Carbon tax, increased reactive power charges, tariff increases and the Energy Conservation
Scheme (ECS) are some of the worrying electricity cost risks faced by large South African
industries. Some of these proposed cost risks are not enforced as yet, but once approved
could threaten company financial viability and thousands of jobs.
Managing multiple cost risks associated with electricity consumption at several mines can be
laborious and complex. This is largely due to circumstantial rules related to each potential
electricity cost risk and unique mine characteristic. To limit the electricity cost risks for a
mining company, clear strategies and focus areas need to be identified.
No literature was found that provides a simplified integrated electricity cost risk and
mitigation strategy for the South African gold mining industry. Previous studies only
focused on a single mine or mining subsystem. Literature pertaining to potential risks
is available, however the exact impact and mitigation on the gold mining industry has yet
to be determined.
The aim of this study is to accurately predict the impact of electricity cost risks and identify
strategies that could alleviate their cost implications. Electricity consumption and installed
capacities were used to benchmark mines and categorise them according to investigated risks.
The benchmarked results provided an accurate starting point to identify best practices and
develop electricity cost saving strategies. This study will highlight the additional benefits
that can be obtained by managing electricity usage for a group of mines or mining company.
Newly developed models are used to quantify savings on pumping, compressed air and cooling
systems. To manage and report on the potential risks and mitigation, an ISO 50001 based
energy management system was developed and implemented. The applied and developed
models can also be adjusted to review and manage the potential cost risks on other types of
mines. Derived risk and mitigation models were further used to quantify the impact on one of the
largest gold mining companies in South Africa. These models indicate a potential annual
price increase of 12%, while mitigation strategies could reduce the electricity consumption
by more than 7%. Mitigation savings resulted from proposed projects as well as behavioural
change-induced savings due to improved management. Over a five-year period the projects
identified could result in electricity costs savings of between R675-million and R819-million. / PhD (Electrical Engineering), North-West University, Potchefstroom Campus, 2014
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/12267 |
| Date | January 2014 |
| Creators | Van der Zee, Lodewyk Francois |
| Source Sets | North-West University |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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