Electric Mine Consortium formed to decarbonise mining
Fourteen mining and mining services companies, including State of Play, Sandvik, Epiroc, OZ Minerals, South32, Gold Fields, Safescape, Dassault Systemes, Energy Vault, Hahn, Horizon Power, 3ME, IGO and Barminco have come together to form the Electric Mine Consortium aimed at decarbonising the mining industry.
The Consortium was born from the 2020 report State of Play - Electrification, which covered extensive research aimed at understanding the drivers and barriers of mine electrification, identifying the key enabling technologies and enabling collaboration to accelerate their adoption.
State of Play co-founder, Graeme Stanway, noted that while the industry as a whole understands the benefits of mine electrification, there are still challenges to overcome on the journey towards adoption, namely cost.
“Our data shows renewables, all electric systems and batteries will help fuel the change towards a healthier, economically viable future of mining, but uncertainty remains when it comes to which area to invest in first, and how,” he said.
“Here in Australia, we have an abundance of renewables that the industry is tapping into, particularly in our most remote operations. Local mine sites have the opportunity to install solar, wind and battery energy storage systems to power their operations at a much cheaper cost than many global players.”
State of Play’s report surveyed executives across the industry to get the big picture:
- 57% expect energy transition to be the global trend that will have the biggest impact on the industry over the next 15 years
- 89% expect mine sites will electrify within the next 20 years
- 61% expect the next generation of mines will be all electric
- 83% expect renewable energy technologies will significantly change mining operations over the next 15 years
- 98% view mine automation is the technology that will benefit the most from electrification
The Electric Mine Consortium’s mission is to support collaboration for electrification and unlock the clean energy transformation of mine sites. It states: “The way the we generate, store and harness energy around the globe is undergoing a period of major change. A global ecosystem has begun to emerge to underpin the innovation and scaling of electrification technologies. A rare trifecta, electrification will provide economic, health and environmental value for the mining industry.
“Electrification creates enormous opportunities for operational cost savings, innovative mine designs and resilience against uncertainty. It will reduce the exposure to carcinogenic diesel particulates and reduce scope 1 and 2 carbon emissions by 100%. The value upside of this not only increases productivity in existing assets, but also improves a company’s ability to unlock deeper and more remote ore bodies.”
The announcement also included a joint statement by the mining and mining contractor company member CEOs which pledged: “We share the objective to accelerate industry progress towards electric, zero emissions and zero particulates mines. Electrification of mine sites, powered by clean energy, offers our industry the option to operate our mines in line with our individual commitments to decarbonise our operations. It also provides the ability to improve the working environment for our employees by eliminating the use of diesel in underground mines.
Electrification of mine sites is a key technical foundation for the automation of our equipment which will provide a large step forward in productivity and safety. Electrification offers the potential to drive improved economics with simplified, interoperable, electric-drive equipment resulting in lower mining and energy costs. We have chosen to join with over a dozen other mining and service companies in the ‘Electric Mine Consortium’ to achieve these goals. The consortium will allow us to collaboratively: 1. Resolve key technology choices 2. Shape the supplier ecosystem 3. Influence policy, and 4. Communicate the business case. By working together, we plan to accelerate progress using our joint scale and influence.”
This was signed off by Andrew Cole of OZ Minerals, Graham Kerr of South32, Paul Muller of Barminco, IGO’s Peter Bradford, and Stuart Mathews from Gold Fields Australia.
Axora launches global challenge for digital technology
Axora is launching the world’s first international competition to discover new cost-saving digital technology for industrial companies, which can produce rapid benefits within a year.
The Metals & Mining and Oil & Gas sectors have recently experienced budget cuts of 20% on average, driven by a variety of factors including the global pandemic, slump in demand and price wars. The Axora Cost-Saving Technology Challenge aims to transform these industries by discovering innovative, digital solutions that reduce cost fast and pay for themselves, whilst achieving the same or improved productivity, health and safety and sustainability standards.
“While digital solutions can help to get work done quicker and more cost-effectively, they typically require a three-year ROI, and if there’s no flexibility in the budget, a full budget planning cycle is needed to get things moving”, said Dr. Nick Mayhew, Chief Commercial Officer, Axora.
“Yet, extra financial cost is often incurred in delaying digital projects, so customers have asked us to highlight solutions that can have an ‘in year payback’ whereby the cost spent on the solution and deployment will be more than recovered within the budget year - this accelerates the timeline and drives positive business impact, quickly.”
The Axora Cost-Saving Technology Challenge
Axora is keen to learn of any digital cost-saving innovation which: meets the 12-month payback timeframe; can be deployed in any part of the value chain including upstream, downstream or midstream oil and gas, metals processing or mining; and is ready for market. The Axora Cost-Saving Technology Challenge is open to entrepreneurs, start-ups, academics and sector leaders across the world. The competition will be judged by a panel of leading industry experts.
“We’re passionate about supporting our industries and customers through all forms of digital transformation and the cost-saving solutions we are searching for could also provide a lifeline to many mining and metals and oil and gas companies in the current economic climate,” added Dr. Mayhew.
Improving productivity, safety and sustainability
Up to ten finalists will be chosen to pitch their solutions at a digital pitch day later this year, after which Axora will validate the ROI models and vet the solutions. The winner will receive the ‘Axora Market Accelerator’ sales and marketing package worth £10,000. This includes a two-hour workshop, promotion through Axora’s thought leadership content and inclusion into its digital demand engines, providing the opportunity for the winning solution to benefit thousands of industrial companies. Entries are open until May 31. Full details of the competition including terms and conditions can be found here.
To learn more about the Axora B2B digital solutions marketplace read our feature in the latest issue of Mining Global magazine.