Energy management: secure supplies at the right cost 

Uninterrupted energy flows, intelligent use of off-peak demand and fuel management can save mines hundreds of millions of dollars a year.
Electricity and fuel account for 50 to70 percent of a mine’s operating costs, and a recent KPMG study in Africa revealed that a lack of supply could lose a mining company between US$100 and US$400 million over 5 years. Many emerging countries cannot meet growing demands for energy, with most new mining developments in remote locations with limited electricity supplies. Larger mining companies are seeking alternate power sources such as liquid natural gas (LNG) and renewables.

Electricity demand management

Savings of up to 5 percent can be achieved by organizing maintenance shutdowns to coincide with peak tariff periods, and carrying out power-intensive activity during non-peak times. Costs can also be kept in check through energy-efficient pump motors in the mine and processing plants. By continually monitoring deep mine shaft temperatures, air conditioning expenditure can be minimized.

Fuel management and efficiency

Open cast mines use huge amounts of fuel for trucks, shovels and other mining equipment, with pilferage or inefficient consumption pushing up costs. This can be mitigated by an integrated fuel management system, and optimal utilization of equipment. Poorly maintained vehicles use more fuel, so regular checks, along with good road management practices, can help improve fuel management.

Making the right energy decisions

KPMG firms have significant experience assisting clients with the assessment and implementation of an energy strategy, including the evaluation of your energy needs and the capacity of local infrastructure to support your local mining investments.

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