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MINING POWER projects varies from customer to customer but typically ranges from three months to three years; contract extensions are common. A unique factor of these projects is the fast deployment and time to on-line generation.” Generally a short-term distributed generation project has similar terms and conditions as a long-term power purchase agreement. There is normally a capacity charge in terms of $/MW per month and an energy charge in terms of $/kWhr of power generation. Depending on the scope of the project, there will be additional charges for mobilisation, installation and commissioning. He adds: “These short-term distributed generation projects have several advantages for utility customers. First of all is the speed of deployment and time to on-line generation. The industry has grown rapidly in terms of mobile fleet availability, and utility customers have come to depend upon rapid deployment, especially in emergency situations. Typically a 50 to 100 MW project is delivered in 120 to 180 days. But some recent projects have delivered 120 to 130 MW within 40 days.” Another advantage is the risk mitigation offered by these projects. Utility companies have much less long-term risk to their system with these short-term projects. Other key advantages are site flexibility and interconnect voltage flexibility. An added advantage for utilities is the savings in capital expenditure. With no CAPEX requirements, it is easier for a utility to reach a decision on adding capacity. Why are these grid problems occurring? Manint comments: “Globally the investment in electric power infrastructure has not kept pace with the rapidly growing demand for electrical consumption. Rapid economic growth, industrialisation and increasing populations directly increase the demand for electrical power. Since 2002, emerging economies, with the exception of China, have struggled to build additional electrical capacity at a fast enough pace to match the rapidly growing demand. The shortfall of investment in power plants is clear, but an additional factor is the slower investment in electrical distribution networks. High-voltage distribution systems take years to develop, permit and construct.” IM also spoke to Julian Ford, Chief Commercial Officer at Altaaqa Global Caterpillar Rental Power on the continuing role of power management in the current downturn. “The present times have not been favorable to the mining industry. Many mine operators in Africa, Asia and South America have been facing myriad production-related challenges, owing to power shortages, not helped by the longer and stronger than expected El Niño phenomenon. El Niño, the cyclical meteorological phenomenon, 24 International Mining | SEPTEMBER 2015 brings extreme weather to parts of South America, Southeast Asia, Australia and Africa. For instance, a major nickel and copper producer in Indonesia has been facing consistent output drops as hydroelectric power facilities fail to generate enough electricity. In Peru and Chile, persistent heavy rains not only cause extreme flooding into zinc mines, affecting their production and triggering price spikes, but widespread blackouts and damage to power infrastructure.” Then, there is the gradual decline of prices of commodities for the past several years. Prices of gold, silver, iron ore, coal and copper have all been negatively affected by stringent credit restrictions, weak global demand and a growing supply from new low-cost projects. As a result, mining companies, established and start-ups alike, are struggling to maintain a profitable production, resulting in job cuts and tighter cash flows and limited expenditures. Ford comments: “In such a case, mine operators can find huge benefits in hiring the services of temporary power providers. Electricity plays an undeniably essential role in mining operations, be it in exploration, production, climate control or workplace visibility, and rental power plants can provide the necessary electricity without the operators spending scarce CAPEX. As opposed to investing in permanent power infrastructure, mining companies can pay for the electricity produced by hired power plants from their operating revenues. As their operations expand and their power requirements increase, mine operators will be able to add additional power modules that will increase the rental power plant’s generation capacity. The investment in temporary power plants have been proven to be marginal compared to the cost of foregone opportunities, lost production time, or wasted man-hours.” As rental generators are modular and containerised, they can be rapidly delivered to and installed anywhere in the world, and can be tailored to the requirement of any mining site. They are fully able to function even in remote locations and in sites where traditional power infrastructure, like grids and substations, is outdated, damaged or absent. They can be fully constructed and powered on in a matter of days, and can be ramped up or scaled down depending on a site’s power usage demand. “Modern rental generators boast of a cleaner operation, being able to run on a variety of fuels, including natural gas or dual-fuel (70% gas and 30% diesel). As a case in point, Caterpillar’s natural gas-powered generators surpass the NOx emission requirements, emitting only 250 mg/Nm3 even without aftertreatment. Caterpillar’s gas generators are also capable of converting coal mine methane to electric or thermal power, which contributes to the reduction of greenhouse gas emissions. The gas generator technologies have the ability to utilise gas with variable concentrations of methane.” The global mining industry is going through challenging times triggered by natural and economic circumstances. Temporary power technologies can give mine operators a sustainable competitive advantage, as they can enhance a site’s productivity and optimize its processes without the need for a sizeable capital expenditure. Caterpillar and its unique GPP network Caterpillar as it does in the mining equipment space has a unique solution to temporary and bridging power in that it works through five providers of Global Power Providers (GPP) to offer solutions to mines around the world. In some cases more than one might compete in a particular country or project but all are Caterpillar recognised and recommended companies offering certified Cat solutions – they operate part of their businesses in a similar way to Caterpillar’s dealer network for equipment but are all power specialists and all work with mining operations. Some of them work exclusively with Caterpillar and Cat dealers and others work with other OEMs and generators as well. In this power segment Caterpillar uses the Cat Rental Power corporate brand. However, it is not the case that all power solutions from Cat go through these five GPP agreements; other Cat dealers in certain areas may also provide power options where they have the expertise to do so. The first of these five is Energyst, a Netherlands-based power rental company jointly owned by European Caterpillar dealers. It was created when ten European Cat dealers merged their power rental businesses and while initially it had most of its depots in Europe, it branched out to Chile and Argentina and beyond.  In 2013, Caterpillar entered into an GPP agreement with Zahid Group, which had recently formed a new subsidiary company, Altaaqa Global. As an GPP partner, Altaaqa Global provides multi-megawatt temporary power solutions both within its original home market of Saudi Arabia and globally through its Dubai office. Jacksonville, Florida, headquartered APR Energy is a global leader in large-scale, fasttrack power solutions. It signed an agreement with Caterpillar and Cat dealer, Ring Power, in 2011 “to partner globally in pursuing temporary power solutions for the growing international power projects market.” APR said at the time: “This agreement builds upon APR’s existing relationship with Caterpillar established over a