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PAGE 2
CONTENT ENERGY AND MINES AUSTRALIA SUMMIT 2023
04
EVENT OVERVIEW BY NUMBERS
05
WHY MINES ATTEND THE EVENT
06
ATTENDEE FEEDBACK
08
SESSION REPORTS
10
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PAGE 3
AUSTRALIA SUMMIT
ENERGY AND MINES AUSTRALIA SUMMIT 2023 The 2023 Energy and Mines
The exhibition was sold-out
renewables integration, ESG,
Australia Summit brought
and our largest to date. The full
carbon management, and net zero
together over 600 mining, energy
decarbonisation supply chain
roadmaps.
and decarbonisation experts
was represented; from OEMs,
over two days, 30 sessions, two
developers, through to software,
The new event venue, the Optus
drinks receptions, a gala dinner,
EV leasing and recruitment.
Stadium, provided a spectacular
a packed exhibition and a great
environment for networking,
industry buzz. As the mining
The conference sessions took
meeting and branding. The award-
industry shifts to the realities of
place over two streams and
winning location was a hit with
decarbonisation the event provided
included mine CEO strategy
attendees. Conference sessions
advice, expertise, benchmarks and
presentations and detailed
took place in the Riverview
networking to help the industry
exploration of energy storage
rooms featuring large windows
meet its 2030 amd 2050 goals.
technologies, decarbonisation,
overlooking the city landscape.
E-mobility,electrification,
Meetings took place in hospitality
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PAGE 4
AUSTRALIA SUMMIT
As well as the streamed conference agenda the Summit included numerous networking opportunities with an open bar, drinks functions, coffee breaks with baristas, and breakfast briefing sessions. The GHD sponsored Mines and VIPs gala dinner provided a unique, fun and enjoyable networking event in which attendees relaxed, networked and created wind turbines!
EVENT OVERVIEW BY NUMBERS
615 ATTENDEES
106 SPEAKERS
40 SPONSORS & EXHIBITORS
UP 29% on
UP 25% on
UP 25% on
2022 SUMMIT
2022 SUMMIT
2022 SUMMIT
ORIGIN OF ATTENDEES GREATER PERTH: 40% WESTERN AUSTRALIA: 16% (EXCL PERTH)
REST OF AUSTRALIA: 30% REST OF WORLD: 14% For agenda suggestions contact adrienne.baker@energyandmines.com For exhibit or sponsorship contact olivia.mendoza@energyandmines.com
PAGE 5
AUSTRALIA SUMMIT
MINING COMPANIES INCLUDED
WHY MINES ATTEND THE EVENT Learning about latest in decarbonisation space, especially around long duration storage and hybrid power generation
Understanding of where peers are at in electrifying their mines and decarbonising their power supply, and latest precedents set to be able to refer to.
Connect with other companies and suppliers to increase our knowledge in the decarbonisation world which helps us further developing an energy strategy in the transition towards net zero.
Our project is focusing on electrification of mining so looking for ratification of what we are planning For agenda suggestions contact adrienne.baker@energyandmines.com For exhibit or sponsorship contact olivia.mendoza@energyandmines.com
PAGE 6
AUSTRALIA SUMMIT
WE SURVEY OUR MINING ATTENDEES AS TO WHAT THEY HOPE TO GET OUT OF THE CONFERENCE. HERE IS A SAMPLE OF THEIR RESPONSES: To learn about emerging technologies and understand how to head towards zero carbon emissions
Hear tactics and strategies of other miners in managing electricity market headwinds. Understand the availability and cost of various decarbonization technologies and services.
More information on mining fleet decarbonisation, both UG and OP technology. Advancement of LDES Connect with the OEMs and consultants who can help with our mining decarb journey and selection of alternate transport methods
Technology advances in mine electrification and remote renewable generation. More information on decarbonisation and renewable energy solutions for mid scale mines
Greater understanding of the WA renewables landscape as well as technologies research to reduce Scope 1 emissions
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PAGE 7
AUSTRALIA SUMMIT
ATTENDEE FEEDBACK HERE IS JUST A SAMPLE OF THE 2023 POST-EVENT COMMENTS
The Summit was terrific. It was broad in its coverage of clean energy transformation options, and had a good balance of supplier and subject matter expert presentations.
Incredibly well organised at E&M as always, great attendance from miners, punctual sessions with good time after for questions, friendly staff, good communication, delicious food & snacks & coffee.
Broad range of topics, the exhibitors were great as could find a specific contact to seek information for feasibility studies
Great panels and talks and excellent networking at trade displays. Venue worked well too - lots of space.
Right speakers addressing the right topics. Information-rich.
Great content, and event is focused enough that everyone who attends is meaningful/relevant to each other.
Great event and good for networking and understanding the latest developments
Wonderful diverse agenda and presentations
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PAGE 8
AUSTRALIA SUMMIT
Join us
AT ENERGY AND MINES 2024, MAY 7-8 OPTUS STADIUM, PERTH WA
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PAGE 9
AUSTRALIA SUMMIT
SESSION REPORTS KEYNOTE: FORTESCUE FUTURE INDUSTRIES: ELIMINATING FOSSIL FUELS BY 2030
AS AUSTRALIA TAKES THE GLOBAL LEAD IN MINING DECARBONISATION, INDUSTRY LEADERS AND PROFESSIONALS OFFER THEIR VIEWS ON THE DECARBONISATION TRANSITION world’s largest fully green networks.
decarbonisation is good for the
Once established, FFI will transition
environment, it also makes good
mining operations to use green
business sense. By eliminating
energy, replacing diesel-powered
fossil fuel use, Fortescue reduces
equipment with battery-electric and
regulatory and price volatility risks
fuel cell-electric alternatives.
while saving significant costs on oil and gas purchases and carbon
On rail transportation, FFI’s Infinity
credits.
Train will capture the energy of Christiaan Heyning, Director of
braking from a fully loaded ore
In closing, Heyning threw a
Decarbonisation, Fortescue Future
train heading downhill, storing it
challenge to the room:
Industries
in a big battery on the train itself. That would be just enough power to
“So, let me end with a small
Christiaan Heyning, Director of
get the empty train back uphill. In
provocation, right? We are racing
Decarbonisation at Fortescue
essence, the train is a zero, external
towards net zero - we will be net
Future Industries (FFI), a subsidiary
energy closed-loop system.
zero - real zero- as you say no
of iron ore mining giant Fortescue
more fossil fuels by 2030. Join the
Metals Group, discussed the
race and if you can beat us, next
company’s commitment and plans
year, you will be standing here
to eliminate fossil fuel emissions by
and telling why you are ahead of
2030. Emphasizing the urgency of the 2030 goal, Heyning observed that the 1.5-degree temperature threshold is already inevitable, making it crucial to act within this
WE ARE RACING TOWARDS NET ZERO WE WILL BE NET ZERO - REAL ZERO- AS YOU SAY NO MORE FOSSIL FUELS BY 2030.
Fortescue.”
KEYNOTE: BELLEVUE GOLD: DEVELOPING A ROADMAP TO NET ZERO GOLD OPERATIONS
decade. FFI also aims to transform the FFI focuses on green energy
group’s shipping operations by
production, green technology
converting vessels to run on green
development, and decarbonisation
ammonia, produced from green
Darren Stralow, Managing Director
services.
hydrogen. In Heyning’s words,
and CEO, Bellevue Gold
Fortescue’s eight VLOC ore ships In its approach to decarbonisation,
generate Scope 1 emissions that
In this keynote presentation,
FFI first plans to build a 2 to
are his “biggest problem” to
Darren Stralow, Managing Director
3-gigawatt green power system
decarbonise before 2030.
and CEO of Bellevue Gold, discussed the company’s plan to
in the Pilbara, creating one of the According to Heyning, while
develop a roadmap to achieve
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PAGE 10
AUSTRALIA SUMMIT
net zero gold production by 2026. Bellevue Gold is a mining company building Australia’s next major gold mine in Western Australia’s northern Goldfields, just north of Leinster. The mine is forecasted to produce 200,000 ounces of gold per annum at a relatively low cost of
IT’S GOING TO SET A NEW BENCHMARK FOR THE SECTOR
$1,000 to $1,100 per ounce.
Bellevue also intends to use
The company’s focus on
shifted crushing as strategies
environmental, social, and governance (ESG) issues is a core part of its vision and purpose. It has a strong relationship with native title holders, the Tjiwarl, and has implemented sustainability metrics, including a commitment to diversity with over 40% female participation within the company. Bellevue Gold’s plan to achieve net zero involves a hierarchy of control for carbon mitigation, designated by the acronym AERO (Avoid,
ventilation-on-demand and timeto reduce energy consumption.
equipment and vehicles to decrease diesel emissions. The company aims to offset any remaining emissions as a last resort, but is confident about attracting high-quality carbon offset partners locally. Furthermore, Bellevue Gold
The company is investing in
allowing it to market its ‘green’ gold
create a differentiated product, bars with tier one ESG credentials to niche customers willing to pay a
to power its operations.
premium.
“We have signed a PPA With Zenith
The junior gold miner also
Energy to build an 80% renewable energy power station,” says Stralow. “It’s really the backbone of this plan.”
Engineer, JUWI
electrification options for mining
believes its net zero approach will
comprising an 88 MW hybrid plant
Thomas Littlechild, Hybrid
Additionally, it is exploring
Eliminate, Reduce, Offset).
renewable energy infrastructure
KEYNOTE: FUTUREPROOFING MINING’S TRANSITION TO DECARBONISED ENERGY
anticipates other tangible benefits such as increased employee attraction and retention, decreased costs, and increased investor appetite.
Muhammad Wasiq Ghani, Portfolio Consulting Professional, Siemens JUWI is an international renewable energy developer and EPC contractor with vast experience in the Australian mining industry. The company focuses on providing reliable and cost-effective hybrid energy solutions for off-grid remote mine sites, utilizing wind and solar to replace gas and diesel-based power generation. Thomas Littlechild, a hybrid engineer with JUWI, emphasized the importance of decarbonising the mining industry, identifying machinery, haulage, and electricity generation as the major sources
“And it’s going to set a new
of carbon emissions in mining
benchmark for the sector.”
operations.
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PAGE 11
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Currently, only 1% of electricity
charging at peak generation times,
control and its relevance to mines’
in WA mines comes from onsite
we’re agnostic to the solution,”
decarbonisation efforts.
renewables.
Thomas added.
A levelized cost of electricity graph
What about project sizing to
experience, has been providing
for an off-grid mine site in WA
prepare for fleet electrification,
electrification and automation
presented by Thomas showed that
whenever it happens?
solutions to the Australian mining
Siemens, with over 150 years of
it is possible to achieve over 80%
industry, ensuring reliable and
renewable energy fraction using
innovative energy solutions for this
a combination of solar, wind, and
critical sector.
storage technologies. Clearly, the last 20% becomes prohibitively expensive with current technology. However, according to Thomas: “The way we manage energy flows with demand side management and deferrable loads such as electric vehicle charging can increase the flexibility or solutions and push us closer to that 100% renewable energy fraction without the high price tag.” Highlighting the need for a control system to manage diverse energy inputs efficiently, Thomas
THE MICROGRID CONTROL OFFERS VARIOUS FEATURES WHICH ARE AIMED TO ENSURE THAT KPI TARGETS SUCH AS RELIABLE ENERGY SUPPLY, REDUCTION OF ENERGY COST, LOWERING CARBON FOOTPRINT ETC ARE ALL MET EFFICIENTLY MAKING THE GRID NETWORK RESILIENT, EFFICIENT, AND SUSTAINABLE
believes the JUWI hybrid IQ system,
While renewable sources like solar and wind offer lower operational costs and reduced carbon footprint, they present challenges in managing intermittency, efficient storage utilization, and centralized management of distributed energy assets. To address these challenges, Siemens offers a microgrid control system, which coordinates with various energy assets, including generation, renewable and nonrenewable, energy storage, external grid connections, and distributed loads. The microgrid control features
developed with Siemens, is a
Thomas clarified that with the
a flexible platform supporting
solution to orchestrate intermittent
larger penetration renewable
versatile applications, multiple
renewables, storage systems, and
systems (such as 80%), there is
interfaces for easy integration,
deferrable loads.
currently a significant amount of
a modular design for future
curtailment - energy that is not
upgrades, robustness, and
On a question from the floor
used because of insufficiency of
redundancy. It also incorporates
regarding JUWI’s approach towards
load. This curtailment would likely
embedded cybersecurity features
emerging technological solutions
be used to electrify mining fleets in
to protect data in a secure
for decarbonisation: “We can get
the future.
environment. Standardized function
80% of the way there on your
blocks save time and reduce risks,
electricity demand. And then when
Mines planning fleet electrification
while custom functions cater to
those solutions come along, we
should therefore consider this: “Do
complex facility requirements,
can have that microgrid controller
we actually front load and put in
ensuring compliance and flexibility
already there, which is modular and
the larger system now so that it’s
for future enhancements.
can incorporate those additional
there and available and ready for
solutions later.”
when those loads increase?”
“The microgrid control offers
In the second part of the Keynote,
various features which are aimed
“So whether that’s another form of
Muhammad Wasiq Ghani, Portfolio
to ensure that KPI targets such as
energy storage that isn’t a chemical
Consulting Professional, Siemens,
reliable energy supply, reduction
battery, or if it’s electric vehicle
discussed the company’s microgrid
of energy cost, lowering carbon
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PAGE 12
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE footprint etc are all met efficiently
According to Darren Stralow,
making the grid network resilient,
many new companies and
efficient, and sustainable,” said
projects are focusing on ESG and
Wasiq. Furthermore, to realize the true
decarbonisation as core aspects Jessica Jones, Director ESG,
of their business, because it
Resource Capital Funds
aligns with the preferences of
potential of renewable assets,
stakeholders and attracts the next
Siemens has the expertise
generation of workers. As a junior
and resources available within
development company, Bellevue
Australia to deliver solutions as per
Gold had the leeway to do things
customers’ requirements. These
differently (“by us sort of sticking
span the complete value chain
Michelle Ash, Vice President of
our neck out a little bit”), and could
from consultation and guidance to
Growth, BHP
influence other companies to
project realization, including budget
decarbonise.
estimations, design, development,
The panel, chaired by Jo Garland,
testing, commissioning and
Partner, HFW Australia, comprised
How is decarbonisation changing
continuous improvement support.
participants from finance, junior
mining on strategic and
miners and larger resource
operational levels?
companies. The discussions were
Reducing the carbon footprint
structured around a well-thought
is becoming a crucial aspect of
out agenda, and benefited from the
mining companies’ strategies as
views expressed by smaller miners
there is increasing pressure from
embarking on the pathway to net
various stakeholders, including
zero.
governments, shareholders,
KEYNOTE PANEL: TOWARDS NET ZERO MINING
investors, and employees. This is Chair: Jo Garland, Partner,
How are miners addressing the
HFW Australia
dual challenge of trying to grow
changing mining at all levels.
their assets and portfolios while
On questions that miners face
reducing their carbon footprints?
on their emissions, Luke Graham
On the question of how mines can
commented: “It gets boards to
decarbonise their operations while
shape strategy around answering
growing their business, participants
those questions and mapping
Darren Stralow, Managing Director
felt the key lay in rethinking the
against that. It then just drives
and CEO, Bellevue Gold
way mining is conducted. This
down into actions through
could involve redesigning mining
operational plans.”
operations to reduce waste
Sarah Thomas, Environment
movement, adopting more precise
“So, it is an everyday agenda. It’s
and efficient mining and sorting
high on the agenda. It’s part of your
techniques, and out-of-the-box
sustainability initiatives. And it’s,
thinking.
and it’s not going anywhere, and it’s
Manager, De Grey Mining
not a set-and-forget strategy.” “Do we have to do everything
Sarah Thomas remarked that
24/7? Can we rethink when we
sustainable lending was emerging
do things and how we do things?”
as a key driver for companies that
asked Michelle Ash, who also
adopt decarbonisation efforts,
suggested the use of alternative
leading to broader value and
Luke Graham, Chief Executive
energy storage systems and
benefits, including community
Officer & Managing Director,
advanced technologies like AI and
engagement and improved
Strandline Resources
communication systems to help
corporate social responsibility. The
achieve the twin objectives.
focus on sustainability could also
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PAGE 13
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE help attract diverse talent to the
How are investors and customers
implementing renewable energy
industry.
responding to these commitments
solutions and adopting new
and plans?
technologies, can attract investors
This was echoed by Michelle Ash.
The discussion focused on the
and downstream customers,
“We’ve sort of become less and less
perspectives of private equity
leading to business growth
relevant to young people.”
investors and customer response
and opportunities for valuable
to decarbonisation strategies in
partnerships.
the mining industry. Investors
I GUESS EVERY MINER IS A SLAVE TO THE ORE BODY, AND THE ORE BODY IS GOING TO DICTATE YOUR MINING METHOD
are increasingly considering
What are some of the anticipated
decarbonisation as a crucial factor
roadblocks in transitioning to net
when evaluating investment
zero mining?
opportunities. Climate change
The discussion revolved around the
reviews are becoming a standard
challenges and obstacles faced by
part of due diligence, even if
the mining industry in its efforts to
specific decarbonisation plans are
achieve net zero emissions.
not yet fully developed. Participants highlighted that each From the perspective of investors
company, commodity, and location
How are mines supporting the
and customers, having a well-
would confront unique roadblocks
business case for significant
defined decarbonisation strategy
in their decarbonisation journey.
investments in renewable energy,
and transparent reporting on
Several key problem areas emerged
electrification, hydrogen, etc?
progress is becoming a critical
spanning infrastructure (such as
Transitioning to renewable energy
criterion. Institutional investors
limited land resources); biodiversity
significantly increases capital
and high net worth individuals
preservation; availability of skilled
expenditure, and this could be
show strong interest in responsible
manpower; regulatory compliance,
a serious problem in the case of
investments that prioritize
and retrofitting for decarbonisation
projects with a short mine life.
decarbonisation initiatives.
in mature mine sites.
the long-term benefits and total
However, many smaller, or early-
“Also, we see challenges in
cost of ownership were factors
stage mining companies may not
developing countries where the
that mines must consider in the
have firmed up decarbonisation
technology hasn’t been trialed and
Capex decision. Again, integrating
plans. “We don’t really see much
it’s harder to roll out something
different technologies, such as
of a strategy at that stage,” said
new and different,” remarked
electrification and automation,
Jessica Jones. “But if we do,
Jessica Jones. “And it’s just much
could yield additional advantages
generally, we get quite excited
easier to do that in the OECD
such as more safety for miners at
about it and want to understand
countries, I guess.”
the coalface.
what is behind the assumptions
However, participants agreed that
and digging into the idea and as
How are decarbonisation goals
The participants emphasized the
you say, looking at not only the
being integrated into business
need to present the case for the
opportunity, which we get excited
planning?
investments in a comprehensive
about, but also what are the risks.”
The discussion centered on
and compelling manner to
Similarly, downstream customers
the importance of strategic
gain support from boards and
in the mining industry, when
planning and practical actions
stakeholders, especially those
considering offtake agreements,
for decarbonisation in the mining
that may be less familiar with
look at the emissions profile of
industry.
technology-related risks.
the mining companies as part
Said Michelle Ash “You have to get
of their own Scope 3 emission
Participants emphasized the
people to understand that there is
considerations. Luke Graham made
significance of reporting and
risk in doing things the same way
the point that responsible and
monitoring emissions profiles
as we’ve always done them.”
future-facing practices, such as
(Scope 1, Scope 2, and potentially
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PAGE 14
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Scope 3) in their annual sustainability reports. “The strategy gets it, clearly, and
NEWCREST MINING LIMITED: MANAGING THE FLEET TRANSITION
The trial has demonstrated impressive results, including a 22% reduction in cycle times and 40-50%
then we’ve defined the various
faster travel speeds compared to
business imperatives at the
diesel trucks. The electric trucks
operational level to deliver on that,”
are contributing to significant
said Luke Graham. “And then the
emissions reductions, aligning with
key thing is your report on it.”
Siobhan Cribb, Program Director
Newcrest’s sustainability goals.
Michelle Ash said that net zero
Net Zero Emissions, Newcrest
Another motivating factor at
strategies would have to be
Mining Limited
Brucejack for transition to electric
translated into a decarbonisation
trucks: All the diesel for fossil-
roadmap that defined practical,
Siobhan Cribb, Program Director
diesel driven trucks has to be
more tangible actions.
Net Zero Emissions at Newcrest
hauled to the mine over a glacier.
Mining, discussed the company’s How can mines plan and design
approach to fleet decarbonisation
around technologies that are not
in her presentation “Managing
yet available?
the Fleet Transition.” Newcrest is
In this part of the discussion,
Australia’s largest gold producer
participants acknowledged that
and is focused on reducing
it was essential to identify and
emissions across its operations.
implement technology-driven
Siobhan’s team is responsible
solutions to reduce carbon
for Newcrest’s decarbonisation
emissions.
strategy, including fleet electrification.
However, they also recognized that
NEWCREST IS AUSTRALIA’S LARGEST GOLD PRODUCER AND IS FOCUSED ON REDUCING EMISSIONS ACROSS ITS OPERATIONS
the complexity of mining operations
The company categorizes
and physical site constraints could
decarbonisation technologies
The risky process was reason
limit the available technology
into three horizons: Horizon One
enough for the team to switch at
options for decarbonisation.
involves simple technology swaps,
the earliest to electric trucks and
Said Darren Stralow: “I guess every
such as replacing diesel vehicles
reduce diesel transportation over
miner is a slave to the ore body,
with electric ones, which have
the icy road.
and the ore body is going to dictate
shown promising results in trials
your mining method - the gold was
for auxiliary fleet vehicles. Horizon
“The Brucejack team, what they’re
put there 4.2 billion years ago, and
Two explores more complex
doing now is running the full fleet,
as good as you are, you can’t affect
system changes, like trolley
because the eighth truck only got
that.”
systems for hauling, or alternative
onsite in March,” says Siobhan.
fuels for mobile fleet vehicles.
“They’re now running the trial
“So, what we just need to do is
Finally, Horizon Three represents
again, and they’re going to validate
really start to try and think about
fundamental system changes,
these numbers and rerun the
what those technologies are, and
focusing on low-energy processing
business case.”
then try and drive that back into
and renewable power generation.
the decision-making process.”
Newcrest has successfully deployed
“But it’s looking really, really quite
a fleet of Sandvik Z50 electric
good.”
trucks at its Brucejack gold mine in Canada. The trial started in October 2022 with one truck, which had to be warmed under a tent before it could start operating in the freezing conditions. For agenda suggestions contact adrienne.baker@energyandmines.com For exhibit or sponsorship contact olivia.mendoza@energyandmines.com
PAGE 15
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE PANEL: KEY DEVELOPMENTS FOR ZERO-EMISSIONS FLEETS
Participants acknowledged the
Michael Lewis discussed
complexity of the challenge,
innovations in three areas
agreeing that a holistic approach
of sustainable fuels, battery-
is necessary, considering various
powered haul trucks with dynamic
technologies and solutions. The
charging, and scaling up hydrogen
conversation emphasized that there
applications, emphasizing the need
isn’t a one-size-fits-all answer.
to maximize engine lifespan and understand total cost of ownership
Chair: Siobhan Cribb, Program
Given the importance of system-
Director Net Zero Emissions,
level thinking and energy
(TCO) for these technologies.
Newcrest Mining Limited
management, a combination
Shane Clark suggested retrofitting
of technologies could lead to a
existing assets as a way to enable
comprehensive mining solution,
the transition to battery electric
according to Paul Murphy.
vehicles (BEVs). “To think that the OEM solution will kind of come
This view resonated with Michael
along and displace, you know,
Michael Lewis, Technical Director,
Lewis, who suggested that regional
the 5,500 rigid dump trucks in
Technology, Komatsu
variations and differing mine
operation in Australia, in the kind
requirements made it necessary
of timeframes that we’re seeing the
to work on multiple technologies
client’s requirements - off the shelf
simultaneously. He provided
– it’s pretty, pretty hard to see.”
examples of how hydrogen, battery trolleys, and renewable diesel could
According to Paul Murphy,
Shane Clark, General Manager -
be suitable in different contexts,
addressing the technology dilemma
Strategy & Growth, MACA
even within the same mine.
involves being power system
“I think having a look at the
agnostic. He suggested focusing on
overarching energy profile of
efficient electric drive systems as a
your mine, and basically picking
base and allowing adaptability for
the quick green wins and doing
future power systems as technology
it in order, because you know,
evolves. This approach ensures
each mine life is different, every
flexibility while capitalizing on the
application is different,” suggested
known benefits of electric drive
Shane Clark.
efficiency.
Julian Soles emphasized the need
What are the key takeaways from
for solutions that maintain or
recent pilot projects that you’ve
Paul Murphy, Executive General
improve production efficiency while
done with First Mode? And which
Manager, Future Industries Project,
being cost-effective compared to
mines? And what are the next steps
Liebherr
diesel. “You’re going to transition
for scaling up these technologies?
the whole energy system. So, you’ve
Julian Soles shared insights from
The panel delivered a thought-
got to look at the whole system
First Mode’s pilot trial involving
provoking discussion on the current
solution, and then you’ll arrive at
fuel cells and batteries in mining,
status of fleet decarbonisation. It
the best fit for the mine.”
highlighting the importance of
Julian Soles, CEO, First Mode
hands-on testing over theoretical
covered technology options, recent pilot projects, and OEMs’ readiness
What are the latest developments
for purchase demands from mines
in terms of technology readiness
as net zero timelines approach.
and commercialization for the
The trial revealed unexpected
different options? Could it
performance variations,
What is the response to miners
be electrification, hydrogen,
emphasizing the need for real-
who ask which technology?
sustainable fuels?
world experimentation.
considerations.
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PAGE 16
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE
YOU’RE GOING TO TRANSITION THE WHOLE ENERGY SYSTEM. SO, YOU’VE GOT TO LOOK AT THE WHOLE SYSTEM SOLUTION, AND THEN YOU’LL ARRIVE AT THE BEST FIT FOR THE MINE
“You find that some things performed way better than you expected them to do. And some of the things that you thought were going to perform just don’t, don’t perform as advertised,” said Soles. “And the only way you learn that is by getting your hands on the hardware, testing it, putting it all together, and then going into the field.” Challenges in system integration, operational coherence, and safety led to a focus on long-term viability and operational readiness for First Mode. Michael Lewis focused on lessons from a battery truck pilot. He too stressed the significance of verifying technology against expectations, revealing that some partner specifications didn’t align with mining requirements. What are the OEMs learning about the complexities and possible solutions for enabling infrastructure? This part of the discussion focused on the transition towards new technologies and the need for
collaboration and practical action
where milestones, engineering
to create the infrastructure to
challenges, timeframes, and future
receive them.
risk sharing are set, allowing for upfront engineering investment and
Shane Clark emphasized that
collective problem-solving.
the shift from a one-size-fits-all
The other participants seconded
approach to individualized charging
the need for collaboration between
and energy solutions for each mine
mine owners and equipment
presented a challenge for mine
suppliers.
owners. “And I think that we kind of get decision paralysis to an extent
Julian Soles underscored the
on the mine owners’ side, because
importance of risk sharing,
it’s seen as such a big problem to
acknowledging that the first
solve that.”
solutions may not be perfect, but a collaborative learning journey
He called for more early adopters
is necessary to move the industry
to take the initial small steps to
forward faster.
inform and encourage the industry. Paul Murphy discussed the
“Anglo American, for example -
Fortescue example, emphasizing
that’s the reason we were able to
the importance of collaborative
move quickly,” said Soles. “The
models in solving the challenges of
timelines, the reason for moving
decarbonisation. He suggested that
the way we did was that the market
collective efforts, complementing
just wasn’t moving at the pace that
each other’s strengths, would be
we wanted it to.”
more effective in addressing these complex issues.
For miners who are not currently
Michael Lewis shared insights about
working with OEMs on testing
the history of mining technologies
these technologies - do we think
like trolley systems and how
they’ll have a hard time procuring
lessons from the past can inform
trucks and equipment in line with
the current transition. “I think
net zero timelines?
that these are not insurmountable
Participants agreed that time was
challenges,” he said. “I think
of the essence in joint development
we need to come together as
and testing. And early adopters may
an industry, we need to come
secure an advantage by investing
together between the OEMs and the
in the technology and taking on the
operators, and just work through
risk.
these problems.” “What I think that the imperative How is this transition challenging
is, it’s incumbent upon all parties
the traditional business model
here to commence and then I think
for OEMs? And what new contract
the deployment will somehow look
models are being considered?
after itself as the market levels a
In the context of the traditional
bit,” said Murphy.
OEM product development lifecycle, notable for its lack of
In a wake-up call, Lewis said the
agility in addressing the challenges
10,000 ultra-class trucks currently
posed by the transition, Murphy
in operation across the globe
recommended collaborative models
represented more than 10 years of
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PAGE 17
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE manufacturing capacity. Replacing
learning about it. And then you’ll
them cannot happen overnight. “I
end up making the best decision for
Oliver’s presentation evaluated
will say this, you know, there is a
the mine.”
the various haulage electrification
growing demand, the demand is
options of battery swapping, static
going to outstrip the capability of
“Because ultimately, we’ve got to
battery charging, a traditional
the OEMs,” he added.
make sure that we deliver tonnage,
trolley system, and dynamic
that’s the objective here.”
charging.
CASE STUDY: POWERING THE FUTURE OF MINING: REVOLUTIONIZING ELECTRIFICATION AND HAULAGE TECHNOLOGIES
The time lost by a haul truck in
Julian Soles held a similar view: “This is going to take years, and part of it is, you know, really goes to 2040 target 2030.” So, team work would be key. “It
stopping to swap, as well the large size of batteries are arguments against battery swapping. Moreover, a mine would have
doesn’t really matter who you are, if
to allocate precious real estate
you’re going to try the technology,
to battery swap stations, and in
you’ve got the risk appetite, we’d
underground operations, invest in
love to work with you.”
a larger number of batteries as the mine goes deeper underground.
What advice do OEMs have for
James Oliver, CEO, BluVein
miners trying to manage the fleet
Meanwhile, the stop-to-charge electrification option suffers from
transition and optimize plans
BluVein is a collaboration between
the challenges of safety, loss of
as these technologies become
Swedish cleantech company Evias
production because of stationary
available?
and Olitek, a well-known Australian
trucks lining up to charge, and
“You have to start this process
technology development and
larger batteries that have a
now,” emphasized Lewis. “Now’s
deployment company. BluVein
shorter working life. This option
the time to start planning, start
aims to provide dynamic power to
is also difficult to automate, a
collaborating, thinking about what
moving mixed-OEM haul fleets in
key bottleneck in the mine of the
you want to do, how you want to do
mining applications, an approach
future.
it, and, and working with partners,
that reduces battery needs, boosts
OEMs, and service providers
vehicle speeds, balances grid loads,
However, electrification via a
and, and others around how to
eliminates static fast charging,
traditional trolley system offers the
accomplish it.”
improves fleet availability, and eliminates diesel use.
Lewis referred to a discussion a few months ago with a mine operator
BluVein 1 offers an underground
on infrastructure preparation for
mining solution using the BluVein
electrification. It turned out that
Rail™ system and on-vehicle
the lead time on some of those
BluVein Hammer™ for simultaneous
components was over four years.
charging while moving. This
“And we have, you know, not just
technology eliminates battery
one or two of the major miners
swaps, supports smaller batteries,
asking for these infrastructure
and suits continuous heavy use.
pieces, but we have almost
BluVein XL extends this innovation
everyone in the room.”
to open-pit operations, replacing conventional trolley systems and
Julian Soles stressed the need for
aiding mines in transitioning to
planning and testing in advance.
decarbonised haulage practices.
“And so really, get piloting, get the
James Oliver serves as the
technology in your hands, learn
Managing Director of Olitek, and is
about it, get your operational folks
also the CEO of BluVein.
OLIVER’S PRESENTATION EVALUATED THE VARIOUS HAULAGE ELECTRIFICATION OPTIONS OF BATTERY SWAPPING, STATIC BATTERY CHARGING, A TRADITIONAL TROLLEY SYSTEM, AND DYNAMIC CHARGING.
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PAGE 18
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE advantages of keeping haul trucks
Innovation and Technology, Gold
in motion, reduced peak loading on
Fields Australia, there is more
grid, and the use of better batteries
to this challenge than meets the
that are also fewer in number.
eye. “Another issue is the gap
On the flip side, this system suffers from power, earthing, and safety challenges, and needs larger infrastructure and a well-
Rob Derries, Unit Manager: Innovation & Technology, Gold Fields Australia
in practical experience in the introduction of technologies. A lot of what we’re doing is based on simulations and theoretical
maintained terrain for the trucks to
assumptions, and there aren’t a
traverse.
lot of trials. That’s a major risk as a mining company, as we try and
Oliver describes dynamic charging by BluVein as the next generation trolley system for mines’ next generation haulage applications. For underground mining, BluVein
implement these technologies,” he John Mulcahy, Principal Advisor, Surface Mining and Technology, Rio Tinto
said. Because of this lack of experience, the technical implications of
1 offers the attributes of higher
managing and recharging battery-
production, agnostic application,
electric trucks remain unclear,
better safety, and six times less
particularly as several speakers
batteries without the need to swap
explained that mines will need to
- all at a lower cost. For open pit, BluVein XL offers all the same advantages with higher power capability of 8MW+.
PANEL: TRANSITIONING TO ALL-ELECTRIC MINING
Paul Linabury, Manager Electrification, Perenti Contract Mining Much remains to be done on the way to the all-electric mine, but mining companies and technology providers are positive about what’s to come. At a panel on this topic at the Energy and Mines Australia Summit 2023, speakers emphasized the need for careful planning,
Chair: Rod Thiele, Education and Training Manager, Future Batteries Industry Cooperative Research Centre (FBICRC)
training and cooperation in making this goal a reality. Chaired by Robert Thiele, Education and Training manager at Future Battery Industries CRC, the panel gathered representatives from ABB, Gold Fields, Rio Tinto and Perenti Contract Mining to discuss the main
Ratna Kanth Dittakavi, Global Product Manager - Trolley Systems, ABB
challenges in managing mines’ transition to electrification. Several speakers noted the issue of technology readiness, with few electrification technologies commercially available at the scale needed for the industry. But
temporarily operate a mixed diesel and electric fleet. “We see it starting with the introduction of battery-electric fleets as the diesel fleet starts to retire. Over time, as you retire more of the diesel fleet, and the technology improves, you can start running longer distances. And ultimately, by the time we need to be at target, we would technically have enough battery-electric fleet to do the job,” noted John Mulcahy, Principal Advisor, Surface Mining Technology at Rio Tinto. This transition will require collaboration from the entire mine staff, which will involve a mindset change, as well as new talent. Among the type of future hires mentioned by panelists are design-focused mining engineers, refrigeration technicians to handle the new cooling needs of battery and charging systems, and innovation experts.
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PAGE 19
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE
WE SEE IT STARTING WITH THE INTRODUCTION OF BATTERY-ELECTRIC FLEETS AS THE DIESEL FLEET STARTS TO RETIRE As more and more battery-
Despite these challenges, miners
The process of transitioning
on the panel expressed their
to sustainable energy and
excitement about being a part
electrification aims to achieve the
of “the biggest change” the
target of deriving 80% of energy
industry has seen in generations,
from fossil-free sources by 2050.
and working together towards a
This shift is particularly relevant for
common goal.
the energy-intensive mining sector. The challenges that the mining
HITACHI ENERGY: SUSTAINABLE ENERGY SOLUTIONS FOR AN ALL-ELECTRIC MINE
Additionally, the industry is
transition to a battery-electric mine,
able to talk to our power network, our fleet management system is going to have to be aware of the upcoming voltage requirements the energy demands, and all that’s going to happen on a grid power systems with an increased penetration of renewables with variations in supply,” added Mulcahy. This transition and everything it involves will of course come at a cost that needs to be taken into consideration in planning. Ratna Kanth Dittakavu, Global Product Manager for Trolley Systems in ABB, recommended conducting thorough studies to define a clear roadmap and anticipate the mine’s increase in energy needs. “A very important part of the studies is not only to look at the energy requirements for the trial, but to get the final goal, compared to how much is installed now. Building this infrastructure for the future is high CAPEX, so it is important to understand what needs to be invested upfront now,” he said.
efficiency, considerations of
cybersecurity concerns.
will also become crucial. “When we
chargers are going to have to be
digitalization for operational
and the necessity to address
automation and interoperability
between our power systems. Our
energy solutions encompass
sustainability and ESG factors,
electric vehicles get introduced,
we will create this interdependency
sector faces in adopting sustainable
influenced by the volatility of Bernard Norton, Country
electricity and commodity prices,
Managing Director, Hitachi Energy
trade logistics, and geopolitical issues.
Hitachi Energy is a global technology leader committed to
In this scenario, according to
creating a sustainable energy
Norton, conceptualizing an all-
future. The company provides
electric mine would encompass all
innovative solutions and services
facets of energy generation and
across the utility, industry, and
consumption to develop a unified
infrastructure sectors, catering
and integrated solution to ensure a
to the entire value chain.
reliable and efficient energy supply.
Headquartered in Switzerland, with
The five key considerations when
a presence in over 140 countries,
planning for an all-electric mine
Hitachi Energy employs around
encompass the requirement for
40,000 individuals across 90
a dependable and stable power
countries and has a turnover of approximately $10 billion USD. In the presentation, Bernard Norton, the Country Managing Director of Hitachi Energy, emphasized the significance of sustainable energy solutions for allelectric mines. Norton highlighted the ongoing global shift from fossil fuels to renewable resources, emphasizing
THE INDUSTRY IS INFLUENCED BY THE VOLATILITY OF ELECTRICITY AND COMMODITY PRICES, TRADE LOGISTICS, AND GEOPOLITICAL ISSUES
the importance of increased electrification and the integration
supply using technologies such
of sustainable energy sources to
as 5G networks, the integration
create a more environmentally
of renewable energy sources,
friendly energy mix.
flexibility in electrification systems,
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PAGE 20
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE and the importance of collaboration
“Hydrogen, typically in fuel cells,
among industry stakeholders.
from a Caterpillar perspective, may be an option to round out that last
Virtual synchronous machines from Hitachi Energy facilitate the integration of renewable energy into mining operations. This technology replicates the behaviour of conventional synchronous generators and contributes to stabilizing power systems while enabling the transition away from fossil-fueled generation.
INTEGRATING ENERGY DECARBONISATION AND ELECTRIFICATION
HYDROGEN, TYPICALLY IN FUEL CELLS, FROM A CATERPILLAR PERSPECTIVE, MAY BE AN OPTION TO ROUND OUT THAT LAST FEW PERCENT THAT EVERYONE’S BEEN TALKING ABOUT.
few percent that everyone’s been talking about.”
CASE STUDY: THE QUIET DECARBONISATION REVOLUTION: MAXIMISING EFFICIENCIES AT EXISTING OPERATIONS
and Nouveau Monde Graphite to develop these solutions. He addressed key considerations
Manoli Yannaghas, Managing
when working towards
Director, Voltvision
decarbonising power at a mine,
Adrian Constable, Asia Pacific
including renewable energy
VoltVision specializes in digitizing
requirements, energy storage, and
high and medium voltage industrial
electric lines.
power networks, converting raw
Manager – Hybrid Energy Solutions,
power data into actionable insights
Caterpillar Electric Power
“It’s very complicated to
for mining companies using a
Division
decarbonise a mine,” said
distinctive “Plug and Play” data
Constable. “And that’s why
extraction gateway and advanced
Caterpillar is the world’s leading
Caterpillar is working heavily on
AI platform. These technologies
manufacturer of construction and
integrating both the renewable
enable automated analysis and
mining equipment, diesel and
energy solar power side as well as
visualization of power data in near
natural gas engines, industrial
electrification on the machinery
real-time.
gas turbines and diesel-electric
side.”
locomotives.
Manoli Yannaghas, the Managing Caterpillar’s hybrid energy
Director and Founder of Voltvision,
In his presentation, Adrian
solutions involve renewable
emphasized the value of collecting
Constable, Caterpillar’s Asia Pacific
energy integration, with Constable
and analyzing data to identify
Hybrid Energy Solutions Manager,
particularly emphasizing the role
opportunities for energy savings,
discussed the integration of energy
of battery energy storage and
emissions reductions, and asset
solutions, decarbonisation, and
inverters.
optimization.
fleet electrification. His presentation also showcased
“I’ve got three words: data is
Constable described Caterpillar’s
various ‘what-if’ scenarios involving
power,” said Manoli. “So, what do I
transition towards electric
renewable energy integration
mean?”
machines, mentioning their
and energy storage, illustrating
diesel-electric fleet and a shift
the impact on traditional power
“Within the context of energy
towards fully electric solutions,
generation.
usage, the ability to collect and
including battery electric and grid-
understand the right data can
connected options. The company
Constable also referred briefly
deliver quick, low-cost efficiencies.”
is collaborating with mining
to hydrogen, which Caterpillar
Voltvision’s products, namely VV
companies like BHP, Rio Tinto,
has been blending for 35 years.
Asset, VV Power, and VV Net Zero,
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PAGE 21
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE PANEL: DECARBONISATION STRATEGIES FOR SMALL TO MID-CAP MINES
involve collecting and processing power data using hardware and cloud-based AI software. These solutions offer insights into power consumption, asset performance, and emissions data. In a case study at Endeavour Mines in West Africa, Manoli revealed that this approach and Voltvision’s solutions led to significant savings and emissions reductions at the mine. “We are an opex-only product, we don’t require capex,” said Manoli. “Payback to Endeavor across those two lines, as you can see, was under a month.”
CLIMATE RESILIENT NET ZERO MINING
HIGH TEMPERATURES AND REDUCED ENERGY OUTPUT FROM RENEWABLE SOURCES COULD LEAD TO POWER SYSTEM IMBALANCES AND POTENTIAL DISRUPTIONS study to demonstrate the impact of extreme heat on a renewable energy system.
Chair: Wayne Peel, Regional Director, Mining, Australia, Stantec
Tom Blackwell, Project Director, Leo Lithium
The case study involved a fictitious mining operation located in the Pilbara region, focusing on the challenges posed by climate change, including cyclones, extreme heat, and their impact
Jim Simpson, Managing Director & CEO, Peel Mining
on renewable energy generation. Steele showed how solar and wind Amy Steel, WA Leader, Decarbonisation and Climate risk, ENGIE Impact ENGIE Impact provides sustainability solutions and services globally to businesses, governments, and municipalities. With headquarters in New York City and 21 global offices, ENGIE Impact serves a diverse portfolio of 1,000 clients, including a quarter of Fortune 500 Companies, operating across over a million sites. As part of the ENGIE Group, a leader in the zero-carbon transition, ENGIE Impact contributes to promoting eco-friendly practices. Amy Steele, WA Leader at Engie Impact, highlighted the intersection between climate risk and decarbonisation, using a case
power output de-rates due to extreme heat. Furthermore, she warned that a combination of high temperatures and reduced energy output from
Andrew Strickland, Executive Business Development, Blackstone Minerals
renewable sources could lead to power system imbalances and potential disruptions. Steele stressed that mines need to develop strategies to mitigate these risks, including diversification
Nicole Duncan, Managing Director, NickelSearch
through geographic and technological approaches. Miners may also have to cut production to ensure a 50% load on the VRE, resize higher their power systems, and even incorporate flexible generation sources, such as green hydrogen and ammonia.
Stuart Ellison, General Manager, Project Development, Saturn Metals It is a tricky balancing act for junior mining companies as they
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PAGE 22
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE strive to expand their holdings
How do mining CFOs and investors
carbon footprint from day one and
and portfolios, all the while
view the carbon footprint vs.
conducting a life cycle assessment
endeavouring to diminish their
business growth challenge?
to identify areas for improvement.
environmental impact. These
Strickland emphasized the
He recommended a pre-feasibility
companies are additionally
significance of accessing capital
study for a fully electrified
handicapped because they lack
and financing for junior companies
mine and the importance of
the financial resources and in-
engaged in low-carbon initiatives.
partnerships with OEMs, engineers,
house capabilities of the large
He also said it was important
and consultants to incorporate
mining corporations. Some small
to find financing partners with
electrification effectively.
and mid-cap miners have projects
lower costs of capital and provide
in foreign countries and must
incentives for projects with lower
Blackwell said his company was
contend with different political
carbon footprints.
following a staged project approach
and environmental demands. This
and leveraging its larger resource
panel examined how smaller mining
base to manage risk along the
enterprises are navigating the
journey.
process of decarbonisation. What are the biggest challenges facing smaller miners committing to net zero goals? Jim Simpson acknowledged the challenges in the current economic landscape, particularly in the
WE’VE DECIDED TO BUILD OUR PROJECT IN A COUPLE OF STAGES WITH THE VIEW THAT WE CAN DE-RISK ON THAT JOURNEY
base metal sector. He highlighted
“We’ve decided to build our project in a couple of stages with the view that we can de-risk on that journey,” he noted. “We don’t have the detail around how we’re going to decarbonise at this point - we’ve got kind of a larger running map.” He emphasized the importance
the importance of government
of partnerships, particularly
support for grid power integration
According to Nicole Duncan,
with power providers, to achieve
and the gradual development of a
historical economic models focused
decarbonisation goals.
hybrid energy system using solar,
on the lowest cost option, but
wind, and battery technologies.
trade-offs and innovative financing
Do early stage mines anticipate
Biodiversity offsets in New
became essential in the face of
challenges with procuring battery
South Wales also posed financial
higher-cost sustainable initiatives.
electric trucks and other key
constraints.
She also highlighted the challenge
decarbonisation technologies in
of aligning limited resources with
line with net zero timelines?
Tom Blackwell reflected on common
the need for exploration and the
Blackwell: “We’re not spending a
industry challenges like speed to
pursuit of partnerships for carbon
whole lot of time at the moment
market and capital availability. “We
capture and power generation.
thinking about how we are going to
got tied up in the race to produce
Ellison too underscored the
put an order in with Komatsu or Cat
lithium and meet our customer
importance of forming early
or anything like that at the moment.
demands,” Blackwell noted. “So,
partnerships to navigate project
We’ve got to make some money first,
we just didn’t have the opportunity
journeys and address capital and
we’ve got to get up and running.”
to do all that fantastic engineering
renewable energy requirements.
that’s been talked about previously
Strickland talked about the
to come up with that fully electric
How are carbon footprint goals
challenge of procuring electric
situation.”
being integrated into asset and
trucks given the limited purchasing
investment planning?
power of small cap mines and the
Stuart Ellison emphasized the
Strickland discussed his company’s
need for pooled purchasing to solve
significance of making informed
goal of achieving net zero emissions
the problem.
investment choices, given the large
by taking a proactive approach to
amounts of capital required.
carbon reduction. He highlighted
“So, we joined the Electric Mine
the focus on understanding the
Consortium. And part of that plan
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PAGE 23
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE was to bring groups of medium-
out critical mineral strategy and
sized miners together with the same
funding plan from the Australian
sort of goal to try and get in front
Government could help create
of the right OEMs and get them to
infrastructure to generate
recognize that yes, this actually is
economic activity and catch up with
Samantha Langley, Principal
something we want to do.”
efforts in other countries like the
Carbon Offsets, BHP
US, Canada, and the UK. Is there a part that big miners can play in helping the industry
The global move towards
decarbonise?
decarbonisation is driving the need
Blackwell acknowledged the role
for many critical minerals, which is
of big miners in leading innovation
where you all have a part to play.
Nicole Roocke, CEO, Minerals
and development due to their
How has that helped you evaluate
Research Institute of Western
resources and suggested that
your projects?
Australia (MRIWA)
smaller miners leverage those
According to Blackwell, the
developments that align with their
development of their deposit
Mineral carbonation, the process
plans.
took time to gain traction due
through which certain minerals
to various challenges. However,
absorb and store CO2 from the
Strickland: “If they really want to
as the demand for lithium and
atmosphere, is being explored as
help, I think the best way they
battery minerals increased, the
a decarbonisation option in the
can is by sharing information.”
development plan received more
mining sector. At the Energy and
That would benefit the entire
support from investors and joint
Mines Australia Summit 2023,
industry by raising the collective
venture partners.
panelists discussed what is needed
understanding of how to approach decarbonisation challenges.
for this solution to reach its full He acknowledged the positive
potential.
direction of his company but Is there a part that the government
emphasized the challenges they
To set the scene, Greg Dipple,
can play in helping the small
need to overcome: “It’s production
Head of Science at Arca, explained
and junior miners in their
for us. That’s our story. That’s what
exactly how mineral carbonation
decarbonisation efforts?
we’ve got to do, then we’ll tackle
works: “It’s a an accelerated version
Simpson acknowledged that the
the rest of it.”
of a natural process called chemical
New South Wales Government had initiated efforts focused on critical minerals, and that his company had benefited from this
STREAM A: TURNING CARBON INTO ROCKS TO REALIZE NET ZERO MINING
initiative. He also made the point
weathering, where we take carbon dioxide from the air, react it with minerals in mine tailings to create a very durable form of CO2 storage, stable over geologic time.”
that mining had a broader impact beyond the project life itself, as the
Dipple added that there are two
infrastructure developed for mining
main classes of carbonate minerals
continues to benefit the community
that can be used for this process:
for many years, especially in areas
Chair: Peter Ker, Resources
magnesium carbonate and calcium
like western New South Wales.
Reporter, Australian Financial
carbonate. “The advantage of
Review
magnesium is it can be very
According to Duncan, accessing
abundant in the tailings from
government assistance, especially
some of the critical battery metals
for smaller companies like hers,
that we need to bind to realize
is challenging and that industry
our energy transition,” he noted,
associations should play a role in
referring particularly to nickel.
navigating government incentives.
Greg Dipple, Head of Science and
She proposed that a well-thought-
Co-Founder, Arca
One of the mining companies
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PAGE 24
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE exploring this option to advance
and potentially sell — carbon
its decarbonisation targets is BHP,
credits, either on voluntary or on
particularly at its Mount Keith site,
mandatory markets. In fact, Arca
Nickel West. Samantha Langley,
has already pre-sold over 500 tons
Principal Business Planning -
of credits to e-commerce giant
Climate Change at BHP, pointed
Shopify and the tech-led carbon
out that the 10 to 11 million tons
removal program Frontier.
NEWCREST: DETERMINING OUR NET ZERO STRATEGY FOR ENERGY AND TAKING ACTION
of tailings produced there already absorb about 40,000 tons of carbon
The Minerals Research Institute
dioxide naturally every year. “And
of Western Australia (MRIWA)
Trina Waldie, Program Manager,
that’s about 1% of the storage
is also working with Curtin
Energy, Newcrest
capacity of that dam,” she added.
University on a roadmap to support the development of
Trina Waldie, the program manager
Mineral carbonation has been on
mineral carbonation as an
for energy at Newcrest, presented
scientists and miners’ radar for
economic opportunity for WA.
the company’s net zero roadmap
about two decades, but testing and
Their work includes scientific and
and its strategy for decarbonising.
adoption was slowed down by the
economic research to prove the
The first step was a mapping
global financial crisis and other
social, social and environmental
exercise of power generation
environmental priorities — until
credentials of this solution, as well
technologies across the supply
now. “I always joke that the climate
as understanding the regulatory
chain, grading them by carbon
is right,” said Langley. “We’ve got
framework needed to make it work.
abatement potential and
the nickel industry growing, electric
technological maturity. This formed
vehicles and batteries which need
the baseline list of technologies for
to be produced with low-carbon
each operational site.
and eventually zero-carbon nickel.” While it waited for the mining industry to be ready, mineral carbonation companies conducted more research and improved their
I ALWAYS JOKE THAT THE CLIMATE IS RIGHT
The strategy then delved into each site’s decarbonisation within the context of overall energy strategy, considering energy supply,
processes. “We’ve been running
demand, infrastructure, risks,
field tests at mine sites for nearly
Nicole Roocke, CEO of the MRIWA,
and stakeholder requirements.
20 years, and now’s the time to
even believes that there is an
Overcoming hurdles and filling data
get out and do it for real. So we
opportunity to reprocess tailings
gaps were addressed through a
want to change from running what
as part of the mineral carbonation,
work plan, refreshed annually.
seems like a large research project
to extract critical minerals that
into pilots, with the intention of
have not been considered core
The analysis of emissions
delivering 1,000 tonnes of carbon
commodities and turn waste into
highlighted Newcrest’s five
dioxide removal in our first 12
an economic by-product. “We need
operating sites with the bulk of
months of operation,” said Dipple.
to go bigger, bolder. But getting
emissions originating from Cadia
the measurement right and getting
(39%), Telfer (22%), and Lihir (32%).
Using tailings to absorb CO2
the method right will be key to
For Cadia, Newcrest implemented a
is a great solution to reduce
unlocking the economics for this to
396 MW power purchase agreement
hard-to-abate emissions from
be successful,” she said.
with the Rye Park wind farm
processes within specific mining
representing about 40% of Cadia’s
operations, but the potential of
power needs.
mineral carbonation doesn’t stop there. Some miners are looking
Telfer, an off-grid mine which is
at perfecting the methodology
currently powered from natural
to calculate CO2 absorption in
gas with diesel back-up, is studying
tailings in order to produce —
renewable hybrid options. “The
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PAGE 25
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE challenge for all off-grid mine sites
“So internally, as part of Pacific
has been alluded to earlier today,
Energy, we work together with all
and I reinforce it is: what do we do
of the parts of the business, and we
when the wind’s not blowing and the sun’s not shining?” remarks Waldie. Hence, the study of long-duration energy storage options for Telfer. Meanwhile, Lihir, located in Papua New Guinea on a small island in an extinct volcanic crater, faces decarbonisation challenges due to limited renewable options and geographical constraints. “Lihir is the most challenging site in Newcrest’s portfolio to decarbonise,” says Waldie. “And consequently, we are spending the most effort to find a solution here.” “We have options for Lihir in the short term only and for partial reduction, not full decarbonisation.”
CASE STUDY: FIRST AUSTRALIAN MINE TO OPERATE ON 100% SOLAR POWER
AND WE’RE ALSO MAKING THE MOST OF THE ASSETS THAT WE’VE GOT SO THAT WE CAN EXPLOIT THOSE HYDROCARBONOFF HOURS FOR THE LONGEST POSSIBLE DURATION commercial operation in November 2020. The microgrid at Sandy Ridge is an unmanned site, primarily relying on solar power during daylight hours, which results in the reduction of hydrocarbon (diesel) usage. The system includes string inverters, grid-forming batteries, and backup generators for redundancy and load growth potential. Cloud cameras are used for cloud movement forecasting to optimize solar generation. The project’s success has resulted in significant carbon savings,
Craig Blizard, Senior Technical Lead, Pacific Energy Craig Blizard, Senior Technical Lead at Pacific Energy, presented a case study on the first Australian mine operating on 100% solar power. Pacific Energy is an Independent Power Producer (IPP) that focuses on off-grid mining electrification and renewable energy solutions. It currently has 48 long term PPAs in operation with a total capacity of about 700 MW. The project, Tellus Sandy Ridge, began in June 2020 and achieved
eliminating the use of around half a million liters of diesel and reducing carbon emissions by approximately 1300 tons since its operation began. All this with 100% renewables penetration. Blizard emphasized key technical
model this, we actually replicate all these pieces, because this is critical to the commercial goals of the project,” says Blizard. “It’s not just about whether or not you can turn the engine off, it’s about can you sustain the operation in all these transients. And we’re also making the most of the assets that we’ve got so that we can exploit those hydrocarbonoff hours for the longest possible duration, which obviously has benefits for everybody involved.” In conclusion, the project demonstrates that large-scale renewable energy systems are feasible and commercially viable. However, it requires careful planning, investment in modeling, and understanding both the technical and commercial aspects to achieve successful and sustainable outcomes. “A methodology that worked for a very small system in relative terms is absolutely applicable to very large systems,” concludes Blizard. “And we’re seeing this time and time again.”
PANEL: BUILDING ROADMAPS TO DECARBONISE ENERGY FOR MINES
takeaways from the project, including the need to ensure system stability and smooth transitions when turning off fossil fuel engines, or when faults occur. Modeling and understanding system behavior during transient
Chair: Nikhil Dhyan, General Manager, 5B
conditions are essential for a successful and reliable renewable energy system.
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PAGE 26
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE
Steven McClare, Chief Technical Officer, Northern Star Resources
Chris Carr, Head of Technical Services, IGO Limited
It is crucial to begin the
could drive the cost down and
development of the energy
achieve up to 80% renewable
roadmap before the project’s initial
penetrations. He suggested
stages, preferably in the concept
customizing wind turbines to the
phase. Preferably, it should be
mine life as one potential solution
internally developed, according to
to the problem.
Tiggy Rogers: “You have to own the energy matrix for your mine site,
The energy shift and fleet
because it is particular to your mine
electrification: how are miners
site and to your operations as well.”
integrating energy and mobility
And early planning could
decarbonisation?
completely upend mining methods,
The transition of fleets to electric
according to Steven McClare’s
vehicles is currently more
example of caves.
challenging compared to stationary power solutions due to the lack of
Tiggy Rogers, Manager Study Energy Transition, Roy Hill
Sun Li, Wind Engineering &
“You can build caves completely
timely solutions from OEMs that
differently. We used to build them
could help miners meet the 2030
20 years ago, even 10 years ago, to
decarbonisation targets.
go uphill to infrastructure so water stayed away. In the future, you can
In this situation Roy Hill, which
run it downhill, so you can recharge
has thousands of kilometers of
your battery and have a continuous
haul roads and needs stationary
energy freecycle, just going round
charging solutions, is investing to
and round and that sort of thing,
develop its own technology and
and then deal with the water
prototypes that OEMs could later
separately.”
pick up.
Business Director, Goldwind
“And I think the only way that we are looking to address that
The panel comprised a well-selected cross-section of participants from across the mining industry with backgrounds from resources (battery metals, iron ore, energy,
TYPICALLY, EMISSIONS ARE 70% FIXED PLANT AND 30% MOBILE
gold) and OEMs (solar and wind). The discussions were chaired by 5B’s Nikhil Dhyan, who stressed that miners needed to be bold, even audacious, as they planned for decarbonisation. What is needed to accelerate and support the transition to fully decarbonise power systems for mines? The participants agreed that early planning was essential for decarbonisation in mining operations.
challenge is trying to invest in solutions or invest in retrofit solutions and just to prove out a prototype for stationary charging with the hope that we can be supporting the next Cummins or
On concerns regarding capital
the next Wabtec or the next MTU,”
required for decarbonisation, IGO’s
said Rogers.
Chris Carr revealed the company’s innovative funding strategy via an
There’s also a focus on gaining
internal carbon price.
operational knowledge by
“We run a shadow price now where
electrifying smaller assets before
we put $60 a tonne into a fund
transitioning to large trucks.
from all of our emissions. And
However, this is not possible
then we can fund decarbonisation
for every mine, according to
projects from that.”
the experience at Roy Hill, and reportedly, at Rio Tinto.
How does a short-life mine complicate decarbonisation? Sun
Typically, emissions are 70% fixed
Li referred to Juwi’s presentation
plant and 30% mobile, according to
earlier in the day on how wind
Chris Carr. IGO has, nevertheless,
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PAGE 27
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE set itself an “audacious” target
the problem of long lead times
minimizing complexity. This would
to completely electrify its
in wind projects by standardizing
speed up the process and reduce
underground operation at the
its products through a pre-
the pressure on partners.
Cosmos mine within a couple of
manufacturing design process.
years.
On logistics delays due to smaller
According to Chris Carr, a PPA
turbine order quantities, Sun Li
is the “really easy one,” because
What might hamper our build out
said characteristically: “We feel that
the power company provides the
of renewable energy systems to
pain, then we, Goldwind, invest in
capital and miners pay it off along
mines, where are the bottlenecks?
our own cranes. We buy all cranes
with the unit cost.
Chris Carr discussed the supply-
for Western Australia so that we
side challenges in achieving high
can bring the certainty of the
However, there are also financing
renewable penetration for fixed
project deliveries to our customer.”
alternatives such as from super
plant operations. While solar power
funds, green power investors,
alone provides around 30-35%
How is the shift to decarbonised
even self-financing, that might be
penetration, due to limitations like
power resulting in operational
cheaper.
daylight availability and weather
and design changes for greenfield
conditions, a combination of wind
sites?
How are miners addressing
and solar, along with advanced
In the context of designing
concerns over ethical sourcing
energy storage systems like flow
greenfield mining projects, Chris
renewable energy components in
batteries, could potentially push
Carr highlighted the significant
line with ESG goals?
penetration to 90-95%.
advantages of incorporating
Sun Li detailed how Goldwind
electrification from the outset
collaborated with suppliers,
because the higher initial
conducting audits, and ensuring
investment in electrification
continuous improvement in their
equipment would be outweighed by
compliance on ethical sourcing.
both capital and operational cost
“So, this is really a journey of
savings.
partners working together and
SO, THIS IS REALLY A JOURNEY OF PARTNERS WORKING TOGETHER AND WINNING THE TRUST OF EACH OTHER.
winning the trust of each other. In proof, Carr cites a ‘2019
But the key is transparency to each
lookback’ example of the company’s
other.”
Nova mine: “If we’d found the Nova mine then and built it then and did
What are the pros and cons
it all electric, we reckon we had 20
of a phased in approach to
“We’ve got lead times on
to $50 million of NPV advantage
decarbonising power versus
renewables… you need serious
going electric, just with equipment
investing in highest penetration of
batteries to make any more than
that was available then and it’s so
renewables and storage from the
that combination of wind and
much better now.”
outset?
solar,” Chris said of the bottlenecks in this regard.
Steven McClare discussed the siteHow do miners view the different
specific nature of solving challenges
contract models for renewable
related to renewable energy
On the last 5 to 10% renewable
energy and storage – owner
integration.
penetration: “It should be green
operator vs. power purchase
fuels, and a whole range of other
agreement (PPA)?
He said Northern Star could achieve
ideas people are going to come
Steven McClare advocated taking
30-40% penetration very quickly at
up with and this is a huge range
a calculated ‘risk-on’ approach to
its Jundee mine and then took it in
of ideas out there at the moment
achieve emission reduction at a
phases from there.
on energy storage, besides just
low levelized cost of energy in the
battery.”
transition to electrification. The aim
“I guess from the work we see
in contracting is to manage wind
getting 40 to 60% is easy and
and resource risks with a focus on
commercial,” said McClare.
Sun Li said Goldwind addressed
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PAGE 28
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE However, it may be necessary to
“The lines weren’t sufficient to carry
engineering assistance to ensure
partner with people, especially
the energy away from the project
the project’s success.
around the capital, to get up to 80%
and get it to where the electrons
or higher.
needed to go,” says Greg. “You
AGGREKO: LESSONS LEARNED FROM HYBRID MICROGRIDS
know, and you might say, that’s an incredibly straightforward thing. I
EDL: OPTIMIZING RENEWABLE ENERGY FOR DECARBONISATION
wonder why they didn’t see that.” System strength, on the other hand, is crucial for stable voltage and frequency regulation, as well as the ability to clear faults effectively. On a positive note, Greg emphasizes
Jason Dickfos, Head of Growth,
the importance of modern
EDL
Greg Cheesewright, Renewables
inverters, which have significantly
Engineering Manager, Aggreko
improved over the past decade.
The presentation by Jason Dickfos
These inverters, with higher short
highlighted the efforts of EDL, a
In this presentation, Greg
circuit ratios and faster response
global distributed energy producer,
Cheesewright, Renewables
times, make it possible to run
in optimizing renewable energy
Engineering Manager for Aggreko,
hybrid projects more efficiently
for decarbonisation in the mining
discussed the learning experience
and with reduced reliance on
sector.
from hybrid microgrid projects.
conventional generators.
Over the last five years, there
EDL, a leading global producer of
has been an increased interest in
sustaining distributed energy, owns
renewable energy projects driven
and operates 90 power stations and
by environmental concerns and the
gas processing facilities across five
need to reduce fuel costs. However, in the rush to implementation, mines may overlook very basic factors that can, however, hugely impact the success of their renewables project. As an example, Greg highlights the challenges faced by one particular
THE LINES WEREN’T SUFFICIENT TO CARRY THE ENERGY AWAY FROM THE PROJECT AND GET IT TO WHERE THE ELECTRONS NEEDED TO GO
project in the West Murray region
countries, and three continents. It produces over one gigawatt of clean energy and has been working for many years with customers to implement renewable solutions in the form of PV, solar, wind, and battery storage. Decarbonisation drivers for customers include global net
of Victoria, Australia, known as the
Greg advises project developers
zero commitments, competitive
“Rhombus of Regret.” The main
to pay attention to primary
advantage, shareholder
challenges encountered in the
equipment ratings, ensuring
expectations, decreasing renewable
project were a lack of transmission
they are adequately sized and
costs, and rising fuel prices. EDL
system capacity and system
not overloaded. Furthermore,
has achieved 50-70% renewable
strength.
developers should carefully
energy by successfully integrating
assess the best system sizing to
solar, wind, and battery storage
Transmission system capacity refers
overcome challenges related to
into its microgrids, while remaining
to the ability to carry energy away
system strength. In Greg’s words,
cost-competitive and reliable.
from the project and deliver it to
developers might do well to
the necessary destinations. In the
conduct an “audit” of these factors
“Optimizing renewable energy
“Rhombus of Regret,” the grid was
during early stages of project
becomes a delicate balancing act
simply not geared to handle the
design.
between the load that needs to be
influx of solar and wind generated power from the new projects.
met, available renewable resources, Finally, Greg suggests seeking
capital cost and ongoing operating
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PAGE 29
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE
OPTIMIZING RENEWABLE ENERGY BECOMES A DELICATE BALANCING ACT BETWEEN THE LOAD THAT NEEDS TO BE MET cost,” observed Dickfos. “And it is an iterative process that requires constant optimization.” At 56 MW, EDL’s Agnew project is Australia’s largest hybrid renewable energy microgrid and the first mine in the country to utilize large-scale wind generation that interfaced with a thermal gas and diesel
data at its global control centre in
The presentation highlights the
Brisbane, which it uses to develop
difficulties of electrification and
and refine its modelling for future
renewable adoption due to the
sites.
scale, energy intensity, and capital intensity of South32’s operations.
“This means we’re able to
Electrifying massive operations
accurately determine RE levels
like Worsley Alumina, one of the
whilst installing risk capital
largest alumina refineries in the
providing the lowest cost of
world, requires significant changes
electricity,” said Dickfos.
to both the facility and the broader electricity network.
The electrification of operations and fleets using reliable electric
Furthermore, transitioning to
plants and renewable synthetic
renewables for Hillside Aluminium,
fuels, such as biomethane, is the
the biggest aluminium smelter in
next phase of decarbonisation for
the southern hemisphere, demands
mines.
multi-gigawatts of renewable
CASE STUDY: MANAGING THE COMPLEXITIES OF GRID DECARBONISATION
$6 billion, and that’s without considering firming network or
The Agnew hybrid microgrid
wind energy in reducing reliance on fossil fuels. EDL’s latest hybrid renewable project in Jabiru, located in the World Heritage listed Kakadu National Park, is a sustainable model for remote communities. Previously reliant on 100% dieselgenerated electricity, the Jabiru power station now operates on zero diesel throughout the day, marking a critical milestone in the remote hybrid project development. By switching off diesel reliance, EDL has achieved a remarkable 50% renewable energy objective for the site, guaranteed over a 15-year Power Purchase Agreement using only PV as the renewable resource. EDL gathers real time performance
Kent show that the cost of 3 GW of Hillside alone would cost roughly
storage.
demonstrating the potential of
Back-of-the-envelope figures from renewables, for 1.2 GW (40%) for
station, solar farm, and battery
achieved up to 90% renewables,
generation capacity.
other costs. Louis Kent, Practice Lead Group Decarbonisation, South32
“At Worsley Alumina, in addition to the investment in renewables,
The presentation by Louis Kent
we also have to consider the
discussed the complexities of grid
investment required to convert a
decarbonisation across multiple
combustion-based process to one
operations for South32, a globally
that runs on electrons and the
diversified mining and metals
network upgrades to meet this new
company that was spun off from
demand,” said Kent. “If your mental
BHP in 2015.
arithmetic is keeping up, you’ll realize that these numbers are
The company’s key decarbonisation
pretty big.”
challenges include transitioning to low-carbon energy sources,
To address these challenges, the
such as gas and renewables for
company is exploring partnerships
its Australian and South African
with other entities specializing
operations. The company’s Scope 1
in renewable energy projects
and 2 emissions are predominantly
and seeking opportunities for
from the following assets: Hillside
off-balance sheet contracts to
Aluminium (59%), Worsley Alumina
avoid looking like an energy
(17%), and Illawarra Metallurgical
infrastructure company from a
Coal (10%) operations.
capital allocation perspective. “When your investors are investing
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PAGE 30
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE in you because they want to
to have the contractual mechanisms
invest in mineral resources,
in place to get good value for money
quietly turning into an energy
for having that capacity available all
infrastructure company is not the wisest move,” warned Kent. In the short term, South32 is planning to initially transition from coal to gas for Worsley Alumina to ensure operational continuity while
THERE ARE TIME PERIODS WHERE A BATTERY JUST DOESN’T REALLY CUT THE MUSTARD
working on electrification.
the time,” Drager adds. The main factors driving APA’s customers’ interest in renewable energy are reliability, cost, and emissions reduction. While the cost of renewables is generally cheaper
APA’s assets in the region include
than fossil fuel-based generation,
“Given the scale of the
the gas pipeline into town and
the transition requires careful
electrification challenge, both
power stations, including combined
planning to address firming needs
inside our fence and more
cycle gas and open cycle gas
and cost efficiencies.
importantly, across the whole
power stations, along with a newly
South West Interconnected System,
constructed 100 MW solar farm
To a question on how things have
and the urgency of reducing our
called the Dugald River solar farm.
changed over the last few years
reliance on coal, a transition
The main customers for Dugald
in the renewable energy space in
straight from coal to electrification
are MMG, New Century, and the
mining, Drager replied:
unfortunately, just won’t be fast
Glencore-owned Mount Isa Mine.
“Historically, it was always me
enough,” according to Kent.
APA is committed to a pathway to
trying to sell a solar farm or a wind
net zero emissions by 2040 for its
farm to a customer or a mining
In the circumstances, in parallel
power assets, aiming for a 35%
company. And I guess now that the
with the transition to gas at
reduction in emissions intensity by
tide has changed with the market
Worsley, South32 is also working
2030. To achieve this, the company
and really the demand is the other
on efficiency projects to reduce its
plans to invest heavily in renewable
way. How quickly can you install
steam demand and electrification.
energies and work collaboratively
this solar farm or wind farm? So
with its customers in the area who
yeah, definitely its changed - chalk
share similar goals.
and cheese, I would say.”
The challenges in transitioning to
PANEL: ENABLING RENEWABLE ENERGY FOR PILBARA MINES
APA GROUP: GAS FIRMING AND AUSTRALIA’S LARGEST RENEWABLE MICROGRID
renewable energy lie in firming, which ensures reliable power supply when renewable sources are intermittent. APA aims to invest in more renewable energy projects and Andrew Drager, Business
transition existing gas-fired power
Development Manager, Energy
stations into firming and peaking
Solutions Power
stations to complement renewables.
Chair: Bethwyn Cowcher, Division Director, Macquarie Group
The APA Group, a gas pipeline
“There are time periods where
company heavily involved in the
a battery just doesn’t really cut
energy transition, is developing gas
the mustard,” says Drager. “So,
firming at Mount Isa, Australia’s
having that firming capacity in the
largest renewable microgrid, which
background is important.” Jeff Nitsch, General Manager
supplies six main customers in the Mount Isa region, with about 20,000
“It’s very important to have it
New Markets, ACCIONA Energía
residents and an average load of
flexible, to be able to turn on and off
Australia
around 230 MW.
quickly, to ramp quite fast, but also
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PAGE 31
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE taken,” remarked Nitsch, given the uncertainties around the grid. Sandra McInnes, representing Hon. Bill Johnston, Minister for Mines and Petroleum; Energy; Industrial Relations, Government of Western Australia
Sandra McInnes, Chief Sustainability Officer, Pilbara Minerals
I THINK FROM A REPUTATION PERSPECTIVE, WE JUST HAVE TO GET ON AND DO IT AND GET INVOLVED STRAIGHTAWAY. DON’T WAIT, MAKE THE SMALL MOVES “You have to have a regulatory framework, you have to have economic dispatch, you need to have the system security structures, you need all the things that other large grids already have,” he added.
Mike Houlahan, CFO, Horizon Power The panel deliberated on the decarbonisation challenge that mines in the Pilbara face given the vast and unparalleled scale of renewable projects required to be
“But we need to design them in a way that they’re going to function for all the users in the Pilbara.” How are current renewable energy projects for mines developing in that region? Miners in the Pilbara region
executed concurrently.
have varying responses to
What types of infrastructure
terms of their renewable energy
and policy changes are working towards supporting the rollout of large-scale renewables for mines in the Pilbara? Hon. Minister Bill Johnston said the Government was working to create a unified grid for major electricity users and producers in the Pilbara. This integration would facilitate the region’s transition to cleaner energy sources, while supporting projects related to critical minerals and decarbonisation. Sharing infrastructure for renewables would also be cost-effective due to the system support required.
decarbonisation imperatives in targets and plans. According to Jeff Nitsch, while some miners were innovatively incorporating renewables into their operations, others appear to be slower to act due to uncertainties around existing assets and grid planning. “One might argue that it’s rather more difficult for miners in the Pilbara with large mines, existing systems, existing transmission infrastructure and power generation to really sort of take the leap forward that needs to be
Pilbara Minerals, enthusiastically welcomed an interconnected grid. “It’s music to my ears when I hear the Minister talk about an interconnected grid up there, because that will make our pathway to decarbonising so much easier.” Pilbara Minerals has set short, midterm, and long-term targets in its decarbonisation pathway, including commissioning a solar plant to power their facility, and expanding it in the future. However, electrifying or decarbonising the mine fleet is a much bigger problem, and it needs to be solved in collaboration with OEMs. How are you thinking about managing all of this activity with everyone and all of these major energy companies trying to decarbonise at once? What type of challenges are there? Mike Houlihan said the simultaneous efforts to decarbonise in the region had created a rush for land access, environmental studies, and resources, leading to inefficiencies, delays, and higher costs. He emphasized the need for coordinated planning and infrastructure to manage the surge in activity. Jeff Nitsch suggested gaining a first-mover advantage to counter challenges in delivering projects due to constraints in planning, approvals, and resource availability. Hon. Minister Bill Johnston observed that while the government could assist with planning rules and structure, the
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PAGE 32
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE commitment and investment from
challenges, and it does take time.”
Sandra McInnes: “I think from a
participants would be crucial to the
McInnes outlined other hurdles,
reputation perspective, we just
success of an integrated grid.
too, including supply chain
have to get on and do it and get
bottlenecks, logistics, the
involved straightaway. Don’t wait,
What are the plans that are
remoteness of the Pilbara, and the
make the small moves.”
evolving to expand network
scarcity of skilled labour.
capacity and interconnectivity for
Mike Houlahan remarked that
For instance, one small step
renewables?
while smaller projects were more
towards decarbonising is moving to
Johnston explained that while
expensive in terms of their levelized
LNG. It’s not the ultimate solution
the east coast and South West
cost of energy, they presented
but making those steps along the
had integrated system plans,
opportunities for innovation
journey - absolutely critical, in
the Pilbara region lacked such
and for experimentation with
McInnes’ view.
comprehensive planning. However,
technologies such as hydrogen and
once a commitment to integration
energy storage.
is in place, a plan for the region’s
To a question from the audience on financing of renewable projects,
integration could be developed.
McInnes added that collaboration
the panel participants were of the
Mike Houlahan noted that
and sharing knowledge would be
opinion that for the right project
opportunities were emerging in
key to achieving renewable energy
at the right time, funding was not
utilizing shared infrastructure,
goals efficiently. “Maybe we can
an issue. Moreover, it was a mine’s
leading to further possibilities.
take a few leaves out of the work
own decision whether to avail on-
“Unless there is an integrated
that was done collaboratively
or off-balance sheet financing.
network and grid, and therefore
around safety in the resource
larger scale merchant opportunities
sector a couple of decades ago,”
for those, there would always be
she suggested.
winners and losers.” What advice do you have for miners
PANEL: BREAKFAST BRIEFING - OPERATIONAL IMPLICATIONS OF RENEWABLES AND STORAGE FOR MINES
What are the factors that you’re
trying to implement renewable
finding in terms of what is limiting
energy projects in the Pilbara at
your ability as a miner to move
this point?
forward with reliable and economic
“Just do it,” said Jeff Nitsch
renewable energy?
emphasizing the importance of
Smaller organizations such as
getting started quickly in the
Pilbara Minerals faced unique
renewable energy transition. He
Chair: Ray Massie, Specialist Hybrid
difficulties in the Pilbara region
advised miners to begin by building
Energy Solutions, Entura
while implementing renewable
solar projects that were initially
energy projects, according to
small, and not to wait for a fully
McInnes.
optimized plan.
“When you’re doing things like solar
Minister Johnston also shared
or wind, you need a lot of land.
a similar view: “The grid can
Greg Koppens, Specialist Engineer
But it’s quite complicated to get
come later. There are a lot of
– Hybrid Renewable Systems,
access to the land, get the relevant
complexities about the grid. So, you
Entura
approvals, and work through all
know, let’s move now - you don’t
the heritage and cultural approvals
need to wait.”
that need to take place,” remarked McInnes. “So, as much energy and
“There’s lots of opportunities
passion as everyone has around
for decarbonising immediately,”
building renewable energy in
Johnston added. “And that will put
Paul White, Operations Manager,
the Pilbara, it’s not without its
you in a good position.”
EDL
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PAGE 33
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE The added modularity of hybrid
change 90 degrees in an instant and
plants also comes with daily
we’ll lose 50 MW of supply in three
variations in pricing, which need
minutes. We hadn’t understood
to be taken into account in mining
that fully as an operation team,”
Glenn Clark, Director, Business
decisions. Waldie explained that
said White. The team then realized
Development ANZ, Redflow
the differences in cost profiles
that gas engines were not the best
between solar and wind, and the
spinning reserve solutions as they
cost of the firming technology must
“do not like to stop and start”,
be understood by the mining team,
and are now looking at the most
which is used to working with a flat
sustainable fuel option to complete
daily price. Concretely, it means not
the site’s 80-90% renewable
Dan Su, Technical Sales Manager,
necessarily letting mining decisions
penetration goal.
JinkoSolar ANZ
drive power, but rather let power availability influence mining
As more hybrid and storage
decisions.
systems get implemented, panelists worried that new obstacles would
This new operational model
emerge. One of these challenges
is sometimes called demand
revolves around skill sets. EDL,
Trina Waldie, Program Manager,
response, whereby mines run the
for instance, is now focusing on
Energy, Newcrest
most energy-intensive processes
training people directly at mine
when renewable energy is plentiful.
sites to avoid a talent shortage
As hybrid power plants become
Greg Koppens, Specialist Engineer,
because, according to White, “there
more and more common on
Hybrid Renewable Systems at
is no training course for this work”.
mine sites, miners and operators
Entura, noted that this seems to
are getting familiar with the
finally be starting to happen on
operational implications of this
mine sites, after years talking about
transition. Representatives from
demand response “as a dream”.
Entura, Redflow, JinkoSolar, EDL and Newcrest Mining shared lessons
Switching to this type of renewable-
learned at a breakfast briefing during
powered mining comes with a
the 2023 Energy and Mines Australia
steep learning curve, and it may
Summit.
take some time for processes and solutions to be perfected. Paul
THIS NEW OPERATIONAL MODEL IS SOMETIMES CALLED DEMAND RESPONSE, WHEREBY MINES RUN THE MOST ENERGYINTENSIVE PROCESSES WHEN RENEWABLE ENERGY IS PLENTIFUL.
In terms of design considerations,
White, Operations Manager at
all agreed that there is no one-
EDL, named a few of the obstacles
size-fits-all. Reliability needs to be
encountered while running the
assessed for every function of the
company’s hundreds of hybrid
mine and processing plant to find
power stations — including the one
the specific operations where the
installed for Gold Fields at Agnew.
loss of reliability that comes with
“The learning curve is huge for
At the same time, miners would do
renewables is acceptable. “That’s one
the workers on site. They’ve got
well to explore alternatives to the
of the mindset changes we’re having
many levers to pull, as opposed to
leading battery storage solutions,
to drive: thinking about what the real
a thermal station, which only had
as supply chain risk is increasing
value of each individual use is rather
one.”
along with demand. “We’re already
than the energy use of the collective
seeing really alarming supply chain
whole, which is how our power
One of the most recent challenges
constraints: inverter lead times
stations have always been designed,”
at Agnew has been the variability
of two years, and high voltage
said Trina Waldie, Energy Program
that came with the addition of
transformer lead times of six years.
Manager at Newcrest Mining.
wind to the energy mix. “Wind can
So there is strong demand from
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PAGE 34
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE the market for alternatives to avoid
This panel, composed of experts
climate change transition risk - so
supply chain risks and to meet
from mining, finance, and
policy risk, legal risk, regulatory
changing requirements around
decarbonisation, discussed what
risk, technology risk and market
storage duration,” said Glenn Clark,
is essential to drive progress in
risk,” Buschman said.
Director of Business Development at
strategies and technologies within
flow battery manufacturer Redflow.
the mining sector to achieve the
“These all need to be addressed
target of net zero by 2050.
at the same time concurrently,
BREAKFAST BRIEFING: ACCELERATING DECARBONISATION IN MINING
for a company like ourselves just What are the biggest roadblocks in
to transition, and to provide the
trying to realize a pathway to net
materials that are necessary to
zero for mining?
support that transition.”
Rob Adams highlighted three main areas of concern for miners on
Which technologies and strategies
their decarbonisation journey. First,
are expected to be game changing
the contract term of a renewable
in terms of their impacts on
energy project is usually long, 15
reducing carbon intensity?
Chair: Dominic DaCruz, Executive -
years or more in the case of wind,
Investment financier Robert Wilson
ESG and Stakeholder Engagement,
to make it viable and competitive.
emphasized that his company
Zenith Energy
This has to be viewed in the context
prioritized proven technologies.
of mine life.
On new technologies, Wilson commented: “That’s where some
Secondly, Adams said it is
of the challenges arise - how do
essential to assess the credibility
you get that first, commercial
and reliability of the project
implementation? And I think that’s
Holly Buschman, Vice President
counterparty, given the higher costs
where the industry and particularly
Sustainability Strategy &
of projects and lower flexibility in
the big players probably need
Community, South32
relocating them, if required.
to play a significant role in
In the case of an existing fuel
helping some of these nascent
supply arrangement, which might
technologies.”
suffer from a ‘take-or-pay’ clause, the mine has to carefully evaluate
In Wilson’s view, long term energy
the fuel’s compatibility, as well as
storage is a huge challenge. In this
Rob Adams, IPP Growth Manager,
cost implications, for the proposed
context, vanadium batteries and
Zenith Energy
renewable energy project.
RedoxBlox energy storage modules are technologies that hold promise.
Holly Buschman provided insights
Rob Adams discussed his role
into South32’s decarbonisation
in assessing opportunities and
strategy, in the context of the
considering emerging technologies
company’s complex business
for his company.
Robert Wilson, Executive Director:
model for base metals spanning
Western Australia and Resources,
both owned projects, as well as a
“What we can do is run financial
Clean Energy Finance Corporation
number of partnerships with junior
models to see how competitive
explorers around the world.
we can make new and emerging technology; we also need to
Robert Carruthers, Head of Corporate Affairs & Investor Relations, Liontown Resources
“When I put all that in context, and
consider, frankly, what is proven?
think about roadblocks, probably
And what is bankable, and what our
at the highest level and the most
board will approve, and what our
macro level, the first and foremost
financiers will. So, it’s a balance, I
roadblock that comes to mind is
guess,” Adams remarked.
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PAGE 35
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Both Wilson and Adams view
decarbonisation program really
electrification of fleets as a game-
helps.”
changer. According to Adams, electrifying mining fleets will be the next wave of renewable energy asset deployment, and will have a significant impact on the industry’s energy landscape. How are you implementing the de-risking of renewables projects, especially for conservative lenders or boards? Robert Carruthers, representing battery minerals producer Liontown Resources, said the company aimed to start operations with a substantial renewable energy percentage and de-risked the process by collaborating with
ELECTRIFYING MINING FLEETS WILL BE THE NEXT WAVE OF RENEWABLE ENERGY ASSET DEPLOYMENT, AND WILL HAVE A SIGNIFICANT IMPACT ON THE INDUSTRY’S ENERGY LANDSCAPE. by virtue of the power demand of that smelter, which is about 1250 MW .” What opportunities are there
Zenith.
for financing investments in low
“We’re not power providers,
mining can meet its carbon
we’re not energy experts,” said Carruthers. “So, we worked with a Tier 1 provider like Zenith to get the confidence that we can be substantially renewably powered from start up.” Holly Buschman emphasized the uniqueness of decarbonisation pathways for mining companies, comparing Liontown and South32, and highlighting the differentiation in approaches based on each company’s portfolio and integration level. The sheer scale of South32’s operations in South Africa made it difficult to consider the risk of a standalone renewables solution. “With regard to our Hillside Aluminium Smelter in South Africa, decarbonising that operation involves working with the South African government to decarbonise the electricity grid in South Africa
emissions technologies to ensure footprint goals? Funding is available for good projects, especially those related to decarbonisation, according to Robert Wilson. For more challenging or shorter-life projects, it could be harder to secure funding. Moreover, some miners were more equal than other (smaller) ones on funding, according to Wilson. “If you’re in the mid tiers, or the tier ones, you’ll be corporately funded, so no issues there. But it’s really hard for parties like ourselves to want to fund something specific because we, you know, we can’t go fund.” Wilson’s advice to junior miners on getting finance: “I think the markets are tightening. I think it is challenging out there for juniors generally but being able to set yourself apart by having a strong
Further, collaboration and partnerships are crucial in overcoming such challenges. Dominic DaCruz referred to the IGO Nova engine-off project that shared risk and reward and tried something new and different to achieve the desired outcome. Having a decarbonisation strategy, a narrative and plan is what convinces and provides comfort to people who are looking to invest either debt or equity in a project, added DaCruz. Rob Wilson seconded this view, saying that financiers could go the extra mile for a deserving project: “If you’re targeting 75% renewable energy, but you have a case that goes to 80%, but it’s eroding NPV, we can try to close that gap through some of our pricing terms.” What are policy mechanisms that would help support the mining transition to net zero? Participants highlighted stability of policy as a key enabler for net zero. Holly Buschman strongly emphasized “stable policy mechanisms that enable long term investment, and ideally with the avoidance of red tape wherever possible; policy mechanisms that acknowledge the need for a transition and ideally an orderly transition, and one as rapid as possible.” Robert Carruthers stressed the importance of consistency in messaging from federal and state governments. He pointed out that while there was more consistency in messaging, there was still a
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PAGE 36
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE lack of harmony between policies
as a senior lecturer in the School
significant costs and emissions, and
and regulations that could hinder
of Electrical and Mechanical
also to improve safety for workers.
project development.
Engineering at The University
The presentation introduced the
of Adelaide where he leads the
complexities of designing electrified
“It’s still very hard to do the basic
mining electrification project. Prior
mining trucks, considering factors
things, to get these types of
to this, he worked as a specialist
like battery technology, charging
projects up whether it’s a critical
in power system engineering at
options (fast charging, battery
minerals project like ours, or
California ISO, a research scientist
swapping, trolley assist), and truck
whether it’s an off-grid power
at NEC Laboratories America, and
speed.
solution. “To navigate your way
a postdoctoral research fellow at
through multiple tenure pathways,
both the Technical University of
“I have to warn you, electrifying
environmental approval pathways
Denmark and the University of
your mobile fleet is not as easy
in-parallel processes, is getting
Queensland.
as buying an electric fleet from
harder, not easier.”
whatever company and installing a fast charger, “ said Dr. Kani.
What are other solutions that can help us to accelerate decarbonisation in mining? Carruther’s response was that conservatism in the mining industry sometimes hampered the adoption of new technology, and breaking through this barrier required collaborative effort and sharing knowledge about what works and what doesn’t.
“In fact, there are a lot of design
“I HAVE TO WARN YOU, ELECTRIFYING YOUR MOBILE FLEET IS NOT AS EASY AS BUYING AN ELECTRIC FLEET FROM WHATEVER COMPANY AND INSTALLING A FAST CHARGER
parameters on the truck, on your charging technology, as well as the operation that could have a huge impact on your cost of the solution and your productivity.” Simulation results from a hypothetical mining scenario reveal counterintuitive findings about the trade-offs between battery size, charging frequency,
Wilson emphasized the need for
Dr. Kani explained the importance
and truck speed on both costs and
strong and consistent leadership
of decision-making tools for
productivity.
in driving the necessary changes
effective electrification that are
for decarbonisation. In his
being developed by his team at the
The presentation emphasized the
view, technology adoption and
University of Adelaide.
need for careful analysis before
sustainability initiatives could be
committing to electrification
undermined by operational changes
Named MOVE (Mining Operation
and the use of precise decision-
when leadership is not consistent.
Vehicle Education), the project
making tools and a comprehensive
aims to develop algorithms and
approach to ensure both cost
tools to help transition mining
efficiency and productivity gains.
CASE STUDY: TOOLS TO DETERMINE THE BEST SOLUTION FOR MINING VEHICLE ELECTRIFICATION
fleets to electric power. MOVE is collaborating with mining companies including BHP (Leinster
SAFEGUARD MECHANISM UPDATES AND NEXT STEPS
Underground Mine, WA) and IGO (Nova Operation, WA) on the development and testing of the tools. Ali Pourmousavi Kani, Senior
The primary motivation for
Kath Rowley, Head of Emissions
Lecturer, University of Adelaide
electrification in mining is reducing
Reduction Division, Department
the consumption of diesel in
of Climate Change, Energy,
operations, which accounts for
the Environment and Water,
Dr. Ali Pourmousavi Kani serves
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PAGE 37
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Kath Rowley, a climate policy leader
emissions and production levels.
transparent process aims to instill
with more than two decades of
This flexible approach aims to
confidence in investors and the
experience, currently heads the
avoid hampering business growth
public regarding emission reduction
Emissions Reduction Division at
while driving emission reductions
efforts.
the Commonwealth Department
across sectors like stationary
of Climate Change. In this
energy, fugitive emissions, and
The presentation also addressed
capacity, she provides guidance
transportation.
concerns about trade-exposed
to the Australian Government on
sectors with high emissions. To
strategies and initiatives aimed at
Rowley pointed out the contrast
mitigate risks, measures have
lowering the country’s greenhouse
between emission reductions
been introduced to support these
gas emissions. She is responsible
achieved in the electricity sector
sectors in their transition to cleaner
for overseeing significant initiatives
versus those in the fast-growing
practices. This includes access to
including the Safeguard Mechanism
sectors mentioned earlier. The
funds for decarbonisation efforts
and Australia’s carbon crediting
Safeguard Mechanism reforms
and flexibility in adjusting baselines
scheme.
specifically target these sectors
for facilities facing substantial
to align with Australia’s emission
compliance costs.
reduction goals. Looking ahead, the Safeguard
MECHANISM ARE EMISSION LIMITS, KNOWN AS BASELINES, IMPOSED ON MAJOR INDUSTRIAL FACILITIES.
In terms of compliance and
Mechanism reforms are set to
flexibility, facilities emitting below
come into effect on July 1, with
their baselines can generate
compliance obligations starting in
Safeguard Mechanism Credits
early 2025. Ongoing collaboration
(SMCs). These credits can be used
with industries and stakeholders
for future compliance or even sold
is crucial for successful
to other facilities exceeding their
implementation. The government
baselines.
also plans to explore further policy options to address the risk of
“So, it’s a new form of tradable
carbon leakage and the potential
In her presentation, Rowley
credit, and provides an incentive
use of international offsets in the
highlighted the role of national
wherever there are cost effective
future.
policy settings in driving emission
emissions reduction options to take
reductions. The Australian
those up, even if you’re already
government has strengthened its
better than the baseline,” said
2030 emissions reduction target
Rowley of SMCs. “Because if you
to 43% below 2005 levels by 2030
beat your baseline, you get credits
and has committed to achieving
for the difference, and you can sell
net zero emissions by 2050. These
those to others.”
ENERGETICS: DEVELOPING MINING’S SAFEGUARD MECHANISM COMPLIANCE STRATEGY
targets have been enshrined in domestic law to provide stability
The reforms also emphasize
for investors and businesses
accountability and transparency,
transitioning to a low-carbon
with regular reviews of progress
Dave Kazmirowicz, Head
economy.
and increased reporting on facility-
of Emissions Quantification,
level emissions and compliance
Energetics
Central to the Safeguard
activities.
Mechanism are emission limits,
In this presentation, Dave
known as baselines, imposed on
The reforms permit facilities to
Kazmirowicz, Head of Emissions
major industrial facilities.
use Australian Carbon Credit Units
Quantification at Energetics,
(ACCUs) and introduce a cost
discussed the challenges faced
These baselines will now be
containment reserve to manage
by mining companies under
adjusted based on the intensity of
potential compliance costs. This
the Safeguard Mechanism and
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PAGE 38
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE achieving TEBA status requires meeting certain financial factors, and an example by Kazmirowicz
WE KNOW THAT BASELINES ARE GOING TO DECLINE AND WE’RE REALLY EXPECTING A RATE OF DECLINE THAT WON’T ALLOW FACILITIES THE OPTIONALITY TO GET OUT OF THEIR COMPLIANCE OBLIGATIONS offered strategies to prepare for compliance. The Safeguard Mechanism, implemented in July 2016, has undergone reforms to promote decarbonisation in the mining industry. These reforms have become effective July 1, 2023. Kazmirowicz emphasized the importance of being proactive in planning for compliance rather than simply reacting to requirements as they arise. “We know that baselines are going to decline and we’re really expecting a rate of decline that won’t allow facilities the optionality to get out of their compliance obligations,” said Kazmirowicz. He said the decline in baselines made it essential for facilities to analyse their data and forecast emissions to meet these progressively tighter compliance obligations. One critical concept mentioned was the Trade Exposed Baseline Adjusted status (TEBA), which can offer significant baseline relief if a facility qualifies. However,
indicated this would perhaps be out
PANEL: SAFEGUARD MECHANISM REFORMS AND IMPACTS FOR MINING
of reach of most mine facilities. “Even if possible, TEBA status could provide some relief, but mine sites are going to be faced with a choice between reliance on offsetting
Chair: Joel Hextall, Principal
or taking a proactive approach
Consultant, Energetics
to facility decarbonisation,” said Kazmirowicz. His presentation stressed the significance of decarbonisation efforts where technologically
Sasha Pendal, Group Manager,
mature abatement opportunities
Community & Government
can be immediately implemented,
Engagement, Fortescue Metals
while nascent technologies may
Group
need funding assistance. This funding is expected to be available through the “Powering the Regions” fund for trade-exposed safeguard facilities engaging in decarbonisation efforts.
Jo Garland, Partner, HFW Australia
Offsetting was suggested as a last resort, with a primary focus on emissions reduction and energy efficiency improvements. However, facilities with limited
Neil van Drunen, Director, WA, SA,
decarbonisation options may
NT & Industry Policy, Association
need to consider offsets. The
of Mining and Exploration
credibility and reputational impact
Companies
of offset procurement should be a central consideration, as the ACCU market’s value is expected to rise due to increased demand. In conclusion, early planning and action are essential for a robust
Kath Rowley, Head of Emissions
safeguard compliance strategy.
Reduction Division, Department
Prioritizing analysis, facility
of Climate Change, Energy, the
decarbonisation, and treating
Environment and Water
offsets as a backstop can help mining organizations effectively
Joel Hextall opened the proceedings
navigate compliance requirements
with a quote from a previous
and reduce risk.
keynote speaker: “Safeguard Mechanism. Go for it, go for it.” Hextall also reminded the audience that the reformed Safeguard
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PAGE 39
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Mechanism was to take effect in 11
said AMEC member-companies
The strategy must consider
business days, and the discussions
faced varying challenges in
the company’s position on the
would, therefore, be timely and
decarbonisation depending on
emissions reduction curve, as well
useful.
whether they had older assets,
as rely on emissions data for its
greenfield sites, or were acquiring
design. Data plays a pivotal role;
mines.
understanding emissions data is
What challenges and or opportunities does the Safeguard
crucial for strategy design.
Mechanism reform represent for
Drunen also remarked that
mining?
AMEC, in its interactions with the
Technological aspects are also
According to Sasha Pendal, one
government, stressed on certainty
important – whether there is
obvious challenge for miners is the
and transparency “so that our
technology on the horizon to
need to swiftly reduce emissions
members can plan and start
aid emissions reduction within
from facilities to stay ahead of the
preparing and getting their data
a certain timeframe. “Say you’re
4.9% annual reduction requirement.
ready.”
looking at a two- or three- year
This requires eliminating direct emissions and using high-quality
WE’VE GOT A REALLY CLEAR VIEW ABOUT WHAT TECHNOLOGIES WILL NOT BE SUSTAINABLE OVER TIME, WHICH LEAD INTO CRITICAL DECISIONS THAT FORTESCUE HAS TAKEN IN RECENT TIMES
lead time into having your new Rowley said in this context: “One
technology up and going to abate
of the benefits of the safeguard
those emissions, then obviously, it’s
reform is that we have now got an
a good idea for you to be applying
architecture that can ratchet over
for this role in five-year average,”
time to net zero by 2050.”
advised Garland.
Both Pendal and Rowley referred
The policy on SMCs and banking or
to the commercial opportunity
trading ACCUs based on baseline
that could accrue from Safeguard
performance would form another
Mechanism incentives for
pillar of the compliance strategy.
decarbonisation. “If you’re the most efficient, you will have the
How do these reforms impact
least compliance obligation and or
current carbon reduction
the greatest access to credit,” said
strategies for facilities?
Rowley.
Sasha Pendal said the new requirements under the
“There’s no doubt that there are
Safeguard Mechanism brought
direct commercial benefits for us
focus, certainty, and the ability
ACCUs (Australian Carbon Credit
from eliminating diesel from our
to plan ahead for organizations.
Units) effectively, when needed.
operating model,” said Pendal.
“Now we have a very, very
“As we look into the future, we see
“And we’re already calculating the
good understanding about the
a point in the market where there
reduction of our usage of diesel,
requirements, we can plan for it,
could be a rush to buy high quality
and building that into our project
and we can invest accordingly. And
ACCUs,” said Pendal. “And we all
economics.”
organizations in our sector are
know that simple laws of supply
incredibly adaptive.”
and demand mean that for us,
What key considerations are
we’ve got to make sure we have
miners including in developing
The clarity from the Safeguard
access to the right number.”
compliance strategies?
Mechanism also allowed
Jo Garland highlighted the key
miners to build a more reliable
Kath Rowley advised miners that
considerations for designing a
decarbonisation pathway into their
it was crucial to understand their
compliance strategy within the
project economics.
own emissions and the related
Safeguard Mechanism. The strategy
abatement strategies.
should aim to mitigate risk, adhere
Rowley reiterated that the
to rules, and manage emissions
Safeguard Mechanism offered
effectively.
incentives for emissions reduction
In a useful insight, Neil Van Drunen
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PAGE 40
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE and therefore miners should think
Sasha Pendal also weighed in on
Industries like cement, mining,
about the reform not just through
diesel, explaining how Fortescue
and coal are affected, and carbon
a compliance lens, but also through
was strategically moving away from
offsets are an option that help meet
an opportunity lens.
unsustainable technologies like
compliance responsibility, as well
What questions and concerns do
diesel haul trucks and diesel-fired
as decarbonisation targets.
companies have around the use
power stations.
of offsets to meet compliance
The speakers also emphasized the
requirements?
“We’ve got a really clear view about
importance of ensuring the quality
At the request of the chair, Kath
what technologies will not be
of carbon offsets and identifying
Rowley provided an overview of
sustainable over time, which lead
reputable projects, particularly
SMCs and ACCUs, and reminded
into critical decisions that Fortescue
those in proximity. They discussed
the audience that “there’ll be
has taken in recent times, for
carbon integrity, which involves
a conversation between the
example, to acquire the company
accurate carbon accounting and
compliance anxiety and economic
AWE, which brings very specific
robust calculations, and monitoring
opportunity” from these incentives.
battery technology, research
to verify project claims.
Rowley highlighted the
development and application of
uncertainty surrounding the use
that technology that we look to pair
“If you had the choice, all things
of international offsets due to
with our next generation of large
held equal, between a project five
unsettled rules for their inclusion
haul fleet,” Pendal said.
kilometres away in your actual
in Australia’s emissions reduction targets. A future legislative framework for
state, where your stakeholders
MACQUARIE BANK: DEFINING A CARBON OFFSET STRATEGY
really care, where you already have a community group versus, let’s say, another planting project, but in
allowing international offsets in
China, I think it’s pretty clear which
Australia is under consultation.
project would be a better story,” remarks Jun Song.
What technologies and initiatives will enable compliance with new baseline requirements?
Anton Lovelle, Asian Power, Gas &
The discussion covered
Emissions, Macquarie Bank
technology and the challenges
Jun Song, Global Carbon,
of decarbonisation, particularly
Macquarie Bank
in hard-to-abate processes. Kath Rowley detailed various federal policies and programs to support decarbonisation efforts, including
THIS LANDSCAPE WILL GO FROM 1/3 OF THE PROPERTY BURNING EVERY YEAR DOWN TO JUST A 10TH
grants, finance, and early-stage deployment initiatives.
Jun Song, Vice President Global
He presents an example of
Neil Van Drunen highlighted the
Carbon, Macquarie Bank
Macquarie’s participation in a
importance of finding alternatives
Savanna management project
to replace diesel, a significant
Anton Lovelle and Jun Song from
that integrates cattle and land
carbon cost for the smaller
Macquarie Bank discussed carbon
management to reduce emissions
exploration companies. He also
offsets and strategies in their
from wildfires.
mentioned that older mining assets
presentation.
face challenges due to outdated
In this “high-integrity” project,
processing equipment, making
In this context, they explained
successful carbon mitigation can
energy efficiency a crucial focus.
the Safeguard Mechanism and
be determined by comparing the
But “diesel is the number one for
the importance of Australian
yearly burning area to historical
us, that gets discussed by our
Carbon Credit Units (ACCUs) in this
data obtained from satellite
members,” he said.
mechanism.
monitoring.
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PAGE 41
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE challenges for the mining industry. “This landscape will go from 1/3 of
Helga Nolasco outlined challenges
the property burning every year
in developing carbon projections
down to just a 10th. And we can
for mines, including measuring
establish that because there’s 20
Bryan Williams, Head of
the current footprint, life of mine
years of satellite data going all the
Environment and Climate, IGO
plan, decarbonisation roadmap,
way back to 2001, by six low orbit
Limited
and technological advancements.
satellites hosted and all of that data
Estimating the pace of technological
in Charles Darwin University.”
development and its integration into projections amid price
Regarding accessing carbon
considerations is difficult.
units (ACCUs), the speakers mentioned several approaches, all
Jun Song, Vice President Global
To address these complexities,
accessible through Macquarie: Spot
Carbon, Macquarie Bank
benchmarking through industry
transactions, forward contracts,
consortia and understanding social,
structured products like options
political, and economic trends
and collars, even upstream
in various countries are crucial,
participation, where landowners
particularly when the mine is
can generate carbon credits and
connected to national grids.
receive financial benefits.
Duncan van Bergen, Co-Founder,
Uncertainty in data quality and
Calyx Global
availability, particularly in Scope 3
“I’ll treat an ACCU exactly the same
measurements, further complicates
way that you treat metals, that you
This panel discussed the latest
treat gas, that you treat coal; and
developments in carbon footprint
all the mechanisms that you do to
assessment, risk evaluation,
“For many smaller companies,
hedge those commodities you can
and calculations for the mining
they may have difficulties building
do in ACCUs,” assures Jun Song.
industry as it strives to meet
the business case to maintain a
decarbonisation goals set for 2030
highly complex tool, or a very large
and 2050.
team to develop these projections,
PANEL: CARBON RISK MODELLING AND REPORTING
long-term modelling.
because many times climate change What are some of the challenges of
is seen as a future problem with
carbon forecasting and modelling
future implications,” observed
for mines?
Nolasco.
Mining companies are facing heightened stakeholder
Bryan Williams added practical
scrutiny due to net zero targets,
insights, highlighting the rapid
Chair: Ben Jarvis, Strategy Manager
necessitating clear plans for
changes in energy and emissions
- Renewables & Decarbonisation,
meeting these goals.
patterns. Furthermore, mining
Advisian
“Carbon forecasting and modeling
operations in various stages, joint
is a critical step to developing
ventures, and transitioning to
credible and achievable emissions
renewables all contribute to shifting
pathways,” said Ben Jarvis. “But
emission projections. Forecasting
it’s a complex process.” It lacks
is complicated by factors such
established guidelines, leading
as hybrid renewable solutions,
Helga Nolasco, Climate &
to the “garbage in, garbage out”
electrifying fleets, and working with
Sustainability Analyst, MMG
phenomenon in modelling. The
partners across varied commodities
integrity of carbon footprints,
and businesses. Effective
projection models, reporting,
communication and collaboration
performance, and the use of carbon
among departments is therefore
offsets therefore pose major
essential for accurate forecasts.
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PAGE 42
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Establishing sustainability working
carbon credits: “Please make sure
groups helps align efforts and
you use carbon credits that have
improve emission estimations.
real impact, because the reality
Ben Jarvis underscored the
of the market is that it spans the
strategies.
CARBON FORECASTING AND MODELING IS A CRITICAL STEP TO DEVELOPING CREDIBLE AND ACHIEVABLE EMISSIONS PATHWAYS
Absolute versus emissions intensity
around $10 million per year in a
point on the potential role of
- what to measure, how to measure
decarbonisation fund. This fund
offsets in marginal abatement
it and managing the challenge of
is used to implement projects
cost calculations. If the cost of
having no common denominators
that might not otherwise be
offsets is competitive with the cost
for emissions intensity across
pursued, engaging the workforce
of abatement within operations,
mining portfolios
and harnessing their passion for
offsets could serve as an attractive
Jun Song discussed the distinction
sustainability.
interim solution. He also added that
importance of quality data for accurate reporting. Timely access to data and attention to detail in reporting units are crucial for successful emission reduction
between absolute and intensity
whole width from carbon credits that actually do what it says on the cover…and credits that are absolute junk for lack of a better word, that don’t do anything at all.” Jun Song made an interesting
offsets can be a complementary
targets, emphasizing that the two
Helga Nolasco suggested starting
part of a climate action strategy,
were not in opposition but rather
with a shadow carbon price,
especially in cases where
served different purposes. In an
building awareness and culture
operational emissions reduction is
Australian context, facilities must
before eventually transitioning it
a very complex process.
adhere to absolute emissions
into a carbon tax. How do carbon offsets fit with
requirements under the safeguard mechanism if they qualify. Absolute
Ben Jarvis emphasizes the evolving
carbon regulation requirements
emissions act as a key performance
nature of carbon accounting and
and/or voluntary markets in major
indicator for compliance and
the importance of treating it on
mining jurisdictions?
reporting, while intensity aids in
par with financial accounting or
On the evolution of the voluntary
relative performance assessment.
occupational safety and health – an
carbon market and its relation
Jun advised against viewing them
essential aspect of the business
to government regulations, Jun
as better or worse; instead, they
that requires due attention.
Song observed that the voluntary
are complementary metrics for
market served as an interim When and how should carbon
measure for private entities
offsets be used to reach
awaiting government direction on
greenhouse gas emission goals for
climate action. However, as more
mining companies and how can
jurisdictions aligned with the Paris
mines verify the quality of those
Agreement and set clear emission
Bryan Williams said IGO is engaging
offsets?
reduction goals, the voluntary
with external experts to update
Duncan van Bergen emphasized
market’s role would become
their Task Force on Climate-related
that the purpose of carbon offsets
clearer.
Financial Disclosures (TCFD)
is to accelerate emission reduction,
disclosures for their sustainability
not merely to satisfy compliance. “A
Duncan van Bergen suggested
report. They are focusing on
carbon offsetting plan does not a
that the voluntary and compliance
assessing physical risks, running
climate action plan make,” he said.
markets would coexist and
scenario analysis, and enhancing
The world cannot offset its way out
complement each other. He noted
adaptation plans for long-term
of climate change, and all the hard
that advanced jurisdictions like the
climate change resilience. They
work around reducing operational
EU, California, China, and Canada
have an internal carbon price
emissions still needs to happen.
have a mix of obligatory and
of $60 per tonne, accumulating
Bergen also cautioned on the use of
voluntary actions.
different goals. What are current best practices for understanding carbon risk, and its financial impacts?
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PAGE 43
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Bergen also pointed to a dichotomy
What additional policy mechanisms
‘core competencies’ could lead to
where a higher level of voluntary
will enable mining companies
commercial revenue opportunities
action is observed in countries with
to achieve the levels of carbon
for miners beyond compliance or
stronger regulatory obligations. “In
reduction needed to meet 2030 and
cost mitigation.
those countries where there is the
2050 net zero targets
most obligation to do something,
Duncan van Bergen addressed the
Duncan Van Bergen drew a parallel
the companies that are caught
future outlook for climate policy
between the benefits of improving
by those obligations are actually
and its implications. He believes
safety performance (HSE) and the
seeing the benefits of doing it, the
that the future will likely involve
potential advantages of working on
operational benefits of monitoring
both more incentives (carrots)
sustainability action plans. “By now,
and taking action about emissions,”
and more regulatory measures
I hope a lot of companies realize
he explained.
(sticks) to drive climate action. He
that increasing safety performance
anticipates an era of increased
is actually something that
What sort of systems need to be
policy intervention to align with
translates directly into superior
in place to track emissions and
global climate goals. The European
financial performance. That’s been
carbon exposure?
carbon border adjustment
proven over and over again - you
At MMG, Helga Nolasco said they
mechanism is an example of a
do better on safety, the financial
were transitioning from Excel-based
regulatory stick that could be
results tend to follow. I think you’ll
calculations to more robust carbon
implemented in more jurisdictions.
see the same in terms of how hard
management systems, and replacing
Duncan also emphasized the need
you work on your sustainability
outdated software with new
for companies to stay informed
action plans.”
analytical tools that offer automatic
and prepared for policy changes,
data capture and reporting. The
as these ‘knee-jerks’ may happen in
move is part of a proactive approach
response to sudden climate events.
to greenhouse gas tracking
MORROW SODALI: WHAT ARE MINING INVESTORS THINKING ABOUT CLIMATE TARGETS AND DECARBONISATION?
and emissions reporting. Helga
How can mining companies move
recommended creating a climate
ahead with the compliance and
and carbon data roadmap that
the footprint and the risk and the
aligned functional requirements
reporting, but also look forward
with the decarbonisation strategy.
to carbon as a commodity and get
This transition allowed for more
ready to play in the global carbon
accurate, frequent, and error-free
market?
reporting.
Jun Song identified two main
Justin Grogan, Senior Managing
opportunities for miners in the
Director, Corporate Governance &
Bryan Williams shared a similar
context of carbon participation.
Sustainability APAC, Morrow Sodali
journey in his company’s move
Firstly, as the world accelerates its
from Excel-based systems to
climate transition, higher standards
The presentation by Justin
more advanced databases for
will emerge, and the quality and
Grogan, Senior Managing Director
carbon data and ESG metrics.
carbon intensity of materials will
of Corporate Governance and
He highlighted the importance
become crucial criteria for end
Sustainability for Asia Pacific at
of adopting systems that can
users. This presents a chance
Morrow Sodali, focused on how
accommodate various ESG
for miners to become preferred
mining investors are considering
components beyond carbon
suppliers.
climate targets and decarbonisation
emissions, including biodiversity
in the context of Environmental,
and natural capital. Williams also
Secondly, miners possess
Social, and Governance (ESG)
addressed the challenge of Scope 3
transferable skills applicable
norms.
emissions reporting and the need
to carbon projects, such as
to establish strong relationships
managing project uncertainty,
Grogan explained the difference
with suppliers for accurate data
raising capital and managing
between ESG and sustainability,
collection.
landowner relationships. These
emphasizing ESG as a broad
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PAGE 44
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE framework that assesses a company’s Environmental, Social, and Governance aspects for longterm viability. The presentation delved into the complex ESG ecosystem, covering frameworks, rating agencies, proxy advisors, and associations influencing company disclosures and investor decisions. Grogan also discussed the growing significance of ESG reporting and disclosures in the mining industry, driven by shareholder activism, regulatory pressures, and institutional investor demands. He observed that last year, activists
GROGAN ALSO DISCUSSED THE GROWING SIGNIFICANCE OF ESG REPORTING AND DISCLOSURES IN THE MINING INDUSTRY, DRIVEN BY SHAREHOLDER ACTIVISM, REGULATORY PRESSURES, AND INSTITUTIONAL INVESTOR DEMANDS
Sean Richardson, Managing Director, Empire Resources
David Kelly, Non-Executive Director, Westgold In recent years, the ESG framework has emerged as an imperative for the mining industry, encompassing many more deliverables than decarbonisation.
lodged 34 ESG resolutions across 14 different companies in the ASX 300, with many of them focused on climate.
support.
PANEL: DEMYSTIFYING ESG FOR MINING
In South Africa, a gold miner’s revolving credit facility is linked to the company’s achievement of ESG targets including women
For this reason, Grogan says it’s
representation, use of recycled
important to take “a beneficial trace
water, and an abatement in Scope 1
of the company’s share register to
and 2 carbon emissions.
determine who is sitting behind that and what the influences are.”
This panel discussed many practical
“You need to understand the
Chair: Brendan Tapley, Director
aspects of ESG as applicable to
evolving policy approach of
Sustainability and Climate Change,
mining.
the proxy advisors and their
PwC
expectations,” says Grogan. “These
Key drivers around decarbonisation
proxy advisors increasingly focus
and ESG
on ensuring that the boards have
Luke Gleeson noted that ESG had
the requisite skills and expertise
become increasingly important in
represented, particularly when
recent years, and especially came
it’s related to climate change, and
Luke Gleeson, Chief Sustainability
into the limelight during and after
human rights issues.”
Officer and Head of Corporate
the COVID-19 pandemic.
Development, Bellevue Gold
In mining, ESG is a significant focus:
It is also necessary to comply with
“I sit on the Denver Gold Group
global reporting standards and
as an independent director. And
satisfy investor expectations to
it’s their number one concern and
access capital effectively.
focus, but particularly for the gold
The takeaway for energy
industry,” said Gleeson.
and mining companies is the importance of embracing ESG as
He suggested that while reporting
an integral part of doing business
Erica Lampropoulos, Director,
frameworks have varied, having
and communicating their role in the
Pollination
standardized guidelines from
energy transition to gain investor
authoritative bodies like the AASB
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PAGE 45
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE would be valuable for businesses
we’re pretty proud of.”
given the complexities and time-
of building a solar farm impacting the local climate and agriculture
consuming nature of dealing with
The average age of employees at
industry, that showed how
ESG assessments.
Bellevue is 38, and last year, the
collaborative efforts are crucial for
company achieved a 50% gender
achieving nature and biodiversity
diversity ratio.
targets alongside renewable energy
Reporting challenges for a smallcap miner
goals.
Sean Richardson, representing
On gender in the workforce
a junior explorer, discussed the
David Kelly expressed strong
Brendan Tapley advised that
unique challenges it faced in the
support for diversity and inclusion
the Nature Repair Market Bill,
context of ESG and reporting
within the mining industry. He
introduced in March, proposes a
standards considering the small
emphasised the necessity of a
credit system similar to carbon
size of the company.
diverse workforce to maintain the
markets for biodiversity. This
required skills and expertise for
regulation could allow projects like
Manpower was becoming a concern,
modern mining operations.
renewable energy on land to earn
according to Richardson. “One of
“If you only want to extract
biodiversity credits for regeneration
the challenges that we’re faced with
employees from one gender, you’re
efforts, bridging the gap between
is attracting people to the business
not going to do very well,” Kelly
different environmental and
when we’ve got small teams, very,
said. “There’s a business imperative
economic goals.
very tight budgets and not a lot of
that I don’t think anyone can
sex appeal to the (ESG) story.”
deny, to broaden the diversity of
Despite these limitations, he
ESG issues that can arise in
employees, both from a gender and
multiple jurisdictions
a background perspective.”
The discussion focused on the
emphasised the importance of
variations in ESG issues across
addressing ESG concerns and
different regions and jurisdictions.
aligning with reporting frameworks.
Brendan Tapley acknowledged
“Exploration companies, by their
the diverse priorities that arise,
very nature, are small, and we’re trying to achieve targets that are a big picture.” Benefits from ESG for miners The experience at Bellevue, however, has been quite the reverse. “When we actually flipped from that exploration development pathway, one of the things we
WE WANT PEOPLE IN THE INDUSTRY WHO HAVE A PASSION FOR DEVELOPING MINERALS AND THE BENEFITS THAT THEY BRING TO SOCIETY AND NOT GET CAUGHT UP IN THE PAST.
even within the same company’s operations in various locations, ranging from regional Australia to developing countries. David Kelly, drawing from his experience in Africa, observed that ESG concerns differ depending on the local context. He noted that in his time working in impoverished
actually wanted to do was create a
regions of Africa, issues such as
competitive advantage out of ESG,”
employment, education, housing, Addressing biodiversity
sanitation, and water were of
Erica Lampropoulos explained
higher priority compared to
And that approach certainly
her role and the relevance of
decarbonisation.
worked with manning, because
biodiversity within her work. She
now, the company counts its ability
emphasized the interconnectedness
“It’s not their fault. It’s a first
to employ people as a “tangible”
of various teams, such as
world generated problem and the
benefit of ESG.
decarbonisation, environment,
solutions have to be created in the
sustainability, and native title, when
first world because, frankly, we
“People are kicking the door down
implementing projects.
created the problem.”
to come and work at Bellevue,” said
Lampropoulos cited the example
remarked Luke Gleeson.
Gleeson. “And that’s something that
ESG Risks
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PAGE 46
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE In this discussion, the panel
communities, and landholders
Erica Lampropoulos shared an
focused on the risks associated
is essential in the exploration
example of a friend’s experience at
with setting ESG targets and
phase to ensure better outcomes
Shell in Europe, where the company
sustainability claims. Luke Gleeson
throughout the project’s
is struggling to attract graduates
acknowledged that while ESG
development.
due to environmental concerns.
targets are necessary, they come
Sean Richardson said the mining
with potential risks, particularly
Financing around ESG
industry needs to shift its image
when they require significant
Erica Lampropoulos highlighted
from being seen as dirty and
capital expenditure (capex) for
the role of banks as stakeholders
environmentally unfriendly, and
implementation, which might
who are concerned about their
instead, promote its commitment to
impact smaller companies more
reputation and encourage mining
sustainability and the benefits that
significantly.
companies to address climate,
it can bring to society.
nature, and biodiversity-related Brendan Tapley added that
risks. She suggested that mining
“We want people in the industry
internal carbon pricing could
companies should start collecting
who have a passion for developing
work as a strategy for managing
relevant data and engaging
minerals and the benefits that they
sustainability costs within the
with banks to understand the
bring to society and not get caught
business. “They’re building a five-
implications of future funding
up in the past.”
stage decarbonisation framework
decisions.
where you can sort of nurse an
“Stubby, shorts-wearing, drinking
internal carbon price through
Brendan Tapley advised on the
miners? Not any more, it’s a
from pre-feasibility on a project
upcoming release of the TNFD (Task
different industry going forward.
through to feasibility and then
Force on Nature-related Financial
Definitely.”
implementation.”
Disclosures) draft standard in Australia and New Zealand,
Engagement with First Nations
which could provide guidance for
Erica Lampropoulos said the mining
investments related to nature-
industry is transitioning from
related risks. According to Erica,
outdated heritage or legislation-
the Australian Government’s
driven approaches to a more
support for TNFD underscored
integrated and collaborative
the importance of considering
approach with indigenous groups.
nature-related risks in business
“The way we’re developing some
operations.
STATE OF PLAY: WHAT DOES MINING NEED FOR NET ZERO?
Graeme Stanway, Founder, State Of Play
of our projects, they are in partnership with traditional owner
David Kelly remarked that banks’
groups where they are the majority
implementation of ESG standards
In this presentation, Graham
shareholders in the project,” said
had contributed to raising the overall
Stanway, founder of State of Play,
Lampropoulos.
bar of environmental and social
discussed the challenges facing
responsibility in the mining industry.
the mining industry in its drive to
She emphasized the benefits of
The workforce and ESG
achieve a net zero carbon footprint.
involving First Nations groups
David Kelly mentioned a recent
The energy transition has
from the outset of a project and
materiality assessment at
arrived, says Stanway, noting
integrating technical development,
Westgold, which revealed that
that investments in the space
approvals, and native title
decarbonisation and creating a
are up 40 times since 2004, and
considerations for better execution
safe and supportive workplace
35% of Australia’s total electricity
and building of trust.
for women were top concerns,
generation now comes from
reflecting the changing priorities of
renewable energy (doubled since
Sean Richardson echoed that
a new generation of employees who
2017).
view, saying early engagement
care deeply about sustainability
with indigenous groups, local
and workplace inclusivity.
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PAGE 47
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE Furthermore, miners have to
achieving net zero emissions.
bite the bullet and develop new
STANWAY IDENTIFIED FOUR CRITICAL AREAS FOR ACHIEVING NET ZERO IN MINING: ENERGY SUPPLY, INGESTION OF CLEAN ENERGY INTO EQUIPMENT AND PROCESSING, NEW MINE DESIGNS, AND NEW MODES OF OPERATION. However, is the mining industry keeping pace? “I’d say that there’s some concern about that, that we need to change the game,” says Stanway. “The actual rate of change internally in the industry isn’t commensurate with the energy change externally and the pressures that are on us.” Stanway identified four critical areas for achieving net zero in mining: energy supply, ingestion of clean energy into equipment and processing, new mine designs, and
mine designs that are crucial
VSUN Energy is a subsidiary of
for electrification. According to
Australian Vanadium Limited,
Stanway, a survey by his firm
an ASX-listed company with a
showed that the mining industry is
vertical integrated strategy. AVL is
extremely conservative with respect
developing a vanadium mine near
to asset design. He urged miners
Meekatharra and a processing
to reduce risk and improve project
facility in Geraldton, Western
delivery by using more simulation
Australia, to support the growth in
technology.
energy storage demand through the supply of Vanadium Redox Flow
Operationally, future mining will also see increased adoption of robotics, automation, AI, and data
The VRFB process involves using
management, as a whole bunch
vanadium electrolyte, primarily
of new technologies converge,
water, sulfuric acid, and high-purity
transforming the way mines are
vanadium. The electrolyte, a key
currently operated.
component of the technology, doesn’t degrade, making it easy to
In conclusion, Stanway urged the
scale and reducing capital costs.
mining industry to embrace a step-
The benefits of the technology
change approach to achieve net
include long asset life, non-
zero emissions and emphasized
flammability, minimal degradation,
the importance of collaboration,
and recyclability.
research, and policy support to transition towards a sustainable
Sumich also provided an indicative
future.
pricing for a 10MW/80Mwh VRFB. VRFB technology has been
LDES TECHNOLOGY FOCUS: VANADIUM FLOW STORAGE
implementation. Here, in Australia, it’s a different story – “people are
regarding long duration energy
connections. Stanway called for more investment in technology and development, along with addressing issues related to cost, regulation, and supply of electric vehicles for bridging the divide between renewable energy and its transition into fossil-driven equipment and processing.
and deployed at a gigawatt vanadium production supports its
In energy supply, challenges exist
processes for renewables and grid
successfully commercialized scale in China, where local
new modes of operation.
supply and the cumbersome
Batteries (VRFB).
racing to be second,” in Sumich’s Zamien Sumich, Business
words.
Development Manager, VSUN Energy
“We’ve got a commercialized solution. We’ve got a product that’s
In this presentation, Zamien
been proven. It’s gone through its
Sumich, Business Development
R&D phases and been deployed
Manager, VSUN Energy, discussed
at gigawatt scale. There’s nothing
the emerging technology focus on
stopping motivated parties from
vanadium flow storage for long-
being able to deploy these systems
duration energy storage (LDES).
right now.”
He highlighted the challenges of economically delivering constant
“The larger miners have the view
energy output for extended periods
and the ability to view a product
as mines confront tight targets for
that can sit there and work and
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PAGE 48
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE operate for 20, 30, 40 years, and do
and discharging processes are
is competitive and expected to
what they need to do in reducing
decoupled, allowing for continuous
further decrease as the technology
their carbon emissions. They’re the
energy exports and intermittent
advances.
ones that need to start driving this
charging, whenever needed, to
forward. So, we’re able to perform
optimize energy utilization.
Funding and support for the
that mechanism of reduction in
technology’s development
CO2 emissions right now.”
came from partnerships with
MGA THERMAL: CLEAN STEAM – LDES TECHNOLOGY FOCUS – THERMAL STORAGE
Mark Croudace, Deputy CEO and Chief Commercial Officer, MGA Thermal
organizations like ARENA and Shell Global, which also
IT’S A VERY ‘SHOW ME, DON’T TELL ME’ INDUSTRY. SO RATHER THAN WAITING FOR A CLIENT TO COMMISSION A PILOT, WE’VE COMMISSIONED OUR OWN.
provides technical expertise and commercialization support.
ENERGY VAULT: LDES TECHNOLOGY FOCUS – GRAVITATIONAL/ MECHANICAL STORAGE
MGA Thermal is based in Australia
The MGA blocks, made of a graphite
and focuses on industrial
composite with dispersed metal
Lucas Sadler, VP of Sales and
decarbonisation solutions aligned
alloy particles, have significantly
Business Development, Energy Vault
with United Nations Sustainable
higher energy density than
Development Goals. Mark
traditional thermal storage
Energy Vault develops and deploys
Croudace, Deputy CEO and Chief
materials. The blocks can store
utility-scale energy storage
Commercial Officer presented the
energy from various sources, such
solutions focused on sustainability.
company’s thermal energy storage
as solar PV farms, concentrated
The company’s offerings include
technology at the Energy and Mines
solar power, wind turbines, or
proprietary gravity, battery, and
LDES Technology Focus session.
industrial processes. The system
green hydrogen energy storage
MGA’s technology utilizes modular
is designed to support clean and
hardware technologies.
block-based systems that enable
decarbonised steam applications
the storage of renewable energy,
within the temperature range of
The company’s gravity-based,
allowing intermittent renewable
150 to 650 degrees Celsius.
mechanically-operated energy
sources to function as baseload
storage solution (GESS), which uses
power for clean and decarbonised
Croudace on the mining industry’s
mobile masses weighing 25-30 tons
steam production. The system
response to this technology: “One
to store and dispatch energy from
features high energy density and
of the things about the mining
clean sources, is good for long
has a smaller site footprint, making
industry that has come through
duration energy storage ranging
it cost-effective and suitable for
today and yesterday was around
from 4 – 12 hours.
retrofitting brownfield sites where
conservatism. It’s a very ‘show
space on the ground may be
me, don’t tell me’ industry. So
The company follows a circular
limited.
rather than waiting for a client
economy approach by sequestering
to commission a pilot, we’ve
locally-sourced, reclaimed materials
commissioned our own.”
like coal ash, wind blade landfills
The thermal energy storage system operates through a phase change
(banned in Europe), construction
process, providing a constant input
The company has built a five-
debris, and mine tailings into the
of steam at a specific temperature
megawatt hour demonstrator unit
mobile masses in its gravity system.
and pressure for baseload
and is close to commercialization.
Furthermore, it has a 35-year asset
energy supply. The charging
The system’s levelized cost of heat
life and most of the mechanical
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PAGE 49
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE components of the gravity system can be fabricated locally. “You can cycle the battery two, three times a day without any expense to degradation, because
CLEANTECH GEOMECHANICS AUSTRALIA: LDES TECHNOLOGY FOCUS – COMPRESSED AND LIQUIFIED GASES
it’s mechanical, so you just simply increase your running costs,” adds Sadler. The company is on track to soon
Cameron Manifold, Managing
complete its gravity storage project
Director, CleanTech Geomechanics
near Shanghai in Rudong, China.
Australia
Scheduled to commission in 2Q23,
THE SYSTEM’S SCALABILITY DEPENDS ON THE NUMBER OF WELLS INSTALLED, MAKING IT COSTEFFECTIVE WITH LARGER SETUPS to that thermal energy storage to enhance our overall efficiency.”
it will be the first commercialized
Cameron Manifold, Managing
GESS project in the world, providing
Director, CleanTech Geomechanics
WellStor’s applications include
25 MW/100 MWh. The system is
Australia, presented the WellStor
supporting excess renewable
expected to deliver a round-trip
A-CAES technology as an LDES
energy, electrification of vehicles
efficiency in the mid-80’s.
solution.
at mine sites, and deployment in remote and regional areas where
“We have also validated a further
WellStor is a CAES (Compressed
the company’s drilling rig can
2 GWh worth of gravity batteries
Air Energy Storage) system that
be used. The leased rig, the first
in the China Mongolia renewable
uses excess renewable energy to
fully automated drilling rig to be
energy zone,” reveals Sadler. “So,
compress and store air at ultra-
operating in Australia, has been
even though we haven’t reached
high-pressure in physical steel
used for drilling multiple wells in
mechanical completion of the
casing strings installed as part of
Western Australia for the oil and
first one there near Shanghai, the
a well battery. When renewable
gas sector over the past 10 years.
Chinese government has launched
energy is not available, the stored
“We have the capacity, using
the second build.”
air can be depressurized through
existing oil and gas resources,
an expander turbine system to
capabilities, and skills to be able
generate power.
to do these wells in a very cost-
The company also integrates other technologies in the energy
effective manner,” says Cameron.
solutions offered to various types
The technology is based on proven
Furthermore, the well battery
of customers across the globe, in
principles from the oil and gas
is modular, allowing for easy
different contract formats.
sector and can be applied in
maintenance and decommissioning
Its VaultOS Energy Management
brownfield or greenfield locations
at the end of use.
Software, described as “asset
with suitable geology. The system’s
agnostic,” features modular and
scalability depends on the number
CleanTech Geomechanics Australia
flexible architecture that can
of wells installed, making it cost-
aims to conduct a pilot project to
implement and integrate any
effective with larger setups.
validate the technology’s potential,
combination of assets across
and the project size will depend
all the three solution layers of
“A critical element of our storage
on the preferred use case of the
applications, storage technology,
system and our total system
mining partner.
and generation technology.
efficiency is the capacity to store the heat, which comes from the
The company is seeking initial
compression of the air, which is
stage investment partners and
up to around 250 degrees C,” said
is in discussions with the EMC
Cameron. “We expect that we will
Consortium for possible installation
be working with other technology
of an initial proof of concept pilot
providers to find optimum solutions
plant.
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PAGE 50
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE INTERACTIVE DISCUSSION WITH MINING AND ENERGY LEADERS
TECHNOLOGY PROVIDERS:
Carolyn Hartmann, Suresh Sakar, David Manning, and Ray Chatfield, discussed crucial site aspects for LDES solutions. Carolyn emphasized value,
Chair: Mitchell Burt, Practice
Lucas Sadler, VP of Sales and
technical fit, and site compatibility,
Business Development, Energy
highlighting energy capacity and
Vault [GRAVITY STORAGE]
renewable alignment. “A really
Lead Decarbonisation Technology,
good example of this is our alumina
South32
refineries, which are high process heat applications,” she said. “So, there’s natural synergies with thermal energy storage solutions.”
Suresh Sakar, Engineering and
Mark Croudace, Deputy CEO and
Suresh stressed reliability for
Chief Commercial Officer, MGA
mining, especially in remote
Thermal [THERMAL STORAGE]
areas, considering power outage
Technology Manager, Iluka
consequences and hybrid setups.
Resources
“For us, the most important consideration is ease of installation, and the ability to interface with different energy sources,” observed
Carolyn Hartmann, Senior
Cameron Manifold, Managing
David. “And in particular, more and
Director, CleanTech Geomechanics
more interfacing with different
Australia [COMPRESSED AIR]
control systems.”
Electrical Engineer, Gove Ray emphasized energy use in
Operations, Rio Tinto
aluminium foundries, advocating electrification, storage, and grid stability to manage intermittency Zamien Sumich, Business
and optimize power consumption.
Development Manager, VSUN David Manning, Managing Director,
[BESS-VANADIUM FLOW STORAGE]
What is the ease of relocation and re-establishment at a different
JUWI Australia In this Q&A session, leaders from
mine site so that we can get the
mining and energy offered their
full lifecycle of the asset?
feedback and questions to the LDES
Zamien Sumich of VSUN highlighted
technology suppliers.
the simplicity of redeployment of vanadium flow batteries (VRFB).
Ray Chatfield, Global Technical
The goal of the discussion:
“It’s just the decommissioning
Manager Refining Energy, Alcoa
To comprehend how these
processes, pumping out electrolyte,
technologies can be utilized and
taking the container and shifting
accessed in the context of 2030
it to where you need to go… and
plans for reducing emissions.
pumping it back in when you get to the next location.”
When it comes to energy storage for your sites or projects,
Cameron Manifold from Cleantech
what are the most important
Geomechanics said the company
considerations?
had modularized their compressed
The panel participants, including
air storage system considering
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PAGE 51
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE operability and easy relocation
VRFB and scalability. Is it as simple
after decommissioning. “In terms
as adding more electrolyte? Or is
of the well battery, we recover the
there a lot more to it, as you scale
wellheads, cap the system, and it’s
up the storage?
basically decommissioned.”
Zamien Sumich of VSUN: “I’ll say yes, it is that simple. It literally is
Mark Croudace said MGA Thermal
adding tanks on to extend duration,
customized thermal storage
and adding power electronics and
solutions for different mine sites
cell stacks to increase the power
and noted that feasibility of
output. I see our technology as
relocation depended on use case
really well placed to be able to
similarities.
provide that ramp up.”
Lucas Sadler from Energy Vault said
Integration into brownfield sites
their gravity-based solution, which
is becoming a critical aspect of
had a 30-year lifespan, offered
renewable energy solutions. What
transportable hydrogen and battery
do you feel is the best integration
components.
strategy and how to manage the challenges of installation, given
OUR SUPPLY CHAIN IS ALREADY IN PLACE. WE’RE LOOKING AT USING SURPLUS EXCESS EQUIPMENT TO ACCELERATE THE LEAD TIMES FOR THE PILOT PLANT. Zamien Sumich from VSUN: Be conscious of the complexities of integration and prepare beforehand even though we deliver products that are commercialized and proven.
How does your system manage the
the very high performance and
challenges of lack of inertia and
reliability requirements of today’s
stability in a grid at really high
mine sites?
renewable energy fractions?
In this portion of the discussion,
Lucas Sadler: “The benefit of gravity
participants shared insights
is that it’s mechanical. So, it’s using
about integrating energy storage
VFDs, and motors, and can provide
technologies into brownfield sites.
lifting structures and equipment
Mark Croudace of MGA Thermal
Mark Croudace of MGA Thermal:
of what the maintenance program
estimated that coupling the system
Collaborate closely with the mine’s
with a cogeneration facility would
experienced operations and
introduce synchronous generation
engineering teams and provide the
benefits from turbine inertia.
right technical support.
In the Australian context, what do
Lucas Sadler from Energy Vault:
you see as the best application for
Deploy Energy Vault’s energy
your technology?
management software that has a
Cameron Manifold from Cleantech
very flexible and sensible scoping
Geomechanics: “I think the best
mechanism to be able to work
application for us is the potential
out what the role is in the mine’s
to integrate fully renewable power
current plan.
mechanical system inertia as well.”
for a group of miners in a common location using a mini grid system. I
Cameron Manifold of Cleantech
think we can do it for larger miners
Geomechanics: Model your
with their own power systems. But I
system to marry to the existing
think that is an opportunity to help
systems that are there; develop an
the smaller mid-tier miners get to
effective monitoring, maintenance,
their ambitions a lot faster using
preventative maintenance program
that technology.”
and the ability to do full scale maintenance.
On gravity storage: Can you talk us through some of the statutory maintenance requirements specifically associated with the and also give us an understanding is going to look like? Lucas Sadler from Energy Vault explained that the building housing the system is sealed and clad to prevent foreign objects from entering. Furthermore, the lifting technology and equipment, such as ropes, motors, and sensors, are standard supply chain components, making maintenance relatively straightforward. In fact, these mechanical skills may already be available on the mining site. However, regular inspections are needed, estimated to be around once a year, with potential equipment changes once or twice over the system’s life, depending on cycling frequency. What should mining companies be doing to enable the uptake of LDES
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PAGE 52
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE technologies to achieve net zero mining? Zamien Sumich from VSUN: “Start buying something! For us to be able
FIRST MODE: DISPLACING DIESEL WITH HYDROGENPOWERED TRUCKS
hydrogen power plant during the COVID pandemic using mostly off-the-shelf components. They then successfully integrated
to increase the capacity to deliver
the hydrogen powertrain into a
in this market, we need to start that
mining truck and demonstrated its
ball rolling now. Mining players that
capability to move heavy payloads
are late to the party will miss out.
at speed in South Africa where the
There’s huge demand pending. And
Julian Soles, CEO, First Mode
there’s insufficient supply.”
DMV assisted with risk management and safety considerations.
Julian Soles, CEO of First Mode,
First Mode even built a 3 MW
Mark Croudace of MGA Thermal
presented an account of how the
electrolyser to ensure the supply of
suggests that the mining industry
company engineered a battery fuel
hydrogen for the vehicle.
might face competition from other
cell haul truck for use in mines in
sectors like oil and gas that are
replacement of diesel-powered
“But the biggest thing, the thing
moving faster in adopting energy
machines.
that got the engineers super
storage solutions. He too warned
excited, was it felt just like a
against being too conservative and
The project started as a proof of
diesel truck,” says Soles in his
missing out on opportunities due to
concept in 2019, in association with
presentation. “It was the first
potential demand exceeding supply.
Anglo American. First Mode settled
comment that they got when a
on a hybrid hydrogen solution
driver got in, and these are people
Cameron Manifold of Cleantech
for the mining trucks due to its
that have been driving these trucks
Geomechanics: “Our supply chain
feasibility and economics.
for 20 years!”
is already in place. We’re looking at using surplus excess equipment
First Mode is now working on
to accelerate the lead times for the
NuGen, an ecosystem for zero-
pilot plant. The current hurdle for
emission haulage, including
us is to get a commitment to an appropriate use case supported by parties who have an interest in this particular technology.” The timeline for net zero targets is short and considering all
FIRST MODE EVEN BUILT A 3 MW ELECTROLYSER TO ENSURE THE SUPPLY OF HYDROGEN FOR THE VEHICLE.
the technology integration and
hydrogen sourcing, fleet integration, and a refueling system. “The reason for that is we want to deliver a solution where we don’t come to the customer and say, hey, we’ve got this truck, the rest of it’s your problem,” said Soles. “It’s not, it’s our problem, because it
technology development that needs
Soles took the audience through
doesn’t work without the rest of the
to happen, what are the immediate
the journey of the world’s largest
system.”
next steps that mining companies
zero-emission haul truck from
should take to understand the
concept stage to its successful
In Q2 of 2025, First Mode plans
potential of LDES technologies?
deployment at a South African mine
to demonstrate a minimum viable
“Act now, we have to do something
site.
system with two ultra-class trucks
now. We need to work out a way
running on liquid hydrogen and
of being quicker, making decisions
His presentation covered concept
an integrated fleet management
faster, and getting these feed
study, engineering design, the
system.
studies done. They need to be done
prototype, final assembly and
– I don’t dispute that as we need to
testing, and lastly, operating the
By mid-2025, they aim to have a
have a good understanding of what
truck on site.
commercial solution operational on
we’re doing. But the timeline is just too long at the moment.”
a mining site. First Mode built a test facility at a Seattle warehouse and built the
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PAGE 53
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE PANEL: MAKING HYDROGEN VIABLE FOR WA MINES
Green hydrogen shows great
OEM, echoed Zoe on the need to
potential for lowering carbon
evaluate specific applications within
emissions in energy and
mining and processing. “Some of
transportation for mines that
those applications will make a lot of
have onsite renewables. As mining
sense for hydrogen today, some will
companies pursue renewable
make no sense ever.”
projects in the Pilbara, green Chair: Adrienne LaBombard,
hydrogen’s role in facilitating
Furthermore, Ewan said his
Director of Policy and Advocacy,
carbon-neutral mining assumes
company focused on reducing the
The Chamber of Minerals and
significance. In this panel, experts
levelized cost of hydrogen through
Energy of Western Australia
in mining and hydrogen discussed
technological advancements,
key steps and insights from ongoing
scaling up electrolyzers to as much
projects to make hydrogen viable
as 100 MW, maximizing current
for local mines.
densities, and boosting electrolyzer efficiency in terms of kilowatt hours
Why is green hydrogen not yet a
per kilogram of hydrogen.
Justin Pitts, Director, Blue
perfect match for local mining
Diamond Machinery
operations? And what would make
Julian Soles underlined the urgency
it viable?
of action to drive down hydrogen
According to Russell James, the
costs, stating that delays hindered
primary challenge was the cost
attempts at cost reduction.
of hydrogen production, where input power contributes to 60% of
“There’s a fair bit of work to get
Russell James, General Manager
the total cost. Price-competitive
done to get the price point down
Hydrogen & Future Fuels, ATCO
fuels, such as low-cost wholesale
so anyone looks at it and says,
Australia
gas made available through the
well, this is cheaper than diesel, I
gas reservation policy, and the
should be doing this already, which
global capacity constraints on
is where we’re at with renewables.
electrolyzers were other hurdles,
Right now, it’s cheaper to install
according to James.
renewables than new power plants, for example. And that’s ultimately
Julian Soles, CEO, First Mode
Zoe von Batenburg emphasized
where we need to get to.”
the need for more data about hydrogen’s application in mining
How are WA mines and suppliers
and metals processing. “We need
collaborating on hydrogen
to see the data, we need to see the
initiatives?
trials - like the projects that Julian
Russell James highlighted
Ewan Norton-Smith, Head of
spoke about earlier - to have all of
increasing collaboration between
Business Development (APAC),
that information to be able to make
seemingly competing parties in
Electric Hydrogen
those investment decisions around
the hydrogen industry. He said
whether it might make sense to
there was a shift in perspective and
integrate hydrogen.”
companies were recognizing the value of combining their strengths
Justin Pitts detailed challenges
for a unified approach.
in cost competitiveness between Zoe von Batenburg, Investment
hydrogen and diesel, along with
Russell also stressed the need
Director, Business Development
logistical and supply issues.
for OEM providers to take initial risks and governmental support
& Transactions, Australian Renewable Energy Agency
Ewan Norton-Smith from Electric
through organizations like ARENA.
(ARENA)
Hydrogen, an industrial electrolyzer
He emphasized the importance
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PAGE 54
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE of collaborative problem-solving,
replacements for diesel and
such as a consortium approach, to
emitted only water and vapor,
overcome challenges and dispel doubts about hydrogen’s feasibility in demanding conditions. How are we expecting the economics of green hydrogen to evolve? The experts discussed various factors affecting the cost competitiveness of hydrogen. Zoe von Batenburg highlighted the need to scale up hydrogen production to bring down costs in Australia in line with the US, Japan, Germany, and the UK, all countries offering strong incentives for large-scale hydrogen projects. The Australian government’s Hydrogen Headstart program in collaboration with ARENA, which aims to address capital and operating cost challenges in achieving cost parity and building a competitive hydrogen industry in Australia, was a step in the right direction, according to Batenburg. Ewan Norton-Smith emphasized the critical role of cheap and plentiful renewable electricity in driving down the cost of green hydrogen. “Each $10 a megawatt hour change in electricity price has about 50 cents per kilogram impact. So, if your electricity cost is $20 a megawatt hour more expensive, that’s going to have a $1 impact on your green hydrogen cost.” Julian Soles noted that predicting cost parity with diesel is challenging due to various factors that would vary from country to country, some of it driven by government, some of it driven by existing renewable infrastructure.
JULIAN SOLES UNDERLINED THE URGENCY OF ACTION TO DRIVE DOWN HYDROGEN COSTS, STATING THAT DELAYS HINDERED ATTEMPTS AT COST REDUCTION. “There is a really good chance that by 2030 we’re going to be much lower. And that’s when you start to really see your site seeing much more mass adoption and ability to then drive the hydrogen market.” Russell James said it ultimately boiled down again to the use case. If electrification is essential to net zero, and cannot be achieved merely through batteries and renewables, then hydrogen becomes essential. “And then we’re not really talking about the cost. It’s: What is the cost of the alternative?” Justin Pitts provided a timeframe of 2027 for cost parity, backed by research and modelling, with some instances of faster adoption among miners who invest in their own electrolyzers. Can you talk about some of the takeaways so far? Renewable hydrogen performance compared to diesel? Justin Pitts discussed the positive aspects of hydrogen technology, highlighting its transformative potential. He shared the example of hydrogen-powered generators in action during the Formula One event in Melbourne. These 100 KV generators were direct
creating a clean and quiet environment. “You see people coming up, and, you know, sitting up against the generator that’s powering all the food stalls and events, all it’s emitting is water and vapor. It was pretty amazing to see because we’ve dealt with diesel for a long time. And you don’t often get kids eating sushi at the exhaust of diesel generators.” “But yes, obviously the big prize is mining.” How does green hydrogen change mine design, operation and infrastructure requirements? Julian Soles: “I think you have to look at each mine site. But we’re trying to minimize infrastructure and changes to a miner with our solution.” That solution would do away with the production of hydrogen on a mine site due to balance sheet considerations. Instead, First Mode was evaluating a hub model. “Then we can build a sufficient scale that makes sense and serve multiple mines, but smaller amounts, and as they get used to the technology and grow, you can then scale up much more easily that way.” What does a mine need in terms of renewable energy supply to consider the green hydrogen option? Ewan Norton-Smith discussed the variable factors, particularly the requirement of lots of renewable electrons - as cheaply as possible
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PAGE 55
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE - for an onsite green hydrogen solution. “So, having some additional spilt
BHP: TRIALLING RENEWABLE FUEL AT YANDI IRON ORE OPERATIONS
capacity is a big benefit.” Ewan Norton-Smith highlighted a significant point: the supply constraint of green hydrogen in Australia is expected to diminish
Yanni Kotsos, General Manager,
in the near future thanks to
Yandi Mine, BHP
the government’s Hydrogen Headstart program and large-
Yanni Kotsos, General Manager of
scale electrolyzers scheduled for
BHP’s Yandi mine in the Pilbara
deployment between 2025 and
region of Western Australia,
2026.
presented on a trial of the use of hydrotreated vegetable oil (HVO),
“So, the supply issue that we’ve
a renewable fuel, to power mining
been facing around 95% of
equipment at the site.
hydrogen being grey hydrogen is one that will be temporary, and will
Electrifying mining equipment
be replaced by green hydrogen.”
is a key component of BHP’s plans to achieve a reduction of
What are the immediate next steps
at least 30% in group operational
for developing the viability of
emissions by fiscal year 2030, and
green hydrogen for WA mines?
net zero operational emissions by
Zoe Von Batenburg reiterated
2050. However, the company is
the importance of engineering,
exploring the use of renewable fuel
technical feasibility, pilot projects,
alternatives such as HVO in certain
and trials to gather real-world data
mining equipment, mainly dozers
that demonstrated the viability and
and ancillary equipment, which do
functionality of hydrogen solutions.
not currently have a clear pathway
Von Batenburg also highlighted
to electrification.
the significance of sharing this data with various stakeholders
HVO is produced through a
including supply chain partners,
purification and refining process
original equipment manufacturers
using organic waste, renewable
(OEMs), and facilities managers
fats, and vegetable oils as
who are responsible for integrating
feedstocks. It emits up to 95%
hydrogen into operations.
fewer greenhouse gases compared to fossil diesel and is already
In summary, a program of work that
recognized as a decarbonisation
“allows us to learn quickly to reach
method in regulated markets like
that point where we make decisions
Europe and the US. Additionally,
around whether these use cases
HVO can be used as a drop-in
make sense, and whether we can
fuel without requiring engine
make investment decisions around
modifications or infrastructure
deployment in order to reach the
changes.
decarbonisation targets that we’re
HVO IS PRODUCED THROUGH A PURIFICATION AND REFINING PROCESS USING ORGANIC WASTE, RENEWABLE FATS, AND VEGETABLE OILS AS FEEDSTOCKS During the three-month trial at Yandi, HVO sourced from BP was used in two haul trucks, one excavator, and two dozers, with two different blends of HVO and fossil diesel. “The trial was completed safely with no recordable injuries all the way from mobilization to decommissioning, and performance of all machines participating in the trial was broadly in line with performance under fossil diesel,” said Kotsos. “Also, no maintenance activities were required during the trial as a result of the change to HVO blends.” According to Kotsos, the main challenge for wider adoption of HVO lies in the current price differential with fossil diesel, as producing renewable diesel is more expensive. However, BHP expects the price of HVO to decline over the next decade as demand and supply increase. The company believes that as the carbon-adjusted price of fossil diesel rises, it will eventually converge with the price of renewable fuels such as HVO.
all aiming for.”
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PAGE 56
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE PANEL: SUSTAINABLE FUEL APPLICATIONS IN MINING
within the mining sector.
of diesel annually, showing scope for 10% substitution.
What role are sustainable fuels expected to play in reducing GHG
Jennifer Lauber Patterson referred
emissions for mines? And why do
to renewable diesel as essential for
you think they’ve underperformed?
achieving net carbon zero goals,
Simon Roycroft opened the
emphasizing its cost-effectiveness
Chair: Simon Roycroft, Chair,
discussion with data from the
and compatibility with different
Cleaner Fuels Alliance, Bioenergy
Carbon Disclosure Project (CDP)
applications. “We think it is
Australia
that showed only 5% of global
relatively competitive, and we like
emissions are covered by on-
the drop-in nature of it. Not having
track targets, and that disclosed
to replace capital that would be
corporate targets would not limit
intensive is a really good way of
warming to the Paris aligned 1.5°.
being able to transition. So, I think
“Some would argue that bioenergy
it’s a huge opportunity.”
Jean-Jacques Lavigne, Chief
in Australia, if not the world, is a
Commercial Officer, Binex
sleeping giant, overlooked amongst
[To BHP] What is the scope for
the mix of options that currently
renewable fuels at BHP?
exist and that has a much larger
Yanni Kotsos clarified that in
and immediate role to play,” he said
Western Australia, where a
in the context of decarbonisation.
significant portion of emissions arise from diesel consumption in
Peter Chomley, Director, Just
mining equipment and locomotives,
Biodiesel
BHP is considering battery electric technology for electrification.
Jennifer Lauber Patterson, Executive Director, FutureEnergy Australia
Yanni Kotsos, General Manager, Yandi Mine, BHP
SOME WOULD ARGUE THAT BIOENERGY IN AUSTRALIA, IF NOT THE WORLD, IS A SLEEPING GIANT, OVERLOOKED AMONGST THE MIX OF OPTIONS THAT CURRENTLY EXIST AND THAT HAS A MUCH LARGER AND IMMEDIATE ROLE TO PLAY
However, he noted that while electrification is feasible for certain equipment, it may not be suitable for other machines due to factors such as usage and volume. In such cases, BHP would explore renewable fuels like HVO (hydrotreated vegetable oil) as viable alternatives. [To BHP] What would be BHP’s asset planning around renewable fuels? Yanni Kotsos re-emphasized BHP’s focus on electrification as its primary strategy for emissions
What will take the place of fossil fuels in miners’ strategy towards
The capacity for domestic supply
achieving a state of zero net
of renewable fuels would top out
reduction.
emissions? Among the alternatives
at about 1 billion litres by about
However, he acknowledged that
being investigated are fuels derived
2030 due to limitations of feedstock
certain scenarios might prove
from sustainable sources, such as
availability, noted Peter Chomley in
challenging to electrify in the short
biofuels. This panel deliberated
a broad-brush picture of demand
term, making renewable fuels like
on the array of choices, economic
and supply of biodiesel. In contrast,
HVO an attractive alternative -
considerations, accessibility, and
despite electrification trends, the
provided these were operationally
potential uses of eco-friendly fuels
mining sector used 10 billion litres
convenient as drop-in replacements
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PAGE 57
AUSTRALIA SUMMIT SESSION REPORTS CONTINUE
feedstock that could have been processed here to obtain renewable diesel. Comments. Jean-Jacques Lavigne shared his thoughts on Australia’s abundant resources and the need, particularly for mines, to make better use of resources such as often-wasted
IT WOULD ALSO COME DOWN TO WHETHER MINES WOULD CONSIDER SUPPORTING A RENEWABLE DIESEL INDUSTRY IN AUSTRALIA.
water and marginal land that could be utilized for agriculture and bio fuels. Simon Roycroft endorsed Lavigne’s vision, stating that Australia had the potential to become a renewable superpower by leveraging its resources to produce feedstocks for
them would have commercially
food, fertilizer, and fuels.
available electrification solutions immediately, making room for the
He underscored the intersection
potential use of renewable fuels in
of agriculture and mining as a
specific scenarios.
game-changing opportunity for the country.
Jennifer Lauber Patterson for conventional diesel in existing
added that the choice between
equipment and infrastructure.
What policy settings do we need in
electrification and renewable fuels
Australia to be able to stimulate
would depend on factors such as Nevertheless, BHP still sees
the growth of feedstock, keep it
the capital requirements, returns
electrification as the more
in Australia, produce the fuels
on investment, and the cost-
attractive long-term solution and
that we need for our own energy
effectiveness of each option.
envisions renewable fuels playing a
security, regional economic
“I do think, in certain situations, the
role in cases where electrification is
growth, and support those hard
renewable diesel outcome is going
not yet feasible or viable.
to decarbonise diesel intensive
to be a better option, particularly
industries?
if you’ve got a plant that still has [To BHP] It’s been difficult for
Peter Chomley stressed the need
15-20 years, or so, of life,” Jennifer
biodiesel to really get off the
for a policy framework in Australia
said.
to support the local renewable fuels
ground. But if we got to a stage
industry, suggesting that without
where we could get a quality,
It would also come down to
abundant supply of the product at
such support, significant progress
whether mines would consider
a price point that made sense, do
might not be possible.
supporting a renewable diesel
you think that would slow down
industry in Australia.
BHP’s inclination to adopt other
“Yes, we need the regulatory sync signals,” agreed Jennifer. “And that
technologies?
Australia has been a laggard on
Yanni Kotsos noted that BHP
would be so helpful for everyone
renewable fuels compared to
had numerous pieces of mining
who wants to decarbonise in
the EU and North America. It has
equipment, and not all of
Australia, because it would be then
also chosen to export valuable
a level playing field for everyone.”
For agenda suggestions contact adrienne.baker@energyandmines.com For exhibit or sponsorship contact olivia.mendoza@energyandmines.com
PAGE 58
AUSTRALIA SUMMIT Simon Roycroft raised the idea
electrification faced substantial
following wish list on renewable
of blending small percentages of
delays.
fuels:
renewable fuels (1%, 2%, 3%) with
•
We would love to see the
conventional diesel to support the
Simon Roycroft brought up
economics improve. Right
emerging industry and potentially
examples of legislation and
now, even carbon offsets are
lessen the cost burden.
policies in North America, such as
cheaper than the differential in
the US renewable fuel standard,
price. But obviously, physical
The Australian automotive diesel
low carbon fuel standard, and
abatement is always better.
standard allows up to 5% without
blenders tax credit, which provided
any disclosure. Is that of interest
subsidies for renewable fuels. “And
accreditations and certifications
to mining companies in terms of
unfortunately, that’s why they can
for the different types of raw
being able to extend a small (even
afford to pay the money they do to
materials.
token) support to help the fledgling
pull the feedstock out of Australia,”
biodiesels industry?
he commented. “So, policy is very
Yanni Kotsos reiterated that
important to bridge that gap.”
•
•
Ethical production of the fuel – this is quite important to BHP.
•
while BHP’s current plans did
Seeing more and more
Seeing more uptake from the original equipment
not involve blending renewable
[To BHP] From your perspective,
manufacturers (OEMs) and
fuels with conventional diesel,
what do you think could be done
allowing the use of high
there might be circumstances in
by the mining industry, not
blend levels, even up to 100%
the future where such a strategy
necessarily BHP, to help stimulate
perhaps.
could be considered, especially if
this growth?
technological advancements for
Yanni Kotsos responded with the
This is to recognise the Delegates of the
Energy and Mines Summit 2023
for contributing 600
600
native trees and shrubs in the Yarra Yarra Biodiversity Corridor
Proudly restoring Australia’s natural habitat through biodiverse reforestation of degraded land.
Thank you for supporting native reforestation and habitat restoration within Australia’s largest biodiverse reforestation carbon sink project.
Dr Phil Ireland | Chief Executive Officer
Issue Date: 23 June 2023 Carbon Neutral Pty Ltd is regulated by the Australian Securities and Investments PAGE 59 For agenda suggestions contact adrienne.baker@energyandmines.com Commission and holds Australian Financial Services Licence Number 451004
For exhibit or sponsorship contact olivia.mendoza@energyandmines.com