Coenraad Pretorius Energy Engineer Anglo American South Africa

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1 Coenraad Pretorius Energy Engineer Anglo American South Africa

2 Overview A mining perspective on sustainable energy performance management Challenges Our Response How we will (and are) delivering it Summary

3 R / kwh Challenges 3.0 Electricity Pricing

4 Challenges Business-as-usual Energy Projection

5 Challenges Carbon Tax

6 Challenges IT NEVER GETS EASIER YOU JUST GET BETTER

7 Our Response

8 Our Response Climate Change & Energy Strategy Climate Change & Energy Policy Energy & GHG Emission management standard ECO 2 MAN programme (six key elements)

9 How we will (and are) delivering it Commitment Performance Significant Energy Users Operational Control Opportunities Reviews * Adapted from the UNIDO Energy Management System Implementation programme, presented through the Industrial Energy Efficiency Project

10 Key 1. Commitment GTS023 self-assessment allocate resources appoint energy champions performance contracts define roles & responsibilities

11 Key 2. Significant Energy Users Energy sources and equivalent CO 2 emissions 35% 68% 100% 64% 0% 100% 32% 0% analyse energy data define scope and boundaries identify significant energy users identify energy drivers identify metering gaps identify significant people (influencers) Total (GJ) Electricity (GJ) Diesel (GJ) Petrol (GJ) Total (tco2e) Electricity (tco2e) Diesel (tco2e) Petrol (tco2e) Energy Map: Electricity Energy Map: Diesel 100% 48% 34% 13% 6% Total Pit Plant Stock yard Other 32% 31% 15% 6% 5% 100% 11% Total Trucks DozersExcavator FEL Pumps Other

12 Key 3. Performance Energy vs. Production y = x R² = y = 0.057x R² = quantify energy savings Baseline Post implementation Linear (Baseline) Linear (Post implementation) monitor performance

13 MW Ventilation System Optimisation 5.0 Energy demand for an underground mine Active management of ventilation system

14 Energy Performance Indicators Fan Station A Energy comparison Fan Station B Energy comparison - Jan Feb Mar - Jan Feb Mar Actual Consumption Expected consumption Total Consumption Expected consumption Energy CUSUM (kwh) Energy CUSUM (kwh) Jan Feb Mar excess savings Jan Feb Mar EnPI EnPI Jan Feb Mar 0.5 Jan Feb Mar

15 Key 4. Operational Control review energy payment process review energy reporting process define training needs identify essential operation & maintenance tasks review emergency preparedness communicate awareness

16 CEMS Reloaded! Power factor optimisation ZAR 1 million/annum Tariff optimisation ZAR 6 million/annum Metering and monitoring is an essential tool It makes energy visible! Trending how much and when? Automated data collection and reports Tariff analysis and cost allocation Billing comparison Power quality events Performance indicators

17 Key 5. Opportunities define objectives, targets & action plans develop measurement & verification plans record savings in project registers update project registers monthly integrate AO project s savings incorporate in procurement process include costs of energy & carbon in TCO

18 Renewable Energy Grid tied 90.2 kwp solar PV plant 376x 240W polycrystalline panels 4x 22kW inverters Energy production: 166 MWh pa (18 mid-sized homes) CO 2 emission reduction: 171 tco 2 e pa (1 049 trees) Solar street lighting at Goedehoop

19 Key 6. Reviews review legal & other requirements review risks & opportunities review projects share best practices & lessons learnt audit for compliance and performance

20 Summary Challenges Rising energy costs, energy security and carbon tax Our Response Become more efficient and sustainable with a lower environmental impact Climate Change and Energy Strategy & Standard How ECO 2 MAN and the six key elements Commit resources most importantly PEOPLE! Focus on opportunities that targets significant energy users Measure energy performance regularly and take action Review, adapt and improve continuously