Resource World Magazine

62 www.resourceworld.com J U N E / J U L Y 2 0 1 7 MININGWORLD IAMGOLD Corp.'s [IMG-TSX; IAGE-NYSE] Essakane Mine located in north-eastern Burkina Faso, West Africa processes more than 12 million tonnes of ore every year. In 2016 the mine produced 377,000 ounces of gold and has a guidance of 370,000 – 380,000 ounces for 2017. The Essakane Mine is hundreds of miles from grid electricity. Production at the mine is powered by a 57MW thermal power plant comprising 11 generators that run on heavy fuel oil account- ing for 30% of operating costs. Over the last several years, the mine has transitioned to pro- cessing harder ore, almost entirely, and this has significantly increased energy consumption at the mine. The company states that, "The deeper we mine in the pit, the higher the portion of hard rock. In 2012, the percentage of hard rock in the ore mix was less than 10%. In 2017, hard rock will account for nearly 100% of mill feed. In anticipation of this the company expanded the power plant, installed a new pre-crushing circuit, ore handling system, SAG mill, ball mill and leach tanks. IAMGOLD considered a variety of energy options to reduce production costs at Essakane. Connecting to the power grid would have required the construction of a 330 km transmission line which would have cost the company more than $125 million to build back in 2013. However, building the transmission line would not have guaranteed a reliable power supply as the country experiences frequent power shortages. As well, the price of elec- tricity tends to fluctuate. IAMGOLD looked to renewable energy solutions in order of offset the increase in power consumption. The company has experience supplementing fuel-based generator power with solar power. IAMGOLD built a 5MW power plant at their Rosebel Mine in Suriname, South America. The company states that, "Generating power from solar is highly affordable as technological advancements have brought down installation and operating costs significantly, allowing for mainstream adaption at an industrial level." Forty years ago the cost of silicon photo-voltaic cells was $77 per watt; in 2015 it was $0.30 per watt. The Rosebel solar project was smaller and IAMGOLD was able to build and manage it. The solar project at the Essakane Mine is, the company says, at least three times as large. The company opted to go with a renewable energy partner who would build and operate the plant and sell power to the mine. On March 6, 2017 IAMGOLD reported that, "The development of a 15MW solar power plant at Essakane got underway with the signing of a power purchase agreement between IAMGOLD Essakane SA, EREN Renewable Energy SA, AREN ENERGY (PTY) Ltd. and Essakane Solar SAS. The agreement is for an initial period of up to 15 years. Essakane Solar SAS, a local entity created by the project developers, will operate the solar power plant that sells the energy to the Essakane Mine." The purchasing agreement under which the electricity pro- duced by the solar plant would be sold to Essakane includes an option to terminate after nine years. If IAMGOLD were to mine beyond the 15 years, the power rate would drop significantly reflecting the payback in earlier years. IAMGOLD's long term renewable energy target is to have 15% of its power generated from renewables within the next few years. Steve Letwin, President and CEO of IAMGOLD, wrote in a paper on the project, that hybrid power solutions work well for energy intensive operations like mining. He adds that, "As devel- opments in energy storage continue to advance it's only a matter of time before renewables account for a much larger share of the energy mix." The economic benefits of the solar project to the company will increase as the price of oil rises. There are other benefits as well. The solar project will displace ~6 million litres of fuel annually or 90 million litres in 15 years. This effectively reduces Essakane's carbon emission by 255,000 tonnes over 15 years. Letwin said, "This project could also add to the already sig- nificant contribution we make to the economy of Burkina Faso as the largest private sector employer in the country. The construc- tion of the solar plant will create local jobs. During construction we could see upwards of 120 new local jobs created followed by potentially 40 or more once in operation." n IAMGOLD to build solar power plant for Essakane Mine by Kathrine Moore

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