Mining solar and storage innovations to reduce carbon footprints
Although not their core business, mining houses increasingly focus on investing in and implementing clean technologies into their operations
When it comes to energy, mine operations worldwide are reporting their adoption of renewable energy solutions. Let’s explore the projects leading this shift on African soil.
Mining companies are increasingly exploring renewable energy (RE) technologies to respond to pivoting market expectations. Fortunately, this response effectively reduces greenhouse gas (GHG) emissions, mitigates power supply risks, buffers against fossil fuel price volatility, and complies with evolving global regulations—such as the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM).
Although not their core business, mining houses of all sizes are increasingly investing in and implementing clean, green technologies in their operations. This tech is becoming integral to mining operations worldwide, from solar and wind to hydropower and battery storage.
For example, Vale’s smelters in Indonesia are powered entirely by hydroelectric energy and in Chile, the Zaldívar copper mine transitioned to 100% renewable electricity in July 2020.
While often located in remote, infrastructure-poor regions, mine operations in Africa are spearheading a renaissance of sustainable tech designed for local conditions.
Technical and economic hurdles
Despite this growing interest, integrating RE of any type into mining operations presents significant challenges. From a technical perspective, mining operations require a constant energy supply, but RE’s intermittency brings a certain degree of uncertainty.
High upfront CAPEX for these systems also makes mining companies hesitant to adopt them, while location and installation challenges pose a significant technical barrier.
Paul Miller at Decentral Energy tells ESI Africa that selecting appropriate sites is another challenge. Communities are usually settled on the land, and most available nearby vacant flat land is earmarked for tailing storage facilities.
“What is perhaps more difficult is where a mine has a relatively short remaining life, where the renewable energy facility will outlive the mine itself, complicating the financing arrangements,” says Miller.
Other challenges are insurmountable and do not justify the investment, such as mines being creditworthy, lacking the capital themselves, or having a lifespan that is too short. Miller advises building plants on mines but designing them to be wheeling-ready so that if the local load user, the mine, closes, the power can be wheeled elsewhere across the grid.
In closing, he shares that mines that have taken the route to RE tech have learnt the lessons of taking too long to complete procurement and to get MWs up and running. “A 5% price saving from a 3-year procurement process is much less than the lost benefit of taking so long.”
ESI Africa will continue to report on these developments as the number of case studies grows, driven by declining costs of solar equipment and battery storage. The trend will continue to accelerate, but with a move toward more decentralised technologies and a greater integration of digital solutions and data analytics.
Egyptian case study: Sukari Gold Mine
In April 2023, the Sukari Gold Mine in Egypt inaugurated a 36MW solar power station, along with a 7.5MW battery storage system, to supply the facility with electricity.
Since early September 2022, the solar plant consistently delivered 36MWDC (nameplate capacity), converting to 30MW of solar power.
Sukari is Egypt’s first large-scale modern mine. It is served by tarmac roads, off-grid power, solar and a 25km water pipeline fed by the Red Sea. The station is in the Eastern Desert, an area with the highest solar irradiation for about 10 hours daily.
The switch to this RE source has reduced exposure to volatile fuel prices, with commissioning saving up to 70,000 litres of diesel per day and, on average, reducing diesel consumption by 22 million litres annually. This decrease also equates to potential annual cost savings of $20 million at 2023 diesel prices.
Furthermore, the solar plant is expected to reduce GHG emissions by 60,000t CO₂ equivalent per annum and a subsequent reduction in the volume of diesel trucked to the site, which uses ICE vehicles.
Cover photo: : Ehoala Solar Park, Madagascar. Source: Rio Tinto
