A Sudbury-based mining equipment manufacturer reports that the surge in oil prices is proving advantageous for its finances, with mines seeking alternatives to diesel-powered machinery. Railveyor specializes in constructing electric rail systems for transporting ore from mines. Tas Mohamed, the CEO of the company, mentioned that mining companies are exploring redesigning mine sites to incorporate Railveyor technology due to the escalating costs of diesel equipment caused by the ongoing tensions in Iran.
Haulage constitutes a significant portion, around 40 to 50 percent, of a mine’s operational expenses, predominantly reliant on diesel machinery. The persistent rise in oil prices has resulted in substantial financial implications for mining operations, prompting a shift towards more cost-effective solutions like electric rail and conveyor systems, as well as battery-electric vehicles.
According to Gertjan Bekkers, a principal advisor at Poplar and Shield Advisory and a former executive at Torex Gold Resources, while the majority of mining equipment in Ontario still relies on diesel, there is a gradual transition towards alternative energy sources. Bekkers emphasized the impact of rising fuel costs on mining operators and highlighted the advantages of using electrical or battery-electric equipment for uninterrupted operations.
Despite the higher upfront costs of battery-electric equipment compared to diesel, companies benefit from fixed hydro costs over the vehicle’s lifespan. Additionally, the use of electric vehicles in underground mines can lead to substantial savings on ventilation expenses compared to diesel equipment, which requires more elaborate ventilation systems for worker safety.
For established mines, like Glencore’s Onaping Depth project in Sudbury, the transition from diesel to electric equipment presents a significant financial challenge. Marla Tremblay, Executive Director of MineConnect in Sudbury, acknowledged the complexities involved in retrofitting existing mines with electric vehicles, especially in terms of charging infrastructure and ventilation system upgrades.
While MacLean Engineering, a mining equipment manufacturer, currently sells between 10 to 20 percent electric vehicles, they aim to achieve a complete transition to electric vehicles by 2040. Alex Lenz, the product manager for electrification at MacLean Engineering, highlighted the growing interest among customers in switching to electric mining equipment, indicating a shift towards sustainable and cost-effective solutions in the mining industry.