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EEO: Indicators

EEO: Indicators. Dr Marcin Ziemski September 2011. Challenges for the Mining Industry. Declining ore grades Increasing complexity Increased world demand Social Expectations Environmental Legislation Energy Cost/Availability Water Limitations Carbon Taxes.

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EEO: Indicators

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  1. EEO: Indicators Dr Marcin Ziemski September 2011

  2. Challenges for the Mining Industry Declining ore grades Increasing complexity Increased world demand • Social Expectations • Environmental Legislation • Energy Cost/Availability • Water Limitations • Carbon Taxes • Driving a significant increase in energy consumption • Mining Multi-Factored Productivity fell by 24.3% between 2001 - 2007* *Australian Government Productivity Commission (2008)

  3. Increasing Energy Consumption • Growth in mining energy consumption has • been particularly strong since 2001/02 • 9.1 per cent a year Research Report 08.15 December 2008. www.Abare.gov.au

  4. Capital Expenditure and Productivity 238% increase in capital 2000 to 2007 24% decline in productivity

  5. Selecting Performance Indicators Know your apples • Compare apples with the same apples • Is a KPI appropriate to compare between different: company, commodity, site, department, season... • Confusing the meaning of a KPI • Eg: specific energy VS energy efficiency kWh per ton of ore VS kWh per kg/oz/t final product Measure of local specific energy Measure of general specific energy (and therefore efficiency)

  6. Selecting useful energy performance Indicators • Accept that KPI’s will not always improve • Minimising reduction in useful KPI is more valuable than improving a misleading KPI • Prepare management for a dose of reality! • Leverage the available data, capture new data • Collate, analyse, compare, report, repeat • Key Energy Indicator: Variability • Short term (1min/10min/1hr intervals) • Medium term (shift/weekly/FIFO schedule/monthly) • Long term (seasonal/annual) • Start up/ Shut down procedure energy profiles Effect of plant instability Effect of operators/teams Effect of externalities Often overlooked

  7. Selecting useful energy performance Indicators • Measuring variability identifies energy • Anomalies • Improvement opportunities • Allows benchmarking

  8. Energy monitoring and management Dedicated energy personnel Energy monitoring/management/opportunity analysis • Collation of (usually existing) data • Full time job (or more) • High value return ($$ of 2% energy saving??) • Promote energy efficiency culture • eg Inco Canada (1995-2005) • Expected ~5%, obtained 15% energy reduction

  9. Summary: energy performance indicators Compare the right KPIs Embrace weakening KPI values Start using kWh per product (as well) Look carefully at variability Allocate dedicated energy management personnel

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