Proactive Planning Vital for Decarbonised Mines

It is vital that incorporating renewable technologies is considered at a project’s design stage.

How can mining companies ‘future proof’ their projects so they can incorporate advances in mine design that lower carbon emissions?

That question is testing the mining sector like never before. Most mining companies understand the benefits of reducing carbon emissions as part of their environmental, social and governance (ESG) strategy. But planning for that change is complex.

Oliver Shaw, a senior mining engineer at SRK Consulting, said existing conventional mining projects often find it challenging to transition to renewable technologies when they are part way through their mine life, with technologies more viable when used over longer timeframes.

“Some of these systems require significantly different design parameters than those applied for conventional methods,” Shaw told Australian Resources & Investment. “Also, typically these technologies are economically more advantageous when evaluated over longer timeframes. Projects with short remaining mine lives often cannot justify transitioning to the new systems.”

Shaw gives the example of electrification of mining projects and the development of renewable energy sources to power them – a hot topic in the resources sector. 

Electrifying a mine might involve in-pit crushing and conveying (IPCC) systems; ex-pit conveying; trolley-assisted truck haulage technologies; ore sorting; material handling systems, just to name a few. Autonomous mining technologies, which might already be used at the operation, are another advancement that can synergise well with electrification initiatives. 

“It all gets back to planning,” Shaw said. “Even if a company isn’t incorporating electrification or renewable technologies immediately, to future-proof projects they must understand how these technologies would work and apply the associated parameters within their initial mine plans to set the project up for success in the future.”

This is not only an issue for new projects. Shaw said mining companies should consider how established projects can incorporate renewable technologies or how these technologies could be used to aid mine closures.

A mining company, for example, could consider if the design of an open-pit mine will allow for the pit to be progressively backfilled and rehabilitated, or repurposed into a pumped-hydro storage (water battery) facility when the mine eventually closes. These potential options require non-conventional thinking, and early iterative planning.

“Mining companies that don’t do this type of planning are missing opportunities,” Shaw said. “We are still seeing a lot of ‘low-hanging fruit’ across the industry. By implementing best practice mining processes, companies can make projects more efficient and have a more positive effect on the surrounding environment.’

Shaw said some mining companies might not realise the potential benefits of incorporating ESG thinking into pit-shell selection, pit staging, life-of-mine scheduling, progressive mine closure and other aspects of mine design. 

Benefits include reducing overburden removal requirements or using overburden for other aspects of mines, such as pit backfilling, tailing storage facilities or infrastructure foundations. 

Appropriate application of fundamental mine planning principles can complement ESG aspects. For example, less economic material being sent to waste dumps, less sub-economic material being processed, and less unnecessary rehandling of materials, all result in less energy used. 

Ensuring mine design can incorporate renewable technologies is also about risk management. Miners that lag on ESG performance could find it harder to attract investors or face a higher cost of capital.

“No mining company wants to be in a position where it has to quickly incorporate renewables technologies to lower carbon emissions at their project – only to realise that it is too costly to do so, or that the current mine setting does not enable this transition,” he said.

Shaw worked on a study for an IPCC and trolley-assisted truck-haulage system at a large open-pit mine in South East Asia, but there were issues. The trolley system was viable, but the IPCC was unviable due to remaining mine life and tonnage issues.

“We evaluated an IPCC solution for a project when the mine was around 70 per cent of the way through its life,” Shaw said. “Had an IPCC system been evaluated at the start of the project, it might have been justified. The point is: companies need to do this planning early in the design process.”

De-risking projects

Mining projects should have a comprehensive mining/technology options study as part of the normal project study cycle. Typically, this options study is completed between or as part of the scoping and pre-feasibility studies for a project. 

“Mining companies should engage in a structured planning process to consider how they de-risk future projects or ensure future opportunities are left on the table,” Shaw said. “If not well managed it can become a challenge to make this transition later in the mine’s life.”

Shaw said fundamental design principles of renewable technologies should be incorporated into projects, even if the technologies are not intended to be implemented from the start of mine life. 

“It’s all about creating and maintaining options,” he said. “Through strong upfront planning processes, the mining company knows its project can operably transition to electrification and other renewable technologies when the time is right. There are fewer potential surprises and setbacks.”

Examples of this planning include ensuring there is suitable pit staging and sequencing to facilitate IPCC and/or trolley-assist implementation at mines. Having sufficient ramp and mining widths to facilitate an autonomous fleet is another consideration, as is ensuring suitable stockpiling configuration and size for managing different grade bins.

Shaw said modelling and reporting of greenhouse gas emissions (to support Scope 1, 2 and 3 GHG emissions) can also be undertaken concurrently with the development of the mine plan, at all levels of the project study. 

“With some key input parameters, GHG emissions can be modelled as part of the development of a project’s life-of-mine production schedule.”

Growing use of options studies 

More mining companies are incorporating technology options studies into their planning process. 

“We’ve seen a lot more of these studies in the last few years – it’s definitely something we recommend and can support,” Shaw said. “Mining companies that design projects without thinking sufficiently about how renewable technologies could be incorporated are taking a significant risk that could be very costly in future years.”

Advances in mining technologies are enabling better incorporation of ESG thinking into mine design. 

“Only recently have some key industry tools been configured to allow in-depth consideration of more modern mining practices,” Shaw said. “There are more tools available to help mining companies plan for the incorporation of renewables.”

The key is being prepared to challenge conventional thinking. 

“Mining management teams and boards must consider what technologies will be required at their mine in the next 10, 20 years and beyond, and whether the existing mine design can incorporate those expected changes,” Shaw said. 

“They should ask: What can we do today to ensure our projects can adapt in the future as ESG expectations evolve? 

Seven ideas for mine closure planning and implementation

1. Know what’s at stake: Recognise that future-proofing and de-risking mining projects must be done early in the study/planning cycle. It can be difficult, costly or uneconomic to incorporate electrification and renewable technologies later in the mine’s life. 

2. Be structured: Ensure that a mining/technology options study is a normal part of the planning process. This study considers how technologies can be incorporated in the future and should be done as part of or between the scoping and pre-feasibility studies.

3. Think ahead: Consider what technologies could be incorporated in a mine during its lifetime. Be open-minded to possibilities and challenge conventional thinking. The application of renewable technologies in mining is moving quickly.

4. Consider different mine stages: How could renewable technologies be incorporated into a new project or help extend an existing project? How could renewables aid mine closure and vice versa and create opportunities for the company and communities?

5. Create options: Design with the future in mind. Even if renewable technologies are not immediately incorporated into a project, ensure the project’s broad design parameters can accommodate these technologies in the future. 

6. Manage risk: Embed this planning within risk management thinking. What are the organisation’s main ESG risks and how could greater incorporation of technologies in a project help mitigate those risks? 

7. Collaborate, communicate: Use mining engineers skilled at bringing together different stakeholders for this planning. Engage with external stakeholders and communicate the results of mining options/technology studies, so that stakeholders know the project has been designed to incorporate new technologies in the future that will reduce emissions from the mine and achieve other ESG goals.