The mining industry is under continued pressure from shareholders and external stakeholders to reduce dependence on traditional energy resources. In countries where mining represents a significant percentage of gross domestic product (GDP), it can also be a significant draw on the country’s electricity grid infrastructure. Even through the global economic downturn, interest in the deployment of renewables remained. Now the industry has reached a tipping point and is transitioning from using solar, wind, and other renewable energy technologies in demonstration projects to an increased focus on larger scale deployments. When combined with the increased use of innovative finance mechanisms, such as power purchase agreements, the use of renewable energy in the mining industry will pick up significantly in the medium term.

Drivers for the adoption of renewable energy in the mining industry are clear and include high levels of concern over the volatility of diesel prices, increased pressure from a number of government policies, and an increased need to reduce energy costs and carbon footprint. These external and internal pressures are combining to provide an expansion of market opportunities for renewable energy providers to work with mining companies. Navigant Research forecasts that renewable energy technologies will supply between 5% and 8% of the world’s mining industry power consumption by 2022.

This Navigant Research report analyzes the global market for renewable energy in the mining industry. The study provides an analysis of developments in the sector from a quantitative and qualitative perspective. Global market forecasts of revenue and capacity for renewable energy in the mining industry, segmented by region, technology, and investment scenario (base and aggressive), extend through 2022. The report also examines market and technology issues related to the adoption of renewable energy in the mining industry and profiles key industry players.

Key Questions Addressed:

• What is the expected growth rate for the use of renewable energy in the mining industry?
• Which regions are best positioned to be early adopters of large-scale renewables to help power mine sites?
• Which regions will see the greatest adoption through 2022?
• How quickly will revenue and capacity grow in the global market for renewable energy in the mining industry?
• Which are the most innovative companies in this area?
• What are the major policy pieces driving this market?

Who needs this report?

• Mining companies
• Renewable energy technology companies
• Project developers and integrators
• Non-profit organizations
• Government agencies and policymakers
• Investor community

Table of Contents

1. Executive Summary

1.1  Overview of the Mining Industry

1.1.1   Current Status of Renewable Energy in the Mining Industry

1.2  Market Forecasts

1.2.1   Renewable Technologies

2. Market Issues

2.1  Overview

2.2  Background Information on the Mining Industry

2.2.1   Current Energy Consumption at Mine Sites

2.2.2   Excavation and Handling Activities

2.2.3   Plant and Processing Activities

2.2.4   Energy Sources

2.3  Capital Investment in Energy

2.4   Market Drivers for New Energy Investments at Mine Sites

2.4.1   Mining Company Operating Costs and Emissions Profile

2.4.2   Conventional Energy Price Hedge

2.4.3   Power Quality Issues

2.4.4   Shareholder Concerns

2.4.5   Public Acceptance of Proposed Projects

2.4.6   Regulatory Drivers

2.4.6.1 Australia

2.4.6.2 South Africa

2.4.6.3 Canada

2.4.6.3.1. British Columbia

2.4.6.4 Brazil

2.4.6.5 Chile

2.5  Business Models of Adoption

3. Technology Issues

3.1  Overview

3.2 Special Considerations for Renewable Energy Development at Mine Sites

3.2.1   Reduced Balance of System Costs

3.2.2   Reliability

3.2.3   Unknown Resource Potential

3.2.4   Higher Upfront Costs

3.3  Available Renewable Energy Technologies

3.3.1   Solar PV

3.3.2   Wind

3.3.3   Geothermal

3.3.4   Fuel Cells

3.3.5   Solar Thermal

3.4  Energy Storage

3.4.1   Pumped Hydro

3.4.2   Compressed Air Energy Storage

3.4.3   Sodium-Sulfur Batteries

3.4.4   Nickel-Cadmium Batteries

3.4.5   Vanadium Redox Battery

4. Key Industry Players

4.1  Introduction

4.1.1   Anglo American

4.1.2   AngloGold Ashanti

4.1.3   Barrick Gold

4.1.4   BHP Billiton

4.1.5   Codelco

4.1.6   Freeport McMoRan Copper & Gold

4.1.7   Galaxy Resources Limited

4.1.8   Glencore Xstrata

4.1.9   Gold Fields Limited

4.1.10 Goldcorp Inc.

4.1.11 Kinross Gold

4.1.12 Lonmin PLC

4.1.13 Newcrest Mining Limited

4.1.14 New Gold

4.1.15 Newmont Mining

4.1.16 Peabody Energy

4.1.17 Rio Tinto Group

4.1.18 Teck Resources Limited

4.1.19 Vale S.A.

5. Market Forecasts

5.1  Key Assumptions and Market Drivers

5.2  Global Market Forecasts

5.2.1   North America

5.2.2   Europe

5.2.3   Asia Pacific

5.2.4   Latin America

5.2.5   Middle East & Africa

5.3  Conclusions and Recommendations