IM 2019 November 19 | Page 5

THE LEADER VO LU M E 1 4 • N U M B E R 1 1 Comprehensive green energy Editorial Director Paul Moore B.Sc (Hons), M.Sc. Email: [email protected] Editor Daniel Gleeson BA (Hons) Email: [email protected] Editorial Board Professor Malcolm Scoble Robert E. Hallbauer Chair in Mining Engineering., University of BC, Vancouver Peter Knights Mining Professor Stephen Stone West One Management Perth, Western Australia Dr. Andrew M. Robertson President, Robertson GeoConsultants Vancouver, Canada. Ed McCord Project Consultant Caterpillar Global Mining, USA Jason Nitz Fleet Management & Dispatch Superintendent Newmont Mining Corporation, USA Dr Terry Mudder Managing Director, TIMES Ltd, USA Simon Tarbutt Consultant, Santiago, Chile Dr. Mike Daniel Comminution Process Consultant CMD Consulting Pty Ltd Advertising Sales: Phil Playle Email: [email protected] [phone] Publishing Assistant Lynne Lane Email: [email protected] Accounts Manager Nicola Shukla [email protected] Marketing Assistant Joanna English BA (Hons) [email protected] Circulation Assistant Jane Alter [email protected] Design and Production Trevor Sheldon Email: [email protected] Website: www.im-mining.com Annual Subscription Enquiries Emma Smith [email protected] Annual Subscription UK and Europe £160, €230 Rest of the world US$270 International Mining (ISSN No: 1747-146X) is published monthly by Team Publishing Ltd, GBR and is distributed in the USA by Asendia USA, 17B South Middlesex Avenue, Monroe NJ 08831 and additional mailing offices. Periodicals postage paid at New Brunswick NJ. POSTMASTER: send address changes to International Mining, 17B South Middlesex Avenue, Monroe NJ 08831 Founding Fathers John Chadwick B.Sc. Min Eng David Lansdowne Bob Warren Printed by The Manson Group, St Albans © Team Publishing Ltd 2019 ISSN 1747 -146X IM uses, as preference, SI units throughout, so, for example, all tonnes are metric unless otherwise stated. All dollars are US unless otherwise stated J ust as in the rest of big industry, mining is now taking on its future carbon footprint decisively with most of the majors having made some kind of announcement committing to some degree of renewable energy usage to power future needs. The impressive thing about recent developments is that these green energy commitments are now becoming more comprehensive in nature. Fortescue Metals Group (FMG) has signed an agreement with Alinta Energy that will see up to 100% of daytime stationary energy requirements at its Chichester Hub iron ore operations, in the Pilbara of Western Australia, powered by renewable energy. The Chichester Solar Gas Hybrid project will see the construction of a 60 MW solar photovoltaic generation facility at the Chichester Hub, comprising Fortescue’s Christmas Creek and Cloudbreak iron ore mining operations. In addition, an approximately 60 km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and a 35 MW battery facility will be constructed, with completion due mid-2021. FMG said: “Once completed, up to 100% of daytime stationary energy requirements at the Chichester Hub will be provided by solar generation, with the remaining power requirements to be met through the integrated battery storage and gas power station facilities.” The project is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG. Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Reliable and competitive energy generation remains an important consideration for the mining sector in Western Australia and as a significant consumer of energy, we continue to identify opportunities that have the potential to lower our costs while also improving our carbon footprint. This landmark project is a first on this scale for the Pilbara and will reduce carbon emissions from stationary generation by around 40% at Fortescue’s Christmas Creek and Cloudbreak mining operations, while driving long-term sustainable cost reductions to maintain Fortescue’s global cost leadership position.” Gaines added that the agreement with Alinta Energy represented a further step in the creation of Fortescue’s Pilbara Energy Connect project, which builds on the company’s previous energy initiatives, including the construction of the Fortescue River Gas Pipeline, the conversion of the Solomon Power Station from diesel to gas generation, as well as a partnership agreement with the Commonwealth Scientific and Industrial Research Organisation to develop and commercialise hydrogen technologies. As part of the agreement, FMG will invest an estimated $250 million in energy transmission infrastructure to complete the integration of Fortescue’s iron ore operations in the Pilbara into an efficient energy network. Moving from Australia to Chile, BHP says new renewable energy contracts it has recently signed in Chile will reduce energy prices for its Escondida and Spence copper mines by around 20% and help displace up to 3 Mt/y of CO 2 emissions from these operations. These agreements not only benefit BHP’s business but generate strong environmental and social value, according to Daniel Malchuk, President Operations for BHP’s Minerals Americas business. BHP operates and own 57.5% of the Escondida mine, a leading producer of copper concentrate and cathodes from a copper porphyry deposit, in the Atacama Desert in northern Chile. Spence, which is 100% owned by BHP, is also in northern Chile. The new energy contracts, along with BHP’s investment in desalinated water in Chile, demonstrate social value in action and help drive the wider agenda for sustainable green copper, according to Malchuk. Social value is one strategic pillar the company embeds in all its decision-making and informs the way in which it provides resources and generates long-term, sustainable value. This was the subject of BHP Chief External Affairs Officer, Geoff Healy’s speech in London earlier this month. Malchuk said the company has negotiated four new power contracts that will meet its energy requirements at Escondida and Spence from 100% renewable energy sources by the mid-2020s. “When fully operational, these renewable supply arrangements will eliminate virtually all of Escondida and Spence Scope 2 emissions (emissions from purchased energy), effectively displacing up to 3 Mt of CO 2 annually compared to the fossil fuel contracts they replace,” he said. “This is the equivalent to annual emissions from about 700,000 combustion engine cars and accounts for around 70% of BHP’s Minerals Americas total greenhouse gas emissions.” These actions also support Chile’s wider “Energia 2025” power policy target for 20% of all Chilean energy to come from renewable sources by 2025. Following a competitive tender process, Escondida and Spence agreed separate 15-year contracts for 3 TWh/y and 10-year contracts for 3 TWh/year with ENEL Generación Chile and Colbún respectively. The ENEL contracts will begin in August 2021 and the Colbún contracts in January 2022, BHP said, with power supplied from solar, wind and hydro sources. Malchuk said: “These contracts are practical examples of our commitment to social value that are linked to a sound business case. We estimate the agreements will reduce energy prices at our Escondida and Spence copper mine operations by around 20%, provide our operations flexibility and security of supply, and strengthen our ability to deliver sustainable copper across our supply chain.” Paul Moore Editorial Director [email protected] NOVEMBER 2019 | International Mining 3