Energy and Mines Magazine Issue 43

Issue

43 July

2022

How is climate change and ESG driving energy and mobility decisions for mining?

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How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

We asked a group mining energy experts a series of questions on ESG, decarbonisation, GHG targets and zero-emissions mobility. Their responses are diverse and insightful and provide a snapshot of the issues currently shaping the mine energy sector. All of these experts are key speakers at our Energy and Mines Australia Summit on September 6-7 in Perth.

“I think the next five to ten years will see a big expansion in the technology options available to solve some of our toughest challenges for reducing operational emissions” Kathryn Horlin, Program Manager Pathways to Net Zero, BHP........................................................ 6

“At South32, just four operations (Worsley Alumina, Illawarra Metallurgical Coal and our two aluminium smelters in Southern Africa) accounted for approximately 90 per cent of our Scope 1 and 2 emissions in 2021.

Our decarbonisation plans are focused on these operations so that we can fundamentally reduce our carbon emissions.

Holly Buschman, Vice President Sustainability Strategy & Community, South32......................... 8

“We are going to have to convert our power supply to near to 100% renewable to ensure we can comfortably meet out target” .

James Koerting, Manager - Energy, Gold Fields Australia.......................................................... 10

“The focus on ESG is driving a huge amount of activity to investigate and implement different ways of mining” Michelle Ash, Technology Executive Lead, OZ Minerals..........................................................................13

“We now need transformers and energy storage in the place of diesel bulk tanks.”

Cameron Sharp, Mining & Utilities Segment Manager – Large Electric Power, Caterpillar of Australia Pty Ltd....................................................... 16

“The best place to start is determining as much as you can about your existing load profile, energy demands, and the opportunities of your site to leverage variable generation resources.”

Duwayno Robertson, Principal Energy Storage Consultant, Power Grids APAC Energy Systems, DNV............................................ 18

“Don’t wait for perfect. There are lots of incremental decarbonization technologies that can be taken up today that get you working toward your goals” Michael Lewis, Technical Director, Technology, Komatsu............................................ 20

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“Bellevue Gold has set our intent of net zero emissions by 2026. The 2030 and 2050 targets are irrelevant to us. Companies setting net zero targets by 2050 is welcomed, but this is not overly ambitious as this is merely complying with Government targets for net zero by 2050.”

Darren Stralow, CEO, Bellevue Gold................22

“Our technology roadmap has the potential to fundamentally change how aluminium is made and decarbonise major portions of the aluminium value chain.”

Michael Gollschewski, Vice President Operations – Australia , Alcoa............................26

“To incentivize and progress to the next level of emissions reductions we need to significantly weight embedded carbon in the supply chain so that the companies really driving down their embedded carbon (which comes at a cost and therefore higher price) are competitive on something other than price” Jess Maddren, Segment Director- Pacific Region, Mining, Schneider Electric...................28

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“Which disruptive technologies are critical for meeting mine decarbonisation and ESG targets? - address the topic of crushing - a massive amount of energy is used in size reduction. I understand that liberation is essential, but new technologies that create access through micro-cracking and, if possible, ore sorting before grinding.”

Adam Best, Principal Research Scientist, CSIRO.............................................................................31

“We are at a critical stage where equipment purchased now will have an operating life which spans from the existing fossil fuel world to the new renewables based mining operations.”

Andrew Strickland, Head of Project Development, Blackstone Minerals...................33

“A zero carbon mine will not be developed and run under traditional models, therefore new partnership and business models will be required” Michelle Keegan, Principal, State of Play......36

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I think the next five to ten years will see a big expansion in the technology options available to solve some of our toughest challenges for reducing operational emissions.

Kathryn Horlin, Program Manager Pathways to Net Zero, BHP

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s Program Manager Pathways to Net Zero, Kathryn Horlin works with BHP’s assets and functions to enable achievement of BHP’s public decarbonisation targets. Her decarbonisation experience at BHP has included developing and deploying technology solutions that drive greenhouse gas emission reductions across BHP’s global operations.

Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Kathryn Horlin: BHP has been on this journey for many years and we are making good progress. Our strategy focuses on climate leadership through action to decarbonise and adaptation planning – underpinned by strong partnerships and development and deployment of a range of technologies.

I think the next five to ten years will see a big expansion in the technology options available to solve some of our toughest challenges for reducing operational emissions – like the question of how we eliminate diesel from our material movement. Diesel use made up about 40 per cent of BHP’s operational emissions in FY2021. We’re partnering with Caterpillar and Komatsu and participating in innovation initiatives to develop low-emissions haul trucks; and trialling electric trains and light vehicles across our operations.

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EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

KH: Electricity made up about 38 per cent of BHP’s operational emissions in FY2021 and we have already started switching to renewable energy as a priority. These changes make a big difference to our emissions profile, and the impact on our operations of a change such as this is often less of an issue compared to other more complex opportunities to decarbonise, since renewable energy is a like-for-like replacement of an existing power source. At most of our operations, which are connected to grid electricity, we’re moving onto multiyear agreements with renewable energy providers.

This is a really effective way of starting to bring our emissions down while we are still working on eliminating diesel. And to add a further reflection on this, we expect our electricity demand will increase significantly as a result of electrifying our fleet, and so the role of renewable energy in decarbonisation isn’t limited to simply replacing volumes of existing emissions intensive supply, but by providing a significantly expanded energy source for the future decarbonisation of BHP’s operations.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

KH: Technology readiness is one of the biggest

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challenges when it comes to decarbonising our operations. We have made an early and meaningful impact on our emission trajectory by switching to renewable energy but we have a more significant challenge with the question of how to eliminate diesel from our operations, because the technology readiness level of many emerging technologies is not there yet, and with respect to fugitive methane from coal production.

We continue to collaborate with industry peers and original equipment manufacturers (OEMs) to assess zero emissions material movement options and determine how they can be deployed at our operations in the future. Building upon strong foundations laid last year, the ‘Charge on Innovation Challenge’ has continued its positive progress.

Established in 2021 in partnership with Rio Tinto and Vale, and facilitated by Austmine, the global initiative challenges technology innovators to develop concepts for large-scale haul truck electrification systems.

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We recognise the essential role that original equipment manufacturers feature in the development of new products, bringing their expertise and know-how to help solve for the emissions challenge. In January 2022, BHP announced a partnership with Progress Rail and Wabtec to deliver and trial four battery-electric locomotives across our WAIO operations in 2024. The trial will include the testing of ‘energy recapture’ opportunities, with locomotives capturing and storing energy from braking on downhill slopes, before repurposing it to help power the empty train back to the Pilbara mines. This has the potential to reduce overall power demand by up to 50 per cent and, if successful, will be a significant, industry-changing step for rail operations. We have also continued our close working relationship with Caterpillar and Komatsu as a founding member of Komatsu’s GHG Alliance, supporting the development of a fully electrified haul truck.

For fugitives, the focus is on R&D, and may require offsetting until a solution is available.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

KH: It’s been a couple of years since I’ve attended the last in-person conference, so I’m really looking forward to connecting with both local and international colleagues from peer mining companies, OEMs and other industry participants.

Kathryn Horlin is participating in the Keynote Panel: Mining’s Energy, Decarbonisation, and ESG Transformation, Sept 6, 9:10 AM, Energy and Mines Australia Summit 7

At South32, just four operations (Worsley Alumina, Illawarra Metallurgical Coal and our two aluminium smelters in Southern Africa) accounted for approximately 90 per cent of our Scope 1 and 2 emissions in 2021.

Holly Buschman, Vice President Sustainability Strategy & Community, South32

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s South32’s Vice President Sustainability Strategy & Community, Holly Buschman supports delivery of South32’s commitment to continually improve sustainability performance globally. She has accountability for the strategic design of the company’s approach to climate change, social performance and sustainability-related reporting and disclosures.

Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Holly Buschman: There is no doubt that climate change and ESG are playing a key role in decision-making in our industry. At South32, we are sustainably reshaping our business through the lens of our climate commitments by increasing our exposure to the base metals critical in the transition to a low-carbon world. We produce the commodities needed for a low-carbon future and are investing further in base metals leveraged to the global transition. We have a goal of achieving net zero operational greenhouse gas emissions by 2050 and have set a target to halve our operational 8

greenhouse gas emissions by 2035. We are directing capital towards projects that will help us achieve these targets. As a diversified mining and metals company operating in a number of jurisdictions, our decarbonisation plans include a broad range of options, shaped by different mining and processing methods, energy markets and regulations.

At some of our operations we have the opportunity to decarbonise through processing or efficiency improvements, while for our refineries and smelters, the focus is procuring low-carbon energy and evaluating new technologies.

EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

HB: Our short-term emissions reduction activities are focused on process and energy efficiency projects. Over the medium to longer term, we are focused on the transition of our energy intensive assets to lower carbon alternatives. For example, studies are underway at Worsley Alumina for the transition from coal to gas as an interim step, followed by the potential deployment of renewable energy as these options become technically and commercially feasible. At Hillside Aluminium, we are working with ENERGY AND MINES MAGAZINE

Eskom, the South African public electricity company, government and other potential partners to identify options to procure lowcarbon electricity, given the current carbon intensity of the national electricity grid.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

HB: South32’s decarbonisation challenges over the medium and longer-term are differentiated from our peers by virtue of our portfolio. At South32, just four operations (Worsley Alumina, Illawarra Metallurgical Coal and our two aluminium smelters in Southern Africa) accounted for approximately 90 per cent of our Scope 1 and 2 emissions in 2021. Our decarbonisation plans are focused on these operations so that we can fundamentally reduce our carbon emissions.

A key challenge for Worsley Alumina is that its energy demand is driven by the need for steam in the Bayer alumina refining process, with electricity generated as a by-product using the existing onsite power stations.

The large-scale deployment of renewable energy such as solar PV and wind, which do not generate steam directly, would require a change to the existing infrastructure and connection with the energy grid. In addition, existing energy markets and infrastructure do not currently support the commercial deployment of renewable energy alternatives such as hydrogen or electrification. Hydrogen markets will need to develop substantially to become a viable alternative for Worsley Alumina using the existing refining process given the scale required. In addition, the South West Interconnected System network in its current form would not support the volume of

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electricity required for the refinery.

Our South African aluminium smelter, Hillside Aluminium, sources its electricity from the South African electricity grid, which is owned and managed by the public electricity company, Eskom. While the South African Government has committed to decarbonisation, the Eskom grid is currently reliant on carbon-intensive energy coal.

To decarbonise Hillside, we must engage with the South African Government, Eskom and other potential partners to identify options for renewable energy infrastructure. This will require a coordinated approach and is likely to be challenging, but it will be critical in reducing the greenhouse gas emissions of Hillside Aluminium and supporting the growth of the South African economy as the world transitions to a low-carbon future.

These challenges encourage us to think differently about how to efficiently transition our energy supply.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

HB: No one person in particular comes to mind. I am most looking forward to hearing about all the great ideas for decarbonising the diversified mining sector in Australia, to enable a supply of the minerals and metals essential to the transition to a low-carbon future.

Holly Buschman will participating in the Keynote Panel: Mining’s Energy, Decarbonisation, and ESG, on Sept 6, 9:10 AM, Energy and Mines Australia Summit

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We are going to have to convert our power supply to near to 100% renewable to ensure we can comfortably meet out target.

James Koerting, Manager, Energy, Gold Fields Australia

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s Manager, Energy for Gold Fields Australia, James Koerting manages the power supply portfolio for the Agnew, Granny Smith, St Ives and Gruyere gold mines and is actively involved with integrating innovative renewable energy and storage solutions with these remote mining operations.

EandM: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

James Koerting: Gold Fields have for a long time had a focus on sustainable gold mining and have sought to introduce cleaner, renewable technologies into the business as and when the risk and cost profiles were known and when there was certainty they could be managed. In 2021 we took a major step in acknowledging the climate imperative and made a firm commitment to reducing emissions by 30% by 2030 and net zero by 2050. This means Gold Fields are now integrating renewable energy projects and diesel free material movement into our strategic planning cycle which gives us a longer-term view of the technology integration roadmap and what decisions need to be made now to enable the future plans.

EandM: How is the drive to decarbonise shifting the thinking and approach to

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renewable energy for mining?

JK: The shift to having a 2030 target means we have a pretty good idea of how much renewable generation capacity we need to build into our microgrids by 2030 and also how much storage. This is going to be a significant investment in both wind and solar which we think will remain the most mature and readily available technologies for the best part of this decade.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

JK: Gold Fields 2030 target is against a 2016 baseline and accounting for growth, amounts to a 50% absolute emissions reduction target by 2030. If we think that the technology required for decarbonising material movement is at risk of taking a little longer (which accounts to half the emissions), then we are going to have to convert our power supply to near to 100% renewable to ensure we can comfortably meet out target. There are challenges here with ensuring the power system is as stable and resilient as we expect it to be.

The other challenge is the competition for panels and turbines along with the expertise needed to execute projects while our peers are racing to meet similar targets. The sooner we get moving on this the better.

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EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

JK: I’d like to hear from others experience with microgrid design, how they are pushing the envelope with renewables, the ENERGY AND MINES MAGAZINE

challenges they are overcoming and what storage options are coming to market.

James Koerting will be presenting the case study Moving to 100% Renewable Energy Mining on Tuesday September 6th, at 2:40 PM at the Energy and Mines Australia Summit 2022.

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The focus on ESG is driving a huge amount of activity to investigate and implement different ways of mining.

Michelle Ash, Technology Executive Lead, OZ Minerals

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s Technology Executive, at OZ Minerals, Michelle Ash is accountable for ICT, including digital, robotics and automation, Mining Technology and Transformation.

Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Michelle Ash: The focus on ESG is driving a huge amount of activity to investigate and implement different ways of mining. At OZ Minerals we have for many years focused not just on the economic value of a project or improvement, but also how it impacts key value metrics for our stakeholders, we call them stakeholder value creation metrics. There are several of these that focus specifically on ESG, because community, governments, our workforce are key stakeholders.

MA: There are key challenges around de-risking or how we think about risk, recapitalization, technology roadmaps as well as how we work with our stakeholders to drive the change.

EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

MA: It is driving key decisions about how we rethink renewable energy, but we still need to focus more on the risks of not implementing processes that use renewable energy, this will drive faster change.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

MA: Other key leaders who are looking to the future and wanting to not only drive change in our industry faster but to also pave the way for other industries to led to a decarbonized future.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

Michelle Ash is proving the Keynote address on September 6th at 8:30 AM, Net Zero by 2030: Oz Minerals’ Decarbonisation Commitment.

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We now need transformers and energy storage in the place of diesel bulk tanks.

Cameron Sharp, Mining & Utilities Segment Manager – Large Electric Power, Caterpillar of Australia Pty Ltd

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ameron is the local Mining Segment Manager for Caterpillar’s Large Electric Power Group. He comes from a technical background and has qualifications in Electrical, Mechanical, and Marine engineering.

Energy and Mines: How is the transition to electrified and decarbonised mines changing energy demand and use for miners?

Cameron Sharp: Electrification of Mining equipment significantly increases the energy demand of mines. Placing episodic energy demand on already capacity constrained electrical infrastructure.

To meet the decarbonisation targets, infrastructure capacity will also need to increase in parallel with the pace of electrification and the renewable transition. We now need transformers and energy storage in the place of diesel bulk tanks.

EandM: What new approaches are mining companies taking to hybrid energy solutions as a result of GHG emissions goals?

CS: Renewable penetration is increasing as mining companies become more comfortable with hybrid technologies.

More capable energy storage systems are allowing this to happen. Along with enabling higher penetration, Miners can

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now look at recouping excess energy from renewables instead of spilling it.

EandM: What type of fuel savings can miners now expect from integrating renewable energy and storage?

CS: It all depends on how much they wish to spend. The technology exists for 100% renewable solutions but this is generally cost prohibitive at this point in time. Fuel reductions are matched to capital outlay.

EandM: What are the main challenges of moving to larger hybrid solutions for offgrid mines?

CS: One of the major challenges is the available land to situate a solar or wind farm on.

EandM: How is the technology evolving to meet to support bigger and more complex mining microgrids?

CS: Caterpillar and our dealer network are in the fortunate position that our control platform and battery inverter the BDP1000 are already very capable of supporting bigger, more complex hybrid systems. Our grid forming batteryinverter has lightning fast response times in the 10-20ms range and a 200% overload capacity / 2 pu fault current contribution.

EandM: What are you hearing in terms of remaining barriers for mines adopting ENERGY AND MINES MAGAZINE

alternative energy solutions?

CS: The capital outlay for a hybrid systems is high - high capital expenditure / low operating expenditure. Things have changed significantly in recent years, to buy and install some generator sets used to be pretty low capex in comparison – low capital expenditure / high operating expenditure. The opex costs could be paid from the profit from the sale of the

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extracted resource, now the capex has to be funded by others or be incorporated into the mine set up costs which means raising significantly more investment. In Australia and other developed countries many miners utilise the services of an independent power producer to finance, own and operate the power system under a power purchase agreement (PPA). This route is not always as straight forward in other less developed countries.

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The best place to start is determining as much as you can about your existing load profile, energy demands, and the opportunities of your site to leverage variable generation resources.

Duwayno Robertson, Principal Energy Storage Consultant, Power Grids APAC Energy Systems, DNV

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ith 20 years experience in transportation and energy conversion including systems integration, field engineering, technology validation and manufacturing quality assurance, DNV’s Duwayno Robertson has worked on some of the automotive industry’s first hybrid vehicle systems, he has also worked with a wide range of energy storage systems including, lead acid, ultra-capacitors, nickel metal hydride, and lithium ion.

Energy and Mines: What are the key differences and considerations for mining and renewables experts when integrating a small vs large amount of renewable energy for a remote power system?

Duwayno Robertson: Small and large projects are going to be more similar than different.

Developers should plan similarly for both projects; determine your specific operational requirements, evaluate technologies against your specific needs, model the theorized system, then plan for deployment, commissioning, O&M, and decommissioning.

From there, the differences will center around costs and complexity. There will be some technologies that will be better suited for larger systems and vice versa. But that should be determined in the evaluation phase.

EandM: What are the latest technical due diligence and safety best practices for high18

penetration renewable energy projects for mining companies?

DR: Fire safety and due diligence is probably the most discussed aspect of renewable energy projects. Although we are at the early stages of a growth industry, there are best practices being leveraged to ensure that projects are deployed safely, and fire risks are being managed. UL 9540a is one such standard.

EandM: What lessons can be learned from current hybrid projects for mines on how to evaluate different technologies?

DR: One key lesson to be learned is that the best place to start is determining as much as you can about your existing load profile, energy demands, and the opportunities of ENERGY AND MINES MAGAZINE

your site to leverage variable generation resources. Knowing this will give you the ability to evaluate and model technologies against your specific application. We see clients not effectively accounting for this at the start. Some are relying on nameplate energy values and in most cases, these technologies require a deeper level of assessment.

EandM: With energy storage economics improving, is storage becoming standard for mining hybrid projects?

DR:: This is true for lithium battery storage.

Although lithium prices have risen due to recent global events, the pricing still makes it a “must consider” technology. Other technologies will have a longer runway to confirm their ability to be technically

competitive against lithium today and cost competitive against lithium tomorrow.

EandM: What do you see as the next milestones for energy innovation?

DR: One milestone for energy innovation will center on advancements in material science and the improvement of the specialty products that comprise energy storage and renewable technology. Another is the improving the implementation and management of distributed energy resources.

Duwayno Robertson is participating in the Panel: Developing Roadmaps to 100% Renewable Energy Mining, September 6, 3:20 PM, Energy and Mines Australia Summit, Sept 6-7

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Don’t wait for perfect. There are lots of incremental decarbonization technologies that can be taken up today that get you working toward your goals.

Michael Lewis, Technical Director, Technology, Komatsu

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ased in Tuscon Arizona, Michael Lewis is Technical Director at Komatsu where he is responsible for aligning technology strategy and development priorities across mining excavators, trucks, drills, and front-end loaders.

Energy and Mines: What is needed in order for mining companies to meet their carbon targets and timelines?

Michael Lewis: There are really three keys to success when it comes to laying the groundwork for meeting carbon targets: • Be flexible. The energy transition is going to take some time as OEMs design and release carbon-free equipment to replace the dozens of models that exist today. This will also offer an opportunity to reinvent some of the industry’s long-ingrained operational practices. For instance, the lowest ecological impact option may be moving toward an autonomous hydrogen- or battery-powered truck.

• Don’t wait for perfect. There are lots of incremental decarbonization technologies that can be taken up today that get you working toward your goals. For instance, Komatsu’s SR Hybrid Drive system, available on some wheel loader models, can result in a substantial carbon reduction per ton of material moved compared to a mechanical drive. Trolley assist on an existing diesel truck can yield emissions reductions and is a steppingstone for the battery trolley truck.

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• Explore partnerships with OEMs. By partnering with an OEM, mining operations can benefit from the opportunity to collaborate on product planning, development, testing and deployment of the next generation of mining equipment.

Komatsu’s Greenhouse Gas Alliance, whose members are initially focused on advancing a concept for a power-agnostic truck, is one example of such a partnership.

EandM: Which disruptive technologies are critical for meeting mine decarbonisation and ESG targets?

ML: When our customers ask us for solutions to help them work toward decarbonizing their mine operations, we point them first at examining their trucks, as haulage equipment generally produces a large share of carbon emissions at most mines. Three key technologies related to propulsion of haul trucks can help operations work toward achieving zero emission haulage: • Batteries. While certain sectors of mining, like underground soft rock, began moving from diesel to battery power years ago, the application of batteries to power larger equipment has posed more of a challenge.

Battery technology, however, is evolving quickly and new options are worth exploring.

• Hydrogen fuel cells. Komatsu has been working on research around hydrogen fuel cells for several years. To date, the technology has been applied more on a small scale, but ENERGY AND MINES MAGAZINE

the work to scale them to larger mining trucks is underway.

• Bio/synthetic fuels. Komatsu engines have been running with blends for years, the challenge is to achieve ever-higher blends all the way to 100%.

EandM: What are the main barriers for decarbonising energy and mobility for Australian mining companies?

ML: Australia is blessed with some of the highest solar radiation per square metre in the world, and solar energy is one of the lowest-cost ways of generating green energy for either direct use or to store in a carrier like hydrogen. However, the same climate that provides favorable solar energy provides challenges related to the availability of water to support hydrogen production, as well as high temperatures in the summer that can create additional engineering challenges.

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Fortunately, neither of these obstacles are insurmountable.

EandM: Who are you looking forward to connecting with at the Energy and Mines Australia Summit on September 6-7?

Having participated remotely in the 2021 Summit, I am particularly looking forward to engaging in person with customers this year!

This gathering will provide an unmatched opportunity for customers and other industry experts to engage in the collaboration and information sharing necessary to achieve our shared goal of advancing sustainability in mining.

Advancing Next Generation Zero-Emissions Mining Equipment will be presented by Michael Lewis at 9:00 AM on September 7th at the Energy and Mines Australia Summit, Sept 6-7.

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Bellevue Gold has set our intent of net zero emissions by 2026. The 2030 and 2050 targets are irrelevant to us.

Companies setting net zero targets by 2050 is welcomed, but this is not overly ambitious as this is merely complying with Government targets for net zero by 2050.

Darren Stralow, CEO, Bellevue Gold

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EO of Bellevue Gold, Darren Stralow is leading’s his companies ambitious net-zero by 2026 target. Bellevue plans to achieve this with a world class off-grid power station capable of an annual renewable energy penetration of ~80% Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Darren Stralow: Bellevue Gold has an ambitious goal of net zero greenhouse gas (GHG) emissions by 2026 for our Bellevue Gold Project. We believe this is truly world leading. Therefore, we have ensured that climate change and ESG are key considerations in all of our decisions, and we will have one of the highest, if the not the highest, renewable energy penetration rates for our power station of any global off-grid gold mine.

Bellevue Gold will be a remote gold mine in the Western Australian Goldfields, and we will be partnering with an Independent Power Provider (IPP) to build, own and operate an off-grid power station. This will include wind, solar and batteries whilst being underpinned by a thermal power station (such as gas and/or diesel).

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Given our self-imposed net zero target, all GHG emission tonnes will need to be accounted for at some stage – such as increased renewable energy, alternate fuels or carbon offsets – therefore we are evaluating where we should be making wise investment decisions now to avoid/ reduce GHG emissions from our mine, to mitigate the need for carbon offsets later.

Energy and Mines: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

DS: Theoretically, if Bellevue Gold would have used a 100% gas-fired power station then 73% of the mine’s emissions would come from the power station – therefore, we must address this source of emissions, through implementation of high renewable energy capacity with wind and solar to decrease the use of gas or diesel. A longer mine life will allow for more renewable energy which should result in lower energy costs and decreased exposure to volatile diesel prices.

The drive to decarbonise is allowing Bellevue Gold to fulfill our net zero goals, lower costs, increase energy security and attract talent. People want to work at companies that do good and in a ENERGY AND MINES MAGAZINE

competitive job market potential employees are seeking sustainability credentials, and we believe we can attract the best talent to build and operate this new gold mine – in part due to our credentials in sustainability and renewable energy.

Bellevue Gold is pioneering the carbon curve in our investor relations material, showing the forecasted emissions per ounce for Bellevue Gold, compared to the rest of Australia’s major gold mines. Of any gold mine in Australia, we are forecast to have the least emissions per ounce of gold produced. This is a clear competitive advantage, and we hope to set industry benchmarks on the use of renewable energy and the ability to decarbonise mines.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

DS: Bellevue Gold has set our intent of net zero emissions by 2026. The 2030 and 2050 targets are irrelevant to us.

Companies setting net zero targets by 2050 is welcomed, but this is not overly ambitious as this is merely complying with Government targets for net zero by 2050.

Additionally, most mines do not have a mine life which extends to 2050.

A Marginal Abatement Cost Curve is the best way to assess the feasibility in cost and amount of carbon to be avoided. Energy generation is an easier emission source to address, such as through renewable energy.

Whereas more difficult sectors include transport and heating. Clearly a major challenge will be developing carbon offsets ENERGY AND MINES MAGAZINE

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projects to address the remaining hard-toabate emissions, and not waiting to 2029 and 2049 to address the 2030 and 2050 targets.

Here at Bellevue Gold, we are embracing the full intent of the Paris Agreement and aiming for net zero by 2026 – this is ahead of all major miners. In a carbon-constrained world, only a certain amount of GHG emissions can be emitted globally if we are to meet the intent of the Paris Agreement to limit climate change to 2°C warming and ideally 1.5°C warming. Bellevue Gold is aiming to be truly aligned to the Paris Agreement with net zero emissions by 2026.

Bellevue Gold will be producing gold – along with royalties, economic opportunities, and benefits for communities – but there will be net zero emissions by 2026 and this is truly profound. Bellevue Gold is proving that mining can occur, whilst being sympathetic to the global needs to reduce GHG emissions. However, this is not easy and there are challenges – such as being able to replace underground diesel fleet – ideally this will occur via electrification of vehicles, however the battery energy to weight density will need to be overcome especially for steep inclines. We would also welcome other support for alternative low emission fuels which can be used as a drop-in substitution for diesel, and we would welcome support for these fuels, such as expanding the Fuel Tax Credit to apply to off-road use of biofuels (in addition to diesel).

A major challenge to overcome is energy density. Diesel is a very stable and energy ENERGY AND MINES MAGAZINE

dense fuel, whereas LNG is more difficult to store and requires high-tech options for LNG storage and vaporisation units.

Hydrogen gas requires another level of difficulty again. The molecular size of hydrogen is smaller and has a lower energy density, therefore additional and specialised storage requirements will be needed for these alternative fuels, which are emission-less but come with their own challenges.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

DS: The Energy and Mines Australia Summit is a great conference, and we are looking forward to re-connecting with all of our friends and colleagues we have met in the energy and mines sector. It’s inspiring to see that the mining sector has wholeheartedly taken on the admirable and important challenge of decarbonisation and we look forward to meeting and ideally working with more like-minded people.

As for specifics, we would be open to hearing about long-duration energy storage options for capture our spilled energy and hearing about underground mining fleet options to further decarbonise our mine, on our pathway to net zero emissions by 2026.

Darren Stralow will be participating in the Panel: Key Considerations for Mining Hybrids, on Sept 6 at 4:20 PM, Energy and Mines Australia Summit, 2022

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Our technology roadmap has the potential to fundamentally change how aluminium is made and decarbonise major portions of the aluminium value chain.

Michael Gollschewski, Vice President Operations – Australia , Alcoa

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ichael Gollschewski, Vice President Operations Australia and President Alcoa Australia, is responsible for Alcoa’s Australian Assets comprising 2 bauxite mines, 3 alumina refineries and an aluminium smelter.

Energy and Mines: How is the focus on climate change and ESG driving energy and mobility decisions for mining operations?

Michael Gollschewski: Consumers are demanding more sustainable products and businesses are seeking opportunities to reduce the carbon impacts of their supply chains. Sustainability is no longer a strategic consideration – it’s a strategic imperative.

We invented the aluminium industry more than 135 years ago and we are driven to create a more sustainable future today - one where aluminium will play an even larger role in solving challenges in a carbon-constrained world.

Alcoa’s vision is to reinvent the aluminium industry for a sustainable future. We have an important role to play in addressing society’s growing demand for sustainable solutions. Aluminium is embedded as a commodity in our daily lives because of its fundamental characteristics of being light weight yet surprisingly strong, highly durable and 100% recyclable. It is vital for an evolving economy with many applications including automotives and electric vehicles, 26

aeronautics, solar power and LED lighting.

EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

MG: How we make our products is just as important as what we make. We already operate the industry’s lowest-carbon alumina refining system in the world and we are working to increase the share of our operations that are powered by renewable energy. We are also finding ways to reduce water use and landfilled waste.

Our technology roadmap will provide a significant reduction in carbon emission across our entire portfolio and this will have wider applications for the aluminium industry as a whole. Our Refinery of the Future project aims to achieve zero-carbon alumina refining through the use of a host of processes and new technologies that we are working to adapt to alumina refining.

When combined with a decarbonised grid, these technologies could reduce a refinery’s carbon emissions by about 98% and reduce fresh water use by up to 70%.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

In 2021, we announced an ambition to achieve net zero greenhouse gas emissions (GHG)

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across our global operations by 2050. That builds on our pre-existing targets to reduce our direct and indirect GHG emissions from aluminium smelting and alumina refining operations from 2015 baselines by 30% by 2025 and 50% by 2030.

Our technology roadmap has the potential to fundamentally change how aluminium is made and decarbonise major portions of the aluminium value chain.

Globally competitive energy prices also remain a critical factor – we can operate with renewables, but they need to be consistent

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and reliable.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

MG: I am interested to meet with others in the resources sector who share our vision for a sustainable future.

Michael Gollschweski will be participating in the Keynote Panel: Mining’s Energy, Decarbonisation, and ESG Transformation, September 6, 9:10 AM, Energy and Mines Australia Summit 2022 27

To incentivize and progress to the next level of emissions reductions we need to significantly weight embedded carbon in the supply chain so that the companies really driving down their embedded carbon (which comes at a cost and therefore higher price) are competitive on something other than price.

Jess Maddren, Segment Director- Pacific Region, Mining, Schneider Electric

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ess Maddren is an accomplished geologist, researcher, strategist and business woman with a passion for sustainability in all facets of her life. With Schneider Electric, Jess is Segment Director for the Pacific Region.

Energy and Mines: How are climate targets for mining being embedded into mine processes and goals?

Jess Maddren: Optionality in proposed solutions – where consultants including SE are providing multiple options with varying prices and varying GHG reduction impacts.

The customer is not always choosing the lowest price today if they can pay a little bit more and get a higher GHG reduction Physically measuring straight from the control systems minutes to daily instead of estimation in a static spreadsheet, investment or project decisions can be made on real data to reduce energy, reduce emissions and increase optimisation.

EandM: What different approaches are you seeing from mining companies as they try to navigate the challenges of planning for a decarbonised future?

JM: I am seeing some companies driven by

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some individuals flip “the way we have always done it mentality” into curiosity of why – why not have more crushers or mill when the sun shines or wind blows, where else can we store energy that isn’t batteries like crushing material, charging extra equipment, what is the NPV if we mine or process hard when we have excess renewables but scale right down at night shift – challenging the thought that 24/7 same rate of mining is the way to be, how would that then impact HR/IR and attracting diverse talent, how can we meet technology instead of waiting for it to get to us, instead of bigger machinery – what if we used smaller (trucks, excavators etc.)?

EandM: What are the key drivers for miners to consider a brand new way of designing mines around the availability of decarbonised power?

JM: The belief it can be done and should be done! It wasn’t so long ago people were still saying you couldn’t have a mine fully separate to the existing infrastructure and renewable and profitable. All the smaller projects to date show it can be done.

The generational shift and change that is happening is bringing in a new diverse leadership that challenges the way its been done, is passionate that we can do better.

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This new generation knows mining leaves cultural and environmental impacts but is committed to asking how we can do it better in every step. Mining is supplying the raw materials for the energy shift and technology growth globally, it supports our ability to go green as a global community, but there is not point in going green if the source material leaves a big impact. All the materials being mined are being used in renewable energy and technology.

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Renewables can take a bigger footprint so considerations for placement and kw output per m2, how do we charge but keep optimised hauling routes, is large fixed power infrastructure outdated – as smaller mines come online due to the type of mineral/geology we cant depreciate over 40 years – how do we have smaller mobile capex to depreciate over 3 mines and move from site to site?

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EandM: What are the main technical and cultural impediments to this approach to mine design?

JM: As mentioned above the physical size of kw per m2 but hydrogen and some heat storage technology is pushing forward in trying to break through •

The fact that renewable plants are static and harder to move to the haul plan but liquid fuel can be moved

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Technology hasn’t reached commercialisation or scale for a number of these desired solutions yet the want to drive emissions down particularly around mobile fleet is here today

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Culturally I think there is still some generational shift to go, where there is some experienced senior leaders that aren’t fully invested yet whether it be fear or low risk profile – what we have done to date delivers tonnes, if we change the way we do things does it add risk to safety, production, deliverables, reputation.

Start up mentality is hard, we’ve all heard it – fail fast, pivot, listen, adapt. The new energy landscape in mining is that, it takes investment and the right team with the right support and space to be wrong sometimes

EandM: What new options and solutions are emerging to address the challenge of dispatching haul fleets for an all-electric mine?

JM: This is an interesting space. You have mobile fleet OEMs, power infrastructure engineering and OEMs, charging technology start ups that have never worked together and dont have an understanding of each 30

others needs, wants and standards all competing to be in this space.

It is going to be cabled or wireless charging, via what technologies, will there be hybrid electrical and hydrogen or choosing one over the other, what size of vehicles, are there integrative technologies that need to co-exist (there totally will be), how are we going to schedule charging and organise a full electric fleet EandM: How can mines incentivize and progress to the next level of emissions reductions?

JM: Significantly weight embedded carbon in the supply chain so that the companies really driving down their embedded carbon (which comes at a cost and therefore higher price) are competitive on something other than price •

Engage early in large complex capital processing plant projects – the next step for energy and emissions reduction will come from interoperable and integrated power, process control and process engineering. Once we have got there then we can start doing some very cool ML/ AI for plant optimisations throughout the whole plant, not just small isolated optimisations that cause knock on bottle necking. Then we need to decide, are we optimising for profit, throughput, recovery, emissions, water etc. Lots to choose from

Jess Maddren will be participating in the panel Transitioning to Zero-Carbon Mining, September 7th, 9:00 AM, Energy and Mines Australia Summit 2022

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Which disruptive technologies are critical for meeting mine decarbonisation and ESG targets? - address the topic of crushing - a massive amount of energy is used in size reduction. I understand that liberation is essential, but new technologies that create access through microcracking and, if possible, ore sorting before grinding.

Adam Best, Principal Research Scientist, CSIRO

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dam Best is a Principal Research Scientist with CSIRO, the Commonwealth Scientific and Industrial Research Organisation, the Australian Government agency responsible for scientific research.

Energy and Mines: What is needed in order for mining companies to meet their carbon targets and timelines?

Adam Best: (i) Reduction of overall energy usage if possible, (ii) electrification of everything that can be electrified, using renewables, including trucks and trains (iii) smart ways of storing that electricity. I favour battery storage due to the responsiveness, but where feasible, pumped hydro.

EandM: Which disruptive technologies are critical for meeting mine decarbonisation and ESG targets?

AB: (i) better energy storage to mitigate against low ebbs in renewable availability, (ii) address the topic of crushing - a massive amount of energy is used in size reduction.

I understand that liberation is essential, but new technologies that create access through micro-cracking and, if possible, ore sorting ENERGY AND MINES MAGAZINE

before grinding.

EandM: What are the main barriers for decarbonising energy and mobility for Australian mining companies?

AB: (i) wanting to be the second at being first - don’t want to be the first to take a risk, (ii) cost of new capital items such as renewables (PV, wind) and storage (batteries), (iii) a lack of genuine next-generation technology to decrease energy requirements for mining, cutting, grinding, and the automation to support it.

EandM: Who are you looking forward to connecting with at the Energy and Mines Australia Summit on September 6-7?

AB: Mining companies that are keen to reduce their energy footprint and how they can use Australian developed technologies and knowhow to do so.

Adam Best is speaking on the panel Battery Energy Storage System (BESS) Developments for Mines, September 7th at 9:50 AM, Energy and Mines Australia Summit 2022

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ENERGY AND MINES MAGAZINE Contact olivia.mendoza@energyandmines.com

We are at a critical stage where equipment purchased now will have an operating life which spans from the existing fossil fuel world to the new renewables based mining operations.

Andrew Strickland, Head of Project Development, Blackstone Minerals

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ndrew Strickland was responsible for the development of the Blackstone Ta Khoa Project through PFS and DFS. He has now taken leadership of the Blackstone M&A activities.

Energy and Mines: How is the focus on climate change and ESG driving energy

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and mobility decisions for mining operations?

Andrew Strickland: All mines need to consider their use of capital and returns for shareholders. We are at a critical stage where equipment purchased now will have an operating life which spans from the existing fossil fuel world to the new renewables based mining operations.

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When spending this capital, miners need to consider where shareholder and community expectations will sit in 2030, as this will impact their social licence to operate, and potentially even financial performance if a carbon pricing system is introduced.

Mining is also in a unique position to positively impact climate change through delivery of critical materials for EVs. New battery mineral miners need to consider the expectations of their Customers and ultimately the end consumer (EV driver) and their demand for sustainable production of inputs into the EV fabrication process.

EandM: How is the drive to decarbonise shifting the thinking and approach to renewable energy for mining?

AS: Historically, mines with access to cheap power, regardless of source (coal, diesel etc) had a competitive advantage over those with a more expensive power supply. As the drive to decarbonise mining grows, mines with access to sustainable power will have a competitive advantage, and projects without will be faced with construction of new renewable generation capital costs, or onerous off-setting and potentially carbon tax losses. Mines are considering how best to use renewables, without the need for power storage.

Other positive impacts of electrified mining operations are also gaining traction. A huge one is the removal of diesel particulate matter from underground operations. This drastically reduces the need for ventilation, and creates cleaner and quieter operating 34

conditions for those underground.

EandM: What are the main challenges of trying to meet 2030 and 2050 decarbonisation goals for mines?

AS: Technology is still immature and there are many potential options. Battery electric, with static charging, dynamic charging or battery change out? Hydrogen Fuel cell? Ammonia? To meet these goals, decisions need to be made now, but the future is still so uncertain. De-mystifying these technologies is critical for miners to be able to make the key decisions to develop carbon free, or convert to carbon free operations.

There is also a heavy dose of scepticism in regard to decarbonisation of the industry.

Many incumbents either believe that its not possible, or that its just not required.

Changing these perceptions will need more and more companies to demonstrate that its not only the environmentally right thing to do, it is also economically the right thing to do.

EandM: Who are you looking forward to connecting with at Energy and Mines Australia Summit, September 6-7, Westin Perth?

AS: Other like minded individuals who can see the changing future landscape, and how we need to work together to achieve these goals.

Andrew Strickland is speaking on the panel The Fleet Technology Shift, September 7th at 11:40 AM, Energy and Mines Australia Summit 2022

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“A zero carbon mine will not be developed and run under traditional models, therefore new partnership and business models will be required” Michelle Keegan, Principal, State of Play

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ichelle has over 25 years of mining industry experience.

She has worked in technical engineering, commercial management, strategy and innovation, capital projects, new markets and optimisation roles for companies including Normandy, Rio Tinto, Momentum Partners, as well as IPL and Dyno Nobel.

As principal with State of Play, Michelle Keegan’s role encompasses project management within the EMC vehicle projects. Prior to joining State of Play, Michelle was Program Director Technology Development, and leader of the Next Generation Mine Innovation Program, at South32. Michelle was responsible for leading the identification, design and delivery of new technology and innovation for all greenfield projects as well as translation into brownfield operations.

Energy and Mines: What is needed in order for mining companies to meet their carbon targets and timelines?

Michelle Keegan: What we’re seeing is that mining companies need to both be well informed on the granularity of whats possible, as well as to have close working relationships with peers and suppliers.

The granularity of information enables the development of an equally granular roadmap, while working relationships with peers drives collaboration and faster

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learning and with suppliers provides the right level of transparency of demand.

EandM: Which disruptive technologies are critical for meeting mine decarbonisation and ESG targets?

MK: We believe that renewable power supply options are largely solved for, however disruptive technologies around energy storage at commercial rates will be required to achieve full renewable energy supply at an operation 24 hours a day. In addition, we are seeing that charge infrastructure and battery charging will also require disruptive approaches to ensure we can deliver on efficient and ENERGY AND MINES MAGAZINE

seamless reliable energy supply to our vehicles EandM: What are the main barriers for decarbonising energy and mobility for Australian mining companies?

MK: One of the main barriers or an area to unlock is novel partnerships across mining companies and partners such as contractors and suppliers. A zero carbon mine will not be developed and run under traditional models, therefore new partnership and business models will be required

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EandM: Who are you looking forward to connecting with at the Energy and Mines Australia Summit on September 6-7?

MK: New suppliers and a collaborative forum for current suppliers as well as the connect of new and ambitious miners driving zero carbon outcomes.

Michelle Keegan will be providing a joint presentation with South32’s Jayde Webb titled: The Electric Mine Consortium (EMC): Updates and Next Steps, September 7th at 11:20 AM, 2022

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