Energy use/initiatives
Energy costs represent approximately 10% of our operating costs, but for some of our more energy-intensive sites (such as smelters) it may reach 25% or more. Our commodity businesses are sharply focused on reducing energy use and improving their energy efficiency. They work closely with our Technology Services team to research and develop smelting and refining process breakthroughs that significantly reduce energy use and improve productivity.
Secure energy supply
A secure energy supply is key to our continued growth. Factors outside our control that affect our energy supply include:
- increased demand by other users
- problems with local generation and transmission of power
- political, regulatory and economic uncertainties
Many of our operations are in remote areas, where securing a reliable energy supply is a challenge. In some regions, we must rely on a single power generation company, while in others our supply depends on energy provision decisions made by neighbouring countries. We manage these risks by improving energy efficiency, negotiating long-term contracts with energy providers and diversifying our power sources.
Energy efficiency
All our commodity businesses have energy efficiency plans and undergo regular energy audits. We encourage contractors to purchase more efficient equipment and replace worn machinery and vehicles. When starting a new operation or exploration project, we implement energy efficiency programmes from the start, and factor energy sourcing and efficiency considerations into our design plans.
Energy performance
Energy use is measured in petajoules and includes both electricity usage and energy from fuel combustion. We measure efficiency as energy intensity – the amount of energy required to produce one tonne of product. Over half of the energy we use comes from electricity – of which about 22% is from renewable sources, primarily hydroelectric – and is predominantly used to run our metallurgical, dragline and loading operations. Diesel is the primary source of energy at our mines and is used to run the mining fleet and other mobile equipment.
