PM Africa Magazine Issue 02 | Page 32

Clean Mining The Creation of Opportunities in the Mining Sector through our Three Most Critical Resources: Water, Energy and Land S outh Africa is known for its abundance of mineral resources, and is estimated to have the world’s fifth-largest mining sector in terms of gross domestic product. Mining has provided wealth and employment to South Africans for more than 100 years, which has led to great economic and industrial development. However, the development of the mining sector has also come at a price as mines are often energy intensive, producing high levels of carbon emissions which contribute to climate change. Furthermore mining activities are largely dependent on water and can impact water resources either through direct consumption or indirect downstream distribution. Apart from water impacts, the development of the mining sector has also had significant impacts on the environment through extensive land degradation. When considering “cleaner” mining, it is crucial to note the interdependencies that exist between renewable and efficient energy, water use and land rehabilitation. Progressive mining companies in South Africa are starting to adopt a holistic vision for existing and new mines which incorporates the 30 integrated long term planning of energy, water and land. Energy efficiency and renewable energy Energy constraints have negatively affected mining production since the mid 2000s, when electricity demand started exceeding supply. South Africa’s national utility company, Eskom, has struggled with electricity shortfalls since 2008 which forced them to implement rolling blackouts. This has cost the economy billions of Rands and has slowed economic growth. Mining companies have been particularly affected by these electricity shortages, especially when asked to curtail their demand when the grid is severely constrained. In 2004, Eskom, responding to the energy challenges facing South Africa, introduced its Demand Side Management (DSM) programme. The DSM programme was implemented to ensure short-term security of electricity supply through coordinating and consolidating the various initiatives aimed at optimising energy use and balancing electricity supply and demand. The mining sector, in particular, has implemented hundreds of DSM initiatives over the last 10 years, benefitting from lower electricity bills and a reduced carbon footprint. These DSM initiatives were predominantly low-cost energy efficiency projects that were always effective in meeting the mining company’s PM Africa Magazine — january 2015 short-term objectives. The initiatives were aimed at major energy-consuming equipment – pumps, compressed air lines, refrigeration plants and ventilation systems – and were generally inexpensive reduction measures with reasonable payback times. However, these mining companies now realise that this is not enough, and are starting to take a long term view on the impact of energy and carbon on their business. Harmony Gold Mining Company Limited (“Harmony”) is reconstructing its asset portfolio to minimise the impact of carbon constraints and energy costs on its business. Over the last four years, Harmony has sold off and closed its deeper level, energy-intensive mining assets in the Witwatersrand Basin, whilst at the same time investing in new, opencast, and shallower underground assets. Gold Fields Limited (“Gold Fields”), on the other hand, has set H\