Download Energy management in the extractive industry - Ghana

ENERGY MANAGEMENT IN
THE EXTRACTIVE INDUSTRY GHANA
Edmund Yaw Hassan
Torkornoo and Associates Limited (TAL)
Accra Ghana
www.torkornoo.com
[email protected]
¾Extractive industries (mining, oil and gas) are very
closely associated with large energy (fuel and electricity)
use.
¾15% and 7% of electricity production in South Africa
and Ghana respectively goes to the mining companies.
¾There are significant environmental and financial
benefits from ensuring that the use of energy is
optimized.
¾In developing countries like Ghana, development of
mineral resources directly correlates to the abundance or
otherwise of energy resources.
¾The supply of energy to the extractive industries of
Ghana and South Africa has been greatly hampered in
recent years and mining companies have had to act
decisively.
INTRODUCTION
EXTRACTIVE INDUSTRIES OF
GHANA
The extractive industries of Ghana are dominated by mining
companies. Oil and gas industries are just in the offing. Among the
mining industries such as manganese, bauxite, limestone and
diamond, gold mining companies dominate.
MAJOR GOLD MINING
COMPANIES OF GHANA
The four major gold mining companies account for over 90% of
national gold output. They are:
¾Goldfields Ghana Limited (696,149 oz)
¾AngloGold Ashanti (527,000 oz)
¾Newmont Gold Ghana Limited (445,600 oz)
¾Golden Star Resources (246,278oz)
Based on 2007 results
ELECTRIC ENERGY
INSTALLED CAPACITY
Total Hydro
MW
1,180
Share (%)
68
Total Thermal 550
32
TOTAL
1,730
Based on 2006 figures
Energy Commission
ELECTRIC ENERGY
GENERATION CAPACITY
Hydro
Shares (%)
GWh
5,619
67
Thermal
Shares (%)
2,811
33
Total Generation
Based on 2006 figures
Energy Commission
8,429
ENERGY NEEDS OF MINING
COMPANIES
Mining companies use energy very intensively. Energy is required
from exploration, mining, through processing and refining. In terms
of electrical energy, the gold mining companies in Ghana require in
excess of 120MW of energy from the nation’s electricity supplies.
NEWMONT GHANA GOLD
LIMITED
Newmont is currently the third largest
gold producer in Ghana. Newmont is
the first large scale mine in the
Brong Ahafo Region of Ghana,
a region hitherto not known for
its gold mining prowess.
Ashanti and Western Regions
Newmont
have been the gold mining
powerhouses
Goldfields
of Ghana.
AngloGold
Ashanti
ENERGY POLICY - NEWMONT
Newmont’s energy policy is based on the four pillars of
¾Carbon policy planning & development
¾Green house emission and accounting
¾Market & regulatory knowledge
¾Energy planning and management
Newmont feels that it has an obligation to act to minimize its carbon
footprint. But Newmont also sees an opportunity in doing so. One
of the most effective ways to reduce carbon emissions is to utilize
energy more efficiently, which in turn reduces costs.
Beyond The Mine – 2007, Newmont
STRATEGIC ENERGY PLAN OF
NEWMONT
¾Newmont’s Energy policy is informed by increased global
warming risks.
¾Legislation on carbon emissions, such as a cap and trade system
in US and Australia, including the imposition of a "carbon tax“ on
resources such as diesel fuel and electricity.
¾Looking inward, physical and environmental changes due to
climate change are also a risk to Newmont. Predictions of the
Intergovernmental Panel on Climate Change (IPCC), raise health
and welfare concerns for workforce and members of the
communities in which Newmont operates. Exposure to extreme
conditions of weather would lead to the spread of diseases such as
malaria.
¾Climatic changes could also bring communities to face other
hardships brought on by changes in the environment, such as
shortages in water supply and impacts on agriculture
ELECTRICAL ENERGY NEEDS
OF
NEWMONT
Newmont currently requires a maximum of 40MW of electrical
energy for operations at full capacity and normal power draw of
approximately 32MW at their operating plant in Ahafo.
Electric power is supplied Newmont, by the Volta River Authority
(VRA) and the Electricity Company of Ghana (ECG) from the
national grid.
However, the power crisis in Ghana of 2007 meant that mining
companies needed to somehow secure the supply of power for
their operations after supply was curtailed to all industries.
POWER CRISIS IN GHANA
The inadequacies of Ghana’s energy infrastructure and supply
were brought to the fore in 2007, throwing the entire nation into
darkness. Industry was the hardest hit, with power supply not even
enough to run on half capacities.
The mines were obviously hit hard too. They responded by putting
together a consortium of the four biggest gold mines to install a
diesel fired power plant to generate 80MW of power.
Goldfields Ghana Ltd, Anglo Gold Ashanti, Newmont Ghana Gold
and Golden Star Resources were to receive 20MW of electric
power each.
NEWMONT MEETS ENERGY
NEEDS
Newmont Gold Ghana Ltd has its own facility to generate 12MW of
power at its Ahafo Mine.
20+12=32
Emergency power to run plant
ACCOUNTING FOR ENERGY
Newmont Ghana is in the process of accounting for their energy
usage. As a new mine, Newmont is currently developing a robust
inventory management plan to account for its greenhouse gas
emissions in consonance with World Business Council on
Sustainable Development and the Greenhouse Gas Protocol of the
World Resource Institute.
The use of resources, such as energy, efficiently is the key to
energy management. And this can only be achieved when energy
use is adequately accounted for.
In efficiency terms, it should be possible to determine how much
energy is required for the production of an ounce of gold.
ENERGY EFFICIENCY
At AngloGold Ashanti, 4.69 gigajoules of energy was needed to
produce an ounce of gold in 2006. This figure increased to 4.96 in
2007.
At their Ghana operations in Obuasi and Iduapriem, energy
efficiency figures were 6.90 and 4.81 gigajoules per ounce of gold
produced respectively.
Obuasi is underground, and Iduapriem is surface, explaining the
higher intensity of energy for Obuasi. Enormous amounts of energy
are needed for ventilation and refrigeration underground.
ENERGY EFFICIENCY AND
R&D AT NEWMONT
¾Hybrid Underground Loader – Hydrogen based fuel cell and
Nickel metal-hydrite batteries
¾The design emits none of the particulate, carbon monoxide or
other emissions common with diesel engines. It emits water under
load.
¾This results in reduced ventilation requirements and a more safer
and healthier workplace environment for employees
SOLAR AND THERMAL PUSH
Both Newmont and AngloGold Ashanti are looking at the
possibilities of augmenting their energy mixes with solar power.
Newmont is experimenting with thermal energy from their Carlin
operations in Nevada to dry ore. Instead of natural gas, an
engineered recirculation of hot air from underground is recycled
and vented to the atmosphere. This could result in annual energy
savings of over $700,000 per year and reduced CO2 emissions of
5,393 metric tons per year.
EFFICIENT USE OF ENERGY
¾Carry out energy efficiency audits
¾Identify opportunities and implement appropriate measures for
energy use reduction and efficiency e.g. Use of Variable Speed
Drives
¾Consult with the electricity supplier in relation to tariff
management and use of off-peak electricity.
¾Provide regular maintenance for processing plant, pumps, and
boilers, etc.
¾Use photosensors to control and optimize use of outside lighting
¾Provide insulation to storage bins
¾Optimise layout and design of internal haulage routes and
processing plant
ENERGY OUTLOOK FOR
GHANA
¾Construction of Bui Hydro electric dam – 400MW
¾Oil find in Cape Three Points – recoverable resource of 500mbo
¾Private Sector construction of thermal plants - 200MW of 560MW
from Asogli
¾Construction of gas pipe line from Nigeria to Ghana
These developments are part of the government’s grand scheme to
ensure energy security for Ghana
Energy security means Ghana can develop other mineral resources
such as processing of the nation’s vast amounts of bauxite and some
iron ore.
ENGAGEMENT AND
REPORTING ON ENERGY
As member of the International Council on Mining and Metals
(ICMM), Global Reporting Initiative (GRI), and the United Nations
Global Compact, the major gold mining companies in Ghana are
committed to executing superior business practices in sustainable
development, and are committed to implementing and measuring
performance against ICMM's Sustainability Framework and its
supporting 10 Principles of Sustainable Development.
Through the GRI, energy use and efficiency by energy source are
captured to help ensure efforts towards sustainability.
INVESTMENTS IN THE
ENERGY SECTOR
Private sector investments in the energy sector is allowing
consumers such as the mines to negotiate energy mixes and
prices in an expected competitive market.
ENERGY PRICING AND
REGULATION - PURC
Mines are in discussion with the PURC to determine the true cost
of electricity. Even though mines are prepared to pay competitive
prices, they will prefer a good knowledge of the energy mix sold to
them.
Since June 2007, cost of electricity increased by 240% , from 5 US
Cents to 17 US cents
CONCLUSION
Extractive industries are intense users of energy. They consume
large proportions of national electricity productions. Mining
industries are beginning to be aware of their carbon footprints, and
they are making efforts to face up to this.
They are looking at the issue of global warming with a business
sense as well, preparing to take advantage of carbon trading.
To meet their energy needs, some mining firms in Ghana have
come together to install thermal capacity for their specific needs.
Issues of energy efficiency ought to be important for mining
companies in Ghana. One can only truly succeed with global
warming and climate change when energy efficiency is
incorporated into the operations of industry.
Thank you!!!
Danke SchÖn!!!
www.torkornoo.com
[email protected]