Technology Innovation in the Mining Sector. October, 2018

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1 Technology Innovation in the Mining Sector October, 2018

2 Glencore Global Operations

3 3

4 Sudbury Operations Mining Operation Plant Fraser Mine Strathcona Mill Craig Mine Onaping Depth Project Ni Rim South Mine Smelter City of Sudbury 10km

5 Onaping Depth Project Approx. 1km between Craig and OD shafts Craig shaft Craig Mine Onaping Depth 2600m below surface 5

6 Battery Electric Vehicles Onaping Depth #3/4 #1 #6 #7 64 Craig Shaft Onaping No. 1 Shaft RAR FAR 4000L Onaping No. 2 Shaft 1150L 1440L L FA Booster Fan 139 Tram Drift (4.6 m x 5.4 m) L Truck Dump 4500L Crusher 4700L Loading Pocket Ore Bin Waste Bin 4000L Tram L FA Raise (3.8 m) Eliminated: Return Air Ventilation Ramp Fresh Air Raise (3) Ventilation Fans (5) Ore Passes (replaced w/ battery electric haul trucks regenerating power down ramp 1985L L 2300L 2320L 2340L 2360L 2380L 2405L 2430L 2455L 2480L 2505L 2530L 2555L 2580L RA Raise (3.8 m) Exploration Drift L Egress Raise (3.0 m) Exhaust Fans 2405L 2515L Refrigeration Plant 2555L 2605L loading pocket 2635L shaft bottom 213 RA Ramp (4.6 m x 5.4 m) Ventilation Shaft Diameter 5700L RAR Diameter 5.0 m -24% 3.8 m Refrigeration Total Power Diesel BAC = 19.2 MWr CSC = 25.3 MWr -31% Battery Electric 300 m 3 /s -40% 180 m 3 /s 6.5 m -23% 5.0 m 10,900 kwe 3,300 kwe 14,200 kwe -44% -30% -41% BAC = 13.3 MWr CSC = 17.5 MWr 6,100 kwe 2,300 kwe 8,400 kwe 6

7 Things to Overcome BEV Mine Design Regulations Ontario Air Quality Requires 96 cfm/hp based on diesel equipment underground. Uncertainty of Supply, Performance and Cost of BEV fleet Supply Stay in regular contact with OEM s on their technology roadmaps Create a network of Mining Companies and organizations to share experiences. Performance Buy units and get first hand experience- we started with a personnel carrier in 2015 Get OEM s to perform duty cycle simulations of proposed equipment. Run tests at sites to validate performance claims. Create a network of Mining Companies and organizations to share experiences. Cost Have appropriate premium allowance in the project budget based on vehicle class and size. Mine Design Must design the mine around the BEVs capabilities and needs. 7

8 Things to Consider BEV Mine design Take advantage of re-generation Limitation method for releasing energy when fully charged. On board vs off board chargers Battery swapping vs batteries stay in vehicles Battery chemistries Safety considerations How to maximise life Opportunity charging capacity How many different chemistries can your mine handle Parking and charging locations Charging management systems individual vehicles and for fleet Rent or buy batteries Battery disposal Power quality 8

9 Battery Electric Vehicles Improved Vehicle Characteristics No emissions Improved performance Less heat from vehicles (5x) Less noise Simpler machinery Less wear and tear Less maintenance Benefit to Mining Health benefits Less particulates DPM elimination Quieter Less vibration Less heat from equipment Less ventilation Reduce size & number of ventilation openings Less auxiliary fans Reduce size of refrigeration plant Less heating of mine air in winter (if required) Overall lower energy usage and cost Improved productivity Subjective at present but mostly due to air quality, vibration, noise and heat benefits 9

10 Operating Mining Equipment in the Future 10

11 11

12 Autonomous Mining Operations 2017 May 30 Cat LHD Converted (Operating in Auto) Operator Training (Simulation Mode) +40% Productivity Improvement Safety WMSD Travel/Mount/Dismount Hygiene Ergonomic Stations Fatigue / Distraction FHP Seatbelt Compliance Collision avoidance Productivity Hot Seat Change Overs Mucking between shifts (surface) Gas clearing / seismic operation Multiple machines per operator Reduced fleet & faster stope cycling 2018 Convert 2 nd LHD Equipment Reduced component damage Reduced tire wear Faster tram times (scoop controlled) Real time operating data Increased working time due to reduced operating delays +20%

13 Renewable Energy in Mining Operations 13

14 The Raglan Mine Mining in the Arctic Aerial or maritime access only No connexion to the electric grid or natural gas network Largest diesel consumer in the Arctic : 100 % diesel Largest GHG emitter in the Arctic : > tonnes of GHG Diesel is the 2 nd most significant cost center at Raglan Mine Mine Raglan Life of Mine : over 25 yrs as of today 14

15 15

16 Renewable Energy in Action 3 MW Wind Turbine with cold weather package and fit-for-purpose foundation design Coupled technologies has further increased fuel displacement Additional diesel fuel displacement opportunities Replace diesel with natural gas Hydrogen can be used in other applications e.g. zero-emission transport fuel Electric vehicles for surface and underground mining trucks, further reducing ventilation needs 16

17 The Next Journey : Energy Storage Hatch William s flywheel GTR 200: 200 kw of storage for up to 27 sec Electrovaya s Li-Ion battery solution: 200 kw of storage for up to 74 mins Hydrogenic s HySTAT 60 electrolyser and Controlled by Hatch s HµGrid HyPM R200 fuel cells : Reduce power fluctuations on the grid and 200 kw of storage capacity for up to 20 hrs increase penetration level of wind energy 17

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