Resource management
Energy efficiency
Energy efficiency is a key driver for all Xstrata operations and has a dual benefit of reducing greenhouse gas emissions and financial benefits from reducing energy consumption. Xstrata's focus on performance efficiency across our operations is producing impressive results and a number of our operations are leaders in their field in energy efficiency, including San Juan de Nieva in Spain, which is one of the most energy efficient, lowest-cost zinc smelters in the world. From 2002 to 2005, the San Juan smelter has consistently improved energy efficiency per tonne of production to 14.8 GJ/tonne in 2005, and is ranked in the top 10 zinc smelters globally for energy efficiency by Brook Hunt.
Energy efficiency is a key criteria for equipment and new technologies implemented at our operations. Xstrata's operations consumed a total of 57.6 petajoules of energy in 2005, 1% less than in 2004. Of the total energy consumed, 63% is derived from electricity and 24% from diesel. In Argentina and Spain, the power generation mix includes hydro-electricity. The growth in energy required for increased production and the initiation of growth projects at a number of Xstrata sites was offset by a 8% drop in the energy requirements of our most energy intensive business, Xstrata Alloys, which produces ferrochrome and vanadium.
At Xstrata Alloys, the energy required to produce alloys has been reduced through the increased use of pellets. Rhovan's kiln firing system was upgraded in 2005 to increase the efficiency of combustion. Overall, production of ferrochrome in 2005 decreased by 8.5% compared to 2004, as a number of furnaces were temporarily suspended for routine maintenance during the South African winter months, when energy tariffs are elevated. Production of ferrovanadium and vanadium pentoxide also declined by 15% and 4% respectively year on year, as a result of the closure of the Vantech operation in November 2004, partially offset by increased volumes from Xstrata's Rhovan vanadium operation.
Xstrata Technology plays a valuable role in transferring energy efficient technologies, such as ISASMELT (smelting) and IsaMill (ultrafine grinding), across Xstrata's operations and the operations of other companies. Xstrata Technology's IsaMill product almost halves energy use and utilises a waste product – such as waste smelter slag at Mount Isa and a fraction screened from McArthur River ore – as media in this process. The resultant IsaMill technology has reduced energy consumption and improved yield for Xstrata's McArthur River, George Fisher and Black Star open cut ores. Xstrata Technology also markets this technology to third parties and IsaMill is currently being used by companies including Kalgoorlie Consolidated Gold Mines, Anglo Platinum, Lonmin, Centerra Gold and Phelps Dodge.