m mining services (pty) ltd - fossil fuel mining services (pty) ltd} botswanahasmillions...
TRANSCRIPT
![Page 1: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/1.jpg)
AJ Carr Pr. EngMR Mohring Pr. Eng
12 March 2015
M3 Mining Services (Pty) Ltd
![Page 2: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/2.jpg)
M3 Mining
In order to stimulate the economies of these countrieselectricity is required.} The one thing that they all have in common is that
they all have relatively untapped coal resources whichthey can use to generate electricity.
} All of these countries have unique characteristicswhich make them ideally placed to produce powerfrom coal mining ventures
M3 Mining Services (Pty) Ltd
![Page 3: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/3.jpg)
} Mozambique has mines which focus on the supply of cokingcoal for the Steel market, associated with the coking coal is alarge proportion of low grade coal which would bestockpiled or returned to the pit. By having another use forthe coal, discard dumps would not be required and usefulelectricity could be generated for the country
M3 Mining Services (Pty) Ltd
![Page 4: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/4.jpg)
} Botswana has millionsof tons of untappedresources which arenot being exploiteddue to the limited railinfrastructure to get itto ports andcustomers and makesprojects uneconomical
M3 Mining Services (Pty) Ltd
![Page 5: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/5.jpg)
} Zambia is a landlockedcountry which needselectricity for its manycopper smelters. It hashistorical discard dumpswhich have the potential toproduce power while at thesame time preventingpollution associated withspontaneous combustionof stockpiled low gradecoal. This would make useof what has and wouldotherwise be left as waste.
M3 Mining Services (Pty) Ltd
![Page 6: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/6.jpg)
M3 Mining
} Tanzania has a very lowlevel of electricityconsumption per capita,with only 18% of thecountry currently connectedto grid power. Thegovernment is promotingmineral exploration andmining in Tanzania whichrequires electricity. Thereare coalfields in the interiorof Tanzania with low qualitycoal perfect for electricitygeneration.
M3 Mining Services (Pty) Ltd
![Page 7: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/7.jpg)
M3 Mining
} Energy is high on theagenda in Kenya asinsufficient electricitysupply adversely affectsbusiness in Kenya. TheKenyan coalfields arerelatively undeveloped butthere is a large coal miningarea near Mwingi, around150km east of the capitalNairobi.
M3 Mining Services (Pty) Ltd
![Page 8: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/8.jpg)
M3 Mining
} Harnessing the energy of the wasteportion of coal production oruneconomic coal blocks to generateelectricity on site or at nearby industrialcentres.} Making use of combustion technologieswhich can use low quality fuel togenerate electricity, to supply othermines and industries in these countries
M3 Mining Services (Pty) Ltd
![Page 9: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/9.jpg)
• coal resources in region;
• low cost establishment
Natural Gas Raw/Discard Coal
Mouth of mine power station
Site Embedded power station
• Limited gas suppliers;
• Expensive development
costs
M3 Mining
M3 Mining Services (Pty) Ltd
![Page 10: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/10.jpg)
} Traditional Bubbling Bed Boilers◦ Some industrial units since late 70s i.e. Botswana Botash,
AEL Modderfontein◦ More recent projects: Mondi Merebank, Sappi Tugela Boiler
converted
} 2nd Generation Circulating Fluidised Bed Boilers ◦ Enhanced technology in terms of increased fuel flexibility
M3 Mining Services (Pty) Ltd
![Page 11: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/11.jpg)
Some Fuel Flexibility but sizing limits
Lower parasitic load
M3 Mining Services (Pty) Ltd
![Page 12: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/12.jpg)
Greater Fuel Flexibility
Increased tolerance of “fines”
Excellent Air Emissions Performance
M3 Mining Services (Pty) Ltd
![Page 13: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/13.jpg)
} Coal mineralogy◦ Ash and residue compositions and properties can vary
dramatically i.e. erosion & corrosion concerns
◦ Different ash compositions and properties relative to Pulverised Fuel Combustion – lots to learn in Africa
} Local experience of CFB’s limited– Indian & Chinese have extensive experience
} e.g. Morupule B Chinese EPC supplied 600MWe CFB Stations: Major Availability challenges due to erection and operation issues
M3 Mining Services (Pty) Ltd
![Page 14: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/14.jpg)
M3 Mining Services (Pty) Ltd
![Page 15: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/15.jpg)
M3 Mining Services (Pty) Ltd
MWe Category Description
±16 Company, embedded
plant
Potentially some leniency when it comes to air emissions regulations, reduces
cost of abatement
±40 Decentralised, cluster/
complex plant
Could make most company-backedcomplexes independent of Power Grid
supply for baseload consumption.
±80 National/ Regional grid
plant
A reasonable minimum size for National/ Regional Procurement Programmes
![Page 16: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/16.jpg)
} Viable 15-20 year supply of base-case coal
} ±16MWe power plant ±88,000 TPA} ±40MWe power plant ±200,000 TPA} ±80MWe power plant ±400,000 TPA
} RAW COAL vs DISCARD } ARISING DISCARD vs DUMP DISCARD} COAL OPTIMISATION AT SOURCE
M3 Mining Services (Pty) Ltd
![Page 17: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/17.jpg)
} The capital and operating expenditures: fuel, water and sorbents costs, waste disposal costs and related items were modeled over 20 years.
} The modeling determines an a LCOE for the 1st year of operation (2017) per scenario that makes the power project economically viable.
} Assumes the power station is established as a project-financed, utility business with a 20 yr IRR of 20% (nominal)
} Assumes a Debt to Equity Ratio, i.e. 75:25, with interest at 9,5% effective assuming a 15 year pay-back period
} Assumes a ZAR:USD Rate of 11:1
M3 Mining Services (Pty) Ltd
![Page 18: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/18.jpg)
M3 Mining Services (Pty) Ltd
![Page 19: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/19.jpg)
Plant Relative LCOE
16MWe 186%
40MWe 135%
80MWe 100%
M3 Mining Services (Pty) Ltd
![Page 20: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/20.jpg)
The ±80MWe Option
a. Its the most cost effective scenariob. Likely relies on a National Procurement Programme and
associated risks.c. Key uncertainty is winning a bid in a National Procurement
Programme
The ±16-40MWe Option
a. Dependent on fuel cost- can benefit an industrial off-takerb. Most within a developer’s controlc. Project could reach financial close based on secured fuel
supply agreement and electricity off-take agreement
M3 Mining Services (Pty) Ltd
![Page 21: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/21.jpg)
Projects offer reasonably “fixed escalation” increases in line withthe Consumer Price Index (CPI) (i.e. coal, logistics, sorbent,maintenance)
versus
Nation Power/ Utility electricity producers – erratic/ politically-driven price increases
M3 Mining Services (Pty) Ltd
![Page 22: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/22.jpg)
M3 Mining Services (Pty) Ltd
![Page 23: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/23.jpg)
1. Discard Coal Power Projects can be very Capital Sensitive,which incorporates Exchange rate strength sensitivity.
2. The Sorbent/ Limestone cost sensitivity, can be significantdependent on the associated logistics and total sulphur (TS) ofthe coal
3. Where Mine Mouth Scenarios are not possible the wheelingcosts and sensitivity is a consideration
M3 Mining Services (Pty) Ltd
![Page 24: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/24.jpg)
} Project Feasibility (aggressive)◦ Feasibility study (fast-track) 12 months◦ EIA & ROD 18-24 months
} Development & Financial Close◦ Technical Specification 3 months◦ Tender Award 3 months◦ Closing Debt 4 months*
(procurement) } Manufacture and Construction
◦ Unit 14-18 months} Commissioning, Commercial Operation
◦ Commissioning 1 months◦ Training and Guarantee Period 15 months
M3 Mining Services (Pty) Ltd
![Page 25: M Mining Services (Pty) Ltd - Fossil Fuel Mining Services (Pty) Ltd} Botswanahasmillions oftonsofuntapped resources which are not being exploited duetothelimitedrail infrastructuretogetit](https://reader038.vdocuments.mx/reader038/viewer/2022110112/5ae2c12d7f8b9a495c8c6c7a/html5/thumbnails/25.jpg)
} Power Generation Projects using low quality or discard coal :◦ Are economically viable with the correct fuel supply
contracts,◦ Can stimulate industrial growth and job creation
} The Technology exists:◦ 2nd generation industrial-sized CFB Plants are well
developed◦ Africa experience needs to to be developed with assistance
of established international players
M3 Mining Services (Pty) Ltd