DSM strategies to reduce electricity costs on platinum mines

Abstract

Labour disruptions, increase in operational costs and mineral price decreases are only a few of the financial risks faced by mining companies in South Africa. Platinum mining companies are reviewing all possible cost savings strategies because the Platinum Group Metals (PGM) is significantly affected by these risks. Eskom's Demand Side Management (DSM) programmes assisted in the investigation and implementation of various electricity cost savings strategies. However, not all of these strategies delivered sustainable savings. There is a need to evaluate the feasibility of these strategies, specifically applicable to underground platinum mines. This study reviews several plausible DSM strategies for the largest utilities including compressed air, refrigeration, ventilation, water reticulation and dewatering systems on underground platinum mines. Insight is provided to select the most feasible electricity cost savings strategy according to the layout and design of different platinum mines. Three feasible DSM strategies were selected with the developed methodology and implemented on the utilities of a platinum mine. The average annual electricity cost savings, as a result of the implementation of the three DSM strategies, was approximately R14.5 million.