Presented at the 2013 Society of Mining, Metallurgy and Exploration Annual Meeting (SME 2013). Given the complex regulatory and financial pressures placed upon the mining industry with regard to issues such as air/water quality, emissions and energy efficiency, most organizations need to be equipped with the proper subject matter expertise to be able to manage this process. Learn from a real life example, the necessary steps that need to be taken for an organization to develop an energy management and sustainability process, using services and technology.
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Sustainability Information in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting
1. Sustainability Information in Mining:
Technologies and Processes for Data
Aggregation, Management, and Reporting
Stuart Jackson
Schneider Electric
SME Annual Meeting and Exhibition 2013
2. Schneider Electric Overview
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
3. Content
●Part I: The Importance of Sustainability Information
●Complex Pressures
●Regulatory, Investors, Competitive/Customer, Social
●Energy Cost Incentive
●Energy Costs of Goods Sold
●‘Resources’ Available
●Sustainability ‘Overburden’
●Reporting/Disclosure Requirements
●Part II: What’s a Mine to Do?
●Processes
●Strategy
●Inventory Management Plan
●Technology
●No Spreadsheets
●Enterprise Management Systems
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
4. Complex Pressures
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
5. Regulatory Pressures and Progress
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
6. US EPA FLIGHT
●Facility Level Information on Greenhouse Gases
● Data reported as of January 15, 2013
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
7. Data Mining: New Depths of Transparency
U.S.>Metals>Iron & Steel>State>Indiana>US Steel Corp>Gary Works, Gary Indiana>11,443,640 MTCO2e
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
8. Investor Pressures
●1/3 of World’s Invested
Capital Calls for Corporate
Environmental Data
Disclosure Through CDP
●722 Investors with US $87
Trillion in Assets
●5,000 Requests in 2013
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
9. Customer Pressures
●Customer Questionnaires
● Customer’s Supply Chain
Mining and Minerals
Source: Greenbiz
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
10. Customer Pressures
●Vale asks Schneider to Disclose
Emissions
●Other companies are reaching into
their value chains
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
11. Energy Cost Incentive
●Energy
● Represents ~15% of the
total cost of production
● Affects production costs
●Diesel ranged from $2 to +$4.50
globally for many Schneider
Clients
In the U.S., the mining industry spent
3.2 Billion on energy, or 21% of the
total cost of its supplies (not including
labor)
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
12. Energy – Cost or Asset?
•Competitive Advantage
•Market differentiation
•GHG Reductions
•Lower Energy Costs
•Longer Asset Life
http://www1.eere.energy.gov/manufacturing/resource
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
13. Global Regions – Sustainability Examples
●Though geography, politics, and sectors differ, similarities
exist in the developing sustainability arena
●Lets look at:
●Australia
●Brazil
●Chinese Demand
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
14. Australia – Canary in the Coal Mine?
●Increasing Costs of Business
● High Costs of Labor, Compliance
● Carbon Taxes
● Mineral Resource Rent Taxes (Iron and Coal)
● Water Availability
● Stagnant Commodity Prices
● Cheap US Natural Gas = Increased US Coal Exports
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
15. Brazil -Sustentabilidade
● Growing Mining and Minerals Sector
● Challenges Entering New Markets
● Requires Sound Sustainability Management,
Transparency, Disclosure
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
16. Chinese Demand
●Brazil wants to be part of the market
●Demand is driving more production
which means expanding the supply
chain’s license to operate
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
17. Data Management and Reporting
●The need for sustainability programs is
clear
●Lack of human resource capacity,
clearly defined data collection
processes, accountability, technological
tools to multiply efficiency
●Who, what, when, and where of data collection –
graphics?
●What is the scope of tasks within an environmental
team at a mining company?
●Who does GHG reporting? Environmental
Compliance? Mine engineers? Public Relations?
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
18. Sustainability ‘Overburden’
●EPA MRR, CDP, GRI, corporate reports,
customer questionnaires
●Reporting demands > available resources
●Reporting emanates from wrong
department
● Sustainability is complex, multi-
disciplinary – technical and
strategic
●“Business is Mining Not
Reporting”
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
19. Part II: What’s a Mine to Do?
●Where is the Mining Industry as a whole?
●Evolution of a Sustainability Program
●Processes
●Strategy
●Inventory Management Plan
●Technology
●No Spreadsheets
●Enterprise Management Systems
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
20. Sustainability in the Mining Industry
● The 80% who develop practices
based on common sense in
response to particular context,
which in some cases results in
good work but is generally not
benchmarked to international
standards and can be highly
variable in the quality of both
delivery and outcomes
● The 15% who are well managed,
reporting material issues,
showing improvements, and are
recognized as leaders
● The small 5% segment who want
to avoid sustainable
development issues
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
21. Evolution of a Sustainability Program
1. Develop Sustainability Strategy
• Determine corporate profile
• Set goals & objectives
• Governance structure
2. Implement Reporting Program
• Develop management plan
• Establish measurement & reporting structure
• Operations and Products / Supply Chain
• Set baseline with third-party verification
3. Evaluate Footprint & Prioritize Actions
• Identify portfolio opportunities
• Commit to targets
• Create performance metrics (KPIs)
4. Implement Optimization Activities
• Reduce (raw material, energy, water, waste)
• Renew (renewable energy, recycle, treat & reuse)
• Restore (offset impact, manage credits)
5. Communicate Results & Performance
• Employee & stakeholder engagement / functional teamwork
• Voluntary / mandatory reporting
• Investor / Customer scorecards
• Supplier engagement and performance
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
22. Sustainability Strategy
●Common Sustainability Challenges
● Connecting vision with execution
● Cost/benefit metrics for sustainable initiative decision making
● Determination of materiality
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
23. Implement Reporting Program
●Develop an Inventory Management
Plan (IMP)
● Management and accounting system for
metrics
● Sets boundaries, control methods, &
methodology for emissions
● Defines roles, responsibilities, and
processes for comprehensive reporting
● Who submits data to whom? When?
● What technology is going to be used?
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
24. Leveraging Technology
●Schneider has clients with 1 to >100k sites - Lessons?
●It can’t be done (well) alone
●Spreadsheets are often ‘dead ends’
● Data entry errors
● Analysis and benchmarking are difficult
● Often one person aggregates many
●Mining and Mineral Challenges
● Sites have a small number of ‘viable’ reporters
● Reporters are burdened
● Access to technology can be limited
● Physical availability is scattered
● Sites feel ‘left out’ of seemingly ‘one-way’ process
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
25. Leveraging Technology
●Enterprise Management
Systems
● Utilize data feeds and
interconnectivity of existing
systems
● Utilize Utility Bill Management
(UBM) Providers
● Capture invoice images –
Auditors!
● Train and involve facility-level
data providers – Site EHS
●Contextualize
●Part of the ‘Bigger Picture’
●Help them reach goals
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
26. Evaluate Footprint and Prioritize Actions
●Identify Portfolio Opportunities
● Difficult with Spreadsheets
● Benchmark facilities, processes, production
lines
● Requires accuracy – conversions, UOM’s
●Commit to Targets
● Understand what is feasible
● Don’t over-commit on 2nd targets – many do
●Create Performance Metrics
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
27. Implement Optimization Activities
●Improve Compliance (Report, Mitigate, Remediate)
●Reduce (Raw Materials, Energy, Water, Waste)
●Renew (Renewable Energy, Recycle, Treat & Reuse)
●Restore (Offset Impacts, Manage Credits)
● Considering offset and credit impacts on GHG Footprint
●Processes outlined in Inventory Management Plan
●Leverage technology to adjust inventory, Scope 1 & 2
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
28. Communicate Results and Performance
●Documented in Strategy and Inventory Management Plan
●Employee & Stakeholder Engagement/Functional
Teamwork
●Voluntary/Mandatory Reporting
●Investor/Customer Scorecards
●Supplier Engagement and Performance
●If you’re not reporting, you’re not doing…
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
29. Continuous Improvement
ab le
ta in
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Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
30. Thank You!
Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013
Schneider Electric – Presentation Title – SME 2013
Notes de l'éditeur
Using FLIGHT, this is a deeper and deeper dive into the data that is publicly reported via eGGRT for MRR compliance. Ultimately, you can follow the data to a single facility. In this case, we start at a U.S. Facility level, take a deeper look at the metals sector, take a deeper look at the iron and steel sector, take a deeper look at the state of Indiana, and take a deeper look at the highest emitting facility in Indiana for this sector – US Steel in Gary, Indiana. This level of data visibility puts serious and significant onus on the reporter for accuracy. There will slowly be no more room to hide.
Supplies include materials received, purchased machinery installed, resales, purchased fuels consumed, purchased electric energy and contract work. http://www1.eere.energy.gov/manufacturing/resources/mining/pdfs/mining_bandwidth.pdf
The two equipment types offering the greatest energy savings potential in the mining industry are the grinding and diesel (materials handling) equipment. By reducing the energy consumption of these two processes to their practical minimum, the mining industry would save about 467 Tbtu/yr or 37% of current energy consumption. Energy savings in the chart include the full implementation of state-of-the-art technology and installation of new technology through R&D investments. This study notes that energy saving opportunities reported in this study are independent of one another. (e.g. improving blasting energy savings will increase downstream savings in materials handling, and beneficiation and processing; however these potential downstream savings are not accounted for in this study. http://www1.eere.energy.gov/manufacturing/resources/mining/pdfs/mining_bandwidth.pdf