Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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1) Having just re-listened to the Q2 webcast it seems solar will save 15% of the diesel used for electrical generation. That means, I think, they are burning 146m litres on power generation before they put a drop in the trucks. At "more than 80c/litre" that's 120million dollars a year.
If I understood correctly, there is a brand new power line 30km away and a route to it has already been surveyed for running a pipeline up from the red sea. This has got to be done hasn't it?
2) Could any of the miners here help me with the wider significance of electrifying the UG fleet? Horgan mentioned something about ventilation shafts and I wonder if electric trucks and plant not only save diesel but mean the infrastructure requirement for UG operations is lessened? V curious about this.
Either way both projects would hammer the AISC in the short term. But there is good news, there will be jam - oodles of jam - tomorrow. Or maybe next week. Good luck everyone.
Electrical underground equipment has the advantage of reducing ventilation requirements and the engines are cheaper to run and easier to maintain than combustion engines.
They are however more expensive when purchasing and need infrastructure for charging , although if the Solar plant has the capacity?
In Feb 2018 Centamin said-
Sukari Going Green
...preparation of a feasibility study to assess for the installation of a 15MW solar
power plant on site at Sukari as a lower cost alternative for diesel fuel; and
(further along in the report they add if all goes well they would expand solar as primary power source)
also from the annual report;
NEAR TERM (1-2 YEARS)
...Optimize growth from existing operations by increasing high grade underground mining rates and processing plant upgrades.
...Evaluate potential for additional sources of high grade underground ore at Sukari.
...Continue to replace high-grade underground reserve at Sukari.
...Resource expansion and project evaluation in Burkina Faso and C£te d£Ivoire.
...Continue to evaluate selective M&A opportunities with the potential to develop low‑cost projects.
MEDIUM TERM (3‑5 YEARS)
...Maximize sustainable production profile at Sukari by fully exploiting underground potential.
...Development and first production in Burkina Faso and C£te d£Ivoire, assuming positive project evaluation.
It will cut on an annual basis the mine’s carbon emissions by 60,000 t CO2-e and consumption of diesel by 22 million liters.
The mine will therefore save US$9–13 million annually in the cost of fuel, lower exposure to the volatility in its price, and avoid handling logistics.
The Sukari solar plant will be the largest hybrid solar project at an off-grid mining operation. The massive project is expected to reduce diesel fuel oil consumption by more than 22 million litres per year and lower carbon emissions by more than 60,000 tonnes CO2-e per year. It will also reduce operating costs and increase reliability of the power system. The project is scheduled to be commissioned late in H1 2022.
The solar system designed by Juwi has maximized generation with bifacial solar PV modules and a single axis tracking system, taking advantage of the high irradiance at site. Juwi Hybrid IQ micro-grid technology will enable the integration of the solar and battery system into the existing off-grid network and support the operation of the existing power station. The benefits of the hybrid power solution at Sukari include:
Reducing diesel consumption by an estimated 22 million litres-e per year;
Lowering carbon emissions by an estimated 60,000 tCO2-e per every year;
Reduction of all in sustaining costs;
Reduced exposure to fuel price volatility;
Increased reliability of the power system.
https://www.renewableenergymagazine.com/pv_solar/juwi-to-construct-worlda-s-largest-solar-20210517
Cheers MrT. So solar will displace 22m litres of diesel, but that leaves a 124m litre fuel bill for power generation before they refuel a single truck or excavator. That is a colossal amount to transport let alone pay for (3500 tanker truck loads I make it - 10 tankers of diesel every day on electrical power alone) They can't hook up to the grid quick enough surely?
I have a strong suspicion that you may well get some answers when the H1 interim results are due to be published on the 4th August and also on some of the other issues because, as we are aware the company have committed to defining a decarbonisation strategy this year and work is ongoing .
Not long now so I hope this helps!