Energy and Mines World Congress 2020 - Congress Report and Presentations

CONGRESS REPORT

A N D P R E S E N T AT I O N S

TABLE OF

CONTENTS 01

CONTENT POD 1 Towards Zero Emissions Mining: Global Mines Share Strategies................ 04

02

CONTENT POD 2

03

CONTENT POD 3

04

CONTENT POD 4

05

CONTENT POD 5

06

CONTENT POD 6

South America: 100% Renewable Energy Mining............. 11

Optimizing Renewable Energy for Mines....................................... 18

Decarbonizing Material Movement: Towards Zero-Emissions Fleets............... 25

Hybrid and Utility-Scale Renewables for African Mines....................................... 31

Why Solar and Wind Make Sense for US and Canadian Mines........................... 36

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MINERS SHARE PATHWAYS FOR OVERCOMING DECARBONIZATION COMPLEXITY

E

very year, miners from around the globe leverage the platform of the Energy and Mines World Congress

to discuss new projects or carbon reduction commitments. Despite being held virtually, this year was no exception. With over 440 attendees, including 140 mining participants, the conference was conveniently organized in six content pods: some covering the general path to zero-emission mining operations and fleets, and others offering more specific insights around local challenges in South America, North America and Africa. With most large miners having to deliver on ambitious carbon targets by the end of this decade, it is clear to see that the pace of innovation and technology adoption is picking up.

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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 1 TOWARDS ZERO EMISSIONS MINING: GLOBAL MINES SHARE STRATEGIES

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

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The Energy and Mines Virtual World Congress started with an overview of global mining strategies for decarbonization. In the first content pod, miners presented their ambitious carbon reduction targets, and identified the concrete actions and technologies they believe will allow them to deliver on those goals.

CLEAN ENERGY FOR ELECTRIFICATION decarbonization

expectations, and the development

targets are broadly uniform: most

of energy storage will drive even

are aiming for 30% scope 1 and 2

more uptake in the coming years.

Large

miners’

emissions reduction by 2030, and carbon neutrality in 2050, with the exception of Newmont, which has chosen 2040 as a net-zero deadline.

To achieve these targets, decisive action is needed, and it all starts with switching the mine’s baseline power to renewables. In the keynote panel, composed of senior mining leaders and chaired by Tyson Dyck, Partner at Torys, Jessica Harman, Principal

Portfolio

Strategy

&

Development at BHP, pointed out: “BHP’s

decarbonization

pathway

prioritizes renewable electricity first and foremost.”

Efforts to clean up the energy supply are then expected to make it easier for miners to electrify their fleets and operations, bringing many benefits: improved

performance,

improved

work environment, lower cooling and ventilation requirements, and of course, lower CO2 emissions.

But when it comes to electrification, no one knows which technology — battery-electric vehicles, trolley assist or hydrogen — will prevail. An interesting point raised by miners is that giant heavy-haul mining trucks may simply not be compatible with electrification. “We need to wean

According to Dave Manning, Global

ourselves off of haul trucks to access

Head of Hybrid at juwi Renewable

the green energy power much more

Energy, renewable energy projects

readily,”

have mostly been outperforming

President and CEO of IAMGOLD.

said

Gordon

Stothart,

6

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

THE WAY FORWARD change

now, at whichever level each company is

management and disruption to existing

comfortable with. In a case study on BHP’s

operations were cited as challenges on

decarbonization strategy, Steve McGill, the

the

“What

company’s carbon management specialist,

risk would OEMs be willing to assume

presented the process used for leveraging

with creative financing solutions,” asked

the entire portfolio to deliver the best

Catharine Farrow, Non-Executive Director

outcomes for the group. “The portfolio

at Centamin, noting that decarbonization

of

projects are often still difficult to get over

depends on the asset, its capital intensity,

the line, financially speaking.

the marginal abatement cost curve and

Supply

chain

development,

decarbonization

pathway.

However, miners were unanimous about

operational

emissions

reduction

technology readiness,” he said.

the importance of starting the process

SPONSORS’ CORNER Fulcrum 3D emphasized the importance of measuring at least one year of wind data during the development stage of a project.

Hatch presented the four-step process to developing an optimal lowemission pathway for mine sites: mapping emission sources; categorizing opportunities across the entire value chain; reviewing factors that may vary over time and impact projects; and ranking opportunities through a marginal abatement cost (MAC) curve.

Wood McKenzie explored the global outlook for renewable energy for mines, noting that decarbonizing today might be a carbon tax hedge for tomorrow.

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

PANEL: TOWARDS ZERO-EMISSION MINING Chair: Tyson Dyck, Partner, Torys Gordon Stothart, President and CEO, IAMGOLD Jessica Harman, Principal Portfolio Strategy & Development, BHP Colin Nexhip, Group Executive - Asset Management, Newmont Gustavo Bastos, Executive Manager of Center of Excellence, Technology and Innovation for Iron Ore, Vale Catharine Farrow, Non-Executive Director, Centamin

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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

BHP – ACHIEVING NET- ZERO MINING Jessica Harman, Principal Portfolio Strategy & Development, BHP Steve McGill, Specialist Innovation, Sustainable Operations, BHP

OPTIMISING MINING’S POWER SYSTEMS David Manning, Global Head of Hybrid, juwi Renewable Energies

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

SUPPORTING THE TRANSITION TO ZEROEMISSIONS MINING Paul Copestake, Head of International Markets, Fulcrum3D

HOW TO CREATE AN OPTIMAL AND FLEXIBLE LOW-EMISSIONS PATHWAY Michel Carreau, Global Director Hybrid Power, Microgrid and Green Hydrogen, Hatch

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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

THE GLOBAL OUTLOOK FOR RENEWABLE ENERGY FOR MINES Benjamin Attia, Senior Research Analyst, Energy Transition Practice, Wood Mackenzie James Whiteside, Research Director, Global Head of Multi-Commodity Research, Wood Mackenzie

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 2 SOUTH AMERICA: 100% RENEWABLE ENERGY MINING

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Content pod 2: South America: 100% Renewable Energy Mining

T

he Energy and Mines Virtual World Congress second content pod focused on the world-leading decarbonization strategies of South American Mines.

Sharon Mustri, Analyst at Bloomberg New Energy Finance (Bloomberg NEF),

set the scene with facts: renewables are the cheapest form of energy generation in South America, and miners have caught on to it. Three of top 10 off-takers of renewable energy in Latin America in 2020 were miners. Taking advantage of market-friendly regulations and commercial innovation such as sleeved PPAs, miners are shifting away from regulated markets and procuring cheaper energy from wholesale markets or through bilateral agreements: Solar PV’s levelized cost of energy in Latin America is US$59/MWh and wind is US$45/MWh, which is much lower than average industrial power prices of $100 or above. Meanwhile, for on-site generation, renewables are cost-competitive at 30-60% penetration.

COMBINING PPAS AND SELF-GENERATION Two miners that have led the switch to

Utilities, the company is currently

renewable PPAs in the region are BHP

negotiating more contracts that will

and Anglo American. BHP sourced

bring its Brazilian energy mix to 96%

600MW of renewable contracts in

renewables. “With the three electricity

Chile in 2019, and Sebastian Rivas,

supply contracts recently closed, we

Lead, Energy and Water Management,

will stop emitting 1 million tonnes of

Strategic Services, at the company,

CO2 per year, and have achieved a

explained that behind-the-meter self-

20 to 30% reduction in power costs,”

generation is also being considered

Duarte said. Meanwhile, Teck Chile is

to reduce transmission and ancillary

also procuring renewable energy to

services

Anglo

meet increased power needs once

American has procured 165 MW of

its Quebrada Blanca Mine expansion

wind and 70 MW of solar energy in

is complete. The company expects

the past year, corresponding to 70%

to have moved to 100% renewable

of its total power consumption in the

energy PPAs by 2025, and is also

country. According to Alfredo Duarte,

considering producing its own clean

Global Supply Manager, Energy and

energy on site.

cost.

In

Brazil,

Content pod 2: South America: 100% Renewable Energy Mining

13

ENERGY AND WATER EFFICIENCY In a panel moderated by ABO Wind’s

fact, Bloomberg NEF predicts that by

Head of Hybrid Energy and Battery

2030, more renewables will be used to

Storage Systems Julia Badeda, regional

produce green hydrogen than for power

miners pointed out that whether they

consumption in the region. This will bring

look towards electrification or hydrogen

the focus on water management, since

to displace diesel in mobile equipment,

electrolysis requires a lot of clean water.

more power will be required, which is

At BHP Chile, the target is to cease the use

why their first priority is improving energy

of continental water by 2030 by reducing

efficiency and accessing cheap sources of

consumption and installing desalination

renewables.

plants — which come with their own

Because of its abundance of cheap renewable

energy,

Latin

America

(specifically Chile and Brazil) is also expected to become the world’s lowestcost producer of green hydrogen. In

energy consumption. In Chile and in the rest of the region, renewables, diesel displacement through hydrogen, and water management are all intrinsically linked.

SPONSORS’ CORNER Global Affairs Canada reminded the audience of Canada’s commitment to be the most competitive jurisdiction in the world for cleantech, with the Trade Commissioner Service ready to support Canadian companies’ internationalization.

Heliogen argued that concentrated and refined sunlight could be turned into cost-effective, 24/7 energy, solving intermittency issues and bringing modularity to the renewables equation.

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Content pod 2: South America: 100% Renewable Energy Mining

SUPPORTING CLEANTECH BUSINESS OPPORTUNITIES WITH GLOBAL MINES Rosaline Kwan, Director General, Trade Sectors, Global Affairs Canada

TOWARDS 100% RENEWABLE ENERGY-POWERED MINES Sebastian Rivas, Lead Energy & Water Management, Strategic Services – Minerals Americas, BHP

Content pod 2: South America: 100% Renewable Energy Mining

RENEWABLES FOR SOUTH AMERICAN MINES - KEY DRIVERS, NEXT STEPS AND OPPORTUNITIES FOR IPPS Chair: Julia Badeda, Head of Hybrid Energy and Battery Storage Systems, ABO Wind Marcos Cid, Manager, Energy, Teck Chile Alfredo Duarte, Global Supply Manager – Energy & Utilities, Anglo American Sebastian Rivas, Lead Energy & Water Management, Strategic Services – Minerals Americas, BHP Joanne Freeze, President and CEO, Candente Copper Corp

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Content pod 2: South America: 100% Renewable Energy Mining

CASE STUDY: DECARBONIZING OUR OPERATIONS IN CHILE WITH RENEWABLE ENERGY Marcos Cid, Manager, Energy, Teck Chile

ANGLO AMERICAN BRAZIL’S RENEWABLE ENERGY STRATEGY Alfredo Duarte, Global Supply Manager – Energy & Utilities, Anglo American

Content pod 2: South America: 100% Renewable Energy Mining

THE CHANGING ECONOMICS OF RENEWABLES FOR SOUTH AMERICAN MINES Sharon Mustri, Analyst, BLoombergNEF

RELIABLE, COST-EFFECTIVE, CLEAN ENERGY FOR MINES Dolf Joekes, Vice President, Sales, Heliogen

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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 3 OPTIMIZING RENEWABLE ENERGY FOR MINES

Content pod 3: Optimizing Renewable Energy for Mines

19

B

ecause on-site power generation is responsible for a large portion of mining’s carbon footprint, leading many miners around the world to choose to self-generated renewables, the third content pod at the Energy and Mines

Virtual World Congress 2020 explored ways to optimize renewable energy options in microgrids.

MORE EFFICIENT MICROGRIDS few

implementation. Solar energy can

microgrid

now provide baseload 24/7 power:

experimentation behind them, and

Bruce Anderson, Chairman and CEO

success factors are becoming better

of 247Solar, explained that a small

known.

gas turbine, modified to produce

By

now,

years

of

miners

have

renewable

First,

a

companies

should

clearly state their emissions reduction

electricity

from

ambition, and map the renewable

ambient

pressure

resources available to them. “We are

by

systematically studying opportunities

solar energy, can work just like a

and potential sources of renewable

redeployable generator set.

energy very upstream of the project.

It has to be done as the very first step,” said Pierre Gueudet, Energy and Climate Director at Eramet, during a panel chaired by Jennifer Berger, Managing Principal at Stantec. Then, geography and mine life should be considered to design the best solution for each specific site.

a

receiver

high-temperature that

air

heated

concentrates

While technical challenges are now easily overcome thanks to this type of

innovation,

miners

still

have

to contend with contractual and optimization challenges coming from the combination of very different energy sources. “It’s important to choose partners whom you are confident can execute,” notes Sunil

Renewable technology has evolved

Kumar, Senior Director of Energy

tremendously

Strategy and Engineering at Kinross

in

recent

years,

to the point where miners see little to no technical risk in their

Gold.

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Content pod 3: Optimizing Renewable Energy for Mines

LEVERAGING ENERGY STORAGE energy

plant is operating as a hybrid,” warned

storage are increasing the reliability of

Mark Kennedy, Business Development

renewable microgrid projects. “We’ve

Manager, Energy Solutions at Wärtsilä

introduced batteries to push renewable

Canada.

Recent

developments

in

penetration, as batteries respond faster than generators,” said

James Koerting,

Manager, Energy, Australasia, at Gold Fields, noting that the price of batteries is the only thing holding the company back from increasing its storage capacity.

However, storage integration also adds complexity

to

microgrids,

requiring

specialized training and contract flexibility.

“One of the challenges is how to handle performance guarantees and warranties: you may have performance guarantees from your solar provider, for the genset, for the batteries, but who is responsible to make it all work together when the

Storage, energy management systems and accurate forecasting were all cited as key to optimizing microgrid efficiency. And working with a partner that can deliver a turnkey solution encompassing all energy sources along with storage was seen as an advantage. Lars Stephan, Market Development

Manager,

Renewable/

Hybrid/Storage at Aggreko, noted that such a partnership ensured guaranteed reliability, fuel and commercial flexibility.

“It allows customers to change power systems following their needs throughout the life of the mine, with one single hybrid contract,” he added.

SPONSORS’ CORNER Saturn Power laid out what should be miners’ priorities in storage integration into microgrids: functional specifications should be well structured, forecast assumptions should be confirmed from a credible source, load analysis should be performed on one-second interval load data, and contractual alignment should be achieved ahead of time.

Scatec argued that by using a leasing approach and movable equipment, it is possible to achieve attractive solar pricing in a five-year PPA.

Content pod 3: Optimizing Renewable Energy for Mines

MINING MICROGRIDS: OPTIMISING RENEWABLES FOR MINES Chair: Jennifer Berger, Managing Principal, Stantec Pierre Gueudet, Energy & Climate Director, Eramet Sunil Kumar, Senior Director – Energy Strategy and Engineering, Kinross Gold Ron Miller, Director - Asset Management, Energy, Newmont Exequiel Rolon, Sustainable Development Manager, Fresnillo

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Content pod 3: Optimizing Renewable Energy for Mines

OPTIMISING RENEWABLES FOR MINES Bruce Anderson, Chairman and CEO, 247Solar

WHERE DO YOU START WITH ENERGY STORAGE FOR MINES? Ondrej Benjik, Business Development Manager – Energy Services, Saturn Power

Content pod 3: Optimizing Renewable Energy for Mines

23

HOW CAN MINING OPERATORS DRIVE DECARBONIZATION AND FULFILL ESG TARGETS? Lars Stephan, Market Development Manager, Aggreko Microgrid and Storage Solutions, Aggreko

THE FLEXIBLE, 5-YEAR SOLAR CONTRACT Øydis Gadeholt, Senior Project Developer, Scatec Solar

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Content pod 3: Optimizing Renewable Energy for Mines

ENABLING ENERGY COST REDUCTION AND SECURITY THROUGH STORAGE Chair: Justin Wahid Rangooni, Executive Director, Energy Storage Canada Dennis Stansbury, Senior Vice President of Engineering and Project Evaluations, B2Gold James Koerting, Manager, Energy, Australasia, Gold Fields Mark Kennedy, Business Development Manager, Wärtsilä Oumar Toguyeni, Senior Vice President, Sustainability, IAMGOLD

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 4 DECARBONIZING MATERIAL MOVEMENT: TOWARDS ZEROEMISSIONS FLEETS

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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets

N

ow that mining’s energy transition is well underway, many miners are starting to tackle their other large emission culprit: material movement.

The Energy and Mines Virtual World Congress fourth content pod

focused on the solutions being explored to displace diesel in mobile equipment.

UNDERGROUND VS OPEN PIT fleet

when you scale up, that puts a choke

decarbonization, a dichotomy has

point on the ability to recharge, but

emerged between underground and

swapping the batteries means you

open-pit operations. Many of the

can do that in less than five minutes,

miners speaking at the conference

with very little downtime and impact

pointed out that the transition to zero-

on productivity,” Huff pointed out,

carbon equipment underground is

though he did admit that surface

much more advanced than for open-

mining is more of a challenge because

pit operations. “Codelco has made

of the size of the equipment.

Within

the

theme

of

significant progress for decarbonizing underground. Two years ago we started with logistics and personnel equipment. Now we are moving to construction equipment, and next year we are starting to test production equipment,” said Gonzalo Ramirez, Project Manager, Electromobility and Energy Transition at Codelco, during a panel on zero-carbon fleets.

Vale

already

has

25

battery-

electric vehicles (BEV) operating in underground base metal mines in Canada, and plans to more than double this number by the end of 2025. But electrifying underground may also require some operational changes: “Historically mining has been a batch process, but we may move to a more continuous process,

Technology,

which may offer benefits in energy

Artisan Vehicles at Sandvik, added

efficiency,” mentioned Alex Mulloy,

that

Mining Engineer at Vale.

Brian

for

Huff, the

VP

of

electrified

underground

technology

equipment

is

already available. “What it took to tip the scale was the ability to swap batteries. Charging is limiting so

Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets

27

MINER-OEM COLLABORATION Various technologies are being developed

the platforms they are using for this

to tackle the immense challenge of

purpose is the Innovation for Cleaner

decarbonizing open-pit mining equipment,

Safer Vehicles (ICSV), an initiative by the

including hydrogen fuel cells and BEV, but

International Council on Mining and

so far it isn’t clear which will provide the

Metals (ICMM). Presenting on the topic,

most efficient solution. “We believe it won’t

ICMM’s Sarah Bell, Director of Health,

be a winner takes all: mine sites have such

Safety and Product Stewardship explained

different ecosystems and inputs that the

that the ICSV brings together 27 of the

right solution will depend on regeneration

world’s leading miners and 19 OEMs to

capture, mine site design, etc,” said Robert

collaborate in a non-competitive space.

Schaefer,

Accounts,

“We need to create tools for change that

Growth and Innovation at Cummins. He

make sure the commitment on both sides

added that these technologies should

is real: maturity frameworks and practical

become commercially available within the

tools for members to move at their own

next decade.

industry-informed pace,” she added.

Director,

Mining

But one thing’s for sure: in order to tackle this challenge, miners and OEMs must continue to collaborate. One of

SPONSORS’ CORNER Intelline pointed out that more efficient combustion engines could already help displace CO2 emissions from vehicles, as well as enabling the transition to cleaner fuels when they become available.

Tembo 4x4 e-LV presented the benefits of switching heavy duty 4X4 vehicles’ drive trains to electric: zero emissions, low maintenance costs, less downtime and faster return on investment.

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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets

COLLABORATING ON DECARBONISING MATERIAL MOVEMENT Sarah Bell, Director, Health, Safety and Product Stewardship, ICMM

DECARBONIZING MATERIAL MOVEMENT FOR UNDERGROUND AND OPEN PIT Alex Mulloy, Mining Engineer, Vale Mayra Rachid, Senior Engineer, Vale Mauricio Duarte, Senior Engineer, Vale

Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets

HOW DO WE GET TO ZERO-CARBON FLEETS? Chair: Sarah Bell, Director, Health, Safety and Product Stewardship, ICMM Gonzalo Ramirez, Electromobility Specialist, Codelco Scott Davis, Lead Innovation - Zero Emissions Material Movement, BHP Brian Huff, VP Technology Artisan Vehicles, Sandvik Robert Schaefer, Director, Mining Accounts, Growth and Innovation, Cummins Eric Desaulniers, President and CEO, Nouveau Monde Graphite

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Content pod 4: Decarbonizing Material Movement: Towards Zero-Emissions Fleets

HOW CAN MINES DISPLACE DIESEL TODAY? Kyle Faller, Founder & CEO, Intelline

THE NEW STANDARD IN MINING MOBILITY Paul Smetsers, Marketing Manager, Tembo 4x4 e-LV

Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 5 HYBRID AND UTILTYSCALE RENEWABLES FOR AFRICAN MINES

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Content pod 5: Hybrid and Utility-Scale Renewables for African Mines

T

he fifth content pod presented at the Energy and Mines Virtual World Congress 2020 gathered African mining experts to discuss energy and renewable implementation challenges specific to the continent.

GRID CONUNDRUM For many miners in Africa, the

“Solar is the cheapest source of

biggest energy challenge is reliability:

energy in the whole world, and in

remote mines have to truck diesel or

Africa it is even cheaper. Of course

HFO over thousands of kilometres,

life of mine is always a consideration

sometimes across borders, and even

but against HFO in remote locations,

if they are lucky enough to have a

payback periods are as small as five

grid nearby, power quality is not

years,” pointed out Martin Schlecht,

guaranteed. “Where we have grid

Chief Operating Officer at Suntrace.

connections, the quality of supply is not the best, especially in economies that

are

growing

fast,

where

infrastructure isn’t coping. It makes it difficult to predict the cost of electricity,” said Tsakani Mthombeni, Executive, Sustainable Development at Impala Platinum.

And

yet,

hybrid

power

plants

remain few and far between on the continent. According to Danny Callow, Chief Executive Officer at African Gold Group, this has to do with a lack of awareness of just how far the technology has come in recent years. “One of the really big

grids

misnomers about renewable energy

are based on diesel, HFO or coal

is that people still think this is blue

power plants. As mining investors

sky technology. We need to get the

push for more ESG implementation,

message out there that it’s available

operators are being forced to look

and it works,” he said, noting that his

beyond reliability and consider the

company’s decision to build a hybrid

carbon footprint of their power

plant at the Kobada Gold Mine in

supply. Considering this, adding

Mali will reduce its power cost by 35-

renewable self-generation on site

40%.

Additionally,

many

African

should be a no-brainer in Africa.

Content pod 5: Hybrid and Utility-Scale Renewables for African Mines

33

REGULATORY CHALLENGES But there is another issue preventing

South Africa is another such example,

the widespread adoption of renewables

where renewable IPPs struggle to get

in Africa: while Mali makes it easy for

authorized to supply to the national

miners to add their own solar generation

grid.

due to its lack of power infrastructure,

lagged behind the development of these

other countries see renewable IPPs as

technologies. Governments need to create

unwelcome competition. In Ghana, for

mechanisms to allow the private sector

instance, there is an overcapacity of

to procure their own power and to bring

generation, and the grid is owned by

power from one region to another. This

the government. “For any addition of

conversation is not about coal vs solar; we

generation, you really have to justify

are just looking for a way to balance this

it properly. It’s not as easy as in Mali,

transition in a way that doesn’t destroy

where the government wants you to

the system,” added Mthombeni.

“Policies

and

regulations

have

do that. In Ghana, where generation and transmission have been there for a long time, it is more difficult to extricate yourself from that,” said Samuel DeSouza, Director for Energy and Power Services at Newmont Africa.

SPONSORS’ CORNER ABO Wind presented on the benefits of combining solar and wind to bring renewable penetration upwards of 60%, with the optimal mix between PV and wind varying widely between regions.

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Content pod 5: Hybrid and Utility-Scale Renewables for African Mines

ENERGY PRIORITIES FOR AFRICAN MINES: HOW DO RENEWABLES FIT WITH OUR SITES? Chair: Lungile Mashele, Energy Specialist, Development Bank of Southern Africa Ron Halas, Chief Operating Officer, Global Atomic Corporation Samuel DeSouza, Director for Energy & Power, Services, Newmont Africa Tsakani Mthombeni, Executive, Sustainable Development, Impala Platinum Danny Callow, Chief Executive Officer, African Gold Group Martin Schlecht, Chief Operating Officer, Suntrace

Content pod 5: Hybrid and Utility-Scale Renewables for African Mines

THE BUSINESS CASE FOR HYBRID POWER IN SOUTHERN MALI Danny Callow, Chief Executive Officer, African Gold Group

THE BENEFITS OF CO-LOCATING RENEWABLES AND STORAGE Julia Badeda, Head of Hybrid Energy and Battery Storage Systems, ABO Wind

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Content pod 1: Towards Zero Emissions Mining: Global Mines Share Strategies.

CONTENT POD 6

WHY SOLAR AND WIND MAKE SENSE FOR US AND CANADIAN MINES

Mpumi Zikalala, Managing Director, De Beers Group

Content pod 6: Why Solar and Wind Make Sense for US and Canadian

37

D

espite significant geographic and legislative disparities, North American miners are committed to lowering carbon emissions from energy. The last content pod of the Energy and Mines Virtual World Congress 2020

explored local drivers and preferred technologies for the transition.

BALANCING STAKEHOLDER EXPECTATIONS Not all North American miners are

“From an energy point of view, it’s

at the same level of maturity in their

been a lengthy and costly process

energy transition: while some, like Vale,

developing solar, battery and wind

have clear targets to be carbon-neutral

projects, but it is contributing to the

by 2050 and are starting to tackle their

knowledge and tech advancement

scope 3 emissions, others, like Coeur

that’s

Mining, just made their first move

Mahoney, Global Head of Geology,

towards renewable procurement. This

Mine Engineering, Geotechnical and

is because the business case is very

Technology & Innovation at Vale Base

different depending on each mine

Metals.

site. “Shareholders want companies to be greener but also want them to make profits so we have to find the right balance between economic and environmental; that’s why mine life sometimes makes it challenging,” pointed

out

Stephane

Robert,

Sustainability Expert at Agnico Eagle Mines.

needed,”

explained

Luke

The fact that miners are willing to invest

in

renewable

energy

and

decarbonization even when it is a tough sell shows how effective stakeholder pressure has become in North America. “It’s not just about millennial consumers,” said Mpumi Zikalala, Managing Director, Managed Operations at DeBeers in her keynote

right

speech. “It is consumers across the

balance involves taking a small hit

board who want to know about

in profitability. For instance, Coeur

each and every thing that happened

Mining’s recently signed a wind PPA

along the value chain, and the key

to cover 40% of power needs at the

question coming up is around carbon

Wharf Mine in South Dakota resulted

neutrality.”

Sometimes,

finding

the

in a 1% increase in the site’s energy bill.

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Content pod 6: Why Solar and Wind Make Sense for US and Canadian

CARBON PRICING In Canada, another element is motivating

Still, miners speaking at the event argued

miners to make the switch to clean energy:

that the industry can’t wait for regulation

the government intends to gradually

to change its direction, and encouraged

increase its carbon tax from the current

the use of an internal carbon price to

C$30 per tonne to a whopping C$170

incentivize decisions towards a lower-

per tonne by 2030. “The current carbon

carbon future.

tax may hurt, but it’s not changing the strategy of the mine. From C$100 dollars a tonne, it would start making a difference.

The higher it gets, the more direction it gives the industry,” noted Michel Carreau, Global Director of Hybrid Power, Microgrid and Green Hydrogen at Hatch.

SPONSORS’ CORNER Torys Partner Valerie Helbronner spoke of the importance of involving indigenous communities in renewables projects for mines from inception, ensuring their voice is actively heard and that they also reap the economic rewards from the project.

Ultra Safe Nuclear Corporation gave an update on the commercialization curve for small modular reactor (SMR) technology, which could become a cost-effective decarbonization tool working in tandem with renewables in 5 to 15 years.

2G Energy pointed out that combined heat and power (CHP) systems can be a great solution to generate flexible power and heat on site, with the added advantage of being able to run on 100% hydrogen.

Content pod 6: Why Solar and Wind Make Sense for US and Canadian

RENEWABLES IN THE CANADIAN ARCTIC: DE BEERS GROUP ROADMAP TO SUSTAINABLE MINING Mpumi Zikalala, Managing Director, De Beers Group Managed Operations

THE PRESSURE IS ON: WHAT DOES NET ZERO LOOK LIKE FOR MINES? Pat Carr, Business Development Manager - Canada, 2G Energy

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Content pod 6: Why Solar and Wind Make Sense for US and Canadian

HOW ARE CANADIAN AND US MINES TRANSITIONING TO LOW-CARBON MINING? Chair: Michel Carreau, Global Director Hybrid Power, Microgrid and Green Hydrogen, Hatch Korie Hickel, Manager, ESG, Community & Government Relations, Coeur Mining Bruce Armitage, Energy Manager, Lake Shore Gold Luke Mahony, Global Head of Geology, Mine Engineering, Geotechnical and Technology & Innovation, Vale Base Metals StĂŠphane Robert, Expert, Sustainability, Agnico Eagle

Content pod 6: Why Solar and Wind Make Sense for US and Canadian

HOW CAN MODULAR NUCLEAR POWER BE A PART OF MINE DECARBONISATION? Ken Darlington, Vice-President, Corporate Development, Ultra Safe Nuclear Corporation

DEVELOPING A ROADMAP TO DECARBONIZE BASE METALS - VALE’S JOURNEY Renata Cardoso, Technical Leader, Sustainability Planning and Development, Vale Canada Luke Mahony, Global Head of Geology, Mine Engineering, Geotechnical and Technology & Innovation, Vale Base Metals

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Content pod 6: Why Solar and Wind Make Sense for US and Canadian

PARTNERING WITH INDIGENOUS COMMUNITIES ON RENEWABLES FOR MINES Valerie Helbronner, Partner, Torys

CONCLUSION Decarbonization strategies are as varied as the mining ecosystem itself, but the industry as a whole is becoming undeniably greener. The level of technological innovation and sector collaboration observed at the Energy and Mines Virtual World Congress 2020 bodes well for the potential to achieve mining’s zero-carbon ambition sooner rather than later.