Resource World Magazine

56 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 6 Flyn McCarthy, P.Eng., former Corporate Energy Manager at Goldcorp, as Principal of SysEne Consulting Inc., is currently assisting mining companies in understanding the risks of carbon pricing and opportunities available in lowering their energy costs through a systems approach and practical innovation. At SysEne, McCarthy works with companies in various juris- dictions and development stages to identify risks and provide innovative energy solutions from low carbon power supply to optimal site energy use. " In an interview, McCarthy told Resource World, "Mining com- panies not only need to consider their energy consumption, they also need to consider the political situation regarding carbon pricing and taxation when they choose mine site power supply options." He suggested that since carbon pricing is not the same around the world, mining companies need to ensure that they under- stand carbon pricing risks. "What does carbon pricing mean for their competitiveness?" McCarthy said that many smaller mining companies don't know the risk and do not have energy and GHG programs to miti- gate the impacts. "So we bring them ideas and strategies for risk reduction through energy supply options, innovative technology, operational improvements, and energy savings," he said. He added that "SysEne has also worked with governments to help them understand the particular industrial challenges and how the mining industry will be impacted by carbon pricing." Carbon pricing, the price per ton of greenhouse gases emitted from your operations, impacts all mining operations although some more than others depending on power supply, diesel use, and mining methods. "Open pit mining typically has a higher carbon footprint compared to underground mining," McCarthy noted. "With the whole mining industry moving toward lower ore grades, this can mean a higher carbon intensity. Higher energy intensive mining operations will be a much more challeng- ing situation in the future with higher carbon pricing," he said. McCarthy said that in addition to mine site upgrades, SysEne can also work with mining companies from the start of mine design to develop the most energy efficient opera- tion whether the mine is connected to an electric grid or is a remote operation. "We might develop diesel electric generation, or maybe utilize LNG in combination with a renew- able energy supply," he said. "We try to achieve the best energy solution with the lowest cost and the most practical, site-accepted implementation. Some locales might have a better wind resource, a better solar resource or maybe good hydro power. There are practical solutions that include renewables when it comes to energy generation," said McCarthy. "For example, the Diavik diamond mine generates about 9 MW of wind-generated power which equals about 11% of their power needs. McCarthy said that for the most part mining companies are now accepting the idea of using an improved mix of energy sup- ply sources. "Their project's viability is partly based on power costs which can be as high as 30% of their All-In Sustaining Costs, and with further risks with low ore grades and increased carbon taxes. Miners are also concerned with capital costs as there are substantial pressure on capital investment budgets. Some renewable energy companies are responding by offering power purchasing agreements where the miner doesn't need to pay all that capital up front but can buy it over time from the renewable power providers. We are finding that the services we provide in mining energy, GHG, and risk analysis, followed by practical solution design, are very high value with excellent returns." n SysEne Consulting helps miners go green and save money by Ellsworth Dickson MININGWORLD Flyn mcCarthy, p.eng., principal of Sysene Consulting Inc.

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