PV-Diesel-Hybrid projects in mining outside Australia

Thomas Hillig at RAPS, Melbourne 2016

Background THEnergy

About… In the press… Select customers…

COUNTRY LOCATION YEAR TYPE SIZE [MW] MINING COMPANY

CHILE PUNTA COLORADA 2011 WIND 20 BARRICK GOLD

CHILE EL TESORO 2012 CSP 10 MWTH EL TESORO

CHILE CODELCO 2012 PV 1.1 CODELCO

CHILE ANDACOLLO 2013 PV 1.3 MINERA DAYTON

CHILE EL ÁGUILA 2013 SOLAR 2 QUIBORAX

CHILE EL ARRAYÁN 2014 WIND 115 ANTOFAGASTA MINERALS

CHILE POZO ALMONTE, TARAPACÁ

2014 PV 25.4 COMPAÑÍA MINERA DOÑA INÉS

DE COLLAHUASI

CHILE COPIAPO 2014 PV 100 CAP

SURINAME BROKOPONDO 2014 PV 5 ROSEBEL GOLD MINES N.V.

CHILE JAVIERA 2015 PV 69.5 ANTOFAGASTA MINERALS

Source: THEnergy plant database for “Renewables & Mining”http://www.th-energy.net/english/platform-renewable-energy-and-mining/database-solar-wind-power-plants/?CT

Status quo renewables for mining

Country Location Year Type Size [MW] Mining company

ARGENTINA VELADERO 2008 WIND-DIESEL 2.0 BARRICK GOLD

CHILE EL TOQUI 2011 WIND-HYDRO-DIESEL 1.5 NYRSTAR

MAURITANIA NOUADHIBOU 2011 WIND-DIESEL 4.4 SNIM

SOUTH AFRICA THABAZIMBI 2012 PV-DIESEL 1.0 CRONIMET

CANADA LAC DE GRAS 2012 WIND-DIESEL 9.2 DIAVIK DIAMOND (RIO TINTO)

CANADA KATINNIQ 2014 WIND-DIESEL 3.0 GLENCORE

TANZANIA NEW LUIKA MINE 2014 PV-DIESEL 0.06 SHANTA MINING COMPANY

AUSTRALIA WEIPA 2015 PV-DIESEL 1.7 RIO TINTO

AUSTRALIA DEGRUSSA MINE 2016 PV-DIESEL-HYBRID 10.6 SANDFIRE RESOURCES

TOTAL 33.5

Source: THEnergy plant database for “Renewables & Mining”http://www.th-energy.net/english/platform-renewable-energy-and-mining/database-solar-wind-power-plants/?CT

Status quo renewables for mining

Country Location Year Type Size [MW] Mining company

SOUTH AFRICA THABAZIMBI 2012 PV-DIESEL 1.0 CRONIMET

TANZANIA NEW LUIKA MINE 2014 PV-DIESEL 0.06 SHANTA GOLD

TOTAL 1.06

Source: THEnergy plant database for “Renewables & Mining”http://www.th-energy.net/english/platform-renewable-energy-and-mining/database-solar-wind-power-plants/?CT

Status quo PV-diesel-hybrid outside Australia

Thabazimbi

Thabazimbi mine

• Location: South Africa

• Mining process: chromium

• Open-pit mine

• CRONIMET Mining

• Installed Diesel Power: 1.6 MVA

• Voltage: 525V

• Annual Diesel consumption: 1.9 million liters/yr

• Annual Diesel Fuel Cost: $2.18 million/yr

• No grid connection

• Built in 2012Source: CRONIMET

PV installation

• Built in 2012

• Installed PV Power: 1 MWp

• Annual PV Energy: 1 800 000 kWh

• Ratio of PV to Total Energy: up to 30%

• Annual Diesel Savings: 450 000 liters

• CRONIMET Mining Power Solutions

• Solea

• SMA Fuel Saver

Thabazimbi

Source: CRONIMET

Source: CRONIMET

Thabazimbi

New Luika Mine

New Luika Gold Mine

• Location: Luika

• Mining process: gold

• Mine inaugurated in 2012

• Shanta Mining Company

• Originally 6 x 0.9 MW rental diesel gensets

• Upgraded to 4 x 0.75 MW HFO gensets + 2 x 0.9MW diesel gensets

• HFO at $0.66/l vs diesel at $0.97/l

• 63 kWp PV rental system

• Plans to expand to 1 MWp / 5 MWp (PPA offered for $0.15/kWh)

Source: Redavia

New Luika Mine

New Luika Gold Mine

• Semi-mobile „pre-configured system“

• No foundations – only level cleared area

• 3 months trial period

• 2 year PPA inclusive O&M

• Integrated with HFO power plant

• Hydroelectric also under evaluationSource: Redavia

Momentum for off-grid renewables

NDA: Investor must not be revealed

THEnergy does project screening

Cooperation started with workshop on hybrid energy

“sweet spot”: mEUR 10 – 15 equity investment

Equity to be invested within 3 years

Double digit return on equity expected

100% equity and later refinancing possible

Momentum for off-grid renewables

Opportunities with mines Projects under development

Mining companies Project developers

Insights during the project screening phase

fromproject

screening

Many attractive projects under development

Parental guarantees are a main barrier

Many projects for “junior” miners

Important role of local project developers

Project development process changes

Oil price

Low oil-price and anticyclical business strategy

Pressure on electricity price in PPAs

Expectation: oil price drop temporary

Renewable energy commitment is long-term

Issues often psychological

Decision should be based on expected oil price

Contact details

contact: thomas.hillig@th-energy.net

newsletter: http://www.th-energy.net/newsletter-1/

Platform “Renewables & Mining” http://www.th-energy.net/mining