range of opportunities including wind and solar power as well as battery energy storage systems. The initial focus is on rapidly exploring the potential development of a solar power generation facility for the supply of energy to Rio Tinto.

Rio Tinto operates four gas-fired power stations in the Pilbara. About 600 MW to 700 MW of renewable generation is estimated to be required to displace the majority of gas use across its network. The company is currently assessing the development of approximately 300 MW of solar projects. The collaboration opportunities currently being explored by Rio Tinto and YEC, if progressed, would be complementary to renewable energy developments on Rio Tinto Iron Ore’s electricity grid.

YEC was established in June following an agreement between Yindjibarndi Aboriginal Corporation (YAC) and renewable energy developer ACEN Corporation (ACEN) to progress the development of major renewable energy projects on Yindjibarndi Ngurra (country) – an area covering approximately 13,000 sq.km within the Yindjibarndi Native Title Determination Areas.

YEC’s initial plans include a Stage 1 target of 750 MW of combined wind, solar and battery storage with construction to commence within the next few years. The collaboration opportunities being considered by Rio Tinto and YEC relate to some of these Stage 1 projects.

YAC Chief Executive, Michael Woodley, said: “Yindjibarndi Ngurra is ideally suited to developing renewable energy generation and our people are encouraged by Rio Tinto’s interest in building this capacity with us. This will strengthen our existing partnership and provide long term benefits for our community, while also ensuring that we can protect and preserve the areas of cultural, spiritual and environmental significance within our Ngurra.”

ACEN International CEO, Patrice Clausse, said: “This MoU signifies more than just a partnership; it’s a testament to the shared vision of sustainable energy development on Yindjibarndi Ngurra. It is the perfect blend of traditional significance and modern technology, designed to harness the limitless potential of the Pilbara’s sun and wind, while respecting the deep-rooted connection of the Yindjibarndi people with their land.

“Together, we are crafting an energy future that is not only renewable, but also renewing, by empowering local communities and contributing to a greener future.”

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “We are focused on repowering our Pilbara operations with renewable energy through the end of this decade and beyond by replacing gas and diesel with clean energy alternatives. The Pilbara is blessed with abundant year-round sunshine and strong winds at night, making it one of the most attractive places in the world to harness solar and wind power for energy generation. We’re excited to be deepening our partnership with the Yindjibarndi People through this agreement and look forward to working closely with them.

“We recognise we have a large carbon footprint in the Pilbara and are exploring a number of innovative solutions to help address this, including future collaborations with other Traditional Owner groups in the region.”

Rio Tinto has committed to reducing its Scope 1 and 2 emissions by 50% by 2030 across its global operations, with an estimated $7.5 billion planned to be spent on decarbonisation projects, predominantly in the second half of the decade. These projects will support a longer-term ambition of net-zero emissions by 2050.

Rio Tinto’s rail network, which connects its Pilbara mines to ports at Cape Lambert and Dampier in Western Australia, traverses Yindjibarndi Country. Rio Tinto has held a Participation Agreement and Indigenous Land Use Agreement with YAC, the representative body for the Yindjibarndi people, since 2013.

Last year, Rio Tinto and YAC signed an updated agreement aimed at strengthening ties and delivering improved social and economic outcomes for the Yindjibarndi people. The agreement reflects a joint commitment to work together to create more opportunities for the Yindjibarndi people to participate in Rio Tinto’s operations, including direct and indirect employment opportunities, and build sustainable long-term benefits to the community.

Pacific Energy to integrate more ‘clean energy’ into Tropicana gold operation

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Pacific Energy says it has been awarded the contract to integrate 62 MW of clean energy into its existing 54 MW gas fired power system at the Tropicana gold mine, 330 km northeast of Kalgoorlie in Western Australia.

Tropicana is owned by AngloGold Ashanti Australia Ltd (70% and manager) and Regis Resources Ltd (30%).

The renewable expansion of the existing power system will be delivered under a 10-year build-own-operate agreement. When completed, the 116 MW power station will be the largest off-grid hybrid investment in the power provider’s portfolio, and, at time of contract, the largest off-grid gas-wind-solar-battery storage facility in the Australian resources sector, according to Pacific Energy.

The expansion will incorporate four 6 MW wind turbines, a 24 MW solar farm and a 14 MW battery storage system (BESS). The integrated power facility’s intelligent control system, which has been developed in-house by Pacific Energy, will optimise input from the high penetration renewable energy and storage technologies and allow the system to run hydrocarbons-free for extended periods of time, the company says.

Pacific Energy has designed the new system to support AngloGold Ashanti’s strategy of reducing its global net carbon emissions from energy use by 30% by 2030, as part of its roadmap to net-zero carbon emissions by 2050.

Overall, the renewables integration is expected to reduce Tropicana’s diesel and gas consumption for power generation by 96% and 50% respectively, slashing carbon emissions by an average of 65,000 t/y over the life of the agreement, according to Pacific Energy.

Pacific Energy Chief Executive, Jamie Cullen, said: “This is an excellent outcome for our long-time client, AngloGold Ashanti. We’ve been on the journey with them since 2012 and we are incredibly pleased to apply proven global technologies and our in-house expertise to help decarbonise their operations without losing power reliability or efficiency.

“To date, we are the only operator to successfully supply hydrocarbons-free power to mine sites in Australia.

“We expect our new system to reduce the mine site’s overall power generation emissions by 50%. It’s a really exciting prospect for us and AngloGold Ashanti, and one we’ve worked hard to achieve on our client’s behalf.”

Delivery of the project, which is slated to be Australia’s most remote large-scale hybrid power system, will be coordinated by Pacific Energy’s Remote Energy and Integrated Renewables divisions. The company will capitalise on its fully-integrated capabilities by manufacturing the BESS, high-voltage switch room and PV ring main units in house at its Western Australia-based facilities, it says.

Pacific Energy is expected to begin site works in July this year, with the project due for completion in early 2025.

Centamin’s Sukari solar power plant performing ahead of expectations

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Centamin says the solar plant at its Sukari gold mine, in Egypt, has entered the final stages of commissioning and is delivering savings ahead of expectations.

Furthermore, it says continued progress has been made to assess the opportunity to use Egyptian grid power at Sukari.

The solar plant, which is made up of a 36 MW solar farm and 7.5 MW battery–energy storage system, has been consistently delivering 36 MW DC, converting to 30 MW AC of power, since early September, the company said. This reduction in exposure to volatile fuel pricing with commissioning is saving the company up to 70,000 litres per day of diesel and averaging a reduction in diesel consumption of 22 million litres per year, according to Centamin.

Based on current diesel prices, this means the plant has the potential to provide annual cost savings of $20 million, alongside an expected reduction in Scope 1 greenhouse gas (GHG) emissions of 60,000 t/y CO2 equivalent and a subsequent reduction in volume of diesel trucked to site.

Full commissioning of the solar plant is expected this quarter, the company added.

Centamin previously awarded the engineering, procurement and construction contracts for the 36 MW solar farm and 7.5 MW battery–energy storage system at Sukari to juwi AG and Giza Systems. juwi was contracted to design, supply and integrate the Sukari solar and battery plant into the current diesel power plant, while Giza Systems was contracted to install the Sukari solar plant. To maximise the total energy generation, the project is using bifacial solar photovoltaic modules and single axis tracking. juwi Hybrid IQ microgrid technology will enable the integration of the solar and battery system into the existing off–grid network and support the operation of the existing power station, according to the company.

On top of the solar plant news, Centamin revealed it is actively engaged with government and independent power providers to further reduce its reliance on diesel at Sukari. Its initial proposals to supply 30–50 MW AC of grid power to Sukari have been received and an internal evaluation is underway for potential integration from 2024, it said.

Fifty megawatts of AC grid power supply creates the potential to fully displace the use of diesel for power generation at Sukari, Centamin said. The minimum 30 MW AC of grid power, combined with the existing 30 MW AC of solar power, creates the potential to operate during daylight hours without using any diesel power generation and substantially offsetting diesel consumption during night time hours, it said.

The Egyptian grid power is generated from natural gas and a mix of renewables, such as hydro, solar and wind, creating the opportunity to further reduce Sukari’s GHG emissions. Further, the Egyptian industrial grid tariffs are significantly cheaper than the cost of power
generation using diesel fuel, Centamin said.

Martin Horgan, CEO of Centamin, said: “Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas emissions and realising material cost savings. The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders.”

Aggreko urges miners to embrace renewable power generation now

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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%.

Hindustan Zinc accelerates growth plans as it partners with industry leaders

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Hindustan Zinc Ltd (HZL), a Vedanta Group Company and the world’s second largest integrated producer of zinc and lead, is in acceleration mode, embarking on aggressive expansion and collaboration plans with technology and innovation partners from across the globe.

One of the first mining companies to commit to going “Net Zero” by 2050, it has a strong focus on ESG reinforced by plans to deploy battery-electric vehicles, tap into more solar and wind power potential and recycle waste heat from its captive power plants. Such ambitions are being delivered with up to $1 billion of finance in the next five years to “go green” and, by 2025, achieve focused sustainability goals.

At the same time as it is looking to become an ESG leader, it is boosting its mine and metal production by leveraging “smart mining” and an extensive resource and reserve base.

IM put some questions to Arun Misra, Hindustan Zinc CEO, to find out how the company intends to deliver on its lofty ambitions.

IM: HZL’s 2021 financial year to March 31, 2021, was characterised by record production volumes and profitability; how were you able to achieve such results given the COVID-19-affected constraints on your operations?

AM: The uncertainty has evolved continuously. If I give you an example, we started the year with the uncertainty of COVID only; that is people getting infected leading to absenteeism. It was so contagious, it spread so fast, half of our workforce were down. So, that struck us heavily, but, nevertheless, because we had experience of last year, and this time there was no lockdown of industry, we were able to figure out how to manage and we did manage well, compared to last year’s same quarter, which was also COVID-affected. We had introduced various measures to change the way of working to ensure a safer working environment for the employees. We also got our workforce vaccinated along with their families to further minimise the risks associated with the pandemic.

Hindustan Zinc CEO, Arun Misra, says Hindustan Zinc has been at the forefront of ensuring personal health, be it of its employees or local communities

Furthermore, the automation and digitalisation efforts at Hindustan Zinc are equipped to better withstand these testing times while ensuring quick revival to a normal level of operations.

IM: During the height of the pandemic, HZL – like other socially responsible mining companies – supported communities within or close by to its operations. Can you highlight some of the actions you took over this period and what impact they had?

AM: We at Hindustan Zinc have been at the forefront of ensuring personal health, be it of our employees or local communities. We have gone beyond and extended our support to the state of Rajasthan and the nation at large by contributing significantly to the PM Cares Fund and Rajasthan Chief Minister Relief Fund.

To meet the requirement of oxygen during the second wave of the pandemic, we had set up an oxygen bottling plant at our Dariba unit (Rajsamand district) in a record time of five days and had supplied over 14,000 cylinders of medical oxygen. We even arranged 500 oxygen concentrators to be imported and distributed for use across the state.

We had provided an insulated vaccine van to the Udaipur district medical health office to support a smooth vaccination drive and extended support to the local health administrations, by disinfecting villages by spraying and fumigating with sodium hypochlorite solution and providing medical gear like masks, sanitisers and PPE to local communities.

We even constructed an 8,000 sq.m air-conditioning dome hospital, based on German technology, which has a capacity of 100 beds – including 20 ICU beds – to accommodate patients and provide them with essential COVID treatment and medical facilities.

IM: ESG is obviously a major focus area for HZL, as these examples illustrate. Where specifically are you investing in your mining, power and smelting operations to make them more environmentally friendly?

AM: As a COP26 business leader, we have always been active in tackling the repercussions of climate change and have a strong focus on reducing carbon emissions. We are pioneers in India, declaring our ambition to convert all our mining equipment to battery-operated electric vehicles and will invest $1 billion over the next five years to make our mining operations environmentally friendly.

We are continuously expanding our renewable power of 274 MW of wind and 40 MW of solar under our greenhouse gas reduction goals by converting 50% of our total power to renewable forms in the next five years. We are among the only two metal and mining companies globally – and among four Indian companies – to be part of the coveted CDP (Carbon Disclosure Project) ‘A List’ 2020.

Furthermore, we have even published our first Task Force on Climate-related Financial Disclosure (TCFD) Report this year and have also joined the Taskforce on Nature-related Financial Disclosures (TNFD) forum to understand nature-related risks and opportunities and accelerate the transition towards a nature-positive and carbon-neutral future.

We have set Sustainability Development Goals to 2025 for ourselves where we are aiming towards sustainable operations for a greener tomorrow.

Hindustan Zinc has embarked on a major growth push at its mining operations with six ongoing expansion projects that will see over 100 km of tunnels developed for underground infrastructure and ore access

IM: At the same time as this, HZL has embarked on a major growth push at your mining operations with six ongoing expansion projects that will see over 100 km of tunnels developed for underground infrastructure and ore access. How are you able to balance your sustainable expansion plans with pledges to reduce your overall footprint?

AM: We strive for operational excellence and cost efficiencies and continue to stay on the growth track while being equally cognisant of our environmental, social and governance commitments, as well as our sustainability goals. We are leveraging more digitalisation and automation than we ever have, as well as engaging with technology leaders to do ‘more with less’.

The SmartDrive equipment we plan to use enables higher productivity, lower operating costs and, most importantly, zero local emissions, featuring in-built energy recuperation technology to make the most of regenerative braking energy during downhill driving and deceleration.

Being a power-intensive business, our key focus is always on reducing dependence on non-renewable sources of energy and enhancing our renewable power base.

IM: How important has it been to partner with like-minded technology and solution providers to ensure you meet these ambitious goals? Can you provide some examples here?

AM: We always look for partners who align with our philosophy of running sustainable operations to achieve company goals. We don’t need one-off solutions from companies to meet our targets; we need companies that will engage throughout our medium- and long-term projects and provide an element of customisation that factors in the realities of operating in our underground mines. We look for global partners to work with us where we exchange ideas, insights and knowledge with them in our growth journey.

We believe in providing opportunities to our business partners to leverage collaboration on technology, innovation and digitalisation, for long-term value creation and mutual growth.

To support our expansion plan, it is crucial for Hindustan Zinc to collaborate with mine development and operation partners who share a similar vision to ours, which is to leverage cutting-edge technology to create a positive impact on the entire mining fraternity. We are currently working with companies like Sandvik, Epiroc, Normet, Barminco, RCT, Siemens, etc as our global partners. We have engaged with them to provide end-to-end solutions rather than sourcing a specific supply or service.

Hindustan Zinc has given an equal platform for women engineers in its mining operations, appointing India’s first female underground mine manager in 2021

IM: You have already stated a goal of 1.5 Mt/y of zinc production in the upcoming years and extending your lead as India’s largest integrated zinc-lead producer; what is your vision for the company to 2030 and beyond?

AM: We are excited about our next phase of expansion to take mining capacity from 1.2 Mt per annum to 1.35 Mt/a. We will surely cross 1 Mt and we should be above our guidance if we achieve the desired run rates in our third and fourth quarters.

While our growth plans are a key part of the company’s future, we are also focused on becoming the leading zinc-lead-silver producer from an environmental, social and governance point of view. Our DJSI Ranking of being among the Top 5 companies in the metal and mining sector is testament to this. We are already winning significant awards for our ESG and CSR efforts, and expect this recognition to continue and grow as we head towards mapping out our 2025 sustainability goals.

Also, the mining value chain is changing across the globe and more consumers are becoming aware of the origins of the products they buy and the emissions that come with their production.

To collaborate with Hindustan Zinc on its green growth mission, email [email protected]

State of Play mine electrification report sheds light on benefits, hurdles and risks

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More than half of mining industry executives say they would electrify their mine sites for cost reasons, according to the latest State of Play report on electrification.

With the mining industry rapidly adopting new technologies to decarbonise their operations, the Australia-based State of Play platform has, again, sought to gather industry perspectives on the reasons companies are pursuing their shift away from fossil fuels.

The latest report follows the inaugural State of Play: Electrification report, released in 2020. This report, in part, led to the formation of the Electric Mine Consortium, a collaboration between mining and service companies aiming to accelerate progress towards the fully electrified zero CO2 and zero particulates mine.

The findings from the latest report – which took into account 450-plus individual surveys, five industry webinars and workshops and five interviews with “thought leaders” – have reinforced that mine electrification is a foundation enabler for the clean energy transformation of mine sites.

“The mining industry sees it as one of the most pressing transformation imperatives for the industry, facilitating precision automation and the digitisation of mine operations, whilst improving environmental and health outcomes,” it said.

At the same time, the report acknowledges that mine electrification technology is currently undergoing a “maturation process” with 49% of mining CEOs referenced in the report believing it will take existing mines on average five-to-10 years to electrify.

“Much of the technology for full electrification of mine sites is available today, however a significant knowledge gap exists across industry relating to the capability of electrified mines and the strategy for implementation,” it said.

Of the industry executives surveyed for the report, 57% expect the energy transition to be ‘the’ global trend that will have the biggest impact on the industry over the next 15 years.

Close to 90% (89%) expect mine sites will electrify within the next 20 years and 61% expect the “next generation” of mines will be all-electric.

In keeping with this, 83% expect renewable energy technologies will significantly change mining operations over the next 15 years; and 98% view mine automation as ‘the’ technology to benefit the most from electrification.

The responses related to benefits expected from this transition brought up some of the most interesting insights into the mine electrification evolution, indicating there are environmental, cost and reputation risk advantages associated with electrifying operations.

For instance, of the survey respondents, just over 90% (91%) expected the shift to an electrified system to create opportunities for new business models, while just over half (53%) say they would electrify their mine sites for cost reasons. The latter indicates that the cost of operating, establishing and maintaining new electrified equipment and infrastructure is now at a point where it could not only compete, but provide an economic advantage over fossil fuel-powered operations in the long term.

Close to four-fifths of respondents (79%) expect there to be a health-related industry class action in the next 15 years – indicating the reputational risk that could come with maintaining the operational status quo.

Some 71% view processing and 68% view extraction as having the greatest leverage in decarbonising the mining value chain, the report confirmed, while 46% expect innovation in carbon emissions and 42% expect innovation in diesel replacement will have the greatest environmental benefit in their business. Close to 90% (86%) expect transparency of the source of raw materials to become a significant driver of mining company value.

In key areas of the value chain, miners are faced with distinct choices of which technology to invest in (eg what type of battery storage technology, swap versus fast charging, etc). Of the survey respondents:

  • 60% believe miners should begin transitioning to an all-electric system with installing renewables. Electrical infrastructure was second with 37%, with heavy mobile equipment third with 32%;
  • 87% expect solar will become the most widely used energy source in the industry in the next 15 years, followed by gas, wind and diesel (58%, 44% and 39%, respectively);
  • 76% expect remote mine sites will use batteries to supplement renewables, followed by diesel with 53% and demand management at 42%;
  • There is no consensus as to which energy source will power heavy mobile equipment between lithium batteries, hybrids and diesel (28%, 21% and 18% respectively); and
  • 54% expect infrastructure to be the main challenge for transitioning mine sites to electric.

Of these stats above, the lack of consensus as to which energy source will power heavy mobile equipment is as enlightening as it is expected.

Battery-electric technology has matured to the point where one would expect it to dominate in the underground space, followed closely by fuel cell power, hybrids and some form of trolley, but it is a lot harder to predict the winner in the open-pit mining space, with major miners pursuing different developments related to hydrogen, batteries, trolley assist and alternative fuels.

“The mass adoption of electrification technology and storage systems to power mine sites has so far been slow,” the report stated. “It is clear that as an industry, this knowledge gap will need to be confronted largely through testing and piloting, which allows for the development of case studies for application, economic models and best practice guidelines.”

Of survey respondents:

  • 88% see cost as being the major risk of electrifying a mine site;
  • 63% report that risk aversion is holding back the implementation of electrification technologies;
  • 18% are willing to accept increased risk in asset design to increase financial returns; and
  • 41% are primarily focusing their innovation efforts on energy.

The report authors say the industry should focus on collaborating to overcome the barriers that are beyond the capacity of any one individual company to address, with such efforts requiring the mobilisation of policy makers, miners, service companies, investors and researchers in order to achieve the scale, capital and influence to drive success.

Of survey respondents:

  • The preferred partnering approach for achieving breakthrough innovations is collaborating with selected partners (65%);
  • The majority believe the best way the government can support innovation is through regulation and collaboration (#1 and #2, respectively);
  • 85% believe broad industry standards for battery types are required.
  • 52% see miners as the biggest group driving investment in electrification followed by suppliers and investors (39% and 38%, respectively); and
  • 60% believe the industry should focus its health risk innovation on airborne particulates.

Aggreko to energise mine power space with investment proposition

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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.

Teck and AES shake on renewable power agreement for Carmen de Andacollo copper mine

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Teck Resources and The AES Corp’s Chile affiliates, Compañía Minera Teck Carmen de Andacollo SA (CdA) and AES Gener SA, have entered into a long-term power purchase agreement to provide 100% renewable power for Teck’s Carmen de Andacollo Operation in Chile.

Under the agreement, CdA will source 72 MW (550 GWh/y) from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy.

The transition to renewable power will replace previous fossil fuel power sources and eliminate around 200,000 t/y of greenhouse gas emissions, the equivalent to removing over 40,000 passenger vehicles from the road, Teck says.

Don Lindsay, President and CEO of Teck, said: “Teck is tackling the global challenge of climate change by reducing the carbon footprint of our operations and working towards our goal of becoming carbon neutral. This agreement takes Teck a step closer to achieving our sustainability goals, while also ensuring a reliable, long-term clean power supply for CdA at a reduced cost to Teck.”

Andrés Gluski, AES Corporation President and Chief Executive Officer, said the company was honoured to continue working with Teck to help the miner progress towards its goal of carbon neutrality.

“By providing Teck with innovative renewable energy solutions, AES Gener is helping build Chile’s sustainable and reliable grid of the future,” Gluski said.

As part of its updated Sustainability Strategy, Teck has set the goal of being a carbon-neutral operator by 2050. In support of that long-term objective, Teck has established milestone goals including sourcing 100% of all power needs in Chile from renewable power by 2030 and reducing the carbon intensity of operations by 33% by 2030. Teck previously announced an agreement with AES Gener to supply renewable power for the Quebrada Blanca Phase 2 (QB2) project currently under construction. Once effective, more than 50% of QB2’s total operating power needs will be from renewable sources.

The Carmen de Andacollo renewable power arrangement is in effect as of September 1, 2020, and will run through to the end of 2031.

Alejandro Vásquez, Vice President, South America, Teck, said: “Switching to clean, renewable power for Carmen de Andacollo is another step forward in our ongoing commitment to responsible resource development across our operations and activities.”

Carmen de Andacollo is an open-pit copper mine located in the Coquimbo Region of central Chile, around 350 km north of Santiago. Teck owns a 90% interest in the mine, with Empresa Nacional de Minería holding the remaining 10%. It produced 54,000 t of copper in 2019.