• EXCURSION
© African Mining , incorporating Mining Mirror
“ Developing Net-Zero Mines in Africa ; pipe dream or smart business choice ?” was a question asked of several industry experts , including Preece , in the Sustainability Series on an Investing in African Mining Indaba 2024 panel .
economically viable to expect miners to pick up the entire bill for a third party to become compliant . However , we have already seen a positive trend in the industry with some scope 3 generators taking steps in the right direction .”
Improving energy efficiencies – in parallel , continuously In Preece ’ s view , improving energy efficiencies is most probably least glamorous but one of the most important and value accretive routes to decarbonisation . The transformation of operational processes and procedures to increase efficiencies involves difficult and innovative work . Instead of eradicating 15 % chunks of carbon emissions , these routes only result in 1.0 % or 0.5 % reductions , but will have a material impact cumulatively across the business .
“ These solutions must be constantly driven and monitored as there is double benefit that lies within them . Because one is making the base smaller and the differential pulls through to both the numerator and the denominator , the percentage of renewable energy required also automatically goes up with inefficient consumption . But more importantly , one does not have to take the dollar cost of renewables to fuel that which we have removed from the equation . So , one reduces both CAPEX and OPEX in addressing these inefficiencies and the cost of carbon .”
Preece said an example of this is optimising compressed air systems and installing new ventilation fans and controls in South Deep ’ s return airways . It is essential that these airways are maintained and kept clean and free of obstructions that could cause resistance , which in turn would require surface fans to work harder and burn more electricity . Furthermore , the mine is in the process of connecting all fans to the digitalised control room on surface to assist in efficiently managing supply and demand , including controlling activities such as hoisting and water pumping . This can be prioritised during the day to draw solar power and can be scaled back at night and during shift changes to avoid wasting electricity . Managed via the control room , teams are no longer required to manually switch these systems on and off .
A last port of call – buying carbon credits Preece highlighted the fact that buying carbon credits would be a last port of call for the company – if all possible scope 3 emission abatements have been tackled , the company may consider covering the shortfall in reaching net-zero by investing in carbon credits . The mining industry has two concerns with carbon credits . One , it shifts responsibility to another party and two , these credits may soon sell at a premium as more and more miners resort to that option .
Interestingly , Gold Fields has rehabilitated some old tailings dams at its operations in Ghana . The company has planted fruit trees and has initiated other agricultural projects on these dams . Local farmers are now harvesting cashews , coconuts and mangoes . “ This investment too could count as an abatement – but these are projects that will be focused on further down the road ,” Preece said .
“ The numbers speak for themselves and show that this is indeed a journey ,” said Preece . “ Our Scope 1 and 2 emissions reduced in 2023 by approximately 5 % from 2022 levels . Against our 2030 target of a net 30 % reduction , we are about 4 % below our baseline set in 2016 . The group energy spend made up approximately 19 % of operational costs in 2023 , versus 21 % in 2022 – and this despite escalation and inflation at around 6 %. So , we are definitely making progress , but it is slow and requires investment and perseverance .”
Go to https :// www . linkedin . com / feed / update / urn : li : activity : 7161005618894381056 to view a short interview with Martin Preece . •
Supplied by Goldfields
About Martin Preece , executive at Gold Fields : During 2023 Martin Preece acted as interim CEO at Gold Fields and , since the beginning of this year , has been an executive at the company . In May 2017 Preece joined Gold Fields as executive vice-president , South Africa , leading the successful ramp up of the South Deep mine up to end-2022 . Prior to joining Gold Fields , he was COO at De Beers , South Africa . Preece has 38 years of mining experience , starting his career as a learner miner and holding a number of operational and technical roles before taking up mine manager positions at various operations .
16 • African Mining • March 2024 www . africanmining . co . za