Sustainable Mining: Renewables and Electrification
A seismic shift is underway around the world towards sustainable mining, reimagining extraction methods and reinvigorating communities.
With the need to curb carbon emissions and embrace sustainable practices, mining has turned the corner. Gone are the days of the traditional canary in the coal-mine working environments.
At the heart of this transformation lies the ambitious endeavor to power mining operations with sustainable electricity sources. A heavy reliance on fossil fuels has been replaced by a mosaic of renewable energy solutions. Solar panels glisten under the relentless sun, wind turbines sway gracefully in the breeze, and hydroelectric dams harness the raw power of flowing water—all harnessed to fuel the machinery of mining.
Accepting a Dark Past
From tragic disasters like the Chilean mine collapse of 2010 to the labor struggles in Thatcher-era British coal mines, mining has left a trail of exploitation and environmental degradation.
In Africa, the scars of colonial mining are etched deep into the landscape, with iconic examples like the Kilembe copper mine in Uganda, once owned by the British colonial government and later by multinational corporations, serving as poignant reminders of exploitation and environmental degradation.
Similarly, the Witwatersrand Basin in South Africa, home to the world’s largest gold deposits, bears witness to the legacy of colonial-era gold mining, where the profits of European-owned companies came at the expense of forced labor, displacement of indigenous communities, and irreparable environmental damage.
However, the mining world has significantly changed. If industries had character arcs, mining would certainly be a tale of redemption.
Sustainable Mining
Frameworks for positive impact in sustainability, such as the United Nations’ Sustainable Development Goals (SDGs), are used as benchmarks for defining sustainable mining.
Drawing upon the white paper by the World Economic Forum, SDGs can be mapped onto core mining business practices.
Success of sustainable mining is defined by a project’s ability to integrate and address the SDGs and other frameworks into the full cycle of the mine.
In addressing climate change (SDG13), mining operations can focus on reducing emissions through measures like improving energy efficiency, transitioning to renewable energy sources, and incorporating climate resilience into mine planning and operations.
Collaboration and leveraging resources are also crucial, as seen in participating in climate-related research and development, engaging in cross-industry dialogues, and publicly supporting carbon pricing initiatives.
Similarly, sustainable mining frameworks encompass efforts to protect life below water (SDG14) by properly disposing of tailings, assessing impacts on marine-based livelihoods, and collaborating with local authorities to establish conservation areas.
In the fight against poverty (SDG1), mining companies can disclose payments to governments, facilitate equitable access to employment, and invest in local procurement and capacity building.
Additionally, integrating zero hunger goals (SDG2) into mining operations involves managing water and land resources transparently, minimizing pollution, and collaborating with the agricultural sector to promote food security.
Community care and stakeholder relationships are paramount in the mining industry. Businesses extracting resources must invest in regional infrastructure, education, healthcare, and skills training programs that empower local residents and contribute to long-term sustainable development.
The Columbia Center on Sustainable Investment (CCSI) is releasing a free course on sustainability in mining this February, with leading experts in finance, development and climate such as Jeffrey Sachs and Vera Songwe.
Renewable Energy in Mining
Renewable energy integration in mining operations represents a pivotal shift towards sustainability, with ground-mounted solar, battery energy storage systems (BESS), wind, and hydro emerging as key solutions to reduce carbon emissions and operational costs.
Solar and BESS
One notable example is the Agnew gold mine in Australia, operated by Gold Fields. This mine boasts a ground-mounted solar farm, consisting of over 10,000 solar panels, with a capacity of 4 MWp. Additionally, Agnew has implemented a BESS with a capacity of 13 MW and 4 MWh, allowing for efficient storage and utilization of solar-generated electricity, and a 18MW wind farm.
The electricity generated from these renewable sources is primarily used to power the mine’s operations, including ore processing, drilling, and transportation, thus reducing reliance on fossil fuels and grid-supplied electricity.
Similarly, the B2Gold Fekola gold mine in Mali has embraced renewable energy with the installation of a 30 MW ground-mounted solar plant and a 17 MW/15 MWh BESS. This hybrid system provides a significant portion of the mine’s electricity needs, particularly during daylight hours when solar generation is at its peak.
Excess electricity generated is stored in the battery system for use during periods of low solar output or high demand, ensuring a reliable and sustainable power supply. The integration of renewable energy like at Fekola has enhanced the mine’s long-term viability and resilience to fluctuating energy prices.
CrossBoundary Energy signed a PPA with an FG Gold mine in Sierra Leone, to support the mine’s transition to renewable energy mining , with a 23.8 MW Solar and 13.8 MWh BESS. The solar farm will represent the largest PV operation in Sierra Leone and GIA acted as transaction advisory on the project.
Wind
Wind energy has even gained traction in the mining sector, with examples like the DeGrussa copper-gold mine in Australia, owned by Sandfire Resources. DeGrussa boasts a 10.6 MW wind farm comprising six turbines, which, combined with solar panels and a BESS, forms a comprehensive renewable energy microgrid.
This microgrid supplies over 50% of the mine’s electricity needs, with excess energy exported to the local grid, contributing to the regional power supply. The integration of wind energy at DeGrussa underscores the potential for renewable energy to not only meet the energy demands of mining operations but also support surrounding communities through grid stabilization and clean energy generation.
Hydro
In addition to ground-mounted solar, BESS, and wind, hydroelectric power presents another viable option for sustainable energy supply in mining.
The Oyu Tolgoi copper-gold mine in Mongolia, operated by Rio Tinto, utilizes electricity from the Chargait hydroelectric power plant located approximately 100 kilometers from the mine site. This plant has a capacity of 126 MW and supplies electricity to the mine through a dedicated transmission line.
By harnessing hydropower, Oyu Tolgoi reduces its reliance on diesel generators and grid electricity, mitigating both carbon emissions and operational costs.
Demand for Commodities and Resources
But do we need to mine at this pace? Do we need to upscale renewables and continue to diminish the Earth’s compound resources?
In order to have a sustainable future, yes. Demand for critical minerals, essential components powering the global transition towards clean energy, has surged dramatically in recent years.
According to a report by the IEA, the market for minerals crucial for electric vehicles, wind turbines, and solar panels doubled in size from 2017 to 2022, reaching a staggering USD 320 billion in 2022.
This unprecedented growth is largely attributed to the record deployment of clean energy technologies, which has propelled massive demand for minerals such as lithium, cobalt, nickel, and copper. The energy sector played a pivotal role in driving a tripling in overall demand for lithium, a 70% surge in demand for cobalt, and a 40% increase in demand for nickel.
Amidst this booming market, investment in critical mineral development has also seen a substantial uptick, rising by 30% last year following a 20% increase in 2021. Notably, lithium witnessed the sharpest surge in investment, with a remarkable 50% jump, closely followed by copper and nickel.
Growth in demand from 2020 – 2040 for selected minerals
IEA, 2020. Licence: CC BY 4.0
But this growth since 2017 is merely the beginning of a steep upward demand curve for electrification minerals. By 2040 the demand for Lithium will be 42x what it was in 2020 and Cobalt 19x.
A fundamental component of the Cobb-Douglas production function, capital and resources continue to play a critical role in driving productivity and output in human industry.
Watch a mine in operation:
Robot, Tramlines and Sensors
Alongside opening up new renewable energy opportunities, electrification heralds a new era of efficiency and ingenuity for extracting capital resources.
Tramlines crisscross the rugged terrain, transporting ore and equipment with silent precision, eliminating the need for noisy, polluting diesel trucks. Meanwhile, autonomous robots scurry through the labyrinthine tunnels, their sensors mapping the intricate geology and ensuring the safety of workers above and below ground.
Adoption of location-enabled automation, leveraging technologies such as machine learning, robotics, and wireless communication is automating processes and transition towards fully autonomous operations.
These adoptions reduce costs and enhancing safety by minimizing human involvement in hazardous tasks.
For instance, chirp technology, complementing GPS and LiDAR, facilitates data exchange and location determination among miners, equipment, and vehicles, optimizing operations and reducing the risk of accidents.
Another trend driving innovation in mining is real-time monitoring of operational assets using advanced wireless communication technologies, real-time location systems (RTLS) sensors, and automation systems.
By harnessing the power of industrial Internet of Things (IIoT) sensors and digital twins, mining companies can collect and analyze data from mining assets in real-time, enabling predictive analytics to improve productivity and safety.
Location awareness is increasingly utilized for physical security purposes, enhancing access control and preventing theft by tracking authorized personnel and assets within mining sites.
Collaborative technologies are also gaining traction in the mining industry, facilitating better coordination between people and machines.
Integrating sensors, IoT technologies, AI, and communication systems, allows mining companies to monitor machines, analyze data, and make informed decisions to improve safety and efficiency.
Learning from Sustainable Mining
The marriage of renewable energy and cutting-edge technology enhances the sustainability of mining operations and brings wealth to the surrounding communities benefitting from clean energy, employment, investment in local infrastructure and more.
The mining industry is a curious anomaly – an industry with a scarred history and branding problem. In actuality, mines are fertile ground for sustainable development and the most forward-thinking in ethical business practices, both on an environmental and community level.
References
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- Bravus Mining & Resources. (2021). What Is Sustainable Mining?
- Epiroc. (2020). Corporate Website.
- IBM. (2023). Digging deeper for sustainable mining.
- IEA. (2024). Critical minerals market sees unprecedented growth as clean energy demand drives strong increase in investment & Executive summary – The Role of Critical Minerals in Clean Energy Transitions – Analysis.
- IISD. (2021). How to Advance Sustainable Mining.
- Smith, D., & Wentworth, J. (2024, February 8). Mining and the sustainability of metals. UK Parliament.
- Sonesson, C., Davidson, G., & Sachs, L. (2016). Mapping Mining to the Sustainable Development Goals: An Atlas. World Economic Forum.
- Vick, S. G. (2024). Planning, Design, and Analysis of Tailings Dams.
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