CONGRESS REPORT
A N D P R E S E N T AT I O N S
TABLE OF
CONTENTS 01
CONTENT POD 1 Towards Zero Emissions Mining: Global Mines Share Strategies................ 04
02
CONTENT POD 2
03
CONTENT POD 3
04
CONTENT POD 4
05
CONTENT POD 5
06
CONTENT POD 6
South America: 100% Renewable Energy Mining............. 11
Optimizing Renewable Energy for Mines....................................... 18
Decarbonizing Material Movement: Towards Zero-Emissions Fleets............... 25
Hybrid and Utility-Scale Renewables for African Mines....................................... 31
Why Solar and Wind Make Sense for US and Canadian Mines........................... 36
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MINERS SHARE PATHWAYS FOR OVERCOMING DECARBONIZATION COMPLEXITY
E
very year, miners from around the globe leverage the platform of the Energy and Mines World Congress
to discuss new projects or carbon reduction commitments. Despite being held virtually, this year was no exception. With over 440 attendees, including 140 mining participants, the conference was conveniently organized in six content pods: some covering the general path to zero-emission mining operations and fleets, and others offering more specific insights around local challenges in South America, North America and Africa. With most large miners having to deliver on ambitious carbon targets by the end of this decade, it is clear to see that the pace of innovation and technology adoption is picking up.
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 1 TOWARDS ZERO EMISSIONS MINING: GLOBAL MINES SHARE STRATEGIES
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
5
The Energy and Mines Virtual World Congress started with an overview of global mining strategies for decarbonization. In the first content pod, miners presented their ambitious carbon reduction targets, and identified the concrete actions and technologies they believe will allow them to deliver on those goals.
CLEAN ENERGY FOR ELECTRIFICATION decarbonization
expectations, and the development
targets are broadly uniform: most
of energy storage will drive even
are aiming for 30% scope 1 and 2
more uptake in the coming years.
Large
miners’
emissions reduction by 2030, and carbon neutrality in 2050, with the exception of Newmont, which has chosen 2040 as a net-zero deadline. To achieve these targets, decisive action is needed, and it all starts with switching the mine’s baseline power to renewables. In the keynote panel, composed of senior mining leaders and chaired by Tyson Dyck, Partner at Torys, Jessica Harman, Principal
Portfolio
Strategy
&
Development at BHP, pointed out: “BHP’s
decarbonization
pathway
prioritizes renewable electricity first and foremost.”
Efforts to clean up the energy supply are then expected to make it easier for miners to electrify their fleets and operations, bringing many benefits: improved
performance,
improved
work environment, lower cooling and ventilation requirements, and of course, lower CO2 emissions. But when it comes to electrification, no one knows which technology — battery-electric vehicles, trolley assist or hydrogen — will prevail. An interesting point raised by miners is that giant heavy-haul mining trucks may simply not be compatible with electrification. “We need to wean
According to Dave Manning, Global
ourselves off of haul trucks to access
Head of Hybrid at juwi Renewable
the green energy power much more
Energy, renewable energy projects
readily,”
have mostly been outperforming
President and CEO of IAMGOLD.
said
Gordon
Stothart,
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
THE WAY FORWARD change
now, at whichever level each company is
management and disruption to existing
comfortable with. In a case study on BHP’s
operations were cited as challenges on
decarbonization strategy, Steve McGill, the
the
“What
company’s carbon management specialist,
risk would OEMs be willing to assume
presented the process used for leveraging
with creative financing solutions,” asked
the entire portfolio to deliver the best
Catharine Farrow, Non-Executive Director
outcomes for the group. “The portfolio
at Centamin, noting that decarbonization
of
projects are often still difficult to get over
depends on the asset, its capital intensity,
the line, financially speaking.
the marginal abatement cost curve and
Supply
chain
development,
decarbonization
pathway.
However, miners were unanimous about
operational
emissions
reduction
technology readiness,” he said.
the importance of starting the process
SPONSORS’ CORNER Fulcrum 3D emphasized the importance of measuring at least one year of wind data during the development stage of a project. Hatch presented the four-step process to developing an optimal lowemission pathway for mine sites: mapping emission sources; categorizing opportunities across the entire value chain; reviewing factors that may vary over time and impact projects; and ranking opportunities through a marginal abatement cost (MAC) curve. Wood McKenzie explored the global outlook for renewable energy for mines, noting that decarbonizing today might be a carbon tax hedge for tomorrow.
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
PANEL: TOWARDS ZERO-EMISSION MINING Chair: Tyson Dyck, Partner, Torys Gordon Stothart, President and CEO, IAMGOLD Jessica Harman, Principal Portfolio Strategy & Development, BHP Colin Nexhip, Group Executive - Asset Management, Newmont Gustavo Bastos, Executive Manager of Center of Excellence, Technology and Innovation for Iron Ore, Vale Catharine Farrow, Non-Executive Director, Centamin
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
BHP – ACHIEVING NET- ZERO MINING Jessica Harman, Principal Portfolio Strategy & Development, BHP Steve McGill, Specialist Innovation, Sustainable Operations, BHP
OPTIMISING MINING’S POWER SYSTEMS David Manning, Global Head of Hybrid, juwi Renewable Energies
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
SUPPORTING THE TRANSITION TO ZEROEMISSIONS MINING Paul Copestake, Head of International Markets, Fulcrum3D
HOW TO CREATE AN OPTIMAL AND FLEXIBLE LOW-EMISSIONS PATHWAY Michel Carreau, Global Director Hybrid Power, Microgrid and Green Hydrogen, Hatch
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
THE GLOBAL OUTLOOK FOR RENEWABLE ENERGY FOR MINES Benjamin Attia, Senior Research Analyst, Energy Transition Practice, Wood Mackenzie James Whiteside, Research Director, Global Head of Multi-Commodity Research, Wood Mackenzie
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 2 SOUTH AMERICA: 100% RENEWABLE ENERGY MINING
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Content pod 2: South America: 100% Renewable Energy Mining
T
he Energy and Mines Virtual World Congress second content pod focused on the world-leading decarbonization strategies of South American Mines. Sharon Mustri, Analyst at Bloomberg New Energy Finance (Bloomberg NEF),
set the scene with facts: renewables are the cheapest form of energy generation in South America, and miners have caught on to it. Three of top 10 off-takers of renewable energy in Latin America in 2020 were miners. Taking advantage of market-friendly regulations and commercial innovation such as sleeved PPAs, miners are shifting away from regulated markets and procuring cheaper energy from wholesale markets or through bilateral agreements: Solar PV’s levelized cost of energy in Latin America is US$59/MWh and wind is US$45/MWh, which is much lower than average industrial power prices of $100 or above. Meanwhile, for on-site generation, renewables are cost-competitive at 30-60% penetration.
COMBINING PPAS AND SELF-GENERATION Two miners that have led the switch to
Utilities, the company is currently
renewable PPAs in the region are BHP
negotiating more contracts that will
and Anglo American. BHP sourced
bring its Brazilian energy mix to 96%
600MW of renewable contracts in
renewables. “With the three electricity
Chile in 2019, and Sebastian Rivas,
supply contracts recently closed, we
Lead, Energy and Water Management,
will stop emitting 1 million tonnes of
Strategic Services, at the company,
CO2 per year, and have achieved a
explained that behind-the-meter self-
20 to 30% reduction in power costs,”
generation is also being considered
Duarte said. Meanwhile, Teck Chile is
to reduce transmission and ancillary
also procuring renewable energy to
services
Anglo
meet increased power needs once
American has procured 165 MW of
its Quebrada Blanca Mine expansion
wind and 70 MW of solar energy in
is complete. The company expects
the past year, corresponding to 70%
to have moved to 100% renewable
of its total power consumption in the
energy PPAs by 2025, and is also
country. According to Alfredo Duarte,
considering producing its own clean
Global Supply Manager, Energy and
energy on site.
cost.
In
Brazil,
Content pod 2: South America: 100% Renewable Energy Mining
13
ENERGY AND WATER EFFICIENCY In a panel moderated by ABO Wind’s
fact, Bloomberg NEF predicts that by
Head of Hybrid Energy and Battery
2030, more renewables will be used to
Storage Systems Julia Badeda, regional
produce green hydrogen than for power
miners pointed out that whether they
consumption in the region. This will bring
look towards electrification or hydrogen
the focus on water management, since
to displace diesel in mobile equipment,
electrolysis requires a lot of clean water.
more power will be required, which is
At BHP Chile, the target is to cease the use
why their first priority is improving energy
of continental water by 2030 by reducing
efficiency and accessing cheap sources of
consumption and installing desalination
renewables.
plants — which come with their own
Because of its abundance of cheap renewable
energy,
Latin
America
(specifically Chile and Brazil) is also expected to become the world’s lowestcost producer of green hydrogen. In
energy consumption. In Chile and in the rest of the region, renewables, diesel displacement through hydrogen, and water management are all intrinsically linked.
SPONSORS’ CORNER Global Affairs Canada reminded the audience of Canada’s commitment to be the most competitive jurisdiction in the world for cleantech, with the Trade Commissioner Service ready to support Canadian companies’ internationalization. Heliogen argued that concentrated and refined sunlight could be turned into cost-effective, 24/7 energy, solving intermittency issues and bringing modularity to the renewables equation.
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Content pod 2: South America: 100% Renewable Energy Mining
SUPPORTING CLEANTECH BUSINESS OPPORTUNITIES WITH GLOBAL MINES Rosaline Kwan, Director General, Trade Sectors, Global Affairs Canada
TOWARDS 100% RENEWABLE ENERGY-POWERED MINES Sebastian Rivas, Lead Energy & Water Management, Strategic Services – Minerals Americas, BHP
Content pod 2: South America: 100% Renewable Energy Mining
RENEWABLES FOR SOUTH AMERICAN MINES - KEY DRIVERS, NEXT STEPS AND OPPORTUNITIES FOR IPPS Chair: Julia Badeda, Head of Hybrid Energy and Battery Storage Systems, ABO Wind Marcos Cid, Manager, Energy, Teck Chile Alfredo Duarte, Global Supply Manager – Energy & Utilities, Anglo American Sebastian Rivas, Lead Energy & Water Management, Strategic Services – Minerals Americas, BHP Joanne Freeze, President and CEO, Candente Copper Corp
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Content pod 2: South America: 100% Renewable Energy Mining
CASE STUDY: DECARBONIZING OUR OPERATIONS IN CHILE WITH RENEWABLE ENERGY Marcos Cid, Manager, Energy, Teck Chile
ANGLO AMERICAN BRAZIL’S RENEWABLE ENERGY STRATEGY Alfredo Duarte, Global Supply Manager – Energy & Utilities, Anglo American
Content pod 2: South America: 100% Renewable Energy Mining
THE CHANGING ECONOMICS OF RENEWABLES FOR SOUTH AMERICAN MINES Sharon Mustri, Analyst, BLoombergNEF
RELIABLE, COST-EFFECTIVE, CLEAN ENERGY FOR MINES Dolf Joekes, Vice President, Sales, Heliogen
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 3 OPTIMIZING RENEWABLE ENERGY FOR MINES
Content pod 3: Optimizing Renewable Energy for Mines
19
B
ecause on-site power generation is responsible for a large portion of mining’s carbon footprint, leading many miners around the world to choose to self-generated renewables, the third content pod at the Energy and Mines
Virtual World Congress 2020 explored ways to optimize renewable energy options in microgrids.
MORE EFFICIENT MICROGRIDS few
implementation. Solar energy can
microgrid
now provide baseload 24/7 power:
experimentation behind them, and
Bruce Anderson, Chairman and CEO
success factors are becoming better
of 247Solar, explained that a small
known.
gas turbine, modified to produce
By
now,
years
of
miners
have
renewable
First,
a
companies
should
clearly state their emissions reduction
electricity
from
ambition, and map the renewable
ambient
pressure
resources available to them. “We are
by
systematically studying opportunities
solar energy, can work just like a
and potential sources of renewable
redeployable generator set.
energy very upstream of the project. It has to be done as the very first step,” said Pierre Gueudet, Energy and Climate Director at Eramet, during a panel chaired by Jennifer Berger, Managing Principal at Stantec. Then, geography and mine life should be considered to design the best solution for each specific site.
a
receiver
high-temperature that
air
heated
concentrates
While technical challenges are now easily overcome thanks to this type of
innovation,
miners
still
have
to contend with contractual and optimization challenges coming from the combination of very different energy sources. “It’s important to choose partners whom you are confident can execute,” notes Sunil
Renewable technology has evolved
Kumar, Senior Director of Energy
tremendously
Strategy and Engineering at Kinross
in
recent
years,
to the point where miners see little to no technical risk in their
Gold.
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Content pod 3: Optimizing Renewable Energy for Mines
LEVERAGING ENERGY STORAGE energy
plant is operating as a hybrid,” warned
storage are increasing the reliability of
Mark Kennedy, Business Development
renewable microgrid projects. “We’ve
Manager, Energy Solutions at Wärtsilä
introduced batteries to push renewable
Canada.
Recent
developments
in
penetration, as batteries respond faster than generators,” said
James Koerting,
Manager, Energy, Australasia, at Gold Fields, noting that the price of batteries is the only thing holding the company back from increasing its storage capacity. However, storage integration also adds complexity
to
microgrids,
requiring
specialized training and contract flexibility. “One of the challenges is how to handle performance guarantees and warranties: you may have performance guarantees from your solar provider, for the genset, for the batteries, but who is responsible to make it all work together when the
Storage, energy management systems and accurate forecasting were all cited as key to optimizing microgrid efficiency. And working with a partner that can deliver a turnkey solution encompassing all energy sources along with storage was seen as an advantage. Lars Stephan, Market Development
Manager,
Renewable/
Hybrid/Storage at Aggreko, noted that such a partnership ensured guaranteed reliability, fuel and commercial flexibility. “It allows customers to change power systems following their needs throughout the life of the mine, with one single hybrid contract,” he added.
SPONSORS’ CORNER Saturn Power laid out what should be miners’ priorities in storage integration into microgrids: functional specifications should be well structured, forecast assumptions should be confirmed from a credible source, load analysis should be performed on one-second interval load data, and contractual alignment should be achieved ahead of time. Scatec argued that by using a leasing approach and movable equipment, it is possible to achieve attractive solar pricing in a five-year PPA.
Content pod 3: Optimizing Renewable Energy for Mines
MINING MICROGRIDS: OPTIMISING RENEWABLES FOR MINES Chair: Jennifer Berger, Managing Principal, Stantec Pierre Gueudet, Energy & Climate Director, Eramet Sunil Kumar, Senior Director – Energy Strategy and Engineering, Kinross Gold Ron Miller, Director - Asset Management, Energy, Newmont Exequiel Rolon, Sustainable Development Manager, Fresnillo
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Content pod 3: Optimizing Renewable Energy for Mines
OPTIMISING RENEWABLES FOR MINES Bruce Anderson, Chairman and CEO, 247Solar
WHERE DO YOU START WITH ENERGY STORAGE FOR MINES? Ondrej Benjik, Business Development Manager – Energy Services, Saturn Power
Content pod 3: Optimizing Renewable Energy for Mines
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HOW CAN MINING OPERATORS DRIVE DECARBONIZATION AND FULFILL ESG TARGETS? Lars Stephan, Market Development Manager, Aggreko Microgrid and Storage Solutions, Aggreko
THE FLEXIBLE, 5-YEAR SOLAR CONTRACT Øydis Gadeholt, Senior Project Developer, Scatec Solar
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Content pod 3: Optimizing Renewable Energy for Mines
ENABLING ENERGY COST REDUCTION AND SECURITY THROUGH STORAGE Chair: Justin Wahid Rangooni, Executive Director, Energy Storage Canada Dennis Stansbury, Senior Vice President of Engineering and Project Evaluations, B2Gold James Koerting, Manager, Energy, Australasia, Gold Fields Mark Kennedy, Business Development Manager, Wärtsilä Oumar Toguyeni, Senior Vice President, Sustainability, IAMGOLD
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 4 DECARBONIZING MATERIAL MOVEMENT: TOWARDS ZEROEMISSIONS FLEETS
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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets
N
ow that mining’s energy transition is well underway, many miners are starting to tackle their other large emission culprit: material movement. The Energy and Mines Virtual World Congress fourth content pod
focused on the solutions being explored to displace diesel in mobile equipment.
UNDERGROUND VS OPEN PIT fleet
when you scale up, that puts a choke
decarbonization, a dichotomy has
point on the ability to recharge, but
emerged between underground and
swapping the batteries means you
open-pit operations. Many of the
can do that in less than five minutes,
miners speaking at the conference
with very little downtime and impact
pointed out that the transition to zero-
on productivity,” Huff pointed out,
carbon equipment underground is
though he did admit that surface
much more advanced than for open-
mining is more of a challenge because
pit operations. “Codelco has made
of the size of the equipment.
Within
the
theme
of
significant progress for decarbonizing underground. Two years ago we started with logistics and personnel equipment. Now we are moving to construction equipment, and next year we are starting to test production equipment,” said Gonzalo Ramirez, Project Manager, Electromobility and Energy Transition at Codelco, during a panel on zero-carbon fleets.
Vale
already
has
25
battery-
electric vehicles (BEV) operating in underground base metal mines in Canada, and plans to more than double this number by the end of 2025. But electrifying underground may also require some operational changes: “Historically mining has been a batch process, but we may move to a more continuous process,
Technology,
which may offer benefits in energy
Artisan Vehicles at Sandvik, added
efficiency,” mentioned Alex Mulloy,
that
Mining Engineer at Vale.
Brian
for
Huff, the
VP
of
electrified
underground
technology
equipment
is
already available. “What it took to tip the scale was the ability to swap batteries. Charging is limiting so
Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets
27
MINER-OEM COLLABORATION Various technologies are being developed
the platforms they are using for this
to tackle the immense challenge of
purpose is the Innovation for Cleaner
decarbonizing open-pit mining equipment,
Safer Vehicles (ICSV), an initiative by the
including hydrogen fuel cells and BEV, but
International Council on Mining and
so far it isn’t clear which will provide the
Metals (ICMM). Presenting on the topic,
most efficient solution. “We believe it won’t
ICMM’s Sarah Bell, Director of Health,
be a winner takes all: mine sites have such
Safety and Product Stewardship explained
different ecosystems and inputs that the
that the ICSV brings together 27 of the
right solution will depend on regeneration
world’s leading miners and 19 OEMs to
capture, mine site design, etc,” said Robert
collaborate in a non-competitive space.
Schaefer,
Accounts,
“We need to create tools for change that
Growth and Innovation at Cummins. He
make sure the commitment on both sides
added that these technologies should
is real: maturity frameworks and practical
become commercially available within the
tools for members to move at their own
next decade.
industry-informed pace,” she added.
Director,
Mining
But one thing’s for sure: in order to tackle this challenge, miners and OEMs must continue to collaborate. One of
SPONSORS’ CORNER Intelline pointed out that more efficient combustion engines could already help displace CO2 emissions from vehicles, as well as enabling the transition to cleaner fuels when they become available. Tembo 4x4 e-LV presented the benefits of switching heavy duty 4X4 vehicles’ drive trains to electric: zero emissions, low maintenance costs, less downtime and faster return on investment.
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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets
COLLABORATING ON DECARBONISING MATERIAL MOVEMENT Sarah Bell, Director, Health, Safety and Product Stewardship, ICMM
DECARBONIZING MATERIAL MOVEMENT FOR UNDERGROUND AND OPEN PIT Alex Mulloy, Mining Engineer, Vale Mayra Rachid, Senior Engineer, Vale Mauricio Duarte, Senior Engineer, Vale
Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets
HOW DO WE GET TO ZERO-CARBON FLEETS? Chair: Sarah Bell, Director, Health, Safety and Product Stewardship, ICMM Gonzalo Ramirez, Electromobility Specialist, Codelco Scott Davis, Lead Innovation - Zero Emissions Material Movement, BHP Brian Huff, VP Technology Artisan Vehicles, Sandvik Robert Schaefer, Director, Mining Accounts, Growth and Innovation, Cummins Eric Desaulniers, President and CEO, Nouveau Monde Graphite
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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets
HOW CAN MINES DISPLACE DIESEL TODAY? Kyle Faller, Founder & CEO, Intelline
THE NEW STANDARD IN MINING MOBILITY Paul Smetsers, Marketing Manager, Tembo 4x4 e-LV
Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 5 HYBRID AND UTILTYSCALE RENEWABLES FOR AFRICAN MINES
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Content pod 5: Hybrid and Utility-Scale Renewables for African Mines
T
he fifth content pod presented at the Energy and Mines Virtual World Congress 2020 gathered African mining experts to discuss energy and renewable implementation challenges specific to the continent.
GRID CONUNDRUM For many miners in Africa, the
“Solar is the cheapest source of
biggest energy challenge is reliability:
energy in the whole world, and in
remote mines have to truck diesel or
Africa it is even cheaper. Of course
HFO over thousands of kilometres,
life of mine is always a consideration
sometimes across borders, and even
but against HFO in remote locations,
if they are lucky enough to have a
payback periods are as small as five
grid nearby, power quality is not
years,” pointed out Martin Schlecht,
guaranteed. “Where we have grid
Chief Operating Officer at Suntrace.
connections, the quality of supply is not the best, especially in economies that
are
growing
fast,
where
infrastructure isn’t coping. It makes it difficult to predict the cost of electricity,” said Tsakani Mthombeni, Executive, Sustainable Development at Impala Platinum.
And
yet,
hybrid
power
plants
remain few and far between on the continent. According to Danny Callow, Chief Executive Officer at African Gold Group, this has to do with a lack of awareness of just how far the technology has come in recent years. “One of the really big
grids
misnomers about renewable energy
are based on diesel, HFO or coal
is that people still think this is blue
power plants. As mining investors
sky technology. We need to get the
push for more ESG implementation,
message out there that it’s available
operators are being forced to look
and it works,” he said, noting that his
beyond reliability and consider the
company’s decision to build a hybrid
carbon footprint of their power
plant at the Kobada Gold Mine in
supply. Considering this, adding
Mali will reduce its power cost by 35-
renewable self-generation on site
40%.
Additionally,
many
African
should be a no-brainer in Africa.
Content pod 5: Hybrid and Utility-Scale Renewables for African Mines
33
REGULATORY CHALLENGES But there is another issue preventing
South Africa is another such example,
the widespread adoption of renewables
where renewable IPPs struggle to get
in Africa: while Mali makes it easy for
authorized to supply to the national
miners to add their own solar generation
grid.
due to its lack of power infrastructure,
lagged behind the development of these
other countries see renewable IPPs as
technologies. Governments need to create
unwelcome competition. In Ghana, for
mechanisms to allow the private sector
instance, there is an overcapacity of
to procure their own power and to bring
generation, and the grid is owned by
power from one region to another. This
the government. “For any addition of
conversation is not about coal vs solar; we
generation, you really have to justify
are just looking for a way to balance this
it properly. It’s not as easy as in Mali,
transition in a way that doesn’t destroy
where the government wants you to
the system,” added Mthombeni.
“Policies
and
regulations
have
do that. In Ghana, where generation and transmission have been there for a long time, it is more difficult to extricate yourself from that,” said Samuel DeSouza, Director for Energy and Power Services at Newmont Africa.
SPONSORS’ CORNER ABO Wind presented on the benefits of combining solar and wind to bring renewable penetration upwards of 60%, with the optimal mix between PV and wind varying widely between regions.
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Content pod 5: Hybrid and Utility-Scale Renewables for African Mines
ENERGY PRIORITIES FOR AFRICAN MINES: HOW DO RENEWABLES FIT WITH OUR SITES? Chair: Lungile Mashele, Energy Specialist, Development Bank of Southern Africa Ron Halas, Chief Operating Officer, Global Atomic Corporation Samuel DeSouza, Director for Energy & Power, Services, Newmont Africa Tsakani Mthombeni, Executive, Sustainable Development, Impala Platinum Danny Callow, Chief Executive Officer, African Gold Group Martin Schlecht, Chief Operating Officer, Suntrace
Content pod 5: Hybrid and Utility-Scale Renewables for African Mines
THE BUSINESS CASE FOR HYBRID POWER IN SOUTHERN MALI Danny Callow, Chief Executive Officer, African Gold Group
THE BENEFITS OF CO-LOCATING RENEWABLES AND STORAGE Julia Badeda, Head of Hybrid Energy and Battery Storage Systems, ABO Wind
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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.
CONTENT POD 6
WHY SOLAR AND WIND MAKE SENSE FOR US AND CANADIAN MINES
Mpumi Zikalala, Managing Director, De Beers Group
Content pod 6: Why Solar and Wind Make Sense for US and Canadian
37
D
espite significant geographic and legislative disparities, North American miners are committed to lowering carbon emissions from energy. The last content pod of the Energy and Mines Virtual World Congress 2020
explored local drivers and preferred technologies for the transition.
BALANCING STAKEHOLDER EXPECTATIONS Not all North American miners are
“From an energy point of view, it’s
at the same level of maturity in their
been a lengthy and costly process
energy transition: while some, like Vale,
developing solar, battery and wind
have clear targets to be carbon-neutral
projects, but it is contributing to the
by 2050 and are starting to tackle their
knowledge and tech advancement
scope 3 emissions, others, like Coeur
that’s
Mining, just made their first move
Mahoney, Global Head of Geology,
towards renewable procurement. This
Mine Engineering, Geotechnical and
is because the business case is very
Technology & Innovation at Vale Base
different depending on each mine
Metals.
site. “Shareholders want companies to be greener but also want them to make profits so we have to find the right balance between economic and environmental; that’s why mine life sometimes makes it challenging,” pointed
out
Stephane
Robert,
Sustainability Expert at Agnico Eagle Mines.
needed,”
explained
Luke
The fact that miners are willing to invest
in
renewable
energy
and
decarbonization even when it is a tough sell shows how effective stakeholder pressure has become in North America. “It’s not just about millennial consumers,” said Mpumi Zikalala, Managing Director, Managed Operations at DeBeers in her keynote
right
speech. “It is consumers across the
balance involves taking a small hit
board who want to know about
in profitability. For instance, Coeur
each and every thing that happened
Mining’s recently signed a wind PPA
along the value chain, and the key
to cover 40% of power needs at the
question coming up is around carbon
Wharf Mine in South Dakota resulted
neutrality.”
Sometimes,
finding
the
in a 1% increase in the site’s energy bill.
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Content pod 6: Why Solar and Wind Make Sense for US and Canadian
CARBON PRICING In Canada, another element is motivating
Still, miners speaking at the event argued
miners to make the switch to clean energy:
that the industry can’t wait for regulation
the government intends to gradually
to change its direction, and encouraged
increase its carbon tax from the current
the use of an internal carbon price to
C$30 per tonne to a whopping C$170
incentivize decisions towards a lower-
per tonne by 2030. “The current carbon
carbon future.
tax may hurt, but it’s not changing the strategy of the mine. From C$100 dollars a tonne, it would start making a difference. The higher it gets, the more direction it gives the industry,” noted Michel Carreau, Global Director of Hybrid Power, Microgrid and Green Hydrogen at Hatch.
SPONSORS’ CORNER Torys Partner Valerie Helbronner spoke of the importance of involving indigenous communities in renewables projects for mines from inception, ensuring their voice is actively heard and that they also reap the economic rewards from the project. Ultra Safe Nuclear Corporation gave an update on the commercialization curve for small modular reactor (SMR) technology, which could become a cost-effective decarbonization tool working in tandem with renewables in 5 to 15 years. 2G Energy pointed out that combined heat and power (CHP) systems can be a great solution to generate flexible power and heat on site, with the added advantage of being able to run on 100% hydrogen.
Content pod 6: Why Solar and Wind Make Sense for US and Canadian
RENEWABLES IN THE CANADIAN ARCTIC: DE BEERS GROUP ROADMAP TO SUSTAINABLE MINING Mpumi Zikalala, Managing Director, De Beers Group Managed Operations
THE PRESSURE IS ON: WHAT DOES NET ZERO LOOK LIKE FOR MINES? Pat Carr, Business Development Manager - Canada, 2G Energy
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Content pod 6: Why Solar and Wind Make Sense for US and Canadian
HOW ARE CANADIAN AND US MINES TRANSITIONING TO LOW-CARBON MINING? Chair: Michel Carreau, Global Director Hybrid Power, Microgrid and Green Hydrogen, Hatch Korie Hickel, Manager, ESG, Community & Government Relations, Coeur Mining Bruce Armitage, Energy Manager, Lake Shore Gold Luke Mahony, Global Head of Geology, Mine Engineering, Geotechnical and Technology & Innovation, Vale Base Metals StĂŠphane Robert, Expert, Sustainability, Agnico Eagle
Content pod 6: Why Solar and Wind Make Sense for US and Canadian
HOW CAN MODULAR NUCLEAR POWER BE A PART OF MINE DECARBONISATION? Ken Darlington, Vice-President, Corporate Development, Ultra Safe Nuclear Corporation
DEVELOPING A ROADMAP TO DECARBONIZE BASE METALS - VALE’S JOURNEY Renata Cardoso, Technical Leader, Sustainability Planning and Development, Vale Canada Luke Mahony, Global Head of Geology, Mine Engineering, Geotechnical and Technology & Innovation, Vale Base Metals
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Content pod 6: Why Solar and Wind Make Sense for US and Canadian
PARTNERING WITH INDIGENOUS COMMUNITIES ON RENEWABLES FOR MINES Valerie Helbronner, Partner, Torys
CONCLUSION Decarbonization strategies are as varied as the mining ecosystem itself, but the industry as a whole is becoming undeniably greener. The level of technological innovation and sector collaboration observed at the Energy and Mines Virtual World Congress 2020 bodes well for the potential to achieve mining’s zero-carbon ambition sooner rather than later.
