Emerging green mining innovation
2013 11 07
Dallas Kachan
Managing Partner
Kachan & Co.
+1 415-390-2080 x.5
dallas@kachan.com
This document is confidential and intended solely for the information and use of client companies and others as assigned.
It is part of a working review and presentation and is incomplete without accompanying verbal comments.
Agenda
• Overview of report findings – 50 mins
• Discount code for Kachan green mining
report
• Q&A – 10 mins
NOTES
• Audio is over your computer speakers
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• Questions submitted by text chat
• Recording of webinar and slides made available on Kachan website
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About Kachan & Co.
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• Principal former MD of
Cleantech Group
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About the report
Emerging Green Mining
Innovation
Managing risk and profiting from new mining
technology breakthroughs
September 2013
52 pages
104 footnotes
15 tables, charts & figures
47 companies profiled
Executive summary
Defining mining cleantech
Mine life cycle summary
Mining operations
State of the art in mining technology today
Cleaner mining technology market sizing
Sector profiles and leading emerging companies
• Power reduction
• Fuel and maintenance reduction
• Toxicity reduction
• Emissions reduction
• Water reduction
Shortcomings & potential challenges
Recommendations
Conclusions
Methodology & bibliography
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Mining hasn’t changed much in 100 years
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Definitions
• Mining - extracting metals or minerals from the earth, includes finding the
material, extracting the ore, separating the desired metal from the rock,
refining or processing the metal to its final state, and reclaiming the land
once the mine is closed.
• Technology - methods, tools and knowledge used to perform a specific
function or improve the performance of an existing system. Physical
machines, proprietary methods and information, and services.
• Cleantech (clean technology) - new technologies and business models to
provide solutions to climate, resources, or efficiency challenges, while offering
competitive returns for customers and investors. Strive to simultaneously
provide superior performance at lower cost, and reduce or eliminate negative
ecological impacts, thereby making productive use of the world’s natural
resources in a responsible manner.
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Cleantech in mining
• Mining cleantech describes innovative technologies in the mineral and
mining sector that demonstrably enhance the sustainability of the practice
while serving as efficient, cost effective and productive solutions for the
industry
• The following criteria have been used to differentiate cleantech developments
from generic mining innovations:
– Improved efficiency of resource use
– Reduced waste production and toxicity
– Enhanced profitability
– Smaller carbon footprint
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Mine life cycle summary
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Mining operations
Excavation and Handling
Loading and Hauling
Size Reduction (Comminution)
Bulk Products (Coal, gravel, etc.)
Separation and Concentration
Processing and Refining
Waste Rock or Tailings
Refined Products (Iron, gold,
etc.)
Figure : Stages of a mine operation. Source:
Kachan analysis
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Drivers of mining industry’s interest in new clean technology
• Market volatility
• Rising operational costs and falling commodity prices
• Decreasing productivity and efficiency
• Abrupt policy changes
• Resource nationalism
• Societal scrutiny
Some companies are experimenting with clean technologies in mining. But most are reluctant.
In 2012, investment in innovation by the mining industry was only 0.2% of revenue.
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Three clean mining technology case studies
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Kachan taxonomy of green mining innovation
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Comminution efficiency
Crushing and grinding to transform run-of-mine materials into smaller
particles for further downstream processing
• Sandvik – Vibrocone
• Can be used to replace rod mills, commonly used in the grinding process of
comminution, or to perform the first steps of the grinding process without
water consumption
• By improving size reduction during crushing processes, savings can be
achieved downstream in more expensive grinding stages
• According to Sandvik, the crusher can achieve 30% energy savings in
downstream processing
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Low power separation
Extraction of valuable minerals from waste rock and other materials.
Common processes include gravity separation, flotation, and chemical
separation, which often use toxic chemicals such as mercury or cyanide.
• Orbite Aluminae
• Canada’s Orbite Aluminae’s patented extraction process is able to pull both
smelter-grade and high-purity alumina (HPA), as well as rare earth metals
from the same aluminous clay feedstock
• Orbite’s extracted materials have a diverse and large market including use for
lighting, industrial and high-tech components, and fiber-optic
communications
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Hydrometallurgical processes
Extraction of desired metal from ore using water solutions or solvents.
Operate at much lower temperatures and therefore consume less power.
• MetaLeach
• UK-based, claims its process, “AmmLeach,” is environmentally friendly and
cost effective
• Primarily for extraction of copper, nickel, gold/copper and silver/zinc
• Ammonia reagent that the company claims is largely recycled in the process
and, heaps can also be washed and ore put back in the ground and the
residual ammonia can be used for vegetation regrowth
• Copper-cobalt mine in the Democratic Republic of Congo using system
• Significant annual reductions in capital costs (around 30%) vs. sulphuric acid
and operating cost savings US$29-51m (around 42%)
• Recent non-exclusive royalty licence agreement with Metalvalue to build
another commercial copper and cobalt processing plant in the DRC
• Company claims to have signed numerous confidential and test work
agreements with other large and small mining co’s
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Equipment route optimization
• RungePincockMinarco
• RPM’s product HAULNET allows engineers to build complex 3D haul
networks and produces visualizations allowing users to analyze haulage
options based on the designated destination
• Determines the most efficient use of trucks by highlighting the fastest and
shortest routes
• Minimizes haulage costs and emissions, overall benefitting the operations’
bottom lines
• Management team of miners
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Fuel additives/filters
• FiltaGreen
• Develops bypass fuel and oil filter systems that remove contaminants and
particles
• Claims its oil filter system can increase engine life by as much as five lifetimes
and hydraulic life spans by 50 times.
• Has also introduced a fuel additive that uses borate particles to protect
engines and reduce coating. Claims it can increase fuel efficiency by 5 to 15%.
• PT Pamapersada has apparently saved 5% on fuel costs and doubled the
length of time between engine overhauls from 12,000 hours to 24,000 hours,
decreased downtime by over 38% and increased productivity of the fleet from
70% to 93%, and doubled the useful life of the equipment.
• Past clients include Newmont Mining, Gold Barrick, Gold Strike, Rio Tinto
and Green Corp.
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Electric vehicle conversion/electric vehicles
• Atlas Copco
• Massive Swedish equipment supplier
Atlas Copco offers a leading line of
trucks and loaders powered by
electricity
• Claims to double the productivity of
diesel trucks in the capacity range.
In addition
• Trucks are said to reduce energy use
by up to 70% and decrease cost of
ownership by up to 50%
• Equipped with regenerative braking,
meaning 30% of energy consumed
moving up the ramp is regenerated
going back down
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Training simulators
• ThroughTec
• Simulators that replicate conditions at a mining
operation for both surface and underground
mining operations, hard rock and soft rock. Able to
replicate a mine’s entire working fleet.
• Operator’s movements are recorded and
monitored; including reporting of the user’s
economic performance
• Achieved simulation of complex mining operations
drawing from the company’s 50+ year military
simulation industry experience.
• Simulates equipment from many major
manufacturers
• Used by companies like Anglo-American, BHP
Billiton, Rio Tinto, Vale, Newmont
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Other fuel reduction approaches
• Rail-Veyor Technologies
• Canadian co. has developed an
electrically powered remotely
operated, light-rail system
• Eliminates loaders, trucks and
conveyor belts and reduces tunnel
size and infrastructure.
• Automatic operation that runs on
GPS and sensor technologies and
can operate 24/7; requires one
operator above ground, yielding
safer operations and reduced labor
costs.
• Zero diesel emissions
• Installed and working in Sudbury,
Ontario for 2 years
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Carbon sequestration
• Calera
• Process that captures CO2 emissions from coal or gas-fueled power facilities
and turns it into calcium carbonate for building materials
• Claims the process also removes minerals from water to produce fresh water
• Working with Peabody Energy and China Huaneng Group on a green coal
energy project in Mongolia
• Significant funding from high profile sources: $15 million from Peabody
Energy, and $50 million from Khosla Ventures
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AMD/ARD remediation
• BioteQ
• Vancouver-based co. using sulfide precipitation
tailored for each site to recover valuable metals
and remove metal contaminants, sulphates and
silica from large flows of water
• Can eliminate residual sludge waste and
contaminants including lead, arsenic, and mercury
to help companies reduce potential sources of acid
mine drainage and meet stringent discharge limits
• Produces commercial grade metal concentrates
that can be sold to refineries and create a revenue
source
• According to BioteQ, its processes remediate water
to levels that can be reused in the mining operation
or released into the environment
• Projects in Canada, US, Mexico, Australia and
China
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Tailings remediation
• BacTech Environmental Corporation
• Bioleaching process using bacteria to remediate toxic tailings from
abandoned mining operations
• Can also neutralize sources of potential acid mine drainage while recovering
metals such as gold, silver, cobalt and nickel
• Uses naturally occurring bacteria that are harmless to both the environment
and human health
• Can break down sulphides in 5 to 6 days, in contrast to 20 years that would be
required under natural conditions.
• Revenues can be generated from the recovery of the metals found in tailings.
By recovering valuable materials from the tailings, BacTech is able to offer
the mine remediation services to governments at no charge
• Used at sites in Armenia, Guatemala, Chili, Mexico and the U.S.
• Currently anticipating commissioning a $22 million plant in Manitoba,
Canada to remediate arsenic tailings
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Shortcomings & potential challenges
• Proof of commercial viability of vendors
• Proof of return on investment
• Assurance of vendor longevity
• Continued depressed capital markets
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Conclusion
• Many green mining technologies are now able to effectively compete with
conventional products
• Majority of companies have yet to adopt newer processes; leading companies
have recognized the need to invest in new technologies as a response to the
shifting industry
• With increasing operational costs and environmental expectations, demand
for cleaner technologies by the mining industry is expected to grow at an
accelerated pace
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