“Mining companies are looking for opportunities to use economic forms of alternative energy in order to reduce their reliance on stand-alone diesel generators and the generation of greenhouse gases,” says R. Brent Murphy, Vice President of Environmental Affairs at Seabridge Gold.
For its KSM project in British Columbia which will be grid connected, Seabridge Gold has decided to add 20 MW of hydro generated on site. “We have streams that need to be diverted from a water management perspective and, so, we decided if we’re going to divert these, we might as well use the energy that comes from them,” explains Murphy.
What’s more, Murphy continues, the 50 to 100 meter elevation differential between the water storage facility, where water awaiting treatment will be stored, and the water treatment facility creates an energy opportunity. “We’re quite excited about constructing our own hydroelectric facilities on site,” says Murphy, adding that he’s also very keen to connect to the B.C. power grid because “the vast majority of that energy is generated by green sources.”
Renewables for Exploration Camps
Mining companies traditionally consider renewables for the production phase of the mining cycle rather than for exploration, which consumes relatively small amounts of energy. Bill Mercer, Vice President of Exploration for Avalon Rare Metals Inc., believes that neglecting the alternative energy possibilities for the exploration stage could be a mistake.
Mercer maintains that energy conservation and alternatives make sense for the discovery stage because this is the high-risk end of the mining cycle and transportation costs are proportionally higher in discovery. A compelling business case could be made for mines to integrate energy conservation and renewables for exploration camps resulting in considerable cost savings.
When it comes to implementing alternative energy solutions during exploration, Avalon is walking the talk. The company installed two solar panels at the Nechalacho Project and a battery system which is charged by the panels when no one is at camp. In addition, says Mercer, “the battery system enabled us to install more efficient heaters and acted as an emergency system if the generator stopped for some reason.” Mercer also investigated installing a small wind tower, as well, but that proved expensive in this case: “Solar was much simpler to buy and install.”
Harsh Climates
Wes Carson, Vice-President of Project Development, at Sabina Gold & Silver, points out that while energy costs factor into all exploration programs, they haven’t been “heavily influential” in the exploration operations and design development for Sabina’s Back River Project. He points out that heat recovery (from diesel power generation) is an integral feature of this project, and that wind, solar, battery storage, and LNG-powered generation will continue to be considered.
For Sabina Gold & Silver, consideration of alternative energy solutions is complicated by the harsh Artic climate of Nunavut where the project is located. Not only must the energy solution withstand harsh winter conditions, but the northern latitudes mean unique challenges for solar and for the resupply logistics of liquefied natural gas which invariably result in increased costs.
Carson says the transition to alternative energy will take off once wind, solar, and other forms of energy become “comparable in cost and risk to currently used energy sources.” At the moment, though, he points out that diesel generation, which supplies much of the power in northern Canada, continues to be the preferred energy source because of initial and lifecycle costs.
However, projects like Rio Tinto Diavik Diamond Mine’s wind hybrid and smaller solar installations in northern Canada are changing attitudes to renewables hybrids. “[These projects] have attracted deserved positive attention that others look to as encouraging precedents,” add Carson.
Technology and Expertise are Key
In the end, mining companies are seeking to cut costs and energy is almost certain to play a role in advancing this goal, comments Chih-Ting Lo, a Principal at EELO Solutions and Energy Manager for Barrick-Hemlo. “At a time like this when commodity prices are really low, the business plan becomes survival. How do we keep producing? And how do we not get priced out?” she adds.
Technological advances are pivotal to which energy solutions mines ultimately choose, adds Lo. She points out that the growing applications for big data are worth watching, especially given that fuel expenses are so high in open-pit mining because heavy equipment is being operated. Were equipment to be driven more efficiently with the help of data analysis and technology, fuel costs would be reduced. Lo is also convinced that waste energy, which can generate both power and heat, will play a larger role in the mining landscape going forward.
While lower prices for wind and solar mean that both technologies are part of the energy conversation at many mines, the need for better, more cost-efficient battery and storage solutions remains a stumbling block, explains Lo. Once wind and solar are combined with storage solutions, the total price rises.
It is also imperative that mines receive expert advice on the best hybrid solution to fit with their energy needs, location and mine life. “Some mines have installed wind and solar systems that have not worked very well,” says Lo. “For mining companies to say we’ll consider renewable energy as a true option, they need to understand the real risks involved. And they need to understand that perhaps the solution to looking at the best energy supply option—whether that’s solar or wind or some combination—may need to be managed by someone else.”
Sustainability as a Driver
Murphy emphasizes that an important factor in mining companies’ embracing alternative energy is a commitment to sustainability. “Mining companies pride themselves on trying to minimize their environmental impact to the greatest degree practical,” he says. “I know at the company where I work, we consider ourselves for the most part stewards of the land.”
Because of these attitudes, Murphy firmly believes that alternative energy is becoming a more mainstream option for mines. “Mining companies are innovators,” he concludes. “If there’s a way to do something more efficiently and cheaper, I think a mining company will find it.”
The interviewees featured in this article will be speaking at the 3rd Annual Energy and Mines conference at the Toronto Marriott Downtown Eaton Centre Hotel, October 22-23. For further information please visit our Toronto website.