Improving Diesel Quality Reduces Cost and Emissions

"Why should we care about diesel quality amidst the complexity of mining for minerals? Mining companies use a large amount of diesel fuel in their worldwide operations, both for moving ore from the mine to the processing mills or transportation hubs, and to generate power for onsite processing. This creates a large carbon footprint and poses both environmental risk with the production of emissions, and public perception of how those companies do their business as stewards of the environment while incurring a huge fuel expenditure. To improve diesel quality and create incremental value and greater environmental stewardship, the opportunity is broken down into several segments: 1. Mining industry diesel consumption 2. Fuel quality issues 3. Impacts on operations, economics, and emissions 4. Potential solutions 5. How improved fuel quality saves fuel expenditures 6. Economics of improved fuel quality 7. Recommended testing process 8. Fuel quality analysis checklist MINING INDUSTRY DIESEL CONSUMPTION The average grade of mined Australian ore bodies has halved, while the waste removed to access the minerals has more than doubled over the last 30 years, thus increasing energy consumption by 70%, (http://eex.gov.au/industry-sectors/mining/). Energy consumption and intensity in mining and mineral processing is rising at around 6% per annum. The mining industry is a huge consumer of diesel fuel worldwide, and the SRS Rocco Report of 4 August 2014 gives a better picture of recent trends. To better understand the reasons to reduce both fuel costs and consumption, we need to compare metrics on the amount of diesel consumed per each ounce of gold produced over the last decade. The rate of diesel consumption in gallons per each ounce of gold produced for the top five worldwide gold producers has doubled in the last 8 years from 12.7 gallons per ounce in 2005 to 25.8 in 2013 as shown in Figure 1 below.This is caused by 1) lower ore grades requiring more hauls to get same amount of finished gold product, and 2) haul trucks moving ore from deeper sources in open pit and underground mines. For one large multi-national gold mining company, the 2005 waste rock / production ratio was 52 metric tons/gold ounce; by 2013 that ratio had grown to 113 metric tons/gold ounce per the same SRSrocco 4 August 2014 report. Using the metrics above, the top 5 gold miners used over 591 million gallons of diesel fuel in 2013. The cost of diesel in dollars per ounce of gold has increased from $30.48 in 2005 to $101.14 in 2013, an annual appreciation of 16.2% as shown in Figure 2 below."