What you need to know about vital changes in the Australian mining industry
Industries around the world are being reshaped every day by the need for urgent environmental reforms. Though the idea of companies introducing green initiatives is not a new concept, many leading names have been prompted to shift their approach in the wake of the net-zero greenhouse gas emission targets outlined in the Paris Agreement (2016). In Australia especially, strengthening and improving our environmental protection laws has become a vital priority in the past few years, with major industries placing greater emphasis on becoming eco-friendly as a result.
The importance of finding inventive and modern technical solutions to effectively adapt to the challenges ahead has never been greater. One such solution is electrification. However, making the switch to electrification is no easy feat, and is a challenge the Australian mining industry is tackling head on every day. As one of Australia’s most profitable sectors, mining has gradually committed to green energy mining through primarily using electrical equipment in their operations.
How is equipment electrification changing mining?
It cannot be understated just how important mining is to sustaining Australia’s economic strength as a nation. The mining sector accounts for approximately 10% of Australia’s total energy use. Notably, energy costs consume 20%-33% of mining operating costs. Managing these effectively is key to running more efficient, safer and sustainable mining operations, be it underground or open-pit mining. However, guiding the transition to mining electrification is a complex challenge that demands a concerted investment into infrastructure, technologies and hardware. On top of this, changes to processes, structures and operations will have to coincide with developing the skills of new and current workers.
For several years, the mining industry has relied on the use of predominantly diesel-powered vehicles for heavy equipment and machinery to transport materials between mining sites. In an effort to lessen this operational dependency, the Federal Government is taking strides by funding the Future Battery Industries Cooperative Research Centre (FBICRC). This centre has been critical to guiding mining’s future and to driving sustainability initiatives by unveiling the Mine Operational Vehicle Electrification (MOVE) Project.
What is MOVE & how will it change the mining industry?
Established in 2023, the MOVE project will use technology to assist and educate Australia’s mining industry throughout the process of adopting greener and more efficient battery-supported electric vehicles (BEVs). Though electric vehicles are known to generate higher capital costs, they are critical to preserving the safety of workers as they eliminate underground diesel emissions. Moreover, ventilation requirements are reduced, which lessens the time allocated to underground mine development and operating expenses.
With mining automation on the horizon, adopting electric equipment will benefit mining companies seeking to minimise maintenance costs and improve equipment durability on the road to the future. As a world-first, MOVE is designed to give the mining sector the motivation to fast track its efforts toward decarbonisation. Using the latest technology will encourage efficiency and decision-making in the areas of operation duration and deploying BEVs, and drive mining toward a greener future.
How are major miners adapting to electrification?
Adapting to the demands of electrification requires investment in infrastructure, technologies, and in upskilling your workforce. The MOVE project has found that improving these areas will be critical for the mining industry going forward, having uncovered a significant gap in the design, operation and implementation knowledge of design, operation, and implementation of fleet electrification within it. In order to maximise the potential of its move toward electrification, mining companies must bring to fruition a whole-of-system design and operational tools to set an economically viable precedent for the future.
Training and developing your workforce to be able to meet the safe work standards in an electric mine is crucial. Though it may appear daunting at first, navigating this can be achieved in many ways. For example, training programs that cover topics such as battery selection and specification, safety, maintenance and operation of batteries, optimal system design and daily operation under renewable, power electronics, battery storage and microgrid technologies can be hugely advantageous to give staff practical experience.
There are bound to be challenges on the road to electrification, but the Australian mining industry is in a strong position to take the lead on the endeavor. By fundamentally rethinking and redesigning the way mining operations are conducted, as well as preparing a committed workforce for the next stage in mining’s evolution, the industry will be benefited in numerous ways, including:
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Reducing operating energy costs: A fully electrified mine can decrease energy costs from anywhere between 30% and 50%. Electrifying allows you to eliminate fuel transportation, required infrastructure, and onsite storage, as you are embracing equipment that ensures you can effectively manage the site’s energy consumption.
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Minimising operating maintenance costs: Compared to diesel vehicles, BEVs have substantially fewer moving parts. By using electric vehicles, companies can expect to see an approximate 25% reduction in maintenance costs, and will find greater opportunities for digitisation, monitoring and measurement.
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Lessening capital and operating ventilation costs: Electrifying mining operations removes diesel exhaust gases and the accompanying waste engine heat, leading to an estimated 40% reduction in ventilation costs.
Major miners make major moves toward electrification
Electrification demands that major miners lead the charge in changing the way mining is conducted in Australia, particularly in light of increasing environmental concerns. 2024 produced one of the biggest moments in mining’s recent history as West Australian miners Fortescue signed a green equipment partnership worth US$2.8 billion with equipment manufacturers Liebherr. The aim of this collaboration is to make a large-scale, zero emission mining ecosystem operational by 2030, with the announcement at MINExpo 2024 revealing that the two companies would be providing 360 zero emission mining haul trucks by 2026, which is already generating excitement in the industry.
Importantly, the deal represents a breakthrough for the mining industry as it moves towards eliminating the use of fossil fuels in its works. Applying zero emission mining solutions developed and validated by two industry titans bodes well for the future, as once the pioneering technologies enter series production, mining companies worldwide will be able to secure their own high-quality electrical equipment.
Prior to this, major miners and equipment manufacturers have sought to partner with large corporations to drive eco-friendly initiatives. For example, though Caterpillar (CAT) is said to be joining forces with several companies to develop zero-emission trucks, BHP officially partnered with the leading manufacturer to support the production and testing of battery-powered mining trucks. It is critical that companies across the world build momentum towards achieving its zero-emission goals, and unity is key to the process.
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25 Mar