Energy efficiency is key to good corporate citizenship

Reportedly, the mining industry takes up about 18% of Eskom’s capacity1, which makes it one of the country’s most intensive energy users, besides the reported 49%1 that industry consumes. This same statistic makes mining one of the ideal sectors for potential energy savings, and substantial opportunities exist for reducing demand on the national electricity grid.

For these same reasons, the mining sector is one of the focus areas for energy-efficiency improvements of the Southern African Association for Energy Efficiency (SAEE), which led to various initiatives such as establishing the Mining and Industrial Energy Optimisation chapter that travels countrywide, educating mines and industry on the efficient and optimal use of energy.

The Council for Measurement and Verification Professionals of South Africa is an independent measurement and verification (M&V) body that represents the M&V industry and ensures the quality of M&V services and service providers are credible, trustworthy and transparent, particularly as the government has now released the proposed energy efficiency tax allowance for public comment to encourage the largest users of energy to implement energy-efficiency measures, specifically targeting mines and industry.

In addition, the Southern African Energy Efficiency Convention (SAEEC2011) and exhibition annually dedicates a mining and industry breakaway session packed with informative presentations and knowledgeable speaker.

To ensure local skills development, the SAEE’s affiliated trainer, the Energy Training Foundation, has effectively trained a few hundred energy professionals to international standards, who can serve the energy-intensive industries to achieve positive energy efficiency results.

Credit has to be given where it is due, and for this the SAEE Energy Awards programme recognises outstanding accomplishments of individuals and companies in the energy field. It is viewed as an important aspect in furthering its overall mission, which is to promote the scientific and educational interests of those engaged in the energy industry and to foster action for sustainable development. In this way, those who receive recognition can be encouraged to continue with their energy-efficiency initiatives and, at the same time, serve as role models for others to follow.

The SAEE’s Annual Banquet and Awards Ceremony, which marks the launch of the SAEEC2011, is a prestigious event where the awards are presented in the categories of Energy Excellence, Energy Company of the Year, Energy Newcomer of the Year, and Energy Project of the Year.

The Excellence Award warrants special mention, as the most recent award was presented to the mining giant, AngloGold Ashanti. It is a multifaceted award given to a company or individual that not only made significant contributions toward improving energy efficiency and reducing carbon emissions, but also has managed either to devise innovative means of conservation, or advanced and expanded access to power and energy in southern Africa in a sustainable manner.

Together with the mining sector as a whole, AngloGold Ashanti faces specific challenges in increasing energy efficiency at its operations.

Firstly, any improvements in energy performance tend to be eroded quickly as mines mature. Energy consumption typically increases over the life cycle of an operation, as mining progresses to lower depths and more complex and lower grade areas of an orebody.

Secondly, as infrastructure upgrades do not take place frequently, there are few opportunities to introduce step changes in energy efficiency at the various operations.

Finally, currently available clean energy alternatives that meet requirements for 24/7, secure, reliable supply tend not to be economically nor technically viable.

These factors can often stifle progress toward the achievement of desired energy-efficiency targets in the mining industry.

In an effort to reduce its energy consumption to the extent that it was still technically and economically feasible, AngloGold Ashanti focused its attention over the past few years on improving energy performance across its operations by taking a systems approach instead of a piecemeal approach.

Although a piecemeal approach realises energy savings, a systems optimisation approach ensures far greater and more sustainable savings for the same investment, as it brings together all the major plant components and processes, and considers these as one inter-linked system that needs to function optimally.

The combined result is synergistic and resultant savings that far exceed the sum of the parts.

Having achieved electricity savings to the order of 1 044 gigawatt-hours – amounting to an extraordinary R180 million – between the years 2005 and 2008, AngloGold Ashanti has, without a doubt, proved that impressive financial results can be achieved through energy efficiency measures.

Not only have these energy efficiency measures been implemented, but they have also been sustained and subsequently continued to grow and benefit the company.

Since 2009, the company has begun implementing projects that will save an additional 23 megawatts of electrical demand; furthermore, other projects that could potentially result in a further 7MW of savings are currently under investigation.

Some of the projects that allowed AngloGold Ashanti to scoop the 2010 Excellence Award included optimising the use of motors, drives, pumping systems, machines, valves, winders, air conditioning, and compressors, refrigeration systems, among others.

One of the more obvious energy-saving measures taken was that of replacing incandescent lamps with compact fluorescent lamps – run parallel with a maintenance-based replacement strategy, to ensure the project provides continuous energy savings.

Headquartered in Johannesburg, South Africa, with 20 operations on four continents and several exploration programmes in both the established and new gold producing regions of the world, AngloGold Ashanti is truly a global ‘powerhouse’ with global influence.

With such a large sphere of influence and capacity for sustainable change, its commitment to becoming a responsible organisation is inspiring, and one that the SAEE hopes others will aspire to as well.

The SAEE believes organisations that fulfil their obligations and duties as global or local entities – ensuring their behaviour reflects values and concern for stakeholders, employees and the communities and environments at large – make for deserving candidates for the SAEE Energy Awards Programme.

Far from resting on its laurels, AngloGold Ashanti is continuing to make improvements to its operations, and some current priorities are to embed comprehensive energy performance monitoring practices within the business process framework, in order to set site-based targets for energy performance for inclusion into its 2012 business plan; to make the energy benefits from business improvement projects explicit; and to develop processes for better sharing of information internally on energy performance; and, where feasible, to adopt the latest technologies to minimise fuel consumption of new and existing assets.

So long as the mining and industry sectors continue to offer some of the greatest potential for energy efficiency improvements and the subsequent promise of energy consumption reduction, the SAEE will continue to focus much of its efforts on supporting and encouraging these sectors to make the changes necessary to bring about sustainability within the energy field.

Professor LJ Grober

SAEE president

Reference

1. Energy Efficiency Made Simple Volume II, 2009, published by Crown Publications.

The SAEE is one of 70 international chapters that form part of the American Association for Energy Engineers. The SAEE aims to become the association in southern Africa that brings together all energy stakeholders in the region, and it has already come a long way in achieving this goal of consolidation. 
The SAEE is a non-profit organisation that seeks to further the economic and energy sustainability goals of other energy role-players in our country by providing various resources and an active support and networking system.

Some of the main activities with which the SAEE is involved include: the organisation of technical events where the latest information relating to energy efficiency is disseminated; the participation in and organisation of public events in order to create greater awareness on energy efficiency and related issues; the accreditation of various energy-efficiency training programmes; the facilitation of energy training and capacity building; and the promotion of energy-efficiency initiatives.

For more information on the SAEE, log on to www.saee.org.za or contact Danielle Badenhorst on 018 293 1499 and e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .