Cristal Australia Pty Ltd

Transcription

1 ENERGY EFFICIENCY OPPORTUNITIES PUBLIC REPORT 2013 Cristal Australia Pty Ltd is a wholly owned subsidiary of The National Titanium Dioxide Company Limited (Cristal), a private company with headquarters in Jeddah, Kingdom of Saudi Arabia. In 2008, Cristal Australia Pty Ltd acquired all of the shares in Bemax Resources Limited (Bemax) and triggered participation in the Energy Efficiency Opportunity programme. Bemax was previously registered for EEO in it s own right. In 2012 Bemax Resources Limited was renamed Cristal Mining Australia Limited, though retaining the corporate history, ACN and ABN. The company is one of Australia's premier mineral sands miners. Cristal s mining and mineral separation operations are located in two significant mineral sands provinces in Australia namely, the Murray Basin (Western NSW) and south west Western Australia. Historically, the company has grown through successful exploration and acquisitions, including the acquisition of the Western Australian based Cable Sands Group in May 2004, one of Australia's first Titanium minerals producers having commenced production in Cristal Mining West operations include the North Shore Mineral Separation Plant located in Bunbury and the Wonnerup mine site located 50km south of Bunbury. Wonnerup commenced operations during the year. The Gwindinup Mine site entered a rehabilitation phase during the year, where grass, shrubs and trees, consistent with what was on site when mining commenced, are being cultivated. In late 2004 and early 2005, the company commenced construction of the Ginkgo Mine and Broken Hill mineral separation plant in the Murray Basin. The first heavy mineral concentrate production at the Ginkgo Mine was in December 2005 and commissioning of the Broken Hill mineral separation plant occurred in February Snapper, a new mine located a short distance from Ginkgo, was commissioned in Ginkgo and Snapper both continue to operate. Part 1 - Corporation Details Controlling Corporation: Cristal Australia Pty Ltd Table Major Changes to Corporate Group Structure or Operations Table 1.1 Major Changes to Corporate Group Structure or Operations in the last 12 months With exception of the name changes noted above, the structure of the group has not changed in the past 12 months. Declaration Declaration of accuracy and compliance The information included in this report has been reviewed and noted by the board of directors and is to the best of my knowledge, correct and in accordance with the Energy Efficiency Opportunities Act 2006 and Energy Efficiency Opportunities Regulations Dominic Manganaro Director Cristal Australia Pty Ltd Date

2 2 Part 2 - Assessment Outcomes Table 2.1 Assessment Details Name of entity North Shore Mineral Separation Plant (MSP) Total energy use in the last financial year 151,971 Total percentage of energy use assessed when assessments were undertaken 84 % Description of the way in which the entity carried out its assessment Cristal Australia contracted EnerVative Solutions, a specialist energy and climate change consultant, to facilitate the implementation of the Energy Efficiency Opportunity (EEO) at Cristal North Shore plant. The approach taken was structured to meet the requirements of the EEO, while taking advantage of the existing engineering expertise at each site. The key activities for the North Shore MSP included: 1. Initial education of key staff on the requirements of the EEO. 2. An initial opportunity identification workshop was held involving a range of site and external personnel. 3. A gap analysis was undertaken in August 2008, to evaluate the 6 elements of the EEO against the current business practices, and provide recommendations. 4. Additional metering and upgraded process monitoring systems were installed to monitor energy use. 5. An energy mass balance has been prepared for the mineral separation plant. 6. Existing environmental management system (EMS) documentation has been updated and augmented as required to resolve the issues identified in the gap analysis. 7. In October 2011 a trial verification was undertaken by EnerVative Solutions to confirm the management system changes were successfully implemented. 8. In October 2013 as a part of the annual site processes, Enervative Solutions facilitated workshops to review previous and identify new opportunities. In many cases smaller projects were directly implemented; larger projects were / are being further analysed and business cases developed.

3 3 Table Energy efficiency opportunities identified in the assessment North Shore Mineral Separation Plant Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented Implementation Commenced 1 1 6,406 6,406 To be Implemented 5 5 2,444 2,444 Under Investigation 9 1 1, ,220 4,540 Not to be Implemented 7 7 4,614 4,614 Outcomes of assessment Total Identified , ,834 25,965 Notes: 1. The total for implemented opportunities reflects the reversal of a previously implemented opportunity, due to changes in site conditions and product mix. 2. The total reflects the new opportunities identified during the period.

4 4 Name of entity Gwindinup Mine Total energy use in the last financial year 52,140 Total percentage of energy use assessed when assessments were undertaken 80 % Description of the way in which the entity carried out its assessment Cristal Australia contracted EnerVative Solutions, a specialist energy and climate change consultant, to facilitate the implementation of the EEO at the Cristal Gwindinup mine. The approach taken was structured to meet the requirements of the EEO, while taking advantage of the existing engineering expertise on the site. Note that Gwindinup site was planned to cease mining production during the reporting period and commence the site rehabilitation phase. However while the mining activity was extended into the early part of the 2013 reporting period, the planned closure has influenced EEO activities. The contractor s diesel energy consumption has been highly variable from year to year due to the varying need for overburden removal. In contractor energy consumption was approximately zero, however in was significant, representing 45% of site total energy. Most of the equipment from Gwindinup will be refurbished and relocated to the new mine at Wonnerup. The opportunities identified and lessons learned from the EEO analysis will be applied to the new mine at Wonnerup. The key EEO assessment activities included: 1. Initial education of key staff on the requirements of the EEO. 2. An initial opportunity identification workshop was held involving a range of site and external personnel. 3. A gap analysis was undertaken in August 2008, to evaluate the 6 elements of the EEO against the current business practices, and provide recommendations. 4. Additional metering was installed to monitor energy use. 5. Energy analysis of the energy and material flows for the site associated with the material handling / pumping.. 6. Existing EEO documentation prepared for the Cristal North Shore plant has been applied to the mine. 7. In many cases smaller projects were directly implemented; larger projects were / are being further analysed and business cases developed.

5 5 Table Energy efficiency opportunities identified in the assessment Gwindinup Mine (Now in rehabilitation phase) Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented 3 3 4,021 4,021 Implementation Commenced To be Implemented Under Investigation Not to be Implemented Outcomes of assessment Total Identified , ,661 Note 1. The Gwindinup mine, during the period covered by this report, ceased mining activities and as planned commenced a rehabilitation phase. The assessment data has not changed during the period.

6 6 Name of entity Wonnerup Mine Total energy use in the last financial year 38,393 Total percentage of energy use assessed when assessments were undertaken 11 % Description of the way in which the entity carried out its assessment Cristal Australia s Gwindinup mine ceased mining operations during the year, with the mining equipment refurbished and moved to the new Wonnerup mine. The Wonnerup mine was commissioned using the same staff as the Gwindinup mine in May 2013, commencing operations in June The mine operational and EEO procedures, developed with EnerVative Solutions, were effectively transferred with the commissioning of the new mine. The key EEO assessment activities undertaken to date include: 1. An initial opportunity identification workshop was held in October Evaluation of key opportunities. 3. Existing EEO documentation prepared for the Cristal North Shore plant and Gwindinup mine has been applied to the mine. Further assessment activities are planned to further analyse the energy and material flows, with particular focus on the pumping systems.

7 7 Table Energy efficiency opportunities identified in the assessment Wonnerup Mine Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented 7 4 1, ,627 Implementation Commenced 0 0 To be Implemented Under Investigation , TBA 1 4,614 Not to be Implemented Outcomes of assessment Total Identified , ,439 Notes: 1. Opportunities are being evaluated. 2. The data reflects some opportunities that were identified at the previous Gwindinup mine and were implemented during the development of Wonnerup.

8 8 Name of entity Broken Hill Mineral Separation Plant Total energy use in the last financial year 68,496 Total percentage of energy use assessed when assessments were undertaken 64 % In 2012 the Mineral Separation Plant (MSP) underwent a major expansion introducing additional production lines, which has more than doubled capacity. The combination of construction, commissioning and some increase in production during the final months of the reporting period, has increased energy consumption by 24.5%. Description of the way in which the entity carried out its assessment Cristal Australia contracted EnerVative Solutions, a specialist energy and climate change consultant, to facilitate the implementation of the EEO at Cristal Broken Hill Mineral Separation plant. The approach taken was structured to meet the requirements of the EEO, while taking advantage of the existing engineering expertise at each site. The key activities included: 1. Initial education of key staff on the requirements of the EEO. 2. A gap analysis was undertaken in November 2008, to evaluate the 6 elements of the EEO against the current business practices, and provide recommendations. 3. An opportunity identification workshop was held in 2008 and revised in 2012, which involved a range of site personnel. 4. Ranking of the opportunities and developing business cases. 5. In many cases smaller projects were directly implemented by site; larger projects were / are being further analysed and business cases developed. 6. An energy mass balance (EMB) including technical analysis of data and opportunities was undertaken. The EMB was used to identify where the energy is used on site and uncover opportunities. The Broken Hill EMB is subject to additional ongoing analysis. 7. In January 2012 a trial verification was undertaken by EnerVative Solutions to confirm the management system changes were successfully implemented. 8. In November 2013 as a part of the annual site processes, Enervative Solutions facilitated workshops to review previous and identify new opportunities.

9 9 Table Energy efficiency opportunities identified in the assessment Broken Hill Mineral Separation Plant Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented , ,714 34,029 1 Implementation Commenced To be Implemented 0 Under Investigation , ,204 Not to be Implemented Outcomes of assessment Total Identified , ,817 38, The implemented opportunities total (34,029) also includes opportunities, identified and implemented by Cristal MSP, which result in a 25,253 energy reduction by contractors with resultant financial saving flowing to Cristal. Cristal has operational control over one of the contractors; the other saving is the result of contract negotiation.

10 10 Name of entity Ginkgo Mine Total energy use in the last financial year 398,647 Total percentage of energy use assessed when assessments were undertaken 55 % Description of the way in which the entity carried out its assessment Cristal Australia contracted EnerVative Solutions, a specialist energy and climate change consultant, to facilitate the implementation of the EEO at Cristal Ginkgo mine site. The approach taken was structured to meet the requirements of the EEO, while taking advantage of the existing engineering expertise at site. The key activities included: 1. Initial education of key staff on the requirements of the EEO. 2. An initial opportunity identification workshop was held involving a range of site and external personnel. 3. A gap analysis was undertaken in August 2008, to evaluate the 6 elements of the EEO against the current business practices, and provide recommendations. 4. Additional metering and upgraded process monitoring systems were installed to monitor energy use. 5. The commencement of energy analysis, which is ongoing. 6. Existing EMS documentation has been updated and augmented as required to resolve the issues identified in the gap analysis. 7. In October 2011 a Gap analysis was undertaken by EnerVative Solutions to confirm the management system changes were successfully implemented. 8. In February 2013 Enervative Solutions facilitated a workshop with the main transport contractor to identify opportunities; the work is ongoing. 9. In November 2013 as a part of the annual site processes, Enervative Solutions facilitated workshops to review previous and identify new opportunities. In many cases smaller projects were directly implemented; larger projects were / are being further analysed and business cases developed.

11 11 Table Energy efficiency opportunities identified in the assessment Ginkgo Mine Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented ,269 35,269 Implementation Commenced 0 0 To be Implemented 1 1 1,277 1,277 Under Investigation , ,206 15,664 Not to be Implemented ,413 1,413 Outcomes of assessment Total Identified , ,896 53, The implemented opportunities total (35,269) also includes opportunities, identified and implemented by Cristal MSP, which result in a 6,450 energy reduction by a contractor with resultant financial saving flowing to Cristal. Cristal has operational control over the contractor.

12 12 Name of entity Snapper Mine Total energy use in the last financial year 488,110 Total percentage of energy use assessed when assessments were undertaken 25 % Description of the way in which the entity carried out its assessment Cristal Australia s Snapper is located approximately 15km from the Ginkgo mine. The mine is managed using existing Ginkgo management team, with some operational staff located on site at Snapper to undertake mining activities and manage contractors. The mined ore is pumped to a concentrator, with the heavy mineral concentrate (HMC) transported by road train from Snapper to the Ginkgo mine s processing facility. The Ginkgo mine operational and EEO procedures, developed with EnerVative Solutions, were effectively transferred with the commissioning of the new mine. The key EEO assessment activities undertaken to date include: 1. An initial opportunity identification workshop was held in February Initial evaluation of key opportunities. 3. In November 2013 as a part of the annual site processes, Enervative Solutions facilitated workshops to review previous and identify new opportunities. Further assessment activities are planned for early 2014 to further analyse the energy and material flows, with particular focus on the pumping systems.

13 13 Table Energy efficiency opportunities identified in the assessment Snapper Mine Status of opportunities identified to an accuracy of better than or equal to ±30% Total Number of opportunities Estimated energy savings per annum by payback period () 0 2 years 2 4 years > 4 years Total estimated energy savings per annum () Implemented 0 Implementation Commenced 0 To be Implemented 0 Under Investigation , ,347 Not to be Implemented 0 Outcomes of assessment Total Identified , ,347

14 14 Table Details of significant opportunities identified in the assessment Cristal s approach to the EEO assessment follows a continuous improvement model; we expect to continue to identify opportunities to improve our overall performance, which also includes productivity improvements and other environmental and broader sustainability benefits. The opportunities identified during Cristal s assessments have covered a wide range of technology types, include both small and large, cover different site operational aspects (transport, pumping, and process improvement) and have differing implementation requirements. Opportunities identified on current and previously operating are being applied to new sites to drive improvement. Opportunity No Opportunity Title Cristal Site 1 Reduce Operational Time of Attritioner Circuit Pumps Wonnerup Mine Site (50 km from Bunbury WA) 2 Reduce Friction Head Losses to Process Water Line Wonnerup Mine Site (50 km from Bunbury WA) 3 Modify the Secondary Dry Circuit for Wonnerup HMC Mineral Separation Plant (Bunbury - WA) 4 Direct Treating of the Non Mags Cut Double Handling Mineral Separation Plant (Bunbury - WA) 5 Cutting Double Handling of Mags 1 Ginkgo Mine Site (230 km from Broken Hill NSW) 6 Tails Booster Pump Ginkgo Mine Site (230 km from Broken Hill NSW) 7 Boom Gate Control (Transport) Ginkgo Mine Site (230 km from Broken Hill NSW) 8 Re-configure Site Materials Handling Mineral Separation Plant (MSP) Broken Hill NSW

15 15 Description of Opportunity No 1 Wonnerup Mine Site (50 km from Bunbury Western Australia) Reduce Operational Time of Attritioner Circuit Motors The mineral ore at the Wonnerup mine is processed on site using a concentrator plant to recover valuable minerals such rutile, leucoxene, zircon and ilmenite. However typical of other Cristal mines, the target minerals typically have a fine coating of clay, which needs to be removed, before the heavy mineral concentrate (HMC) is sent to the secondary plant in Bunbury for further processing. At the previous Gwindinup mine, the mineral cleaning circuit, known as the attritioner circuit, ran at 100% capacity regardless of the plant load. The attritioner circuit includes 8 x 15kW motors (2 sets of 4 x 15kW), driving stirrers which agitate the mineral in a manner that scrubs off the clay fines. As a part of an EEO review it was identified that the full attritioner circuit is not required at all times; the demand changing based on the ore body being mined. The management process of considering equipment demand and running equipment to meet actual demand has been applied to Wonnerup as a lesson learned from Gwindinup. At the Wonnerup site by fine tuning the process, the opportunity will: Reduce the energy consumed by the 8 x 15kW motors (120kW) for a large percentage of the year (over 50% reduction or 60kW). Reduce the annual maintenance cost for the motors and propellers by reducing the average operational hours of each motor propeller set, therefore reducing the number of services each year. The opportunity has been implemented, with no capital required, but creating both energy and equipment related cost savings of $31,000 per annum, giving an immediate payback. The project will reduce energy consumed by 680, resulting in a net reduction of greenhouse gas emissions of 170T CO2e / annum. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Motors and Process control Implemented Tonnes $s saved $31,000 Payback period Immediate

16 16 Description of Opportunity No 2 Wonnerup Mine Site (50 km from Bunbury Western Australia) Reduce Friction Head Losses to Process Water Line The Wonnerup mine excavates mineral rich sand, (ore) and processes it to separate the target mineral (HMC). The mineral ore at Wonnerup is located above the water table; hence dry mining techniques are used to excavate the ore. The first task is to excavate and transport the ore into the primary screening plant followed by the secondary screening plant, which is regularly moved to be always adjacent to the excavation area. The primary screening plant uses a large volume of water to separate / remove large rocks and general debris. The target material is then pumped as slurry to the concentrator plant, which can be between 400m and 1,500m away. The water used in the pumped slurry is recycled, being pumped from the concentrator back via the water cleaning circuit and production water storage facility to the primary and secondary screening plant. The opportunity is to: Increase the diameter of the HDPE poly pipeline from 280mm to 315mm to reduce the friction head losses, which allows the installation of a smaller motor, therefore reducing energy required.. As a part of the project, the joining method for the 315mm poly pipe has been changed to fully bolted flanged joints, which overcomes failures experienced at the previous Victaulic joints. Change out the existing 110kW motor to an available spare 90kW motor. The smaller motor is possible due to the reduction in friction losses. This opportunity was initially identified during EEO opportunity identification workshops for the Gwindinup mine, which has now ceased mining. At Gwindinup the project was not financially attractive due to implementation costs and a relatively short remaining mine life before subsequent decommissioning of the mine. Cristal s mine planning is designed around the reuse of mine infrastructure, relocating the equipment from the old to new mine. With the closure of Gwindinup, Wonnerup was initially planned to reuse the old Gwindinup equipment and infrastructure. However during the development process for the new Wonnerup mine, this opportunity was re-evaluated and the pipe change implemented during the initial development. The motor change from the existing 110kW motor, to an available spare 90kW motor, will occur at the next major maintenance period. When fully implemented, the opportunity, will have the following benefits: Reduced risk of line failure that can occur when using Victaulic shouldered end clamping systems, which: o Reduces the risk of environmental incidents if the pipe line fails; o Increases reliability and production run time due to less line failures; Reduced annual maintenance costs for the pump. By reducing the average operational speed of the pump and motor, pump and motor wear is reduced, therefore reducing the number of services each year; and Allows for a reduction in the energy load due to a reduction in pump head by approximately 18meters. The project will reduce energy consumed by 600, resulting in a net reduction of greenhouse gas emissions Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Pumping Part Implemented Tonnes $s saved $26,000 Payback period 1.2 years

17 17 of 150T CO2e / annum. The project has a capital cost of $30,000; with annual energy and maintenance savings of $26,000, giving a payback of 1.2 years.

18 18 Description of Opportunity No 3 Mineral Separation Plant (Bunbury - Western Australia) Modify the Secondary Dry Circuit for Wonnerup HMC The North Shore Mineral Separation Plant (MSP) receives mineral rich ores, known as heavy mineral concentrate (HMC) from the Cristal mine at Wonnerup and the Broken Hill MSP. Changes to the physical characteristics occur, which generally relates to the location of an ore body or other factors. The new ore body at Wonnerup contains increased amounts of Leucoxene and finer grain secondary minerals. The existing equipment at the North Shore Secondary Dry Circuit will only be able to process the non-magnetic portions of this HMC at a feed rate of 7.2 tonnes per hour without significant loss of product recovery. Additionally the existing technology will not capture all of the fine grain materials (lower recovery). This results in: Higher energy consumed per unit of product available for sale; A higher proportion of material returned to site, increasing freight costs and diesel consumed and CO2e produced. An opportunity was identified to implement process changes that increase the product recovery and the processing rate at which it s recovered, reducing energy per tonne produced. The existing process relies on the magnetic and conductive properties of the Leucoxene and utilises induced roll magnetic and electrostatic separators to separate out the target mineral. However an induced rolled magnetic separator machine uses electricity to maintain the magnetic field. New technology RER (Rare Earth Roll) magnetics separator machines use permanent magnetics, without electricity. The process change includes the introduction of a new 300mm RER magnetics separator machine reducing the energy in the early stage of the process. For the Wonnerup mineral this change will allow an increase in production of 39% to 10 tonne per hour. However for the Wonnerup ore body the old induced roll magnetic (IRM) equipment will be introduced to the back end of the circuit to increase the recovery of Wonnerup s finer grain secondary minerals. The opportunity will: Reduce total electrical energy consumed Reduce the energy per unit of production; Reduce greenhouse gas emissions; and Increase production throughput by 39%. The opportunity is planned to be implemented in It will reduce energy consumed by an estimated 808, resulting in a net reduction of greenhouse gas emissions of 200 CO2e / annum. The opportunity has a capital cost of $560,000. The value of the increase in production, plus energy and maintenance savings is $770,000 give the project payback of less than 9 months. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Process Equipment To be Implemented Tonnes $s saved $770,000 Payback period 9 months

19 19 Description of Opportunity No 4 - Mineral Separation Plant (Bunbury - Western Australia) Direct Treating of the Non Mags Cut Double Handling The North Shore Mineral Separation Plant (MSP) receives mineral rich ores, known as heavy mineral concentrate (HMC) from the Cristal mine at Wonnerup. The HMC are partially separated, based on their physical properties, prior to arriving at the MSP. The MSP undertakes additional separation and concentration. The incoming HMC enters the ilmenite circuit, where ilmenite is separated from non mags (Non-magnetic; that is the material is not attracted by a magnetic). Historically the non mags have been sent to a stockpile for storage ready to be further processed to remove the unwanted trash and quartz. The process of putting the non mags to stock pile and then at a later stage picking it up, to further process it, creates double handling. A CAT 962 front end loader is used for this activity, which uses approximately 25 litres of diesel per hour of operation. Analysis of the site process identified that with minor modifications to the site materials handling, 40,000 tonnes of non-mags could be directly fed into the next process (a wet separation plant) and therefore avoid double handling. The opportunity will: Eliminate the need for the front end loaders to pick up and transport to the wet plant: o Reducing energy consumed, saving diesel fuel; o Reducing operational labour costs; o Reducing annual equipment maintenance costs; Reduce the holding time on site for product; and Increase the yard storage space available. The project will reduce energy consumed by 1,100, resulting in a net reduction of greenhouse gas emissions of 1,950T CO2e / annum. The opportunity has a cost of $20,000, which will be managed through internal resources / operational budget. Annual energy and maintenance savings of $28,000 give the project payback of less than 9 months. Voluntary Information Equipment Type Transport / Material Handling Energy saved () Greenhouse gas abated (CO2-e) $s saved (potential) Payback period To be implemented 1,100 1,950 Tonnes $28,000 9 months

20 20 Description of Opportunity No 5 Ginkgo Mine Site (230 km from Broken Hill NSW) Cutting Double Handling of Mags 1 Ginkgo mines sand that contains various minerals with a commercial value. The initial site based treatment creates various products; all of which require transport to Broken Hill for further refining. One of the products, Mags 1, is created and stored in a yard ready for freight to Broken Hill. Mags 1 looks like fine dark sand and is one of the main products produced at the mines. A site operations review of the materials handling activities identified some double handling that at many times can be avoided, without impacting productivity or flexibility of operations. The existing materials handling process included using a front end-loader to load a dump truck (CAT 740) which then climbed the stockpile and placed the material. A D7 dozer then pushed the material to manage the stockpile and ensure the mineral product is ready to load to trucks. A stockpile was in place for each mineral product, playing an important role of smoothing the linkage of production and road haulage, also allowing the mineral to air dry to a moisture content of 4% or better. An opportunity was identified that when the haulage trucks are available to be loaded and the Mag 1 moisture content within the acceptable limits, the road haulage trucks can be loaded directly. Loading directly cuts out the double handling of the Mags 1, which cuts out the requirement for a front end loader (CAT 980H), dump truck (CAT 740) and a bulldozer (CAT D7). In addition it reduces the creation of dust. The opportunity has been implemented, with no capital required, but creating both energy and equipment related cost savings. The combined diesel fuel saved for the 3 vehicles is 90L per hour; which equates to a reduction of approximately 2,100 and 3,700T CO2e / annum. In addition equipment hire costs are estimated to reduce by $430,000 per annum. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Materials Handling Implemented 2,100 3,700 Tonnes $s saved $430,000 Payback period Immediate

21 21 Description of Opportunity No 6 Ginkgo Mine Site (230 km from Broken Hill NSW) Tails Booster Pump The mining process at Ginkgo operates below the water table; hence it uses a dredge to extract the ore (sand that contains the target minerals) as a slurry. The dredged ore is pumped to a floating process plant, where the process concentrates the target minerals, albeit still containing some waste material. The remaining material, known as tails, is then pumped, up to approximately 1km, to back-fill the areas of the pit that have been previously mined. Where ever possible the tails material is placed directly in its final destination. The overburden that was removed prior to mining is placed on top of this tailings material and essentially maintains the original deposit stratigraphy. Analysis of the operations using data from the mines process control system helped identify the tails management as a site constraint. As the distance and height that the tails waste is pumped increases, the existing tails pumps operate at maximum capacity, creating a bottleneck in the concentrator plant and limiting production throughput on site. Installing an additional 650kW tails booster pump was identified as a solution that would allow the tails to be pumped up to 1.2km and to a greater height, increases flexibility. The increased pump capacity and flexibility allows: The removal of the bottleneck at the concentrator which in turn allows the mine to more consistently meet an increased production target, resulting in a significant increase in the average throughput of 100tph; and A subsequent reduction in the energy per tonne product produced. While the new pump will increase the amount of electricity used, however this increase will allow an increase in production, therefore reducing the energy per unit of production by an estimated 10%. The opportunity has a capital cost of $500,000; however with productivity benefits exceeding $1,000,000, the opportunity results in a payback of less than 6 months. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Pumping Capital request submitted 10% improvement 10% improvement $s saved $1,000,000 plus Payback period Less than 6 months

22 22 Description of Opportunity No 7 Ginkgo Mine Site (230 km from Broken Hill NSW) Boom Gate Control The Ginkgo and Snapper mine sites and Broken Hill mineral separation plant maintain control of vehicular access and security using boom gates. Together the 3 facilities have 6 boom gates, where large road trucks are required to slow to a halt, present an access card to open the boom gate and then drive on. Each time a truck starts from a dead stop, considerable energy (diesel) is required to return the vehicle to steady state speed. As a part of the energy assessment and the opening of the new Snapper mine, an opportunity was identified that allowed selected trucks to control the boom gate without stopping, saving time and reducing fuel consumed. The opportunity requires minor modifications to the control system for the boom gates, plus purchasing a remote control for each vehicle, which are similar to the remote control for a garage door. Analysis of site vehicle movements identified that reducing the stop / start time will result in: 1. Reduced diesel fuel used by haul trucks and road trucks; 2. Reduced wear on trucks; 3. Reduced truck cycle time between Snapper and Ginkgo mines; 4. Reduced road truck cycle time between Ginkgo and the Broken Hill MSP; and 5. Reduced noise created when the trucks start from a dead stop to bring the trucks up to normal speed. This issue impacts: 12 road trucks travelling between the Ginkgo mine and the Broken Hill MSP, each accessing 2 boom gates at each location (4 stops per return trip and 3 return trips per day), or approximately 52,000 starts per year. An average of 1.5 road trucks travelling between the Snapper and Ginkgo mines, each accessing 2 boom gates at each location (4 stops per return trip and 10 return trips per day), or approximately 22,000 stop / starts per year. The project results in a reduction of 2,200 of diesel energy and a reduction of greenhouse gas emissions of 3,800T CO2e / annum. The opportunity has a low implementation cost of $2,000, which will be paid as an operating expense. The combined energy and productivity benefits create an immediate payback, which is reflected in reduced operating costs of the main transport contractor. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Transport To be implemented 2,200 3,800 Tonnes $s saved Transport Contractor Benefit Payback period Immediate

23 23 Description of Opportunity No 8 Mineral Separation Plant (MSP) Broken Hill NSW Re-configure Site Materials Handling In 2012 the Mineral Separation Plant (MSP) underwent a major expansion introducing additional production lines. The increase in ore processed on site more than doubled capacity, which required increases in capacity for unloading and placement of material on feed stockpiles, loading trains and feeding the 3 processing lines as well as on site requirements. Hence two front end loaders were allocated 24hrs per day 7 days per week for these activities. Once the major aspects of the plant expansion had settled, in early 2013, the Mineral Separation Plant (MSP) site materials handling practices were analysed. The analysis, which was undertaken in conjunction with the equipment operators, identified opportunities to reconfigure the site materials handling practices to improve overall utilisation and reduce energy, equipment hire and labour costs. The opportunity is based on reconfiguring the equipment operations to: De-commission a portable loading conveyor (1400 EG Chieftain Power Screen). The Power Screen is diesel powered conveyor used to load the train, ready for freight to the Adelaide port. The train loading process used a front end loader to place the product into a hopper and use the conveyor to place the product into a train container. This configuration needs an operator for the Power Screen and a train shunter to move the train for every container to line up with the Power Screen conveyor. This change only became possible when the style of train containers changed in 2012 from bottom dump discharge hoppers to continuous storage containers. Reduce from 2 to 1 front end loader, operating 24hrs per day 7 days per week, to unload and place material on feed stockpiles, feed the 3 processing plants as well as other site requirements. This results in a saving of 168hrs per week of front end loader. Apply 48 hours per week, of the previously released front end loader capacity, to increase train loading capacity. This results in a net reduction for the site total front end loader requirement of 120hrs per week. By changing the train loading methods Cristal no longer require the Chieftain 1400 Power screen, which can be stored for later use, reallocated to another site, or sold. The project has been implemented, resulting in a net energy reduction, over a full year, of 4,000. The project produces a net reduction of greenhouse gas emissions of 7,000T CO2e / annum. In addition equipment hire, labour and diesel costs are estimated to reduce by $810,000 per annum. The project is an operational change and does not require capital giving an immediate payback. Voluntary Information Equipment Type Energy saved () Greenhouse gas abated (CO2-e) Materials Handling Implemented 4,000 7,000 Tonnes $s saved $810,000 Payback period Immediate