Balama Mine bets on energy transition.
The Balama Graphite Mines, in Mozambique, are the first group of mines to focus on the energy transition priority by approving the installation of a hybrid solar-battery energy system, by CrossBoundary Energy, to be installed shortly.
Mozambique thus reflects a movement towards cost savings and sustainability, due to the increasing risks associated with global energy supply chains.
The Balama Graphite Mine
The Balama mine is one of the largest graphite mines in Mozambique and the world. It is located in the northern part of the country in the province of Cabo Delgado and has estimated reserves of 1,15 billion tons of ore with 10,2% graphite.
CrossBoundary Energy is developing the power project under a build, operate and transfer agreement comprising a 10-year operating lease and an operation and maintenance agreement in Balama.
The solar battery system was approved by the board of directors of Syrah Resources, current holder of the exploration concept, in April 2022 and is scheduled to be commissioned and operational before the end of March 2023.
On average, the 11,25 MWp solar energy storage system and 8,5 MW/MWh battery (BESS) to be installed in Balama will reduce diesel consumption for power generation by 35%.
During peak daylight hours, the solar battery system will be able to supply up to 100% of the mine's energy needs, taking advantage of the high solar irradiance potential of the local location. The renewable energy system is expected to save ~US$8 per ton at a production rate of 15kt per month.
Who are CrossBoundary Energy
CrossBoundary Energy, part of the CrossBoundary Group, was established in 2015 as Sub-Saharan Africa's first dedicated fund for commercial and industrial renewable energy systems, including hybrid energy systems for the mining sector.
It is currently present in more than 10 African countries and has a portfolio of more than $135 million in renewable energy projects for commercial and industrial customers across the continent.
CrossBoundary Energy, funded by ARCH Emerging Markets Partners' Africa Renewable Power Fund (ARCH ARPF) is seeing increasing demand for its hybrid power systems designed specifically for the mining sector.
CrossBoundary Energy President Pieter Joubert said:
“At the moment, solar and wind energy are cheaper and cleaner energy options for commercial and industrial companies, especially in the mining sector, such as Balama”.
"The mining industry is looking to improve cost structures to increase margins and ensure a strong balance sheet during these uncertain times."
“Renewable energy solutions can typically save up to 30% on electricity costs and generate an attractive return on capital due to low upfront capital costs.”
CrossBoundary Energy presents a major shift in the mindset of mining industries, particularly in executive decision making, not just in Africa but globally.
CrossBoundary Energy's fully funded solutions and ability to move quickly meet the decreasing costs of renewable technology. In this way, mining companies can focus their attention and funds on key revenue-generating processes, ensuring cheaper, more efficient and cleaner energy projects in the long run.
Conclusion
Soaring energy prices due to the conflict between Russia and Ukraine is hurting countries most dependent on energy imports. In African markets, consumer industrial and commercial companies are feeling the pinch.
South Africa, for example, recently launched a call for proposals to private producers to provide an additional 2.600 megawatts of renewable energy.
The need to control operating costs along with the pressure to reduce greenhouse gases has never been more evident than in recent months.
Therefore, projects such as those presented by CrossBoundary Energy for the Balama mine are vital for the future of our planet.
What do you think of this energy project for the Balama mine? Is it important that this energy transition be done quickly? We want to know your opinion, do not hesitate to comment and if you liked the article, share and give a “like/like”.
Picture: © TWIGG Exploration & Mining Limited