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Mining companies are turning to renewable energy

25/10/2019
Source : 9 La Tribune.fr
Categories: Companies

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Replace diesel with solar power plants at mining sites in Africa. The still timid initiative is gaining ground. In question, the failures of the local electricity networks and the drop in prices in solar energy. But this transition requires the adoption of specific provisions. Mining companies are experimenting with producing their own energy from renewable sources, such as solar photovoltaic. The latest to have tried the experiment is the mining company Caledonia Mining in Zimbabwe. In a press release published on October 16, the company announced its project to install a photovoltaic solar power plant at its Blanket gold mine. With a capacity of 12.5 MW, the work should cover the needs energy for the operation of the site."There are currently several projects under study in this area, but few of them have seen the light of day", explains Gilles Parmentier, Managing Director of Africa REN Development, a company specializing in in the development of renewable energies in Africa Read also: DR Congo: kidnappings, ransoms, intimidation,... The new face of the threat to the mining industry In Burkina Faso, the Essakane mine developed by IAMGOLD has set up locally power plant with a capacity of 15MW, while in Mali a similar project led by the gold mining company B2 Gold involves a 30 MW solar power plant.In Ghana, miners are encouraged to develop similar projects: the government plans of r reduce the supply of electricity to mining companies, insofar as these have the means to invest in the production of energy, unlike the population deprived of electricity. Taken individually, the quantities of energy to be covered remain low, but cumulated on an African scale on the thousands of sites, they represent a significant part of the energy consumption of the Continent where the demand remains weakly covered. Contribute to the energy development of African countries The region has the lowest level of energy consumption in the world, according to the Atlas of Africa's energy resources published in 2017 under the direction of UN Environment, AfDB and the FEDA. The document reveals that a third of the African population does not have access to electricity and the Continent, which represents 16% of the world's population, consumes 3.3% of the energy generated in the world. The report also highlights the unlimited potential of the Continent in terms of renewable energies, estimated at 10 TW for solar, 350 GW for hydroelectric, 110 GW for wind and 15 GW for geothermal. The abundance of renewable energy sources positions them as a viable alternative for the extractive industries, which are often isolated, powered by diesel power plants, due to the distance from the supply networks. “The most appropriate type of renewable energy to implement will depend on the site. Photovoltaics in general is the most accessible solution and the easiest to set up. There is also the option of wind power or organic waste with biomass, transformed into energy in the form of methane gas”, explains Jacques Olao, director and Co-founder of African Solar Academy. A “sustainable” solution for the extractive industries Mining companies are often located on isolated sites, far from electricity networks, making any connection difficult. “Those that are connected to the networks highlight a paradox, because they benefit from electricity from countries that are struggling to ensure supply to their population, while companies have the financial capacity to produce their own electricity,” declared Gilles Parmentier. The increasingly competitive costs of solar power in particular should push mining companies operating in Africa to adopt these solutions that are more economically competitive than diesel, reduce their carbon footprint and are part of their CSR policy. According to IRENA's 2019 report covering 150 states, the cost of solar production has fallen by 26%, while storage capacities are constantly increasing. The drop in costs in solar production offers mining companies the opportunity to embark on the production of renewable energies or to call on subcontractors in the sector. “Such investments make the companies in question less exposed to the risks of fluctuations in the price of hydrocarbons”, specifies Parmentier. Focused on short-term goals, mining companies are often wary of investing in renewable energy, put off by the inherent constraints, compounded by the uncertainties associated with mining in Africa. “In the extractive industry, negotiations with the government for the use of non-carbon solutions in terms of pollution should begin as soon as the right to exploit the soil is obtained,” says Jacques Olao. Investing in renewable energies The installation of solar power plants on mining sites is not without difficulties, particularly of a technical and financial nature. The work requires the availability of a certain area. The mines also remain dusty areas favoring the deposit of substances on the solar panels reducing their effectiveness. Solar power plants with an average lifespan of 25 years pay for themselves over the long term, requiring a long-term vision of the project. "A power plant can be profitable over a period of 10 to 15 years compared to other alternative energy sources. This requires a residual life of more than 15 years for the mine and the continuous maintenance of its activities so that it is able to absorb production over this period”. The development of renewable energies by the extractive industry implies the taking of specific provisions, support measures on a case-by-case basis. Read also: Rokhaya Samba Diène: "Senegal is betting on its stability, the efficient organization and good governance of the mining industry" In new mining projects, African states can impose the coverage of part of the energy needs of the mine with clean energies. For existing mines, which already have their diesel power plant, it is possible to find the right time, such as during the renewal of equipment, to switch to clean energy mode, with a view to avoiding additional costs for the mining company, explains Gilles Parmentier. The solution would also lie in the implementation of incentive policies, characterized by a reduction in taxes on renewable energy equipment for mining companies, but also the detaxation of energy generated by solar power plants, even in the event that the energy was generated by an independent company.

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