May 17, 2020

CEO spotlight: Stephen Letwin, IAMGOLD

mine sites
5 min
CEO spotlight: Stephen Letwin, IAMGOLD
Energy and Mines: Stephen Letwin, President and CEO, IAMGOLD is committed to his goal of 15 percent of the gold leaders power generation coming from ren...

Energy and Mines: Stephen Letwin, President and CEO, IAMGOLD is committed to his goal of 15 percent of the gold leader’s power generation coming from renewables in the next three to five years. The company has already invested in a five megawatt solar plant for its Rosebel Mine in Suriname and is currently considering solar options for its Essakane Mine in Burkina Faso where energy accounts for 30 percent of the company’s costs at this operation.

In this spotlight interview, Letwin provides insight on gold pricing and energy strategy, lower oil and renewables economics and some of common misconceptions about how miners think about power. Letwin will also be participating in the opening keynote panel discussion at the 3rd annual Energy and Mines Toronto Summit on October 22-23. 

Q: What would you describe as your top three energy concerns for your operations today?

A: First, as we mine deeper and deeper at our open pit mines we encounter harder rock, which requires more crushing and grinding than the previously excavated weathered, shallow rock. As a result, the cost of electric power used to operate the processing equipment increases. For example, the mill at our Essakane Mine in Burkina Faso underwent a major expansion to accommodate the harder rock resulting in a significant increase in energy consumption. Although production at Essakane increased by 33 percent in 2014 due to higher throughput, as well as higher grades, we need to take proactive measures to bring down our energy costs.

Second, in many of the jurisdictions in which we operate, there is not an abundant supply of reliable, well-priced electric power available. This has required on-site generators that run on fuel and are relatively high-cost to operate on a per kWh basis.

• Related content: [How To] Save on Operational Costs with Solar Power 

And third, while lower oil prices have allowed us to negotiate lower prices for fuel inputs, in some of the jurisdictions in which we operate, the government has control over the fuel prices, so even though fuel prices have declined substantially we don’t always see the full impact of lower prices.

Q: Has the drop in gold price changed your energy strategy when it comes to investigating new power options?

A: With the drop in the gold price, we have intensified our focus on cost reduction and the preservation of capital. As such, we have been actively reviewing all of our cost inputs, including the cost of electric power at our mine sites. Ideally, in the next three to five years, I’d like to see renewables account for 15 percent of our power generation.

At our Rosebel Mine in Suriname, we built a five megawatt solar power plant in 2014 that is capable of generating power at a very low operating cost for a period up to 20 years. By committing to build this plant, we effectively pre-paid for a source of lower cost electric power going forward.

Although the savings generated from investing in solar power may diminish in a declining oil price environment, we have to think long-term. So we are also considering a solar power plant for our Essakane Mine. Energy accounts for about 30 percent of our costs at this operation and oil prices could rise again in the future. With the cost of solar panels having fallen considerably, this is an option we will continue to explore.

• Related content: [VIDEO] General Electric Tests Battery Operated Trucks at IAMGOLD Mine

At the same time, we are accelerating our strategy to optimize energy usage and production. We are doing this by increasing the efficiency of our power plants and looking at long-term cheaper energy solutions. We are also taking steps to reduce the energy loss across our operations and to optimize the energy efficiency of our equipment.

Q: What would you say is the biggest misconception other industries, including renewables, have about the way mining leaders think about power?

A: Other industries may not realize the amount of time and effort that mining leaders must spend on analyzing the options to not only reduce power costs, but to benefit the communities in which we operate. Maintaining a social license to operate is tremendously important to us, and this is an important factor when evaluating the returns from an investment in green power.

Ideally, we want to install infrastructure that benefits the community not only while we are in production, but long after the mine closes. For example, we committed to the Government of Suriname that once mining operations cease at Rosebel, the five megawatt solar farm, which is the first renewable source of energy in the country, will be left for the people of Suriname to use. That’s the kind of legacy we like to leave behind.

Q: What are you looking forward to at the 3rd annual Energy and Mines Toronto Summit on Oct. 22-23?

A: I am looking forward to hearing about new technological advances being made in the field of energy storage, so that renewables can provide a continuous flow of energy in the future, rather than an intermittent supply depending on when the sun shines or wind blows. In particular, we’re seeing some exciting innovations in battery storage technology. As a gold miner, low gold prices make it critical for us to drive down all-in sustaining costs. I’m interested in technologies enabling energy reduction and conservation, such as energy efficient LED lighting, which has the potential to reduce lighting energy loads by up to 80 percent.

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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