A mining equipment manufacturer based in Sudbury is reaping the benefits of high oil prices as mines seek alternatives to diesel-operated machinery. Railveyor specializes in electric rail systems for ore transportation, offering a cost-effective solution for mining companies facing escalating fuel expenses.
Tas Mohamed, the CEO of Railveyor, revealed that haulage constitutes a significant portion of operating costs for mines, with diesel equipment traditionally dominating this sector. However, the surge in oil prices, attributed to the ongoing conflict in Iran, has prompted mines to explore more sustainable options like electric rail and conveyor systems, as well as battery-electric vehicles.
According to Gertjan Bekkers, a principal advisor at Poplar and Shield Advisory and former executive at Torex Gold Resources, the mining industry in Ontario heavily relies on diesel-powered machinery. Nevertheless, there is a gradual shift towards adopting electrical equipment to mitigate the impact of rising fuel costs on operations.
While the upfront costs of battery-electric equipment may be higher compared to diesel alternatives, Bekkers pointed out that the long-term savings on fixed hydro costs make it a financially prudent choice for mining companies. Furthermore, the use of electric vehicles can lead to substantial reductions in ventilation expenses, particularly in underground mines where air quality is crucial for worker safety.
Notably, Glencore’s Onaping Depth project in Sudbury has successfully implemented an electric vehicle fleet, setting a precedent for the industry. Marla Tremblay, the executive director of MineConnect, emphasized the challenges faced by existing mines in transitioning from diesel to electric equipment due to infrastructure constraints and operational complexities.
Alex Lenz, the product manager for electrification at MacLean Engineering, highlighted the increasing demand for electric vehicles in the mining sector. MacLean Engineering aims to fully transition to electric vehicles by 2040, aligning with the industry’s shift towards more sustainable practices.
As mining companies evaluate the performance and benefits of electric equipment, industry experts anticipate a growing trend towards electrification in the mining sector as a viable solution to combat rising fuel costs and enhance operational efficiency.