Renewable energy is developing rapidly but to make further inroads with mining, it needs to further adapt to the sector’s power needs, says Tony Lord, Director of Asset and Energy Management at New Gold. The multinational mining company operates projects in North America, South America, and Australia.
“Right now, renewables are still a developing technology with high capital costs and limited capacity to manage the type of base load required by the typical mining operation,” comments Lord. “For example, a large solar PV plant and a big battery bank are not going to meet the base load power needs of a mine on a 24/7 basis.”
The mining sector is, however, eager for renewables to play a bigger role in powering operations, he adds. “It is a pretty exciting and rapidly growing space which the industry is watching very closely,” he adds. “Renewables can offer the industry cheaper unit costs, lower fuel costs, sustainability and peace of mind.”
Carbon Risk a Top Concern for Mines
Rising energy costs and carbon pricing are part of New Gold’s energy challenges. “A concern for New Gold right now is what the new cap and trade system is going to look like in Canada,” explains Lord.Globally, governments are developing carbon pricing and taxation programs which can create uncertainty for mining operators. “The mining industry is typically diesel-fuel intensive, so the biggest challenge is to be able to move away from the reliance on diesel equipment,” Lord comments.
Along with looking at alternative power, carbon risk is driving mine electrification but the solutions all depend on the particular mine site. For instance, in an open-pit environment, mine electric shovels can be used to reduce carbon emissions. However, in a much smaller ore body, miners don’t have the luxury of fitting in a big electric shovel in, stresses Lord. “There is a lot going on around electrical equipment. But, predominantly, it is still very much a diesel intensive industry,” he says.
Moving Forward
Looking ahead, Lord believes that alternative power will be playing a more significant role in powering mining operations. “Renewable energy will be able to address a large percentage of the mines’ energy challenges and ultimately become the way we do business.” Key to this business as usual approach is for renewables to offer lower capital costs, base load power options and a 24/7 solution, he adds.
Lord highlights the upcoming Energy and Mines World Congress on Nov 21-22 in Toronto as “the ideal platform” to drive and improve collaboration between mining and renewables experts. “Events like this bring together mining and renewables experts to find useful energy solutions,” he says. “In simplest terms, it is not just vendors and customers, but teams of committed and likeminded people looking for solutions.”