Engineering & Mining Journal

APR 2016

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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FROM THE EDITOR 2 E&MJ; • APRIL 2016 Mining Media International—Editorial Offi ce 11655 Central Parkway, Suite 306; Jacksonville, Florida 32224 USA Phone: +1.904.721.2925 / Fax: +1.904.721.2930 Editor-In-Chief—Steve Fiscor, sfi scor@mining-media.com Managing Editor—Russ Carter, rcarter@mining-media.com European Editor—Simon Walker, simon.emj@btinternet.com Latin American Editor—Oscar Martinez, omartinez@mining-media.com South African Editor—Gavin du Venage, gavinduvenage@gmail.com Australian Editor—John Miller, john@asiaminer.com Assistant Editor—Jennifer Jensen, jjensen@mining-media.com Graphic Designer—Tad Seabrook, tseabrook@mining-media.com Mining Media International—Corporate Offi ce 8751 East Hampden, Suite B1; Denver, Colorado 80231 USA Phone: +1.303.283.0640 / Fax: +1.303.283.0641 President/Publisher—Peter Johnson, pjohnson@mining-media.com VP-Sales and Marketing—John Bold, jbold@mining-media.com Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, vmatteucci@mining-media.com Western U.S. & Canada, Sales—Mary Lu Buse, mlbuse@mining-media.com Scandinavia, UK & European Sales—Colm Barry, colm.barry@telia.com Germany, Austria & Switzerland Sales—Gerd Strasmann, info@strasmann-media.de Australia & Asia Sales—Lanita Idrus, lanita@mining-media.com Japan Sales—Masao Ishiguro, ishiguro@irm.jp Indonesia Sales—Dimas Abdillah, dabdillah@mining-media.com Latin America Sales—Sylvia Palma, sylvia@downeyassociates.cl Classifi ed Advertising—Kirk Carbo, kcarbo@mining-media.com Production Manager—Dan Fitts, dfi tts@mining-media.com Reliable, low cost power is taken for granted in most of the developed world. As society's fascination with de-car- bonization grows, the debate becomes more intense, espe- cially for the mining business. Mines and mills produce a viable product, provide meaningful, high-paying jobs, and they also consume a lot of power. Many mining companies produce fuels, such as coal, oil sands, and uranium, as well as the metals and minerals that would be consumed for renewable power generation. In some parts of the world, coal has become a four letter word and E&MJ; has a fair share of readers who are not happy with that connotation. Proposed environmental policies and a preponderance of natural gas have already created a huge shift in coal consumption and production in the U.S. The U.S. coal industry seems to be following in the footsteps of the U.K., and similar changes are taking place in Canada. In this edition of E&MJ;, the energy topic surfaces several times. In "Discussing Energy Options" (See p. 58), Simon Walker reports on views expressed and experi- ences presented at a recent London conference on the role of renewables. While pro- ponents of renewables showcase some of the steps the mining industry has taken, mining executives provide a sobering dose of reality. Renewable energy is expensive. It requires a signifi cant investment that may or may not be recouped. Energy storage is a problem as the systems cannot run 24/7. At a time when mining companies are looking to lower costs and diesel fuel prices are relatively low, mining companies are fi nding it hard to justify renewables unless they are forced or offered subsidies. Of course, if a mining company operates in a place where the sun shines, the wind blows and the water fl ows, why not take advantage of the advances in renew- able energy and offset some of the mine's power demand? One of the presentations at the upcoming Euro Mine Expo (see p. 65) discusses the possibility of a fossil-free mine. Similarly, in early April, Swedish Steel AB, Swedish iron-ore miner LKAB and Sweden's power provider, Vattenfall, announced they were launching an initiative to solve the carbon dioxide (CO 2 ) problem in the Swedish steel industry. Together, they will work to develop a steel production process that emits water rather than CO 2 . They will likely succeed as long as they can produce steel cost-effectively. Their ace in the hole is Vattenfall, which produces about half of Sweden's electricity from emission-free sources, such as nuclear and hydropower. Renewable energy represents the icing on the cake. Some countries, however, have no cake and renewables are simply not an option. The developing world needs access to affordable electricity. Some of these regions mine or import carbon-based fuels and they couldn't care less what the greens are espousing from their ivory towers. Others would like to do the politically correct thing, but they know the high cost of renewable power will eat into the profi t margins of factories and mines, and the social benefi t the grid provides. Should we throw the baby out with the bath water or should utilities invest in clean sensible power from fossil fuels? What you believe matters. Alarmists preach conservation, while deniers proclaim man-made global warming as bunk. The debate has become as polarized as politics. As mining engineers develop and maintain megaprojects, they have to make the most sensible economic choice while consciously following their beliefs. Sadly, the facts are often clouded in misinformed beliefs rather than science. The Energy Debate Steve Fiscor/Editor-in-Chief Steve Fiscor, E&MJ; Editor-in-Chief, sfi scor@mining-media.com www.mining-media.com Engineering & Mining Journal, Volume 217, Issue 4, (ISSN 0095-8948) is published monthly by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining- media.com). Periodicals Postage paid at Englewood, CO, and additional mailing offi ces. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining-media.com. Current and back issues and additional resources, including subscription request forms and an editorial cal- endar, are available on the World Wide Web at www.e-mj.com. SUBSCRIPTION RATES: Free and controlled circulation to qualifi ed subscribers. Non-qualifi ed persons may subscribe at the following rates: USA and Canada, 1 year, $82.00, 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00, 2 year, $249.00 surface mail (1 year, $191.00, 2 year, $352.00 airmail delivery). For subscriber services or to order single copies, write to E&MJ;, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of selected archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to E&MJ;, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at copyright.com. EXECUTIVE OFFICE: Mining Media, Inc., 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com COPYRIGHT 2016: Engineering & Mining Journal, incorporating World Mining Equipment, World Mining and Mining Equipment International. ALL RIGHTS RESERVED.

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