Energy production = autonomy

The impact of mining operations on communities is usually extremely positive. When the mines are operating, they are a flurry of activity, and good-paying jobs are plentiful. But when metal prices start to dip and economic reserves are exhausted, mines naturally curtail production. During shutdown, unfortunately, jobs are lost, and reclamation and closure become the focus of activity.

We can’t help the fluctuation in the metals markets, but we can help minimize its impact. Mining companies need to look at new technologies to address their problems. One item that can dramatically reduce costs is on-site power supplies.

Using mine sites for cost-effective clean energy production provides for a consistent and constructive approach to stabilizing mining operations and makes them less vulnerable to market prices. Also, energy produced by wind or geothermal sources reduces our dependence on foreign oil, and this too contributes to a cleaner environment.

Another way to reduce costs is to be vigilant with energy use. Replacing motors with more efficient models can be economical if the cost savings can be amortized. Time spent on energy consumption, scheduling of energy use or just understanding how certain motors work can be time well spent.

In many cases, energy produced from natural resources such as wind has become cost-competitive with traditional sources. These can sometimes be developed in conjunction with mining activities. This makes for an effective use for disturbed land, and good, high-value jobs are created.

BHP Billiton operates the Robinson mine in Ruth, Nev., which has been producing copper for more than 70 years. Five years ago, it was affected by declining prices and the company decided to shut it down. Community leaders and mine operators met to discuss using the mine property to develop a renewable energy project. It was determined that the BHP site could have the potential to house a wind-generated facility.

There are three components for evaluating a particular site for generation — wind potential, availability of transmission, and ease of construction. Generally, all three of these components are readily available on mine sites. With the electric infrastructure in place and generally good construction on site, the developer need only look at existing wind data. Most mines are required to monitor the wind as part of air quality studies. Although most of these studies are done in areas that traditionally are less windy, the data are usually long-term in nature. These data can be correlated to new data that are secured on the mine sites through anemometer installations by the wind power developer. Such was the case with the 50-MW BHP Billiton project.

A further milestone in the development of this project was the signing of a power purchase agreement between the developer and Nevada Power/Sierra Pacific, which took place in December 2002.

It is time for the mining community to give careful consideration to renewable energy production. As mining is one of the largest users of electric power in the state, it is only logical that this industry should look for ways to cut costs. Power production on site is potentially an answer. Clean power production is a plus.

— The author is the president of Nevada-based consulting firm Carlson &Associates.