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Avoiding Escalating Power Costs and Supply Disruptions is Critical for Mining, says Anglo American Energy Leader

Avoiding Escalating Power Costs and Supply Disruptions is Critical for Mining, says Anglo American Energy Leader
November 11
10:40 2015

“Almost all of our operations are on grid, however in some geographies the risk with unreliable supply and escalating costs are among our main concerns,” says Stan Pillay, Lead Energy & Carbon Effectiveness at Anglo American. “Whilst operations can accommodate the occasional requests to curtail electricity use, the disruptions in supply impacts the business.”

Headquartered in London, Anglo American is one of the world’s largest mining companies with operations in Southern Africa, North and South America and Australia. It is the largest producer of platinum, with around 40% of world output, and a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal.

Stan Pillay is responsible for driving the implementation of Anglo American’s climate change and energy strategy, which includes actions on energy efficiency, low energy and carbon technology and carbon pricing. He is also the Chairman of the SA Industry Task Team on Climate Change and part of the International Council on Mining and Metals Climate Change committee. This January 28-29, he will provide a keynote presentation at Energy and Mines London Summit and here he provides insight into the mining leader’s top energy concerns and priorities.

Q: What are the top 3 energy concerns your operations are facing?

A: Almost all of our operations are on grid, however in some geographies the risk with unreliable supply and escalating costs are among our main concerns. Whilst operations can accommodate the occasional requests to curtail electricity use, the disruptions in supply impacts the business.

We have a strong emphasis on economically reducing energy consumption and carbon emissions. These measures cumulatively contribute to lower input costs and reduce our exposure to emerging carbon policies.

Q: How have changes in commodity prices affected your energy strategy?

A: The Anglo operating model provides an integrated process to cost-effectively deliver on strategic objectives. The business improvement gains help reduce the energy and carbon intensity of our operations. Targeted energy reduction projects often require technology change, which in some instances are supported by external incentive schemes.

Q: What is the biggest misconception that energy companies have about the ways that mining leaders think about power?

A: That the price elasticity of electricity demand, together with security of supply risks, will result in the industry testing alternative supply options, including self-generation, with significant cost implications for mines and reduced revenue for utilities. The intention is to always increase or improve the contribution of renewables in the energy mix and to do this we are always on the lookout for new solutions.

Q: What are you looking forward to at the Energy and Mines London Summit?

A: I am looking forward to this networking opportunity and gaining insights on industry good practice.



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Pablo Crespo

Pablo Crespo

Journalist and Corporate Communications Professional

TWITTER / @ENERGYANDMINES