the understated benefits of trolley assisted haulage

The Understated Benefits of

Trolley Assisted Haulage

2010-2011 Nenana Livengood Rail

Extension Feasibility Project

Prepared by Elliot Thorum

Introduction

Major mines have used trolley assist since the 1970s

Proven capabilities

Increased productivity

Reduced fuel costs

Reduced maintenance and operation costs

Attractive rates of return on investment

Attractive period for payback

Potential carbon taxes

Reduced exposure to risks and uncertainties

Brief History

Electric Only Trolley Systems

1900s to present

Underground

Air quality requirements

Above ground

Early systems were fixed lifts

Brief History

Diesel Electric Trolley Systems

1950s

Anaconda in Butte, Montana

Serious experimentation

Single truck

1960s

Kennecott Copper at El Chino in New Mexico

Large size truck haul system test

Ramp speeds could be doubled

Brief History

1970s

Quebec Cartier Mines at Lac Jeannine

First fleet wide trolley haul system

Productivity increased by 23%

On grade fuel savings of 87%

1980s Boom Period

South Africa Fuel embargoes, low electricity costs

Gecamines (Congo,) ZCCM (Zambia,) Iscor, Palabora,

Exxaro, Rio Tinto (South Africa)

Brief History

1990s

Barrick Goldstrike in Nevada

2000s

Equinox Minerals Lumwana Project, Zambia

Proven Benefits

Higher speeds on ramp

50% increase regularly touted

Lower fuel consumption

95% reduction claimed on ramp

Lower maintenance and overhaul

Costs tied to fuel consumption rates


Higher speeds, less downtime

Attractive payback period

Claimed 1-3 years

Mechanisms for Success

Energy expenditure is highest on the ramp

Most fuel consumed

Most stress on the engine

Lowest speeds under the highest loads

Wheel motors capable of handling more power than

engines can produce

What about an entire fleet on a full

haul circuit, not just up the ramp?

Study

Five aspects

Analyze energy savings for a fleet

Define period for payback for a fleet

Define the lower limits of assisted fleet size

Examine generated energy costs by fuel/source

Examine potential for returning power to grid

Study

Energy savings

Electricity is often less expensive than diesel

Payback period

Capital investment and infrastructure

Recovery through savings over time

Lower limit on fleet sizes

Trolley assist works for large fleets

Feasibility for small operations

Study

Electrical power source

Natural Gas

Diesel

Single Cycle vs. Combined Cycle

Grid

Returning power to the grid

Energy is dissipated as waste heat

Down-ramp leg

Mine Model

ITH Mines Money Knob, Livengood Alaska

Open pit gold mine

184,000 tons per day

21 year mine design life

2 km ramp length

10% effective grade

Two trucks considered

Komatsu Haulpak 730E

Hitachi Euclid EH4500


186 metric tonne (205 ton)

2000 horsepower engine AC drive

Cost of $2.835 million in 2009

Full circuit performance data available for

Exxaros Grootegeluk mine

473 vs. 527 metric tonnes per hour hauled

36.9 vs. 20.2 gallons per hour fuel consumption


280 metric tonne (254 ton)

2700 horsepower engine AC drive

Cost of $5.22 million in 2009

Full circuit performance data available for

Exxaros Grootegeluk mine

706 vs. 771 metric tonnes per hour hauled

42.3 vs. 23.1 gallons per hour fuel consumption

Trolley System Capital Costs

Capital costs based on Freeman and Golosinski (1994)

5 MW power distribution system

$1.02 million

Trolley line

$2,206 per meter Reposition allowances (2x)

Truck modifications

Trolley Compatible not Trolley Ready

$181,570 per truck

Trolley System Capital Costs


4km of trolley line (2x reposition allowance)

17 trucks needed (20 without trolley) @75% efficiency/availability

$12.98 million total including conversion


4km of trolley line (2x reposition allowance) @75% efficiency/availability

12 trucks needed (13 without trolley)

$12.01 million total including conversion

Energy Costs

Diesel

Prices assumed to vary between $2 and $5 per gallon

Electricity

Prices assumed to vary between $0.02 and $0.44 per

kWh.

Natural Gas

Prices assumed to be $2.335 per CCF (Fairbanks

Natural Gas)

Operating and Maintenance Costs


Fixed costs per ton mined Tires, overhead, capital

$0.24 per ton mined

Service costs per gallon of fuel consumed Lubricants, labor, service parts

$1.88 per gallon of fuel consumed

Hourly Operator Cost

$60 per hour

Operating and Maintenance Costs


Fixed costs per ton mined Tires, overhead, capital

$0.30 per ton mined

Service costs per gallon of fuel consumed Lubricants, labor, service parts

$2.49 per gallon of fuel consumed

Hourly Operator Cost

$60 per hour

Calculations

Simple Premise

Non-trolley cost Trolley cost = Savings

If Trolley cost > Non-trolley, Savings is negative

If Trolley cost < Non-trolley, Savings is positive

Calculations

Non-Trolley Cost components

Fuel + Service + Fixed + Driver

Trolley Cost components

Fuel + Electric + System capital + Fixed + Service

+ Driver

All reduced to terms of $/Ton

Component Examples

Fuel Cost

Service Cost

tonperDollarshourpermovedTons

gallonperDollarshourperGallons *

tonperDollarshourpermovedTons

gallonperserviceDollarshourperfuelGallons *

ResultsHaulpak 730E Savings Per Ton

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

$0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20

Cost of Electricity ($/kWh)

Pe

rce

nta

ge S

avin

gs

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

Fuel Cost

$/gallon

ResultsEuclid EH4500 Savings Per Ton

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

$0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20


Pe

rce

nta

ge S

avin

gs

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

Fuel Cost

$/gallon

ResultsHaulpak 730E Savings Per Ton

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20


Savi

ngs

pe

r To

n (

US$

)

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

Fuel Cost

$/gallon

ResultsEuclid EH4500 Savings per Ton

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20


Savi

ngs

pe

r To

n (

$U

S)

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

Fuel Cost

$/gallon

ResultsHaulpak 730E

System Capital Cost $3.00 /gallon

Savings per ton mined for a given mine life

Electricity Year

kWh rate 1 2 3 4 5 6 7 8 9 10

$0.02 ($0.06) $0.04 $0.07 $0.09 $0.10 $0.11 $0.11 $0.12 $0.12 $0.12

$0.04 ($0.07) $0.03 $0.07 $0.08 $0.09 $0.10 $0.10 $0.11 $0.11 $0.11

$0.06 ($0.08) $0.02 $0.06 $0.08 $0.09 $0.09 $0.10 $0.10 $0.10 $0.10

$0.08 ($0.08) $0.02 $0.05 $0.07 $0.08 $0.08 $0.09 $0.09 $0.09 $0.10

$0.10 ($0.09) $0.01 $0.04 $0.06 $0.07 $0.08 $0.08 $0.08 $0.09 $0.09

$0.12 ($0.10) $0.00 $0.03 $0.05 $0.06 $0.07 $0.07 $0.08 $0.08 $0.08

$0.14 ($0.11) ($0.01) $0.03 $0.04 $0.05 $0.06 $0.06 $0.07 $0.07 $0.07

$0.16 ($0.12) ($0.02) $0.02 $0.04 $0.05 $0.05 $0.06 $0.06 $0.06 $0.06

$0.18 ($0.12) ($0.02) $0.01 $0.03 $0.04 $0.04 $0.05 $0.05 $0.05 $0.06

$0.20 ($0.13) ($0.03) $0.00 $0.02 $0.03 $0.04 $0.04 $0.04 $0.05 $0.05

$0.22 ($0.14) ($0.04) ($0.01) $0.01 $0.02 $0.03 $0.03 $0.04 $0.04 $0.04

$0.24 ($0.15) ($0.05) ($0.01) $0.00 $0.01 $0.02 $0.02 $0.03 $0.03 $0.03

$0.26 ($0.16) ($0.06) ($0.02) ($0.00) $0.01 $0.01 $0.02 $0.02 $0.02 $0.02

$0.28 ($0.16) ($0.06) ($0.03) ($0.01) ($0.00) $0.00 $0.01 $0.01 $0.01 $0.02

$0.30 ($0.17) ($0.07) ($0.04) ($0.02) ($0.01) ($0.00) $0.00 $0.00 $0.01 $0.01

$0.32 ($0.18) ($0.08) ($0.05) ($0.03) ($0.02) ($0.01) ($0.01) ($0.00) ($0.00) $0.00

$0.34 ($0.19) ($0.09) ($0.05) ($0.04) ($0.03) ($0.02) ($0.02) ($0.01) ($0.01) ($0.01)

$0.36 ($0.20) ($0.10) ($0.06) ($0.04) ($0.03) ($0.03) ($0.02) ($0.02) ($0.02) ($0.02)

$0.38 ($0.20) ($0.10) ($0.07) ($0.05) ($0.04) ($0.04) ($0.03) ($0.03) ($0.03) ($0.02)

$0.40 ($0.21) ($0.11) ($0.08) ($0.06) ($0.05) ($0.04) ($0.04) ($0.04) ($0.03) ($0.03)

$0.42 ($0.22) ($0.12) ($0.09) ($0.07) ($0.06) ($0.05) ($0.05) ($0.04) ($0.04) ($0.04)

$0.44 ($0.23) ($0.13) ($0.09) ($0.08) ($0.07) ($0.06) ($0.06) ($0.05) ($0.05) ($0.05)

$12,976,040

AndrsResaltado

ResultsHaulpak 730E



Electricity Year

kWh rate 1 2 3 4 5 6 7 8 9 10

$0.02 $0.01 $0.11 $0.15 $0.16 $0.17 $0.18 $0.18 $0.19 $0.19 $0.19

$0.04 $0.00 $0.11 $0.14 $0.16 $0.17 $0.17 $0.18 $0.18 $0.18 $0.18

$0.06 ($0.00) $0.10 $0.13 $0.15 $0.16 $0.16 $0.17 $0.17 $0.17 $0.18

$0.08 ($0.01) $0.09 $0.12 $0.14 $0.15 $0.16 $0.16 $0.16 $0.17 $0.17

$0.10 ($0.02) $0.08 $0.11 $0.13 $0.14 $0.15 $0.15 $0.16 $0.16 $0.16

$0.12 ($0.03) $0.07 $0.11 $0.12 $0.13 $0.14 $0.14 $0.15 $0.15 $0.15

$0.14 ($0.04) $0.07 $0.10 $0.12 $0.13 $0.13 $0.14 $0.14 $0.14 $0.14

$0.16 ($0.04) $0.06 $0.09 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13 $0.14

$0.18 ($0.05) $0.05 $0.08 $0.10 $0.11 $0.12 $0.12 $0.12 $0.13 $0.13

$0.20 ($0.06) $0.04 $0.07 $0.09 $0.10 $0.11 $0.11 $0.12 $0.12 $0.12

$0.22 ($0.07) $0.03 $0.07 $0.08 $0.09 $0.10 $0.10 $0.11 $0.11 $0.11

$0.24 ($0.08) $0.03 $0.06 $0.08 $0.09 $0.09 $0.10 $0.10 $0.10 $0.10

$0.26 ($0.08) $0.02 $0.05 $0.07 $0.08 $0.08 $0.09 $0.09 $0.09 $0.10

$0.28 ($0.09) $0.01 $0.04 $0.06 $0.07 $0.08 $0.08 $0.08 $0.09 $0.09

$0.30 ($0.10) $0.00 $0.03 $0.05 $0.06 $0.07 $0.07 $0.08 $0.08 $0.08

$0.32 ($0.11) ($0.01) $0.03 $0.04 $0.05 $0.06 $0.06 $0.07 $0.07 $0.07

$0.34 ($0.12) ($0.01) $0.02 $0.04 $0.05 $0.05 $0.06 $0.06 $0.06 $0.06

$0.36 ($0.12) ($0.02) $0.01 $0.03 $0.04 $0.04 $0.05 $0.05 $0.05 $0.06

$0.38 ($0.13) ($0.03) $0.00 $0.02 $0.03 $0.04 $0.04 $0.04 $0.05 $0.05

$0.40 ($0.14) ($0.04) ($0.01) $0.01 $0.02 $0.03 $0.03 $0.04 $0.04 $0.04

$0.42 ($0.15) ($0.05) ($0.01) $0.00 $0.01 $0.02 $0.02 $0.03 $0.03 $0.03

$0.44 ($0.16) ($0.05) ($0.02) ($0.00) $0.01 $0.01 $0.02 $0.02 $0.02 $0.02

$12,976,040

AndrsResaltado

ResultsEuclid EH4500



Electricity Year

kWh rate 1 2 3 4 5 6 7 8 9 10

$0.02 ($0.08) $0.02 $0.05 $0.06 $0.07 $0.08 $0.08 $0.09 $0.09 $0.09$0.04 ($0.08) $0.01 $0.04 $0.06 $0.07 $0.07 $0.08 $0.08 $0.08 $0.08

$0.06 ($0.09) $0.00 $0.03 $0.05 $0.06 $0.06 $0.07 $0.07 $0.07 $0.08

$0.08 ($0.10) ($0.01) $0.03 $0.04 $0.05 $0.06 $0.06 $0.06 $0.07 $0.07

$0.10 ($0.11) ($0.01) $0.02 $0.03 $0.04 $0.05 $0.05 $0.06 $0.06 $0.06

$0.12 ($0.11) ($0.02) $0.01 $0.03 $0.04 $0.04 $0.05 $0.05 $0.05 $0.05

$0.14 ($0.12) ($0.03) $0.00 $0.02 $0.03 $0.03 $0.04 $0.04 $0.04 $0.05

$0.16 ($0.13) ($0.04) ($0.00) $0.01 $0.02 $0.03 $0.03 $0.03 $0.04 $0.04

$0.18 ($0.14) ($0.04) ($0.01) $0.00 $0.01 $0.02 $0.02 $0.03 $0.03 $0.03

$0.20 ($0.14) ($0.05) ($0.02) ($0.00) $0.00 $0.01 $0.02 $0.02 $0.02 $0.02

$0.22 ($0.15) ($0.06) ($0.03) ($0.01) ($0.00) $0.00 $0.01 $0.01 $0.01 $0.02

$0.24 ($0.16) ($0.07) ($0.04) ($0.02) ($0.01) ($0.00) $0.00 $0.00 $0.01 $0.01

$0.26 ($0.17) ($0.07) ($0.04) ($0.03) ($0.02) ($0.01) ($0.01) ($0.00) ($0.00) $0.00

$0.28 ($0.18) ($0.08) ($0.05) ($0.03) ($0.03) ($0.02) ($0.02) ($0.01) ($0.01) ($0.01)

$0.30 ($0.18) ($0.09) ($0.06) ($0.04) ($0.03) ($0.03) ($0.02) ($0.02) ($0.02) ($0.02)

$0.32 ($0.19) ($0.10) ($0.07) ($0.05) ($0.04) ($0.03) ($0.03) ($0.03) ($0.02) ($0.02)

$0.34 ($0.20) ($0.10) ($0.07) ($0.06) ($0.05) ($0.04) ($0.04) ($0.03) ($0.03) ($0.03)

$0.36 ($0.21) ($0.11) ($0.08) ($0.07) ($0.06) ($0.05) ($0.05) ($0.04) ($0.04) ($0.04)

$0.38 ($0.21) ($0.12) ($0.09) ($0.07) ($0.06) ($0.06) ($0.05) ($0.05) ($0.05) ($0.05)

$0.40 ($0.22) ($0.13) ($0.10) ($0.08) ($0.07) ($0.07) ($0.06) ($0.06) ($0.06) ($0.05)

$0.42 ($0.23) ($0.13) ($0.10) ($0.09) ($0.08) ($0.07) ($0.07) ($0.07) ($0.06) ($0.06)

$0.44 ($0.24) ($0.14) ($0.11) ($0.10) ($0.09) ($0.08) ($0.08) ($0.07) ($0.07) ($0.07)

$12,007,667

ResultsEuclid EH4500



Electricity Year

kWh rate 1 2 3 4 5 6 7 8 9 10

$0.02 ($0.02) $0.07 $0.10 $0.12 $0.13 $0.13 $0.14 $0.14 $0.14 $0.15$0.04 ($0.03) $0.06 $0.10 $0.11 $0.12 $0.13 $0.13 $0.13 $0.14 $0.14

$0.06 ($0.04) $0.06 $0.09 $0.10 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13

$0.08 ($0.04) $0.05 $0.08 $0.10 $0.10 $0.11 $0.12 $0.12 $0.12 $0.12

$0.10 ($0.05) $0.04 $0.07 $0.09 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12

$0.12 ($0.06) $0.03 $0.06 $0.08 $0.09 $0.10 $0.10 $0.10 $0.11 $0.11

$0.14 ($0.07) $0.03 $0.06 $0.07 $0.08 $0.09 $0.09 $0.10 $0.10 $0.10

$0.16 ($0.07) $0.02 $0.05 $0.07 $0.07 $0.08 $0.08 $0.09 $0.09 $0.09

$0.18 ($0.08) $0.01 $0.04 $0.06 $0.07 $0.07 $0.08 $0.08 $0.08 $0.08

$0.20 ($0.09) $0.00 $0.03 $0.05 $0.06 $0.07 $0.07 $0.07 $0.08 $0.08

$0.22 ($0.10) ($0.00) $0.03 $0.04 $0.05 $0.06 $0.06 $0.07 $0.07 $0.07

$0.24 ($0.11) ($0.01) $0.02 $0.03 $0.04 $0.05 $0.05 $0.06 $0.06 $0.06

$0.26 ($0.11) ($0.02) $0.01 $0.03 $0.04 $0.04 $0.05 $0.05 $0.05 $0.05

$0.28 ($0.12) ($0.03) $0.00 $0.02 $0.03 $0.03 $0.04 $0.04 $0.04 $0.05

$0.30 ($0.13) ($0.03) ($0.00) $0.01 $0.02 $0.03 $0.03 $0.03 $0.04 $0.04

$0.32 ($0.14) ($0.04) ($0.01) $0.00 $0.01 $0.02 $0.02 $0.03 $0.03 $0.03

$0.34 ($0.14) ($0.05) ($0.02) ($0.00) $0.01 $0.01 $0.02 $0.02 $0.02 $0.02

$0.36 ($0.15) ($0.06) ($0.03) ($0.01) ($0.00) $0.00 $0.01 $0.01 $0.01 $0.02

$0.38 ($0.16) ($0.07) ($0.03) ($0.02) ($0.01) ($0.00) $0.00 $0.00 $0.01 $0.01

$0.40 ($0.17) ($0.07) ($0.04) ($0.03) ($0.02) ($0.01) ($0.01) ($0.00) ($0.00) $0.00

$0.42 ($0.17) ($0.08) ($0.05) ($0.03) ($0.02) ($0.02) ($0.01) ($0.01) ($0.01) ($0.01)

$0.44 ($0.18) ($0.09) ($0.06) ($0.04) ($0.03) ($0.03) ($0.02) ($0.02) ($0.02) ($0.01)

$12,007,667

Results1 Truck - Haulpak 730E Payback 13,944 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 6 7 8 9 11 14 19

$0.04 7 8 9 10 12 16 24

$0.06 7 8 9 11 14 18 30+

$0.08 7 8 10 12 15 23 30+

$0.10 7 9 11 13 18 30+ 30+

$0.12 8 10 11 15 21 30+ 30+

$0.14 8 10 11 17 28 30+ 30+

$0.16 9 11 11 20 30+ 30+ 30+

$0.18 10 11 11 26 30+ 30+ 30+

2 Trucks - Haulpak 730E Payback 27,888 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 4 4 5 5 6 7 8

$0.04 4 4 5 5 6 7 9

$0.06 4 4 5 6 7 8 10

$0.08 4 5 5 6 7 9 11

$0.10 4 5 6 6 8 10 13

$0.12 5 5 6 7 8 11 17

$0.14 5 5 6 8 9 13 22

$0.16 5 6 7 8 11 16 30+

$0.18 5 6 7 9 12 21 30+

3 Trucks - Haulpak 730E Payback 41,832 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 3 3 3 4 4 5 6

$0.04 3 3 4 4 4 5 6

$0.06 3 3 4 4 5 6 7

$0.08 3 4 4 4 5 6 8

$0.10 3 4 4 5 5 7 9

$0.12 3 4 4 5 6 7 10

$0.14 4 4 5 5 7 8 12

$0.16 4 4 5 6 7 10 15

$0.18 4 5 5 6 8 11 22

Results1 Truck - Euclid EH4500 Payback 20,400 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 6 7 8 9 10 13 16

$0.04 7 7 8 10 11 14 21

$0.06 7 8 9 11 13 17 29

$0.08 7 8 10 12 15 22 30+

$0.10 8 9 11 13 18 30+ 30+

$0.12 8 10 12 15 23 30+ 30+

$0.14 9 11 14 19 30+ 30+ 30+

$0.16 10 12 16 25 30+ 30+ 30+

$0.18 11 13 19 30+ 30+ 30+ 30+

2 Trucks - Euclid EH4500 Payback 40,800 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 4 4 4 5 5 6 7

$0.04 4 4 5 5 6 7 8

$0.06 4 4 5 6 6 8 10

$0.08 4 5 5 6 7 9 11

$0.10 4 5 6 6 8 10 14

$0.12 5 5 6 7 9 12 18

$0.14 5 6 7 8 10 14 30+

$0.16 5 6 7 9 12 20 30+

$0.18 6 7 8 11 15 30+ 30+

3 Trucks - Euclid EH4500 Payback 61,200 Tons per Day

$5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00

$0.02 3 3 3 4 4 5 5

$0.04 3 3 3 4 4 5 6

$0.06 3 3 4 4 5 5 7

$0.08 3 3 4 4 5 6 8

$0.10 3 4 4 5 6 7 9

$0.12 4 4 4 5 6 8 11

$0.14 4 4 5 6 7 9 14

$0.16 4 5 5 6 8 11 21

$0.18 4 5 6 7 9 15 30+

Results

Mine Life in Years = 21 Power Cost = Fixed at Grid

Trolley Non-Trolley Savings % Savings $/kWh

$5.00 $46,025,949 $56,639,752 $10,613,804 18.74% $0.13

$4.50 $44,857,906 $54,260,326 $9,402,420 17.33% $0.13

Fuel $4.00 $43,689,862 $51,880,899 $8,191,037 15.79% $0.13

Cost $3.50 $42,521,819 $49,501,473 $6,979,654 14.10% $0.13

$3.00 $41,353,776 $47,122,047 $5,768,270 12.24% $0.13

$2.50 $40,185,733 $44,742,620 $4,556,887 10.18% $0.13

$2.00 $39,017,690 $42,363,194 $3,345,504 7.90% $0.13

Trucks 17 20



$5.00 $45,104,118 $52,654,766 $7,550,648 14.34% $0.13

$4.50 $44,191,105 $50,828,162 $6,637,057 13.06% $0.13

Fuel $4.00 $43,278,093 $49,001,558 $5,723,465 11.68% $0.13

Cost $3.50 $42,365,081 $47,174,954 $4,809,873 10.20% $0.13

$3.00 $41,452,068 $45,348,350 $3,896,282 8.59% $0.13

$2.50 $40,539,056 $43,521,746 $2,982,690 6.85% $0.13

$2.00 $39,626,043 $41,695,142 $2,069,099 4.96% $0.13

Trucks 12 13

Power Supplied from Off-Site Grid Plant

Haulpak 730E Fleet Annual Operating Costs and Savings

Euclid EH4500 Fleet Annual Operating Costs and Savings

Results



$5.00 $50,592,997 $56,639,752 $6,046,755 10.68% $0.30

$4.50 $49,424,954 $54,260,326 $4,835,372 8.91% $0.30

Fuel $4.00 $48,256,911 $51,880,899 $3,623,988 6.99% $0.30

Cost $3.50 $47,088,868 $49,501,473 $2,412,605 4.87% $0.30

$3.00 $45,920,825 $47,122,047 $1,201,222 2.55% $0.30

$2.50 $44,752,782 $44,742,620 ($10,161) (0.02%) $0.30

$2.00 $43,584,739 $42,363,194 ($1,221,545) (2.88%) $0.30

Trucks 17 20



$5.00 $49,451,401 $52,654,766 $3,203,365 6.08% $0.30

$4.50 $48,538,388 $50,828,162 $2,289,774 4.50% $0.30

Fuel $4.00 $47,625,376 $49,001,558 $1,376,182 2.81% $0.30

Cost $3.50 $46,712,363 $47,174,954 $462,591 0.98% $0.30

$3.00 $45,799,351 $45,348,350 ($451,001) (0.99%) $0.30

$2.50 $44,886,339 $43,521,746 ($1,364,593) (3.14%) $0.30

$2.00 $43,973,326 $41,695,142 ($2,278,184) (5.46%) $0.30

Trucks 12 13

Power Supplied from Off-Site Grid Plant



Results

Mine Life in Years = 21 Power Cost Variable with Fuel Cost


$5.00 $49,930,961 $56,639,752 $6,708,791 11.84% $0.28

$4.50 $48,023,172 $54,260,326 $6,237,154 11.49% $0.25

Fuel $4.00 $46,115,383 $51,880,899 $5,765,517 11.11% $0.22

Cost $3.50 $44,207,594 $49,501,473 $5,293,879 10.69% $0.19

$3.00 $42,299,804 $47,122,047 $4,822,242 10.23% $0.17

$2.50 $40,392,015 $44,742,620 $4,350,605 9.72% $0.14

$2.00 $38,484,226 $42,363,194 $3,878,968 9.16% $0.11

Trucks 17 20

Mine Life in Years = 21 Power Cost Variable with Fuel Cost


$5.00 $48,821,222 $52,654,766 $3,833,544 7.28% $0.28

$4.50 $47,204,060 $50,828,162 $3,624,102 7.13% $0.25

Fuel $4.00 $45,586,898 $49,001,558 $3,414,660 6.97% $0.22

Cost $3.50 $43,969,736 $47,174,954 $3,205,218 6.79% $0.19

$3.00 $42,352,574 $45,348,350 $2,995,777 6.61% $0.17

$2.50 $40,735,411 $43,521,746 $2,786,335 6.40% $0.14

$2.00 $39,118,249 $41,695,142 $2,576,893 6.18% $0.11

Trucks 12 13

Power Supplied from On-Site Diesel Plant



Results

Mine Life in Years = 21 Power Cost = Fixed by NG Price


$5.00 $46,729,630 $56,639,752 $9,910,122 17.50% $0.16

$4.50 $45,561,587 $54,260,326 $8,698,739 16.03% $0.16

Fuel $4.00 $44,393,544 $51,880,899 $7,487,356 14.43% $0.16

Cost $3.50 $43,225,501 $49,501,473 $6,275,972 12.68% $0.16

$3.00 $42,057,458 $47,122,047 $5,064,589 10.75% $0.16

$2.50 $40,889,415 $44,742,620 $3,853,206 8.61% $0.16

$2.00 $39,721,371 $42,363,194 $2,641,822 6.24% $0.16

Trucks 17 20

Mine Life in Years = 21 Power Cost = Fixed by NG Price


$5.00 $45,773,938 $52,654,766 $6,880,828 13.07% $0.16

$4.50 $44,860,926 $50,828,162 $5,967,236 11.74% $0.16

Fuel $4.00 $43,947,913 $49,001,558 $5,053,645 10.31% $0.16

Cost $3.50 $43,034,901 $47,174,954 $4,140,053 8.78% $0.16

$3.00 $42,121,889 $45,348,350 $3,226,461 7.11% $0.16

$2.50 $41,208,876 $43,521,746 $2,312,870 5.31% $0.16

$2.00 $40,295,864 $41,695,142 $1,399,278 3.36% $0.16

Trucks 12 13



Power Supplied from On-Site Natural Gas Plant

ResultsGrid based electrical generation

Fleet Carbon Budget Comparison

Haulpak 730E Fuel Used CO2 Produced

Without trolley 6,464,880 gal/year 71,760 Tons/year

With trolley 3,067,168 gal/year 34,046 Tons/year

Reduction 3,397,712 gal/year 37,715 Tons/year

Euclid EH4500 Fuel Used CO2 Produced




**22.2 lbs CO2 per gallon of diesel fuel

Estimated Annual Carbon Tax Costs and Savings Comparison for Two Trolley Assisted Truck Fleets

Carbon

Tax per Ton Diesel Only With Trolley Savings Diesel Only With Trolley Savings

$50 $3,588,008 $1,702,278 $1,885,730 $2,742,055 $1,347,691 $1,394,364

$45 $3,229,208 $1,532,050 $1,697,157 $2,467,850 $1,212,922 $1,254,928

$40 $2,870,407 $1,361,823 $1,508,584 $2,193,644 $1,078,153 $1,115,491

$35 $2,511,606 $1,191,595 $1,320,011 $1,919,439 $943,384 $976,055

$30 $2,152,805 $1,021,367 $1,131,438 $1,645,233 $808,615 $836,619

$25 $1,794,004 $851,139 $942,865 $1,371,028 $673,845 $697,182

$20 $1,435,203 $680,911 $754,292 $1,096,822 $539,076 $557,746

Haul Fleet 20 17 13 12

Haulpak 730E Carbon Cost Euclid EH4500 Carbon Cost

ResultsOn-site diesel electrical generation












Carbon


$50 $3,588,008 $2,780,367 $807,642 $2,742,055 $2,387,081 $354,974

$45 $3,229,208 $2,502,330 $726,878 $2,467,850 $2,148,373 $319,477

$40 $2,870,407 $2,224,293 $646,113 $2,193,644 $1,909,665 $283,979

$35 $2,511,606 $1,946,257 $565,349 $1,919,439 $1,670,957 $248,482

$30 $2,152,805 $1,668,220 $484,585 $1,645,233 $1,432,249 $212,984

$25 $1,794,004 $1,390,183 $403,821 $1,371,028 $1,193,541 $177,487

$20 $1,435,203 $1,112,147 $323,057 $1,096,822 $954,832 $141,990



ResultsOn-site natural gas electrical generation












Carbon


$50 $3,588,008 $2,410,720 $1,177,288 $2,742,055 $2,030,703 $711,352

$45 $3,229,208 $2,169,648 $1,059,560 $2,467,850 $1,827,633 $640,217

$40 $2,870,407 $1,928,576 $941,831 $2,193,644 $1,624,562 $569,082

$35 $2,511,606 $1,687,504 $824,102 $1,919,439 $1,421,492 $497,946

$30 $2,152,805 $1,446,432 $706,373 $1,645,233 $1,218,422 $426,811

$25 $1,794,004 $1,205,360 $588,644 $1,371,028 $1,015,352 $355,676

$20 $1,435,203 $964,288 $470,915 $1,096,822 $812,281 $284,541



Results

Returning power to the grid

Second trolley line required

Negotiated power purchase agreement ~$0.05 per kWh

Avoided cost of power $0.10 per kWh

Can reduce electrical requirements 28% lower

Net-metering scenario most likely

Must weigh increased capital costs against 2% operational cost reduction. Not cost effective below $0.14 per kWh.

Conclusions

Payback period is attractive

Large fleets

Small fleets

Fleet wide operational savings are significant 7.6% worst case (Euclid EH4500)

$3 fuel, $0.20 /kWh electricity

25.6% best case (Euclid EH4500)

$7 fuel, $0.02 / kWh electricity

Additional savings from ramp return line

2% increase in savings

Capital costs doubled

Payback period extended

Break even for ITH Mines Money Knob $0.14 / kWh

Conclusions

Savings are larger for smaller capacity trucks.

More trucks for the same output

Overall cost per ton is smaller for larger capacity trucks.

Economy of scale

Tax considerations are significant

$25 per ton of CO2

$697,182 annually (Euclid EH4500, Grid power)

$942,865 annual (Haulpak 730E, Grid power)

Conclusions

Previously stated benefits from prior studies

Reduced maintenance

Faster ramp times

Reduced fuel consumption


Reduction in required equipment

Details are far better

Trolley assisted haulage is seriously underutilized

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