By Rhiannon Hoyle
SYDNEY--The next boom in electric vehicles could be the world's
mining fleet.
From rural Canada to Australia's dusty Outback, companies are
swapping out diesel-fueled drills, loaders and utility vehicles for
equipment powered by lithium-ion batteries. They are looking to
reduce emissions and eliminate the exhaust fumes that foul the
underground air and risk miners' health.
Around 35 electric vehicles are at work at Newmont Goldcorp
Corp.'s Borden mine near Chapleau, Ontario, unearthing ore or
ferrying workers around the site, which began producing commercial
volumes in October. Newmont wants the mine to go all-electric. An
electric production drill will arrive early next year, a spokesman
said, and diesel haul trucks are likely to be phased out.
"The Holy Grail is a haul truck," said Kirsten Rose, who
oversees low-emission technologies at BHP Group Ltd., the world's
largest mining company by market value. These heavy-duty trucks
carry tons of ore out of the bottom of pits, and with current
technology, matching the power of their diesel engines would
require an enormous battery pack.
BHP has been testing a light electric vehicle over the past year
at Olympic Dam, Australia's largest underground mine, and this
month it will add another. The company intends to expand the trial
to other Australian mines. In Canada, workers planning BHP's Jansen
potash project are assessing how many electric vehicles could be
deployed if it goes ahead.
The aim is one day to eliminate all diesel-powered machines from
mine sites, Ms. Rose said.
Smaller rivals are also stepping up efforts to go green. Among
them, Nouveau Monde Graphite Inc. is planning an all-electric
open-pit graphite mine in Quebec.
At Fortescue Metals Group Ltd., one of the world's top suppliers
of iron ore, CEO Elizabeth Gaines said, "We're always looking at
opportunities to replace diesel." But "the technology--the battery
life--isn't quite there yet for our operations," she said.
The technology is advancing rapidly, but that can present
another challenge: "It's like laptops," said Drew O'Sullivan, who
is leading BHP's trial at Olympic Dam. "By the time you get it
home, it's outdated."
The purchase price is a further hurdle. Electric vehicles for
use in mines cost from 40% more than to three times as much as
diesel-powered ones, experts say.
Proponents counter that running costs are lower. Borden's annual
energy expenses should be lower by roughly US$9 million--possibly
more--than a traditional mine's, the Newmont spokesman said. One
factor in that: As much as 40% of an underground mine's energy
costs are tied to powering giant ventilation systems to extract
pollutants from tunnels.
Customers and investors are pushing for global resources
companies to clean up their act. With a growing focus on the social
impact of investments, many big pension funds and asset managers,
as well as project financiers, are pressing miners to disclose and
reduce their carbon footprints. Diesel is a ripe target: It
accounts for more than one-third of BHP's direct operational
emissions, Ms. Rose said.
Regulators may soon join in the push. In July, the mines
department of Western Australia state raised fresh concerns about
the health of workers who spend up to 12 hours a day guiding heavy
machinery around subterranean labyrinths.
"Diesel-engine exhaust is a known hazard for mining operations,
especially in underground mines," said Andrew Chaplyn, the
department's director of mines safety. A government committee is
drawing up recommendations for the state's mines minister.
Within a few years, diesel machinery will likely no longer be
used at new underground mines in Australia, while being phased out
at others, said Sherif Andrawes, global head of natural resources
at accounting and advisory firm BDO.
"I think what we are seeing now is the start of something quite
big," he said.
Rio Tinto PLC, the world's second-biggest miner by market value,
is even studying the potential for hybrid engines on its heavy-haul
railway trains. Ian Vella, who oversees rail services for Rio
Tinto, is excited about the regenerative-braking aspect.
"Imagine a giant battery on one of those locomotives that is
taking energy from the train as it is braking, storing it, and then
it can use it when it needs power on the network," he said.
Still, electrifying mine fleets won't do much to cut the
industry's overall emissions without a shift away from fossil fuels
to renewable power for generating electricity.
Some miners are moving in that direction. Last month, Fortescue
struck an agreement with electricity generator Alinta Energy to
help power its Chichester iron-ore production hub with solar
energy, displacing roughly 100 million liters of diesel
annually.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
November 02, 2019 05:44 ET (09:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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