11 Recently Announced Renewables in Mining Projects

Following similar articles in Energy and Mines Magazine Issues 2, 8, and 17, in this story, we’re publishing a new list of interesting and noteworthy projects. Unlike in previous years, there are many more projects that we have not included as renewables in mining becomes increasingly common and diverse. Our selection here includes small off-grid installations, power for accommodation, and ventilation, through to large MW PPA deals to provide 100% renewables to mine sites.

Feel free to let us know of more examples that we can highlight, contact andrew.slavin@energyandmines.com

1. ANGLO AMERICAN

RENEWABLE ENERGY DETAILS: 195MW Wind PPA

DATE: Announced June 2020

Anglo American’s Brazilian arm and Casa dos Ventos, a leading wind energy developer in Brazil, have agreed to form a joint venture to develop the Rio do Vento Wind Farm in the state of Rio Grande do Norte.

The companies will construct eight wind farms in the Rio do Vento cluster with a combined installed capacity of 504 MW. Construction of the wind farms will be completed in the second half of 2021.

Of the eight wind farms, three will produce 195 MW of energy for consumption by the Anglo American Group’s Brazilian arm, making it the Group’s first unit generating its own energy. The joint venture agreement is valid through 2041 and will supply 30% of the energy consumed by the unit.

According to Anglo American CEO Wilfred Bruijn, the arrangement will cut CO2 emissions by 430,000 tonnes annually. This will contribute to the goal to reduce group CO2 emissions by 30% by 2030 as envisaged in the Anglo American Group’s Sustainable Mining Plan.

Credit: CENTAMIN

2. CENTAMIN PLC

MINE: Sukari Gold Mine, Egypt

RENEWABLE ENERGY DETAILS: 30 MW Solar

DATE: Announced June 2020, Completion expected 2021

After a 2019 feasibility study, Centamin plc, a gold mining company listed in London and Toronto, has decided to implement a 30MW AC solar power installation at its principal asset, the Sukari Gold Mine in Egypt, according to International Mining. The mine is currently powered by captive generators that burn up to 100 million liters of diesel.

The study indicated that a minimum of 36MW DC / 30MW AC peak power hybrid solar plant would be the optimal capacity for an initial staged integration to the processing plant. Notably, Sukari is located in Egypt’s Eastern Desert, which enjoys some of the highest levels of solar irradiance globally, averaging over ten hours a day of sunshine. Nevertheless, battery storage of 7.5MW is needed to manage start-up and shut down surges.

The solar project, which is scoped over 85 hectares, would cost $37 million and meet about 25% of Sukari’s energy needs. Its capacity can be expanded in the future if so required.

Annually, it would save 18-20 million liters of fuel and reduce CO2 emissions by 48,000 – 53,000 tonnes.

3. COLLAHUASI

RENEWABLE ENERGY DETAILS: Solar PPA, 150 GWh annually

DATE: Announced July 2020

Chilean copper giant Collahuasi, has signed a long-term power purchase agreement (PPA) with solar power producer Sonnedix for the delivery of 150 GWh per year. The PPA is for a 24/7 supply of 100% renewable energy according to a statement from Sonnedix.

Collahuasi is the second-largest copper mining operation in Chile and the sixth-largest worldwide. The company produced 565,000 tons of copper and posted revenues of $3,147 million in 2019.

The company’s copper deposit of 10,380 million tons is one of the largest in the world. Its industrial facilities and the Rosario and Ujinaa mines are located in the commune of Pica, Tarapacá Region, where Sonnedix is constructing Sonnedix Atacama Solar – a 170 MW solar PV plant.

Sonnedix is a global, independent solar power producer, and its PPA with Collahuasi will ensure that 12% of the copper mine’s power requirement is met through renewable sources.

Jorge Gomez, CEO of Collahuasi, said the PPA would allow the miner to consolidate its transition to 100% green electricity, and augment its search for sustainable operations throughout its value chain.

4. NORTHERN MINERALS

MINE: Browns Range, Western Australia

RENEWABLE ENERGY DETAILS: 100kW PV, plus 200kWh storage

DATE: Announced May 2020

Soluna Australia, the energy storage division of Lithium Australia, has executed a Letter of Intent with Northern Minerals to supply the latter’s heavy rare earths mine at Browns Range in Western Australia with a renewable energy system including battery storage.

Currently, the mining project depends on expensive and polluting, off-grid diesel generation to power its processing plant and accommodation camp.

Soluna will install a 100 kW solar photovoltaic power generator and a 200kWh energy storage system in the form of lithium-ion battery packs. Though Northern Minerals will not incur any upfront capital cost, it will enter a power purchase agreement with Soluna.

Initially, Soluna will shift the mine’s accommodation camp to a renewable energy supply. However, the long-term goal is to reduce the use of fossil fuels across the entire operation.

The arrangement will allow Soluna to install and test its modular, rack-mounted energy storage system (ESS). The company intends to adopt this format of no-cost ESS installation in combination with a power purchase agreement for future sales.

“Lithium Australia is aware of the growing demand for off-grid and fringe-of-grid hybrid energy systems,” said the company’s managing director, Adrian Griffin. “Renewable energy won’t work without reliable storage and Soluna offers economical and sustainable solutions.

5. ANTOFAGASTA

MINE: Centinela, Chile

RENEWABLE ENERGY DETAILS: 100% of mine energy to be supplied through renewable PPA

DATE: Announced April 2020

Centinela, the copper mining unit of Chilebased, London-listed Antofagasta plc has signed a Power Purchase Agreement (PPA) with ENGIE Energía Chile S.A. for the supply of renewable power effective from 2022 until 2033. The entire power supply under the Agreement will be from renewable sources, according to Creamer Media’s Engineering News.

The Centinela copper mine is located 1350 km north of Santiago, in the Antofagasta region.

Under the agreement, Centinela will sell its 40% indirect interest in the Hornitos thermal power station to ENGIE. The transaction will result in an attributable post-tax writedown of about $43-million for Antofagasta.

Further, Centinela will also cancel two existing PPAs which were due to expire in 2026 and 2027.

Centinela’s power costs will start to significantly decline from 2020 onwards as a result of these arrangements. These would be “value accretive” even after considering the Hornitos power station writedown.

Antofagasta’s CEO, Iván Arriagada said in a statement: “With the completion of this agreement, from 2022 all our mining division’s power will be from renewable sources and at a lower cost as well. This is an important step in achieving our target to reduce our carbon emissions by 300,000 tonnes by 2022.”

Credit: ANTOFAGASTA

6. OZ MINERALS

MINE: West Musgrave, Australia

RENEWABLE ENERGY DETAILS: Wind, Solar, Storage

DATE: Announced February 2020

The West Musgrave Project is a planned, open-pit copper and nickel mine located in the remote Musgrave Province of Western Australia. OZ Minerals is focused on developing plans for West Musgrave that enable the site to be powered by 100% renewable energy, generated by methods such as wind, solar and battery storage. This challenge is to identify solutions that can help achieve 100% renewable energy usage at West Musgrave.

OZ Minerals is seeking novel solutions, systems and approaches that can assist in accelerating the speed at which operations at their future mine site, West Musgrave, become powered by 100% renewable energy.

“We believe, supported by the views of potential renewable energy suppliers, that 70-80 percent of the power needs for West Musgrave can be supplied by renewable sources, supplemented by battery storage and diesel or trucked gas-fired generation,” said Oz Minerals CEO Andrew Cole.

By using a broad energy mix the mine will become one of the largest, fully off-grid mines powered by renewable energy in the world.

7. USA RARE EARTH

MINE: Round Top Heavy Rare Earth & Critical Mineral Project, Texas

RENEWABLE ENERGY DETAILS: 100% Proposed 15 MW Solar

DATE: Announced July 2020

USA Rare Earth LLC will utilize the great solar irradiance in West Texas in its committed plan to power operations at its Round Top Heavy Rare Earth & Critical Mineral Project in Hudspeth County, West Texas with 100% renewable energy. (Intrado GlobeNewswire)

With southwest Texas enjoying annual average daily solar irradiance of more than 5.5kWh/m2/ day, the Round Top area ranks in the top category for solar irradiance at the National Renewable Energy Laboratory (U.S. Department of Energy).

A solar farm will need about 45 acres of land to produce the 15 MW of energy needed to power mining and processing at the project.

The Round Top Deposit has a 130-year mine life and hosts 16 of the 17 rare earth elements, plus other high-value tech minerals. Further, Round Top contains 13 of the 35 minerals deemed “critical” by the Department of the Interior. These include lithium, uranium, and beryllium.

Importantly, more than 60% of materials at Round Top will be used directly in green or renewable energy technologies.

“Our 100% renewable energy plan means that USA Rare Earth will be producing materials for clean, green, renewable applications – using a process that employs clean, green, renewable power,” said Said Pini Althaus, CEO of USA Rare Earth. “In addition to powering our project, our approach will enable us to be a net provider of clean energy.”

8. AGROMIN LA BONITA

MINE: Acarí, Peru

RENEWABLE ENERGY DETAILS: Solar PV 960 KW in microgrid

DATE: Announced September 2020

Caterpillar dealer Ferreyros supplied a microgrid power system for the Agromin La Bonita underground copper mine in Acarí, Peru. (International Mining)

The equipment comprises more than 2,400 ground-mounted photovoltaic solar modules, 12 of 75 KW power inverters, a 1.5 MVA power transformer, and a 500 m medium-voltage transmission line. The solar modules supply over 960 KW of energy for mine ventilation and lighting, or processing, and workforce accommodation.

Lima-based Ferrenergy, the energy business of Ferreycorp, has entered a power purchase agreement with the Agromin La Bonita mine. It selected Ferreyros for the supply of the Caterpillar microgrid power system to the site.

“Southern Peru features some of the highest photovoltaic power potential in the world, making it an ideal location for a solar microgrid system,” Bart Myers, General Manager for Caterpillar Large Electric Power Solutions, said.

9. BHP

MINE: Queensland coal mines

RENEWABLE ENERGY DETAILS: PPA for Solar, Wind, Hydro and Gas

DATE: From 2021

BHP announced a PPA with clean energy generator CleanCo for the supply of energy from low-emission sources and renewables such as solar and wind to its Queensland coal mines. (BHP)

The five-year agreement, effective January 1, 2021, will cut emissions at the mines by 50% by 2025. Between 2021 and 2025, it will save about 1.7 million tonnes of CO2e, or approximately the emissions from 400,000 combustion engine cars.

As a result, a mix of grid, solar, wind, hydro, and gas will power the Queensland mines during the said period.

For the first two years power will be sourced from CleanCo’s low emissions portfolio which includes hydro and gas generation assets, before new projects come online.

However, from late 2022, when the Western Downs Green Power Hub comes on, and early 2023, when the Karara Wind Farm powers up, the energy supply will switch to solar and wind.

“This is an important step forward in BHP’s transition to more sustainable energy use across our portfolio and a first for our Australian operations,” said BHP’s President Minerals Australia, Edgar Basto. “It will diversify our energy supply, help to reduce our energy costs, and reduce BHP’s Australian Scope 2 emissions by 20 percent from FY2020 levels.”

Credit: BHP

10. TECK RESOURCES

MINES: Carmen de Andacollo

RENEWABLE ENERGY DETAILS: 72 MW PPA with wind, solar, hydro

The Carmen de Andacollo copper and gold operation in central Chile, which is 90% owned by Teck Resources, has signed up with AES Gener, a 66.7% subsidiary of AES Corp, for the supply of 72 Megawatts (MW) (550 GWh/ year) of renewable energy. (Canadian Mining Journal)

Under the long-term PPA, which took effect on September 1, 2020, AES Gener will supply renewable energy from its portfolio of wind, solar and hydro assets to the Carmen de Andacollo mine until the end of 2031. The mine’s working life is estimated to last until 2035.

The shift to renewable energy will eliminate 200,000 tonnes of greenhouse gas (GHG) emissions annually, the approximate equivalent of taking 40,000 vehicles off the road, at Andacollo.

“This agreement takes Teck a step closer to achieving our sustainability goals, while also ensuring a reliable, long-term clean power supply for (Carmen de Andacollo) at a reduced cost to Teck,” said Don Lindsay, president and CEO of Teck.

Teck aims to be carbon neutral by 2050. Accordingly, as a sub-goal, it is moving to switch all its power needs in Chile to renewable sources by 2030.

In February, Teck entered a PPA with AES for the supply of 118MW of renewable energy to its Quebrada Blanca Phase 2 (QB2) copper mining project in Chile.

11. CALEDONIA MINING CORPORATION

MINE: Blanket Gold Mine, Zimbabwe

RENEWABLE ENERGY DETAILS: 12 MW Solar PV

Date: Announced October 2020

Gold producer Caledonia Mining Corporation Plc has contracted with international renewable energy provider Voltalia for the construction of a 12MW solar power plant at its primary asset, the Blanket Gold Mine in Zimbabwe.

On successful commissioning, expected in the last quarter of 2021, the solar plant will provide about 27% of the mine’s total electricity demand.

The solar plant is a strategic investment to safeguard from any further deterioration in the quality of grid power that could force Caledonia to resort to additional diesel-generated energy for its operations.

The plant will also reduce the mine’s ecological footprint, or the impact it has on the environment.

In September, Caledonia raised US$13 million through an “At the Market” sale of 597,963 shares to pay for the construction of the solar plant at the Blanket Mine.

Credit: Caledonia Mining