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Mitigating the Impact of Carbon Pricing

Nearly a year after the introduction of Australia’s carbon pricing mechanism, mining companies still have many opportunities to reduce the impact on operating costs. Fortunately, there are a range of methods by which energy efficiencies can be achieved across all areas of operations.

 

Energy efficient mining

The majority of emissions from mining are generated by the combustion of fuels for electricity generation and off-road vehicle and equipment use. The combustion of fuel for these activities produces greenhouse gases. Improving energy efficiency directly results in reduced carbon emissions, and in most cases, reduced operational costs.

Improved energy efficiency in mining includes optimisation of operations, road design and facility layout; applying energy efficient technologies; efficiencies in vehicle and equipment movement; and improving energy management, maintenance and user control.

Energy saving opportunities for the crushing circuit include optimising drill and blast operations to reduce rock size; in-pit crushing or minimising rehandling of ore in stockpiles; and optimising payload management.

Efficiencies are also possible in support services, for example optimising and maintaining compressed air systems to reduce loss due to leakage and automating mine and waste water management.

 

Milling and processing

Milling and processing efficiencies can be achieved through selecting appropriately sized equipment; optimising circulating loads in mills; selecting energy efficient technology in process design; and locating equipment to reduce distances to be covered by trucks, conveyors and pipework.

There is also significant potential in using expert systems and enhanced controls to achieve improved energy performance and productivity.

 

Industry assistance

Some mining companies may be eligible for industry assistance for some parts of their processing operations under the Jobs and Competitiveness Program or for eligible manufacturing processes that occur at the facility, the Clean Technology Innovation Program.

In New South Wales, mining companies are incentivised by the state’s Energy Savings Scheme through the creation of energy savings certificates for eligible energy improvement projects that reduce electricity consumption.

Companies should stay informed of how legislative requirements and funding opportunities are evolving, and identify possible mechanisms that can support and co-fund their energy and carbon management initiatives.

Improving energy and carbon performance makes good business sense over all stages of company projects, with the net result being to decrease operating costs and enhance the reputation of mining companies as responsible corporations.

 

For more information on achieving energy efficiencies, contact Kate van Namen, Senior Energy Specialist, Golder Associates on (08) 9213 7421 or via email at kvannamen@golder.com.au.

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