Cronimet Mining Power Solutions is targeting the Botswana miningsector and will use its experience from a photovoltaic (PV) poweredmine it operates in South Africa as an example.
Many mines in the country rely heavily on the Botswana Corporation(BPC) connections and when they are off-grid, they normally generatetheir own power, which becomes a major cost to these companies.
“The supporting arguments for PV in the mining sector include the factthat PV is more cost effective today than it was just few years agodue to improved technology and a mature global supply chain,” RollieArmstrong , Managing Director of Cronimet told Mining & Travel Review.
Cronimet is confident that there are a number of forces now alignedmaking renewable energies, specifically photovoltaic (PV), a valuableproposition for mining and industrial companies in Botswana.
The company says it engineers, procures and constructs (EPC) projectson its balance sheet on behalf of their clients thereby saving thesecompanies large amounts of money annually.
“PV solutions can have mining companies break even in a shorter periodof time compared to diesel,” stated Armstrong, adding they could builda plant in a period of 4 months.Armstrong revealed that a decentralised PV can be installed andproducing energy in a matter of months adding that his company offersinnovative asset financing structures to fund the delivery of PV powerplants.
He added that Cronimet Mining Power Solutions offers innovative assetfinancing structures to fund the delivery of PV power plants.“In commercial terms to mining companies, solar PV replaces up to 30%of a mining company’s annual diesel consumption if that mine relies on
captive diesel genset mini-grids, which means is not connected toBPC’s grid,” he said.
Cronimet operates the Thaba chromite mine-located in the Limpopoprovince. The mine was originally powered by diesel.
He added that a PV power plants offer a natural energy hedge, asnearly 100% of the power generated over 20 years is paid for up front.The sun, which is a free renewable resource, is not exposed to priceinflation as is a liter of diesel fuel or a kilowatt of electricityfrom BPC’s centralised grid.
“If PV is competing with diesel PV offers an immediate and materialdiscount to fossil fuel, while the breakeven on the upfrontinstallations costs occur in just a few years”.