DSM strategies to reduce electricity costs on platinum mines

MIng (Mechanical Engineering), North-West University, Potchefstroom Campus, 2015Labour disruptions, operational cost increases, mineral price decreases and nationalisation are only a few of the financial risks faced by mining companies in South Africa. These risks are not only impacting the mining companies but have a rippling effect on the surrounding communities and the country’s economy. With the South African Platinum Group Metals (PGM) largely affected, platinum mining companies are reviewing all possible cost savings strategies. Together with the help of Eskom’s Integrated Demand Management (IDM) programmes, various electricity cost savings strategies are being investigated. To date implemented DSM strategies have deemed themselves successful on numerous mines. These DSM strategies range from replacing basic equipment to maintenance schedules. However, there is a need to evaluate DSM strategies specifically applicable to standard underground platinum mines. Therefore this study reviews several plausible DSM strategies for the largest service systems including compressed air, refrigeration, ventilation, water reticulation and dewatering systems on platinum mines. The first step in the investigation evaluated each DSM strategy according to existing system operations and infrastructure. The second step determined the feasibility of each DSM strategies for specific platinum mine case studies. This was done by simulating the electrical energy impact and investigating the required infrastructure for each strategy. With the predicted results and required infrastructure, an estimated payback period and a five year financial prospect was calculated to determine the feasibility. Three strategies were selected and successfully implemented on the platinum mine case study. With the delivered electrical energy impact the annual electricity cost savings was calculated at an average R14.5 million with the implementation of the three DSM electrical cost saving strategies. The study provides insight into selecting the best proven electricity cost savings strategy according to the layout and design of a platinum mine.Master