Engineering & Mining Journal

MAR 2013

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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MINE POWER the mine with electricity generated in China. Commissioning of the concentrator began soon thereafter, and Oyu Tolgoi remained on course to reach commercial production in the first half of 2013. On the Grid, or Off? Other project power arrangements generally aren't nearly as complex or politically burdened, and most involve relatively straightforward engineering decisions— but are equally as important for success. However, not all projects are able to connect to a pre-existing grid, and some may gain eventual grid access but experience connection delays and possible project slowdowns until the delivery infrastructure is built. Others may be located so far away from the grid that diesel-powered generation is the only option. And, there are instances where diesel-generation economics are simply good enough to make it the best choice. For example, Wärtsilä, a major global supplier of diesel-driven power plants, recently signed a turnkey contract to engineer and build a major power plant at Nouakchott, Mauritania in West Africa. The contract is valued at €128 million ($166.8 million) and represents the most important dual fuel power project currently being undertaken in West Africa, according to Wärtsilä. The plant's generating capacity was not disclosed. The plant will be powered by eight Wärtsilä 50DF dual-fuel generating sets, which run on both natural gas or conventional liquid fuels (heavy fuel oil and light fuel oil). The intention is to operate the power plant on natural gas from the Banda offshore oilfield, some 80 km from the Mauritania coast. This supply is scheduled to be available in 2015. The order was placed by the state utility, Société Mauritanienne d'Electricité (Somelec). When completed, power from the plant will be fed to the national grid and will also be used to provide energy for the country's growing mining industry. The delivery of the equipment and completion of all construction work is estimated to be finalized within a 24-month time frame. Wärtsilä is also negotiating a long-term Operations and Maintenance (O&M;) contract for the power plant, and to date has delivered several other power plants to Mauritania with a total generating capacity of more than 170 MW. Wärtsilä believes the key to its success, and to increased future business, is 60 E&MJ; • MARCH 2013 being able to provide 'smarter' power generation choices by meeting customers' demands for flexibility in powergeneration capabilities that include load cycle variations (base, intermediate and peak) to fuel options (diesel, natural gas, heavy and light fuel oils and biofuels). It also helps to offer solutions that can be quickly implemented, according to the company. In 2012, Wärtsilä won a contract to supply equipment for a natural-gas fueled capacity expansion at the McArthur River zinc mine power plant in Australia's Northern Territory. The deal included six of its 34SG engines, providing a combined output of 53 MW, and related engineering services. Equipment delivery was scheduled to be completed by early 2013, and the power plant is expected to be fully operational by the end of the year. EDL NGD, a subsidiary of Energy Developments, will construct the project and sell the electricity generated by the plant to McArthur River Mining, a subsidiary of Xstrata. EDL NGD said it was impressed by Wärtsilä's proposal to supply an efficient power plant solution on a fast-track basis. Generating Market Growth With vast regions of the planet relying solely or primarily on diesel-powered generation for electrical needs, the future appears especially bright for manufacturers of the big diesel engines that are commonly used for both mobile and stationary power throughout the mining industry—Caterpillar, Cummins and MTU. A 2011 Frost & Sullivan Research analysis of the power generation market for just the Australian mining industry noted that the rapid growth of that industry in recent years had driven up power consumption and the 'wear and tear' rate of generator sets, consequently resulting in higher demand for replacement sales and services. In addition to the opening of new mines, redevelopment and capacity expansions at existing mines was also driving the demand for power, and the remote location of many Australian mine sites require onsite generation to provide power. Consequently, this already mature market, according to Frost & Sullivan, is likely to grow at a compound annual growth rate of 6.7% from 2010 to 2016. Other less-developed regions in Asia and Africa that have been attracting mining interest are also expected to energize sales of large generator sets, but full The 16-cylinder QSK95, the first model to be introduced in a new high-horsepower diesel and gas platform from Cummins, powers the new C3000 Series genset from Cummins Power Generation. genset order books aren't assured for the brand-name suppliers: As the Frost & Sullivan analysis points out, the growing popularity of cheaper genset imports from China will also compel market leaders to rethink their business strategies. Offering lower-priced products at sometimes compromised quality, Chinese vendors could set off a price war that might ultimately lower market revenues. The analysis suggests that offering energy-efficient generator sets at competitive prices, as well as maintaining close relationships with key project stakeholders, will help suppliers gain a competitive edge in the market. Direct consultative sales also enable suppliers to establish a sustainable relationship with project owners. A quick review of recent mining genset-related product and technology developments seems to confirm that not only are the major suppliers designing more cost-effective products, they're also working more closely than ever with customers to build energy-efficient technology into both stationary and mobile equipment designs. Caterpillar, for example, not only recently introduced its C175-20 genset— producing up to 4 MW in single configuration and providing the highest power density of any current high-speed generator set—but also has developed off-thegrid technology that will permit mining companies to power a Cat 7495 or 7495 HF electric rope shovel on just 4 MW of generator power, compared with standard practice that uses multiple generators with a total of 8 MW or more capacity to achieve rapid response when peak power is required. In addition to the increase in maintenance and fuel costs associated www.e-mj.com

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