Interviews
with Dornier Suntrace, Rio Tinto, Sandvik, North
Skeena Resources, BMO Global
Management and
Dornier Suntrace have developed market expertise in renewables on mine sites with their landmark off-grid project with B2Gold in Mali. In this interview, Director of Engineering & Projects (COO), Martin Schlecht discusses the business case and operational realities of decarbonizing mines with renewable energy
ENERGY AND MINES: What are the main challenges mines encounter when trying to maximize carbon savings with renewable energy?
MARTIN SCHLECHT: Implementing solar and wind in a size matching the mine load at its peak generation is a straightforward task, it simply substitutes the current energy supply. The challenges for this size of renewable power plant have been resolved for several cases already, both off-grid and grid connected.
For an off-grid mine, it involves the identification of the technical details regarding location of the renewable plant, obtaining permissions, developing the appropriate sizing to match the existing engine capacity and the mine load profile, integrating on the electrical and control side with the mining operations and the existing power generation. The business case for investing in renewable power generation is profitable and allows a pay-back period usually between 4-6 years of fuel savings, depending on the cost of fossil fuel. There are a number of projects that have successfully achieved this.
MARTIN SCHLECHT Director of Engineering & Projects (COO) Dornier Suntrace
For a grid connected mine, the challenges are more to organize the renewables with the existing energy supply contracts, both contractually and commercially: the cost of electricity for grid connected mines is usually lower compared to off-grid mines, making the case for renewables somewhat less attractive. If a behind-the-meter generation is considered, this may in some cases be restricted by the grid operator’s regulations. In other cases, an IPP model, means selling the power across the fence or by wheeling through the public grid, may not be easily allowed by the regulator in the country. Depending on the country’s own renewable targets, the grid power itself may include larger shares of renewable energy in the future. It has to be assessed if this would be a reliable contribution to the mines CO2 reduction.
Maximizing carbon savings will require a higher share of renewables, which requires oversizing the renewable generation capacity and implementing energy storage for shifting the excess energy to times of low renewable generation. The energy storage is still the most expensive element, and thus large storage reduces the profitability of the business case.
Eventually, the case for renewables will be different for each mine, as each location has different solar and wind resources, different existing power generation costs and availability of land. Further, the remaining life of mine will play an important role when assessing the renewable energy business case.
Image Coutesy of B2GoldE+M: Which are the top technologies and strategies mines can use to maximize renewable energy?
MS: Solar is usually the first choice, as it provides the lowest cost of electricity and is easiest to implement. Wind can provide the second lowest cost of electricity, however the implementation is less simple: permitting requires more effort and suitable locations may not be close to the mining site, thus additional land and a transmission line may be required.
Solar and wind each can reach renewable shares of 25-35% in most locations. The occurrence of solar (during day) and wind (during evening-night-morning) can complement each other well, and it may also have a seasonal benefit of more wind blowing during winter season. Accordingly the assessment of both makes a lot of sense.
Using both technologies together will limit the size of energy storage to those hours when both solar and wind are not generating sufficient energy. This storage will be much smaller compared to a solar + battery plant. It can thus achieve higher shares of renewable energy at affordable cost.
In all cases, a detailed assessment of the solar and wind generation profiles is important to understand the generation of both during each hour of a typical representative year. Linking this generation to the mine energy consumption profile will allow an optimized sizing of the energy storage. An additional aspect will be a possible supply of renewable electricity to supply electric vehicles or on-site hydrogen production. Some of this consumption can be aligned for example with proper EV charging logistics and benefit as well from an excess renewable power.
E+M: What are the key considerations in identifying which mine sites should integrate renewables ?
MS: The key parameters influencing the business case for renewables are the following:
1. RENEWABLE ENERGY POTENTIAL – both in terms of resource and available land and accessibility for the renewable technology
2. THE EXISTING COST OF POWER - at an existing mine, the renewable power plant would essentially amortize its investment based on the savings against the current power cost. Alternatively, the power would be provided from a third party at a lower cost under a power purchase agreement (PPA).
3. LIFE OF MINE – the remaining life of mine at start of generation from the renewable power plant usually also determines the life of the renewable power plant. A short life of mine thus reduces the profitability of the business case. However, if there is a reasonable projection of an extended life of mine based on new resources, even though not yet formally confirmed, it makes sense to look at the additional years of operating the renewable power plant within the business case.
4. OPERATIONAL RESTRICTIONS – depending on the mining operations, some restrictions on the size of renewables that can be integrated at the mine may apply (limitations on engine operation or embedded generation regulations)
5. FUTURE COST OF ENERGY – renewable energy provides a hedge against fossil fuel price increase, and also against increased grid power cost. The commercial benefit of the renewable power accordingly increases with higher cost of fossil energy.
From our view, the stability of power supply for mines can be secured with renewables and batteries. When properly
planned, the battery can provide spinning reserve to the mine instead of engines. First operational results with solar and battery hybrid plants at off-grid mines are demonstrating the reliability of the renewable energy.
E+M: Phasing-in renewable energy vs. high-penetration from the start - what are the pros and cons?
MS: High renewable penetration from the start means that a reduction of CO2 emissions is maximized.
The level of renewable energy implemented at the first stage is basically a commercial and operations driven decision. From my perspective, there usually is a commercial cap on the “high-penetration”, as the cost of energy shall surely not increase with renewables, but rather decrease and thus create a profitable investment case. This is limiting the high penetration to what is affordable at today’s cost.
Very high penetration renewable power will also require large energy storage to be integrated, which will make the renewable energy more expensive. Accordingly there will be a limit specifically on the storage capacity that can fit into the commercial business case. Energy storage prices are expected to come down in the next years, given the large expansion of manufacturing capacity, however subject as well to availability of sufficient raw material for the batteries, specifically lithium.
Lower cost of batteries will expand the business case for larger renewable energy shares, so that an expansion of the initial project can be done as soon as the cost for this project reaches target levels. Another aspect is the cost of fossil energy: the prediction of the fossil fuel price development of the next years, and also the potential for a carbon tax will impact the fossil-based energy cost. This can improve the business case for renewable significantly.
From my perspective, it is therefore beneficial to maximize the renewable share within the commercial criteria of the initial phase, and “pushing the envelope” going for a reasonable profitability rather than making the highest IRR the decisive criteria.
Phasing in more renewables going towards higher renewable generation makes sense for mines with sufficient life of mine and/or reliable prospects of expanding the operations with new resources.
E+M: What are the key takeaways from mining hybrid solutions in operation?
MS: The Dornier Suntrace experience is related to our off-grid project at B2Gold in Mali. Our takeaways from the mining
hybrid solution in operation are, that the solar & battery deliver to expectations and the predicted performance has been achieved over a full year of operation. The operations have quickly mastered the switching off of engines during solar hours and getting them back online again, and if the solar project would be larger, even more engines would have been switched off. The battery provides a reliable spinning reserve and stabilizes the island grid at the mine, so it has additional benefits of just smoothing the solar fluctuations. It covers for engine trips and mill trips, and also supports the grid for starting up the mill without requiring an additional engine just to handle the inrush current.
And from the commercial aspects, it has been an excellent hedge against the steep increase of fossil fuel cost, and the fuel savings have increased leading to a faster pay back of the investment. The solar project saves roughly 20% of the fuel in annual average. This case proves that such a size of hybrid works, and it also shows that larger renewable shares are feasible from an operational perspective, not only in theory.
E+M: What are some of the considerations for mining companies when looking to integrate higher penetration renewable energy and storage systems for their sites (i.e. up to 80%)?
MS: Power consumption for the mining operations constitutes only 30-60% of the mine’s CO2 emissions, the balance relates to the vehicles operating in the mine, depending on the specific mine set-up. Accordingly a large component of decarbonizing mining operations will have to focus on the vehicles. This is a more complex aspect, as the solutions, be it electric or hydrogen driven vehicles, are both not in serial production. Thus it is not clear which of them will prevail, and how much additional green electricity these would require on top of the mine operations.
It seems likely that the deployment of electric vehicles may be faster compared to green hydrogen solutions, as these can be integrated with on-site renewable power generation and have a better renewable-to-wheel efficiency. Implementing a green hydrogen infrastructure will be more complex and may also be more costly.
Even though the cost for solar and for battery storage have increased since 2020 levels, due to Covid and energy crisis, the cost benefit of renewables has grown further. Specifically, because fossil fuel cost has gone up even more. Compared to 2020 levels, implementing a solar project and thus hedging part of the fossil fuel cost has proven a very successful strategy.
In addition to the cost benefits, renewable energy delivers carbon reduction targets. And for mines where the carbon
emissions are very high, specifically on off-grid mining operations, the economic benefits of renewables are very high, thus enabling a larger renewable share and a greater profit margin.
The 80% objective is however only within commercial reach in the near term, if using wind energy is an option. Combining wind and solar can allow 50-80% renewable energy share at competitive rates, depending on the solar and wind resources, and best for a longer life of mine.
E+M: What are the biggest challenges in trying to realize 100% renewable energy mining on the road to net-zero?
MS: Let me respond by assuming that 100% renewable energy is defined as the physical achievement of renewable energy supplying 100% of the consumption in real time, which can include the use of energy storage. But not balancing the fossil generated power with renewable generation at another time or another location.
This 100% renewable objective requires the alignment of all energy consumption on site to be based on renewable energy. This refers to power consumption, vehicles and other energy uses, even process heat, where applicable. It will also
involve demand side management and energy efficiency improvements.
It might be easy to achieve when you can have your electricity supplied from a hydro power station that covers all demand. However, if this is not the case and you have to build or contract the renewable generation, it will be quite challenging to achieve this at competitive rates.
Technically 100% renewable energy supply is possible, but for example in an island grid, the last 20% of consumption will be at times with low renewable generation, will need a huge oversizing of generation capacity and storage capacity to fill these gaps. This will come also with a big additional cost and will affect the cost of renewable power overall.
With cost of renewables reducing, the commercially competitive share of renewable energy will grow. So I am confident that a cost competitive 100% renewable generation will be a solution we will see in some years, but not at today’s cost range.
Martin Schlecht is presenting Costs, Technologies, and Trade-Offs of High Penetration Renewables, at the Energy and Mines Toronto Summit, Nov 1, 2022
Photo courtesy Dornier Suntrace
Theseare big issues that can’t be solved by one company or one industry, says Marnie Finlayson, Managing Director, Battery Materials Portfolio, Rio Tinto, in this interview. She also discusses Rio Tinto’s strategic partnership with Nano One® Materials Corp, a Canadian battery materials provider, and Rio Tinto’s successful innovations to extract critical metals such as scandium and tellurium from its mining processes.
ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?
MARNIE FINLAYSON: There is so much that has been done and can still be done in the ESG area that I am very optimistic about the contribution the mining industry can make to the energy transition.
In terms of climate performance, the key issue is ensuring a sufficient supply of critical minerals to make a successful global energy transition. And demand for critical minerals is growing very quickly as governments and businesses take action to meet the goals of the Glasgow Climate Pact under the Paris Agreement.
The geopolitical backdrop also looms large, and with the world becoming a more uncertain place, we are likely to see countries making investments and policy decisions to strengthen the security of the critical mineral supply chain. And then there is also a social and environmental challenge. Whilst much of the public commentary on fighting climate
MARNIE FINLAYSON Managing Director Battery Materials Portfolio Rio Tinto
change largely focuses on the shop window – the new technologies we all see contributing to CO2 reduction – it’s equally important to watch the backend.
This means that the materials from which these technologies are made – such as wind turbines, solar panels, and batteries – also need to be sourced sustainably and responsibly.
And this is no mean feat as clean-energy technologies often require more critical minerals than their traditional counterparts. An electric car uses around five times the amount of minerals as a combustion engine machine and a wind farm on land requires around eight times the minerals needed by a conventional gas-fired power plant with the same capacity.
So what are we doing at Rio Tinto?
Firstly, we are accelerating our own decarbonization, switching to renewable power, electrifying processing, and where possible, running electric mobile fleets.
Secondly, we are increasing our investment in R&D to speed up the development of technologies that will enable our customers to decarbonize. Technology and partnerships have a key role to play.
And finally, we are prioritizing growth capital in commodities that are essential for the drive to net zero, such as battery materials - which is why we established our Battery Materials business in 2021 - to focus on finding, producing, and refining critical minerals.
E+M: Rio Tinto recently entered a strategic partnership with Nano One® Materials Corp, a battery materials provider based in Barnaby, Canada. This is exciting for the development of Canada’s clean battery supply chain. What are the key aims of the partnership from Rio’s perspective?
MF: The perfect storm of climate change, together with a shortage of supply of the sorts of minerals that are critical to finding a more sustainable and innovative path forward, is propelling the mining industry forward to new models of collaboration.
These are big issues that can’t be solved by one company or one industry. The opportunities lie in technology and the collaborations and partnership possibilities are a significant change for the mining industry and one that I am very excited to be part of.
Rio Tinto established its Battery Materials business in 2021 with a vision to harness the power of mining and sustainability to play a leading role in the world’s transition to a lowcarbon economy. We aim to build a leading battery materials portfolio to deliver essential products to customers through investments in assets, technologies, and partnerships. We recognize that localized, clean, and secure supply chains are critical for the success of the energy transition and require partnerships with innovative companies to help us differentiate, disrupt and accelerate the path to a net-zero future. This is where our strategic partnership with Nano One fits in.
We have invested $10 million in Nano One to change the way cathode active materials are manufactured, contributing to a cleaner and more efficient battery supply chain. In collaboration with Nano One, we will also study the potential use of our battery metal products, including iron powders from the RTFT facility in Sorel-Tracy, Québec, as feedstock for the production of Nano One’s cathode materials. Our investment in Nano One will give us a broader perspective of the battery materials sector, as well as insights into future battery chemistries and technologies.
And with our Critical Minerals and Technology Centre and RTFT’s metal powder production capability in Sorel-Tracy, we are uniquely positioned to support the development of a localized battery ecosystem in Quebec to serve the broader North American market.
E+M: What are the main challenges for miners and their customers in realizing carbon footprint goals for critical minerals?
MF: Many of the technologies for decarbonization are yet to be invented. This is a challenge but also a big opportunity for the mining industry to invest in technology for decarbonization and in doing so create new tools:
• for exploration, production, and recovery;
• for treating the leftover material from mining as a resource instead of waste; and
• for engineering effective recycling procedures
Image courtesy of Rio TintoBy way of example today in Quebec we have a commercial scale plant that is producing high-quality scandium. It involves a highly innovative process developed by our team to extract high-purity scandium oxide from the waste streams of the existing titanium dioxide production, without the need for any additional mining. This will make us one of the largest producers of scandium in the Western world. In fact, in two years we have gone from testing a process to extract this critical material in a lab, to be able to supply about 20% of the global scandium market.
This sort of out-of-the-box thinking is essential because many of the techniques for creating a sustainable supply of critical minerals still need to be invented.
Another example is at our Kennecott copper mine in Utah where we have commenced production of tellurium, becoming one of only two producers of the critical minerals used in solar panels and other critical equipment in the US. Approximately 20 tons of tellurium will be produced each year through a new $2.9 million circuit built at the Kennecott refinery. This valuable material is recovered from by-product streams generated during the copper refining process, reducing the amount of waste that needs to be treated and discarded as tailings.
E+M: Can you share a bit about what Rio has gained in terms of knowledge from its Critical Minerals and Technology Centre which is being applied to these types of partnerships?
MF: Rio Tinto’s Research and Development Centre in Canada and our Technical Development Centre in Melbourne underpin our partnership approach to developing
technologies that will assist in achieving the world’s transition to a low-carbon economy.
In partnership with academia and other scientific institutions, we have been operating these centers for more than 50 years with a strong track record in innovation, having invested in technical capability, researching process improvements, and developing new products. The approximately 2,000 people who work at these centers of technical excellence are our unsung heroes, working to a long game with many roadblocks along the way.
It was at our research and development center in Canada that our scandium project was born. And it was at our Technology Development Centre in Melbourne that we pioneered the technique to recover battery-grade lithium from existing mine waste at our boron operations in California. Development of this process, drawing on Rio Tinto’s longstanding partnership with the US Department of Energy’s Critical Materials Institute, can produce enough lithium for about 70,000 light vehicles.
There are many more examples of innovative approaches to water recovery, recycling, electrification, and low emissions technology. Suffice it to say breakthrough technology is going to be vital, with partnerships and collaborations providing the pathway to developing diverse and sustainable sources of critical minerals for the future.
Marnie Finlayson is speaking at the Energy and Mines Toronto Summit, Nov 1, 8:00 AM on Keynote: Accelerating the Path to a Net-Zero Future.
Image courtesy of Rio TintoInthis interview, Graham Takata, Director of Climate Change, Responsible Investment, BMO Global Asset Management, emphasizes the need for the mining industry to decarbonize given its position at the top of the supply chain and investors’ interest in a reduction in emissions.
ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?
GRAHAM TAKATA: The mining industry was an early adopter of ESG principles and is one of the most experienced industries when it comes to integrating environmental and social factors into business. With the increasing focus on supply chain emissions, and emerging mandatory carbon disclosure requirements, we can expect greater pressure from downstream customers on the mining industry to decarbonize. The extractives industry is at the top of the supply chain, and any emissions not addressed are passed on and impede their customer’s net zero ambitions.
E+M: What are some of the challenges for mines of trying to balance climate and ESG commitments with mine production, expansion, and commercial realities?
GT: New production of metals and minerals is essential to the electrification and energy storage needs in a lowcarbon economy. Yet, at the same time, we need to rapidly decarbonize how we extract those resources, as our current climate trajectory is taking us well beyond 1.5C. The challenge will be to achieve substantial emissions reductions now,
using the best economically achievable technologies, while concurrently investing in the development of new technologies that could transform mining emissions altogether. Investors have an increasing interest in how a company is investing in this balance, with particular attention to transition plans and related capital expenditures.
E+M: Which technologies are expected to be critical in meeting Scope 1 and Scope 2 carbon emissions goals for mining?
GT: Biodiesel can effectively cut diesel emissions and can be used with existing equipment with few modifications, making high-level blends an effective solution while more transformative technologies are advanced. Hydrogen fuel cells and EV trucks, as well as small modular reactors (SMRs), show incredible potential.
E+M: Who are you looking forward to connecting with at the Energy and Mines Toronto Summit on November 1-2 at the Delta Toronto?
GT: Companies aspiring to net zero carbon emissions.
Graham Takata is speaking at the Energy and Mines Toronto Summit, Nov 1, 08:40 AM on the investor panel Evaluating Mining’s ESG and Climate Performance.
Director of Climate Change, Responsible Investment BMO Global Asset Management
“Graham leads BMO Global Asset Management’s Climate Action and Net Zero strategy through which the firm has committed to achieving net zero emissions across all assets under management by 2050 or sooner.”
Inthis interview, Brian Huff, Vice President of Technology, Battery and Hybrid Electric Vehicle Business Unit, Sandvik Mining and Rock Solutions, discusses the exciting developments surrounding battery electric vehicles (BEVs) and the implications for mining fleet electrification.
ENERGY AND MINES: With diesel consumption from large mining vehicles accounting for up to 60% of a mine’s carbon footprint, there is real urgency for miners to identify the solutions for decarbonizing heavy-haulage trucks and equipment. Can you tell us about Sandvik’s approach to supporting mining’s transition to zero-carbon heavy haulage and equipment?
BRIAN HUFF: Sandvik is committed to electrification across all mining divisions and is working on multiple fronts to decarbonize mining equipment. The first electric loader was launched in 1981 and the 600th unit was delivered in 2019. The first Sandvik electric truck was produced in 1988. Sandvik currently offers electric solutions (both battery and tethered) for drill rigs as well as load and haul equipment with a broad range of available models to choose from and our ambition is to have a full range offering by 2025.
Battery technology has enabled untethered equipment that exceeds the capability of its diesel predecessors. Sandvik
BRIAN HUFF Vice President of Technology, Battery and Hybrid Electric Vehicle Business Unit Sandvik Mining and Rock Solutions
is designing equipment that capitalizes on the benefits of electrification in terms of performance and utility without impacting infrastructure. Technologies like AutoSwap and AutoConnect allow operators to swap batteries in just a few minutes without leaving the cabin and without the need for overhead cranes or other complex or expensive infrastructure. The depleted battery can then be charged at lower power to prevent a dramatic impact on the electric grid. The quick and easy “refueling” of the machine further reduces the demand for large, heavy, high-capacity batteries, and the slow charging benefits both the mine infrastructure and helps the battery last longer. Recently there’s been an increase in interest and viability of battery-electric products,
Sandvik is running a 100MWh battery factory and is committed to engineering the industry’s only battery system designed 100% for mining requirements only. Last but not least, we are investing in infrastructure (facilities, inventory), training and people to deploy and support new zero-carbon technology locally around the world
E+M: What are some of the latest developments in terms of technology readiness and commercialization for electric trucks and equipment?
BH: Sandvik acquired Artisan in 2019. The combination of Artisan’s battery technology and Sandvik’s decades of experience in engineering and manufacturing accelerated our work in the battery electric vehicles (BEV) space.
We are now working on the second iterations of our batteryelectric loaders and trucks, including LH518B, TH550B, and TH665B, which incorporate the best of Artisan’s battery swapping technology and Sandvik’s expertise in engineering. Many customers are still trialing BEVs with a single-vehicle investment to familiarize themselves with the technology. However, we are encouraged that mining industry leaders, including Newcrest Brucejack, New Gold New Afton, Foran McIlvenna Bay, and BHP Jansen, are conducting their own independent evaluations and graduating to full fleets with our proven technology.
E+M: What are the main challenges for accelerating and commercializing zero-emissions mine trucks and equipment?
BH: Though zero-emission products are still new and rapidly evolving, more and more machines are now working in full
production environments; we are, therefore, well past the experimental phase. However, it is still an ‘early adopter’ situation, and some miners are choosing to wait for fully tested, proven, and predictable zero-emission equipment. These customers are hoping to gain confidence from success stories in mining electrification before they commit their mobile fleets to this new technology.
The more case studies are available, the more confident mines would be about BEVs and their beneficial impact on operating costs and productivity. News of their successful deployment will emerge more rapidly now that more mines are making the shift to electrification, and this would, in turn, build the industry’s confidence in the technology.
However, because BEV technology is new to the mining industry, many customers struggle to understand its performance potential, and other issues including operating cost, servicing the equipment, safety, operating procedures, and training. Clearly, there is an amount of hard work that must be done to analyze and model zero-emission versus conventional fleets. In this regard, Sandvik is investing a lot of resources in documentation and tools, and training employees to assist customers with technical information and knowledge.
E+M: Can you tell us about some of the exciting projects Sandvik is working on with mining clients in this area?
BH: We are working on several exciting projects here in Canada. We are currently in the process of deploying BEVs at the Newcrest Brucejack mine, soon to become one of the largest and most modern BEV fleets in the world. We also
recently announced a partnership with Foran Mining for their McIlvenna Bay project in Saskatchewan. Designed to be the world’s first carbon-neutral copper development project, it will supply zero-carbon copper for wind turbines, solar panels, and other technologies required in the green revolution. Foran has committed to a complete batteryelectric fleet including loaders, trucks, and drills, which is the first time we have seen a mine do that.
Sandvik will also deliver several battery trucks to the British Columbia market, as well as a full fleet of battery loaders to the BHP Jansen project in Saskatchewan.
Although Canada is a front runner in BEV adoption, and the Canadian BEV market is growing incredibly quickly, Australia and Europe are not far behind. We are supporting the transition in these markets with customers including Agnico Eagle, Gold Fields, Boliden, LKAB, Barminco, and Byrnecut.
E+M: What is needed to support the business case for mining making the transition to low-carbon alternatives?
BH: Markets around the world have widely differing conditions relating to energy, and this makes it challenging to
define a universal business case applicable globally. However, regardless of the jurisdiction, there are powerful arguments in favor of the move toward battery electric fleets, including better management of the mine’s energy composition, reducing its impact on the surrounding communities, or an improvement in the productivity of its fleet. There could, therefore, be many different approaches to the business case for transiting to a low-carbon regime. Moreover, mines could further enhance this business case (one that is arguably good already!) with some proactive steps.
First, mines need to “expect more.” By fully harvesting the productivity potential of electric fleets, which are often capable of moving 20-30% more tonnage per day thanks to their higher power and speeds, mines should fully capitalize on such a superior performance from electrified equipment. Secondly, mines should operate and maintain batteries in a way that maximizes their life. Proper maintenance, temperature management, depth of discharge, and charge rate reduction can make a big difference in the economics of batteries because these are the new consumable “fuel” for electrified equipment. Lastly, extraneous factors such as a high diesel price and a value on carbon (e.g., through taxes and incentives) may further enhance the allure of decarbonizing fleets.
E+M: What are some of the key considerations for miners considering fleet electrification?
BH: First, our overall design principle is to rethink the machine, not the mine. What that means is we design zeroemissions technology that can be deployed in existing mines and supported by existing maintenance organizations. We don’t believe in marketing technology that requires customers to redesign their mines and change their people and methods.
A major benefit of electric technology is the potential for significantly higher speeds. To get the full value out of fleet electrification miners, therefore, need to factor in how to handle a faster and higher output ore flow, as well as consider downstream logistics, crushing, and processing capabilities. It is important to have a clear understanding of the mine’s infrastructure limitations. For example, if there is a problem in adding load to charge batteries due to a limitation in electrical power capacity, one solution is to reduce the vent power consumption to offset the new load. Sandvik’s battery swapping technology is ideal for such cases because the charging power draw can be spread out over a longer period, thus limiting the peak power demand.
Additionally, a well-thought-out mine design can really amplify the benefits of BEVs. Sandvik’s batteries will recharge
using regenerative braking when the vehicle is tramming downhill, so any opportunity where the vehicle can tram downhill while loaded will allow reductions in the use of charging energy.
E+M: What would you advise a mid-tier mining company looking to assess the various fleet decarbonization options but without the resources or budgets of a major mining company?
BH: Reach out to Sandvik. We have many tools and a lot of information that we provide free of charge. We see it as our responsibility as a leading OEM to help drive and support the overall transition. Many mining companies are evaluating BEVs right now, which is fantastic for many reasons including that mining engineering firms and consultants are rapidly building their knowledge in this area. Many of these firms would be able to complete a more comprehensive evaluation. At a more basic level, it is incredibly impactful and informative to see this technology with your own eyes. You can feel the difference in ambient temperature, you can hear how quiet the machine is, and you can see how powerful it is. The best way to learn is to visit a mine and/or one of our factories producing BEVs and see one for yourself.
Brian Huff is speaking at the Energy and Mines Toronto Summit, Nov 1, 4:50 pm, on the panel Mine Electrification: Technology Availability and Readiness
TH550B is Sandvik’s first fully battery powered dump truck with a combination of proven solutions: 50 years of experience developing underground mining equipment by Sandvik powered by the Artisan™ battery pack.
Inthis interview, Chelsea Hayes, Director of Business Development, North Peak Resources, discusses that a mine’s environmental impact must be evaluated alongside commercial realities and cost management, both of which are central to the profitable success of a mine and delivering returns to shareholders.
ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?
CHELSEA HAYES: The availability of appropriate knowledge, equipment, and options has increased enormously in the last ten years in line with the rising focus on ESG and climate performance.
When our team developed and introduced the first underground battery equipment to a mine up at the Macassa project in Kirkland Lake in 2012, the challenge was to find companies that would work together to develop equipment that actually worked.
Now, companies have multiple suppliers and options for powering their mines and the challenge is evaluating the
most efficient technology for the life of the project they are investing in.
E+M: What are some of the challenges of trying to balance climate and ESG commitments with mine production, expansion, and commercial realities?
CH: As a price-taking industry, commercial realities and cost management are central to the profitable success of a mine and delivering returns to shareholders.
We are a company that is continually evaluating potential projects. A part of our strategy includes assessing the environmental impact of any potential mine development; therefore, our team favors former historical mines with some existing infrastructure and also the potential of renewable energy which may impact the cost profile of the operation. However, these significant capital investments must be able to deliver a return over the life of the mine, so it is not only the location of the asset that affects this decision but also the size of the resource.
It was the commercial reality of needing to invest $100 million in a ventilation shaft due to diesel fumes that focused the
team on putting together a group of companies to deliver the battery equipment to the Macassa underground operation. That decision was appreciated by various stakeholders, including those in favor of the safety of workers, not just those focused on ESG commitments.
E+M: Which technologies are expected to be critical in meeting Scope 1 and Scope 2 carbon emissions goals for mining?
CH: Of course, mining itself is a crucial industry to delivering those technologies – and the availability of these technologies, particularly to smaller companies - could well be dependent on the mineral supplies themselves.
The choice of technologies that will help mining companies meet their emissions goals is project-dependent, and our group starts by focusing on historic mines that have access to existing infrastructure thereby diminishing the initial footprint. One of our sister companies, Rupert Resources, is based in Finland, with direct access to a supply of renewable energy.
The choice also differs for open pit mining, where conveyors may be a way of diminishing diesel usage versus underground mining projects, which can benefit from both electric vehicles and electrification.
E+M: Who are you looking forward to connecting with at the Energy and Mines Toronto Summit on November 1-2 at the Delta Toronto?
CH: After the gap of the last two years, I greatly appreciate the opportunity to meet people face to face. So, meeting and connecting with new faces, and learning from everyone, will be a priority.
Chelsea Hayes is speaking at the Energy and Mines Toronto Summit, Nov 1, 4.30 PM on the panel Key Considerations for Renewable Energy Hybrids for Mines.
“It was the commercial reality of needing to invest $100 million in a ventilation shaft due to diesel fumes that focused the team on putting together a group of companies to deliver the battery equipment to the Macassa underground operation in Kirkland Lake in 2012.”
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Inthis interview, Chris Tucker, Corporate Innovation Manager, Skeena Resources, discusses the challenges of implementing low-carbon technologies within a scenario of disrupted supply chains.
ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?
CHRIS TUCKER: Mining is a huge energy user globally, so sourcing renewable power at mine sites is an important challenge. We are fortunate to have good sources of run-ofriver hydroelectricity near our Eskay Creek Project. But then the challenge becomes how to deploy that clean power within an industrial ecosystem that has historically been slow to change.
E+M: What are some of the challenges of trying to balance climate and ESG commitments with mine production, expansion, and commercial realities?
CT: While there are incredible innovations in the pipeline for low-carbon mining operations, such as electric mining equipment and alternative fuels, securing these emerging technologies through our disrupted global supply chains, is a challenge. You need all the elements of capital, planning, permitting, and technology to align, and you need to have the workforce trained and ready to implement them.
CHRIS TUCKERCorporate Innovation Manager
Skeena Resources
E+M: Which technologies are expected to be critical in meeting Scope 1 and Scope 2 carbon emissions goals for mining?
CT: Given the diversity of operations and locations there is likely a place for everything. Operational technologies (OT) such as electric haul trucks, advanced conveyors, renewable fuels, cleaner energy generation, and storage are perhaps obvious. A lot of people are talking up the value of better Information Technologies (IT) but it seems like that has yet to fully crystalize within our industry. It will be powerful once it does. And in the IT/OT interface, there is tremendous potential as well with digital twinning, optimization, and autonomous operations.
E+M: Who are you looking forward to connecting with at the Energy and Mines Toronto Summit on November 1-2 at the Delta Toronto?
CT: Everyone: the suppliers, the consultants, the academics, the regulators, the innovators, the miners. It takes a global village to build the mine of the future.
Chris Tucker is speaking at the Energy and Mines Toronto Summit, Nov 1, 4.30 PM on the Joint Case Study: Low-Carbon Gold Mining: Building a Strategy for Eskay Creek
Inthis interview, Alisha Giglio, Climate Change Expert, SINAI Technologies, discusses how the industry must adopt various decarbonization technologies and strategies, tailored to the mining industry, amidst a scenario of depleting resources and rising demand for clean energy applications.
ENERGY AND MINES: What are some of the most significant changes for the mining industry as a result of the increased focus on ESG and climate performance?
ALISHA GIGLIO: The most significant change the mining industry faces is the adoption of new technologies and processes to reduce climate impact.
Miners must adopt low carbon technologies, such as battery electric or hydrogen vehicles, as well as new processes which reduce both energy and water consumption to limit the environmental impact during the mining process.
Furthermore, we must improve our mine reclamation process to ensure a long-term reduction in mining’s impact on the environment.
E+M: What are some of the challenges for mines in trying to balance climate and ESG commitments with mine production, expansion, and commercial realities?
AG: The demand for mineral inputs for batteries, energy storage, and other low-carbon technologies is only likely expected to escalate with increasing ESG commitments and the transition to net zero.
Meanwhile, many of our natural resources are fast depleting. Under these circumstances, there is understandable pressure to increase mining yields whilst reducing energy and water consumption, ESG impacts, and GHG emissions.
Successful net zero or ESG strategies must, therefore, consider their future cost, as well as environmental and social impact.
E+M: Which technologies are expected to be critical in meeting Scope 1 and Scope 2 carbon emissions goals for mining?
AG: While renewable energy enables the success of many lowcarbon technologies such as energy storage, electrification, and hydrogen production, there is, unfortunately, no onesize-fits-all solution for the mining industry.
Regional or corporate-specific policies, incentives, geographic location, access to capital, and the comfort level of a business with assuming technological risk, all play a role in determining the appropriate decarbonization technology for a company or mine site.
Due to this, it is likely that various technologies, renewable power, energy storage, electrification, and renewable fuels could, together or in combination, play a vital role in the mining industry’s transition to net zero.
Therefore, to develop an appropriate decarbonization strategy for a business, low-carbon technologies should be modeled in a facility-specific context to identify the most appropriate path forward.
E+M: Who are you looking forward to connecting with at the Energy and Mines Toronto Summit on November 1-2 at the Delta Toronto?
AG: I am looking forward to connecting with like-minded professionals who are passionate about reducing the climate change impact of one of the world’s most hard-to-abate industries.
Alisha Giglio is speaking at the Energy and Mines Toronto Summit, Nov 2, 10:50 AM on Scope 3 and Net Zero Mining.
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