THE RESOURCEFUL MINING ISSUE | 2021
CASE STUDY
OFF-GRID MINING HYBRID POWER SYSTEM Consistent power supply for a mine is critical for successful operations. Costly electricity and power outages have driven mining companies to explore alternative energy sources that would be able to meet the needs of the mine.
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SX-listed Resolute Mining is an example of a mining house that was on the market for alternative energy to supply consistent and affordable power to its Syama Underground Mine in Mali. As part of its commitment to delivering a life-of-mine in sustaining the cost of US$746/oz (R10 413/oz) at Syama, the company needed to define a lower-cost power solution relative to its existing source of power. Identifying the problem The Syama Gold Mine is currently powered by singular diesel generators that were no longer the most efficient compared to the newer technology now available. At the mercy of diesel, a notoriously fluctuating, high-cost fuel, it has become an expensive solution. Furthermore, the generators had to run constantly to provide the system with the stability the mine needed. After investigating the possibility of a grid connection, which was rejected based on time and cost, Resolute launched a tender with the target of achieving a 40% reduction in electricity costs.
As the gold producer focused on securing a more environmentally friendly solution, the environmental impact of the power solution being offered was a key consideration. Resolute also wanted a solution that offered lowcost power without needing to make a significant upfront capital investment, so that the company could conserve capital for deployment for growth. Finding a solution Aggreko was awarded a 16-year contract to build, operate and maintain a hybrid power plant (thermal, solar and battery). Aggreko had already been providing and operating a 28 MW diesel power plant on the site, augmenting the existing diesel power station for a few years.
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